A guide to bitcoin for beginners

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Date: 17 December 2020

Trading platform with different cryptocurrencies

Before taking your first steps with bitcoin, there are a few things you need to know. Firstly, it is the most popular cryptocurrency and was first invested in 2009 by Satoshi Nakamoto. It was launched specifically for making online, global transactions. It offers many advantages when making business payments or trading, and many are investing in it now too.

Some predict that bitcoin represents the future of currency thanks to the benefits it offers users. If you're considering investing in bitcoin, you should start by looking for a bitcoin exchange where you can buy them. There are many exchanges, so make sure you choose one with a reputation for reliability to get the best results and services.

Once you have invested, you need to look for trading software such as bitcoin evolution so that you can start to trade and make money. Before trading, it makes sense to bring yourself up to date with the latest trends, news, and updates in the bitcoin market.

Get a bitcoin wallet

Another steps you should take early in the process is to get a bitcoin wallet. If you're serious about investing in bitcoin or trading, it's crucial you get a safe, reputable, and reliable wallet to store your bitcoin once you and bought them. The wallet is used for making transactions and sending or receiving bitcoin. There are four main types of wallet:

  1. Software-based wallet
  2. Hardware-based wallet
  3. Desktop wallet
  4. Mobile wallet

They differ from each other in their terms but their main function (storing, sending or receiving bitcoins) is the same although hardware-based wallets are more secure and safer than the other options. When choosing your wallet, check the safety features. Ask if the wallet accepts other cryptocurrencies and check the charges so that you get the right wallet solution for you.

Choose a reputable exchange or BTC trading platform

After setting up your wallet, you need to choose an exchange for buying bitcoin. Look for one with low charges or fees, good safety and security, a robust reputation and good customer support. Choose a high-volume trading platform because that enables you to trade a larger number of assets.

All that remains, is to create a new account and you can begin buying bitcoin, transfer them to your wallet and commence trading. It's possible to earn sizeable profits from trading although no investment is guaranteed in stone.

Why does the price of bitcoin fluctuate?

If you want to successfully trade bitcoin, you need to understand the reasons behind bitcoin price fluctuations. There are three key factors which result in bitcoin price fluctuations:

  • bitcoin demand
  • fluctuations in the wider financial market
  • performance compared to other currencies

You should make sure you're up to date with all the latest information on the bitcoin market. The more you know the easier it will be to make sure your investments move in the right direction.

Copyright 2020. Featured post made possible by Thomas Carey

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