In 2017, Bitcoin saw strong growth and people made a lot of money along the way. Bitcoin is still one of the most lucrative markets today. If you are just a beginner, you might want to do your homework before investing any money in bitcoin. Below are 5 expert tips that can help you avoid some common mistakes when trading Bitcoins.
1. Learn the basics first
First, you might want to learn the basics so you can get a better idea of how to buy and sell bitcoin. Also, you may want to read best site to sell bitcoin in ghana reviews of popular bitcoin exchanges to look for the best platform.
As with other types of financial investments, you may want to find ways to protect your investment. Make sure your assets are safe from scammers and cyberattacks. After all, security is the most important aspect of any type of investment.
2. Look at the market capitalization
It is not a good idea to make this type of decision based solely on the price of the coin. However, the value of the cryptocurrency is only valid if you consider the existing supply in circulation.
If you want to buy Bitcoin, don’t focus too much on the existing value of the currency. Instead, you should consider the aggregate market capitalization.
3. Invest in Bitcion instead of mining Bitcoins
The bitcoin mining industry is rapidly gaining popularity. At first, it wasn’t all that difficult to earn bitcoins by cracking the cryptographic puzzles. Later it was only possible to mine Bitcoin in special data centers.
These centers are full of machines designed to mine bitcoin. If you want to build a mining center at home today, you may have to spend millions. So it is better to invest in Bitcoins.
4. Diversify your investments
New Bitcoin investors tend to have a short-lived passion for cryptocurrencies. In fact, Bitcoin allows you to diversify your investment risk. If you invest wisely in cryptocurrency, you can enjoy the same rewards as investing in Forex. All you have to do is develop a solid risk management strategy.
In other words, you might not want to put all your eggs in the same basket. So you might want to invest in other cryptocurrencies as well.
5. Set clear goals
Since bitcoin is a new market, you may find it difficult to know the right time to trade bitcoin. Bitcoin value is volatile, which means you should have clear goals in terms of profit and loss.
Perhaps you don’t want to make the mistake of making investment decisions based on your emotions. Smart steps can help you minimize losses and make good progress.
In short, if you want to invest in Bitcoin, we recommend that you follow the tips in this article. In this way you can make smart decisions and be on the safe side at the same time. Just make sure you avoid the common mistakes of running this business.
Learn how to exchange bitcoins
Choose an exchange service.
The easiest way to get bitcoins is to use an online exchanger. The approach that an online bitcoin exchange takes is very similar to the method that currency exchanges take. All you have to do is sign up online and convert your fiat currency to bitcoins. You can find numerous online bitcoin exchanges, the best choice for you is to choose the one you are on. Here I offer you a list of the most stable and reputable online bitcoin exchanges:
CoinBase:
Probably the best known. This exchanger offers you exchange services, wallet creation and bitcoin trading. They actually have mobile apps, making it even easier to buy or trade your bitcoins.
Circle:
If you create an account there, you will be able to store, receive, send and exchange your bitcoins.
Xapo:
This organization will send you a debit card so you can use your bitcoin in your favorite fiat currency.
Some exchange services also allow you to trade bitcoins.
Some of these exchange services allow you to trade your bitcoins. You will find bitcoin exchanges that limit the amount of bitcoins you buy and sell on a daily basis. Many of these exchange and wallet systems store digital and also fiat currencies for you, very similar to what regular bank accounts do. These exchangers and wallets are incredibly good if you want to get into trading and don’t necessarily need 100% anonymity.
Provide the service with proof of identity and contact information.
Once you sign up for an online bitcoin exchange service, you will need to provide your personal information to properly create your online account. Many countries require members to meet anti-money laundering criteria, so you should provide proof of identity.
You have to keep in mind that online bitcoin exchanges do not offer you exactly the level of security that banks can offer. In other words, you may not be protected from hackers or get a refund in bitcoin in ghana cedis case the online bitcoin exchange goes out of business.
This of course depends entirely on the exchanger, some have more powerful security systems than others and some are even more economically stable than others.
Buy bitcoins with your exchange account.
After you finish setting up your account for the online bitcoin exchange service, you need to link it to your bank account so that you can easily send and receive money between the two platforms. Fees may apply for transferring cash from your bank to the online platform and vice versa. You must read all the details on this subject in the online exchange systems and in the help/faq sections of your banking platform.
There are exchange offices that allow you to personally fund their bank account. One way or another, it is highly advisable that you choose an online exchange platform based in your country. Some file sharing sites may also limit their members to registering only if they live in the exact country they are in.
However, there are money changers that allow you to transfer cash to foreign accounts. Keep in mind that fees may be higher if you choose to continue down this route and it may include a hold period on your money’s availability.
