Today the potential of cryptocurrencies in terms of returns is practically known to everyone, but where should you start when trading Bitcoin? How much capital does it take to get started? What are the risks associated with investing in more traditional assets?
The purpose of this guide is exactly to dispel all these doubts and understand what is the path to follow to become a highly performing crypto trader and maybe someday make a living from trading.
So let’s start with the main question: Why invest in Bitcoin? Surely for the excellent profit opportunities that this digital asset offers, provided you know how to recognize real investment opportunities and use only safe and regulated intermediaries.
Where and how to invest in Bitcoin? There are several options available, but our advice is to only use safe and regulated platforms. You should also use the right tools that will guide you in the market. Look for the best bitcoin converter to help you understand the exchange rates. With that, let’s look at some of the important strategies to invest in Bitcoin.
Know the Asset
The first and most important of the rules for investing in Bitcoin is knowing how the asset works. Various online guides and platforms will help you know how different assets work. Take your time to understand them better.
Choose Only Reputable Brokers
As already mentioned, Bitcoin trading is as popular as it is the object of attention from inexperienced subjects and people who, instead, divulge ineffective or fraudulent advice. For this reason, it is necessary to contact only authorized and regularly licensed platforms.
Those who want to buy Bitcoin face two alternatives. The first is to use Exchanges, that is platforms for the exchange of tokens that are not regulated and therefore are not always able to guarantee optimal levels of security.
Precisely because of the lack of regulation, even the most famous exchanges, such as Binance or Coinbase, often have had problems both with the authorities and with the management of dissatisfied customers which in some cases has turned into a real class action.
The second possible alternative concerns the choice of the best platforms for cryptocurrencies, serious and reliable brokers as well as subjected to supervision by the relevant authorities.
Observe the Quote in Real Time
When deciding to start trading, it is crucial to take charts into consideration. These tools allow you to see the overall historical trend of a given asset and if combined with the data of the technical analysis indicators, they also allow you to make accurate predictions of its future trend.
All the brokers listed in the previous lines allow you to view the graphs updated in real time with the quotation of cryptocurrencies and to obtain useful information to open a position with awareness.
Don’t Be Alarmed by Sudden Collapses
Before investing in Bitcoin, it is good to deal with the fact that although extremely profitable, the value of BTC is extremely volatile.
What solution? In this case, CFD contracts are definitely very useful, given that thanks to short selling they allow you to obtain profits even in the market phases in which the price of Bitcoin falls.
Make Effective Predictions
The market is anarchy. It is, therefore, necessary to make effective forecasts on the trend of Bitcoin. That’s why it’s good not to wonder too much about the right time to start trading with the best cryptocurrencies in question. It may not be so profitable to start when the value is at an all-time high, and everyone is investing.
The same can be said, however, with regard to the collapses, the waiting for which can turn out to be a fatal error. For this reason, it will be useful to use suitable forecasting tools to predict with good probability the future movements of Bitcoin.
At this point, it is necessary to study the best trading books and learn the main rules for investing or doing technical analysis, or to rely on forecasts made by experts.