How to trade and buy bitcoins
How to trade and buy bitcoins
1. How to trade bitcoins
2. How to buy bitcoins
1. How to trade bitcoins
Bitcoin trading means the method or steps by which one can speculate on the price movements of the encrypted currency in the market, i.e. buying bitcoin through the stock exchange in the hope of a price increase so that traders use financial derivatives such as contracts for difference to speculate on the rise and fall of prices,[ 1] Here are the steps to trading Bitcoin:
Learn what drives the price of Bitcoin
Knowing the factors that affect the price of Bitcoin and then tracking them and seizing the appropriate opportunity is the first step in the trading process and among these factors; Bitcoin supply, advertisements, user movements, breaking news in newspapers, or developments of Bitcoin integration into payment systems that may increase or decrease the amount of demand.
Determine how to trade bitcoins
There are many methods through which bitcoins can be traded, and the role of the trader in this step comes to choose the method that suits him, and the methods of trading bitcoins are as follows: [1] Daily bitcoin trading is used by traders who wish to obtain profit from short-term price movements so that they take advantage of the fluctuations Daily currency, and this method means opening a position for one day only, i.e. exemption from overnight financing fees. Directing bitcoin trading In this method, a position is sought that is in line with the current situation in the market for the currency of bitcoin. If the market is moving upward, buying is done, and if it is moving downward in prices, selling is done, and here the current position is closed and another one is opened in line with the situation. Hedging Strategy (HOLD) This method means buying and holding bitcoins if you have a special or almost certain view of its price in the long term.
Determine the next move (buy or sell?)
Trading financial derivatives allow the possibility of both buying and selling, which can be determined based on market data; Buying means expecting the price to go up, and selling m and sellingeanssellingmeans expecting the price to go down.[1]
Monitor the market from time to time
The purchase process takes place in the event that if the price is expected to rise, while the sale takes placifat the price is expected to decrease, and this is what requires monitoring and tracking of the market, its sentiments, and the latest movements to ensure that things proceed as expected in reality.[1]
Close the position to take profit or reduce loss
The trader may reach a certain level of satisfaction with the profits or a level that puts him at risk of losing, and here he can close the position, which will transfer the profits to his trading account while the losses are deducted from the balance.[1]
2. How to buy bitcoins
When buying bitcoins, the value of the currency is exchanged with a person, company, or institution within specific protocols and with almost absolute trust, which opens the opportunity towards a new digital world in the world of currencies,[2] and bitcoins can be purchased mainly through the following steps:
Choose where to trade cryptocurrency
This is the first step in the Bitcoin purchase process, where sellers and buyers meet to exchange currencies for money, and here the method of exchange is determined that depends on experience and knowledge of the market, as each trader can choose what suits him, and often the purchase is made through a special wallet or through special purchase platforms.
Select payment option
In the second step, how to fund the account or how to pay is determined. It may be from a current account, cryptocurrency wallet, credit card, PayPal, etc., as the method is chosen depending on what the merchant owns and the appropriate fees imposed on each method.
First-time purchase (place order)
Once the merchant's account is funded, he can submit his first request through the system he chose, and here the amount he wants to invest in the world of bitcoin is determined; As the investment, percentage will be determined based on the current currency price and what was paid in it.[3]
Select the secure storage option
This is one of the most important steps to protect bitcoins from theft when they are left available on the Internet, and here the merchant chooses the appropriate method to save them from theft, such as storing them through the cold storage process (offline) or storing them in a secure wallet on the Internet, or following the preservation system of an entity External currencies can, of course, be sold in the end, in whole or in part, and at a time that suits its owner