Bitcoin was worth pennies just a few years ago. Today it is worth more than $7,000 (6,000 Euro). This shocking rise in value indicates an investment the like of which the world has rarely seen. What’s more, analysts project that Bitcoin could be worth much, much more in the not-too-distant future.
If you want to start trading Bitcoin while the prices are still (relatively) low, here are five steps for easy Bitcoin trading to get you started.
1. Make Sure Your Bank Allows Bitcoin Purchases
You can buy Bitcoin with USD and other fiat currencies like pound sterling at Bitcoin exchanges like Coinbase. However, some international banks like Wells Fargo have banned Bitcoin purchases with its debit and credit cards. Use a bank that allows Bitcoin purchases, or use a secondary Bitcoin exchange option like Gemini to trade as you please.
2. Spend Only What You Can Afford to Lose
There’s no guarantee that the Bitcoin price will increase forever. Though there are good reasons to believe that Bitcoin will continue to ascend, invest only what you could afford to lose, or that which you don’t need to access for a few months or years. It may take that long to turn a significant profit.
3. Create an Account With an Altcoin Exchange
Bitcoin exchanges like Binance allow users to trade Bitcoin for hundreds of altcoins, like NEO or ARK. Create an account, fund your new account with Bitcoin you’ve purchased elsewhere, and trade for altcoins with bright futures.
4. Store Bitcoin and Altcoins Safely
You can’t trade Bitcoin if you don’t know how to keep it safe. A secure Bitcoin wallet is essential for long (and short) term storage. A hardware wallet like the Ledger Nano S can keep your Bitcoin safe for a long, long time.
5. Be Patient
Bitcoin might not become a new global standard for currency next month. If it succeeds, its rise will likely be a gradual thing. Don’t be tempted to trade Bitcoin away just because the price doesn’t double in a week or two. If you can keep your Bitcoin until it has truly taken the world by storm, you’ll be a much more successful investor.
No one knows what is going to happen with the price of Bitcoin. But if Bitcoin’s price continues to rise, these Bitcoin trading tips can get you on the road to profit quickly.
Featured image source: Flickr