When bitcoin first appeared in 2009, no one thought that it would gain popularity so quickly Know about, and for many people it would become not only an alternative to traditional currencies, but also a form of investment. Today, virtually anyone can trade cryptocurrency. How can we do this so that we can feel safe and comfortable?
Bitcoin has the advantage over traditional currency that it is not supervised and regulated by any government or financial institution. Then the Transactions made with it are not burdened with expensive commissions and have no restrictions.
No wonder the popularity of this cryptocurrency is growing rapidly. On May 25, 2017, the first this year’s record was broken, when the bitcoin network recorded transactions worth a total of $ 1 billion 209 million 302 thousand 552 within 24 hours. It is worth adding that the number of bitomats (bitcoin ATMs) is also growing in the world. Currently, there are over 1000 of them in all countries, and a few more are added every day.
Governments and financial institutions are also looking at bitcoin with increasing interest. The Bank of Canada even released a report in September 2016 that examines the various factors that affect the currency’s exchange rate. Such as transactions, medium to long-term speculation, and use in trading. This is good news for all those who want to see bitcoin as a long-term investment. How and where to trade it?
BUILDING A BITCOIN WALLET
Before we start thinking about trading bitcoin and investing in this type of currency. We should first of all choose the right bitcoin wallet in which to store it. We just need to get private keys that allow us to access the currency and carry out transactions.
Before we choose a wallet, it is worth considering whether we will store significant funds in it and whether we want to use it only on our computer, phone or on any device in every corner of the world. We can choose from wallets in the form of applications, offline wallets (acting as safes), browser, mobile and hardware wallets in the form of a USB key.
For storing more bitcoins in the long run, it’s best to choose PaperWallet. BitGO will also be convenient for novice users, and over time you can start using the official Bitcoin Core wallet. In addition to bitcoin, we also offer alternative virtual currencies: Dogecoin, Litecoin, Ethereum, Dash and Monero.
For your own security and convenience, diversify your funds between different wallets. If you want to trade cryptocurrency visit online exchanges.
WHERE TO TRADE CRYPTOCURRENCY?
Once we have chosen the right wallet, it is time to stock up on bitcoins. This can be done using different solutions. Increasingly, digital currency is available in online exchange offices (e.g. cryptoins.com).
The most popular places to trade bitcoin, however, are exchanges, which on the one hand guarantee the greatest security when concluding transactions, and on the other hand, they provide the opportunity to buy and sell cryptocurrencies in the most profitable way. On exchanges, the price of bitcoin is set by the market itself, taking into account supply and demand.
You can choose from foreign exchanges (some of them can also trade litecoin, a Trade cryptocurrency inspired by bitcoin, but with the prospect of producing four times more of it than in the bitcoin network, such exchanges often do not use your national currency).
In such places, it is enough to create an account (often also a company one), which we then supply with the appropriate currency or bitcoins. We can place buy and sell offers here, and on some exchanges also trading with leverage, i.e. with the involvement of additional capital to execute orders, is also available, similar to Forex.
More and more investors consider bitcoin to be a good alternative to gold and a promising investment. We should not consider it merely in terms of a currency that can be conveniently paid.
Rather, it is worth considering bitcoin as an investment of capital, especially as trading it is not complicated. It should be emphasized that you cannot print bitcoins indefinitely (their final number has been set at 21 million). This means that the number on the market is limited, as is the amount of the Earth’s natural resources.
AN EXAMPLE WOULD BE CRUDE OIL
when its reserves shrink, the price of the raw material in the markets rises. A similar situation is observed in the case of bitcoin – half of its resources have already been extracted, to which the markets are responding with an increasingly stronger upward trend. This is the best time to earn money on bitcoin. Have a Happy Investment!