Cryptocurrencies, and especially Bitcoins are still one of the most popular digital money, and even when the value varies every day, people are getting more and more interested and attached to the blockchain network, used to mine and save these coins on e-wallets.
There is a reason why people are interested in Bitcoin more than any other cryptocurrency, and one of them is its stability and the safe-haven status that was gained in the last decade. But, before you take any action at the crypto market, you need to understand the basic terms in the crypto language, including:
This is an action when you invest real money, so you can purchase appropriate equipment for mining, or when you’re buying digital coins and tokens, so you can trade and exchange, or with simple words said, to stay active in the blockchain network.
Mining is the process of solving math and cryptographic tasks so you can “dig up” the Bitcoins from the so-called blocks. Every action is followed by a history log known as “proof of work”, that means no one can get scammed, and if there is some problem, it can easily be fixed by finding the needed log. Transactions are safe and verified too.
Trading is the action of buying cheap crypto coins and wait for the right time to sell them for a better price. You can do it by offering your crypto savings, finding someone who is willing to buy them for money or another cryptocurrency, or simply putting it on a trading platform and wait for someone to buy it.
- Digital currency exchanging works similar to the real-life exchange offices. You always know how high or low are the exchange rates, and you can decide whether you’ll exchange your crypto money for fiat money, or some other asset.
What is the safest way to trade Bitcoins?
Every experienced trader will recommend you to use the legal and legitimate platforms for this action. They are easy to use, understandable, stable, and offer nice customer support that will solve every issue you might have during the process. As we can learn from techgenyz.com, a lot of professional IT technicians and crypto experts stay behind these platforms. You only need to find the right one for you and put a little effort to study it and learn how it works. When you gain more experience, you will have a crypto network around you and you will be more comfortable with direct trading. But, until then, stick to these platforms and start earning from your crypto savings.
Save and then trade
In order to start trading, you need to have some savings kept on your crypto wallet. You can also follow the rates, but trust your guts at the same time, so you can decide is it worth trading right now, or you need to wait for a little until you try it for the first time. This process can be pretty tense because there is always a great risk of losing your savings. You also need to avoid panic selling when the prices drop. It’s always a better idea to wait for a little until the rates get more stable, and then decide what to do. Keep in mind that your savings are always safe and protected when withdraw on your e-wallet. Once you complete that transaction, you need to use the wallet to reach to your savings.
Know your limits
Crypto trading can easily be compared to gambling because the situation is not always clear and it brings a lot of risks. But, on the other hand, you need to know your limits and control yourself, especially when you have an urge to trade bigger. You are a smart person and you know that you don’t need to trade all the Bitcoins you own. Instead, try to set a reasonable limit, so you can determine your goals and just stop when the situation is not clear or it looks risky and not safe.
Learn how to analyze the market and stocks
Before you take any action, you also need to have some theoretical knowledge in this field. It’s not enough to be a little informed about the topic. Bitcoins basically are money you use for your crypto actions and you risk a lot if you trade them without a plan and previous analysis. Many traders think they can predict when the prices will rise or drop, so they save their strength for the days when it’s worth investing and trading.
Read the news and follow the crypto events
The biggest names in the crypto industry usually hold annual meetings and events with the investors and traders. Sadly, this year these actions were stopped due to the coronavirus pandemic, but some experts decided to move their lessons online, using social media, so they can reach more potential investors. If you really are interested in trading Bitcoins, you should set the crypto news websites on your homepage and refresh them every day, so you can always stay updated with what’s new.
What are the most common mistakes in this process?
We can’t fully stop us from making mistakes, but we can surely prevent some of them by upgrading our knowledge and not taking risky steps. Even though most of the traders are aware of the most common mistakes, there are cases when the still make them, and sometimes the experienced people take a big part of the damage.
They have a high level of self-confidence and they are sticking to their experience, thinking that they can’t make anything wrong. Some of them are risking more than they can afford, but that’s a characteristic of the bad traders and people who make impulsive decisions.
Then, you need to have a plan for what you are going to do. We don’t go to the toilet without a plan, so you can imagine just how important it is to the crypto business. Only by staying informed and following the basic rules of this game, you can become a profitable Bitcoin trader in 2020.