Where You Can Trade Bitcoin Stock
Bitcoin trading is similar to trading any other security when it comes to the basic principles that are involved. You need to have good market insight and your strategies in place to avoid making a loss. Some loss however will be inevitable, as this is the rule of the game. Nevertheless, bitcoin trading has the potential to make people go from rags to riches if done right.
Those of us who have memories of 2017 still remember how shrewd investors used the price boom to become millionaires literally overnight. Bitcoin trading is lucrative because the volatility of bitcoins creates a lot of room for making profit if you are able to get it right. Similarly there is also a lot of room to get it wrong and therefore if you are an amateur investor then you should take some time to understand how the bitcoin price fluctuates if you want to avoid some serious losses.
You can learn about how a bitcoin stock exchange works here: https://www.smartbitcoininvestments.com/bitcoin-stock/
However, in order to trade bitcoins you will first need to have a place where you can trade bitcoins. We know that if you want to trade in shares then all you need to do now is connect with an online broker, set up an account and you can begin your trading. So how does it go with bitcoins?
Well the process for bitcoins is essentially similar; in fact it is easier than trading securities. If you have already got a stock of bitcoins, this means that you already know how to purchase bitcoins. So you must have a bitcoin wallet. tezbox ico wallet
Now when it comes to bitcoin trading, it all depends on what you are looking for. If you are looking for ease and convenience then Bitcoin exchanges will be just the right option for you.
Trading Through Bitcoin Exchanges
If you have purchased your bitcoin stock through an exchange then you must already be aware of the process. However it is not necessary for one to get bitcoins through an exchange as there are many other ways as well. So let us run through an introduction for the newbies.
Bitcoin exchanges are platforms where you can sell or purchase your bitcoins in exchange for your local currency. There are at present dozens if not hundreds of operational bitcoin exchanges. Some of the top bitcoin exchanges are
There are many others as well. In order to trade on an exchange you will first need to set up an account. For exchanges that are in USA like Coinbase, you may have to go through a strict vetting process that requires your identity verification. The id verification process of Coinbase takes around 2 -3 working days.
Once your account is verified you can trade in bitcoins. If you have got bitcoins in an external wallet then you will need to transfer the coins that you intend to trade in an exchange wallet. Now Coinbase isn`t the only exchange out there. Binance has quickly risen through the ranks to compete with Coinbase and since it is based in Malta, it isn`t subject to the same rules and regulations and therefore setting up an account to start trading requires only a few minutes.
Now you will need to transfer your bitcoins to the exchange that you are using and once the transfer is done, you will simply need to execute a sell order by going to the sell bitcoins page of your chosen exchange and choosing how many bitcoins you want to sell. You`ll get the selling rate and if that makes sense, you can go ahead with the transaction and within moments your bitcoins will be exchanged for your preferred or local currency. You will need to attach your bank details because the currency you receive will need to be transferred to your bank.
If you are looking for a greater profit on trading and willing to forgo the speed then you may be more interested in a Peer to Peer exchange.
Trading Through P2P Platforms
A P2P platform is one where buyers and sellers of bitcoins gather to trade in bitcoins. According to stats P2P exchanges have taken the load of bitcoin transactions and bitcoin exchanges are in the second place because bitcoin users prefer P2P platforms as they more private. Bitcoin exchanges are under local laws and regulations and therefore the identity o the bitcoin users may be accessible for the government.
P2P exchanges are not regulated and therefore they allow users with that privacy cover. All you will need to do to exchange bitcoins with a P2P platform is to firstly choose a platform that you find trustworthy. Like bitcoin exchanges there are dozens of P2P platforms. Local bitcoins is one such platform, Bisq is another. Paxful is also a P2P platform that has recently gained a lot of traction in the market.
Once you have chosen a platform you will simply need to register on it, very much like a bitcoin exchange and once you are through the registration, you can place an offer for your stock and wait till a buyer accepts your offer.
Points to Consider
There are a few points that you should consider before choosing any bitcoin exchange or a P2P platform.
Terms and Fees
Some platforms charge high fees while some charge low fees. Some platforms even charge fees for every transaction that you make while some platforms have also got a lock in feature that bars you from selling for a certain time after you have made your sale or after you have bought bitcoins. Before you choose your exchange or P2P platform, you should check out if the terms and rates that are offered by the site are acceptable to you or not.
Bitcoins are not legal in every country. There are certain countries where trading in bitcoins can land you in trouble. So before you choose a lumen stellar secret key bitcoin exchange or P2P platform please make sure that trading with the exchange/platform is allowed in your country or not. Coinbase for example doesn’t deal with users in Pakistan, however Binance does. So you`ll need to be careful with the legality aspect of trading.
This is a very important factor to look out for. Before you choose any exchange or platform, make sure to check firstly if it trades in Bitcoins or not. Next you need to check the liquidity factor of the site. How long does it take for a typical sale to go through. This is applicable on the P2P platforms because on Bitcoin exchanges your sale usually gets through instantly. If you make the error of going for a P2P platform with low liquidity then you may regret your decision. Some platforms like Bisq have got really low liquidity, so just take your time to carry out your due diligence first.
Lastly, it must be said that if you are looking forward to crypto trading then take your time to learn trading strategies. Crypto currencies like bitcoin are extremely volatile and while yes this is very lucrative, this can also be disastrous if you get your timing wrong. A little caution and preparation will take you a long way.