After bitcoin appeared to be an investment asset, people worldwide started investing in it. We had seen many investors becoming billionaires or millionaires in 2021 when the price of bitcoin skyrocketed. The bitcoin mania boomed after the trend of trading bit-es.co in the short term began. Many are there hoping to pick some profit made out of minimum investment in a really short period. Day trading has almost become the only practice now.
However, despite most people seeing the face of profit, some also lose their money here. The main reason can be inadequate knowledge and jumping into this volatile market without planning. Here we have described a proper way to start investing in bitcoin, either for the long run or short. Follow these few steps and practice them to become a wise bitcoin trader.
The initial steps you must not skip:
Bitcoin trading is not a thing that, one fine morning, you start suddenly, invest some of your money, and win a lot of profit. But, you need mental preparation besides making yourself knowledgeable about the market. When you prepare for investment, you should start the research and define why you want to enter the crypto world. Here are a few questions that you need to ask when planning to invest in cryptocurrency.
- What is your intent of investment?
- Are you sure about putting your money into the volatile market?
- Do you have a risk tolerance if your money gets lost?
- How much are you aware of the risk factors of the market?
These are some basic questions. If you are ready with the answers and satisfied with your knowledge, you can proceed further.
Steps to invest in bitcoin:
Bitcoin investment involves simple steps, especially using a centralized bitcoin trading platform. Here are the steps-
- Search for a genuine trading platform: It is one of the most important and the first steps that many new investors don’t take seriously and get into trouble because there are a lot of crypto trading platforms sprouting out the market, and not all of them are genuine. Try to find the right one by reading customers’ reviews, checking popularity and reputation, or talking to the officials. Don’t miss to check the number of cryptos available on the platform.
- Register with it: Now, register with the trading platform that you have chosen. This step might include verification of some of your IDs. However, it is a simple and fast procedure.
- Open a bitcoin trading account: Once you are registered with the platform, an account will be opened that will be your bitcoin trading account and all the transactions will be done through this account.
- Link the account with your bank account: You now have to link the trading account with any of your bank accounts. Link the account you think is suitable for constant fund transfer during your trade.
- Transfer some funds to it: As you purchase bitcoins for the first time, you need to have some initial cash in the trading account. Transfer some amount from your linked bank account to this account.
- Buy bitcoins: You are good to go for the buy option. Here you will be offered two methods. You can choose any of those options to buy bitcoins.
- Market order: A market order is when you buy bitcoins at the current market bid price. Don’t forget to check the market price before you opt for this option of buying bitcoins.
- Limit order: This is a safer option. Here you can set a limit price, and when the market price reaches that set price, the platform will automatically buy bitcoins. Here the amount of profit might be less, but your risk amount is lessening down on the other hand.
The full article is about how to invest easily in bitcoin with some ideas on how to be a wise bitcoin investor. Being a bitcoin investor or trader is simple, but don’t you want to make a secured profit? Don’t you want it to be continued? Knowing just the steps will not help if you want, but you have to practice making yourself better at trading cryptos by gathering more knowledge and practising trading.