Beginner's Guide to Bitcoin Trading

In November 2021, the market value of cryptocurrencies surpassed the much-anticipated $3 trillion mark, demonstrating the potential of a decentralized currency. Market capitalization is predicted to stay above $2 trillion in 2022.

Cryptocurrencies like Ethereum, Litecoin, and others are also worth keeping an eye on because they can be used for a variety of purposes, including data storage, gaming, and finance.

Is it still a smart idea to invest in cryptocurrencies in 2022, considering this? The most important concerns about how to trade Bitcoin, how to establish strong crypto investing portfolio, and the future of the last decade's greatest performing financial asset will be addressed in this guide.

Step-by-Step Instructions on How to Trade Bitcoin

To start trading BTC on eToro, follow these instructions. The four key steps to trading on eToro take only a few minutes to complete. Let's start with an overview of how to trade bitcoin on eToro.

Step 1: Sign up for an eToro account

It's easy to join eToro by heading to the homepage and choosing "Join Today." A short form will display, asking for your personal information and instructions on how to set up your login credentials. To remember your username and password, you may join up using your Facebook or Google account.

Step 2: Insert your ID

Then, to establish your identity, submit a copy of your driver's license. eToro must complete KYC (Know Your Customer) on you before you may trade bitcoin. There are 2 methods to this procedure. The first step involves uploading a copy of your passport, driver's license, or visa to prove your identification. After that, you'll be prompted to verify your residence by uploading a utility bill or bank statement.

eToro responds quickly to your papers, and most accounts may be verified in a matter of hours.

Step 3: Make a deposit

The money must then be deposited into your account. A deposit of at least 200 GBP is required. There are a variety of deposit options. An eToro account can be funded via bank transfer or credit/debit card. E-wallets, such as PayPal and Skrill, are also accepted. You can add additional currencies to your account in addition to USD, GBP, and EUR. Withdrawals have no fees or charges attached to them, and they appear in your account almost instantly.

Step 4: Invest in Bitcoin

Then you'll be able to trade Bitcoins. To buy Bitcoin or BTC, type the amount in the search bar and then click the order button.

What exactly is Bitcoin?

Bitcoin (BTC) is the most popular cryptocurrency in the world, and it is regarded as highly speculative. Before you invest in Bitcoin, you should first learn how it works. Satoshi Nakamoto, a mysterious developer, created the digital currency in 2009, which led to its popularity and scalability.

Satoshi Nakamoto is credited with not just inventing the technology that has allowed Bitcoin to achieve its present degree of popularity and scalability, but also with establishing the concept of Bitcoin itself. Bitcoin does not have a central bank or a single owner. Bitcoin is a decentralized digital currency at its core. It cannot be manipulated because of its decentralized character.

Bitcoin cannot be manipulated or printed in the same way that existing currencies such as the dollar and the pound can. Every ten minutes, bitcoins are generated automatically. As more Bitcoins are created, the price will rise. It is possible to move bitcoins from one account to another. Despite this, many people continue to buy bitcoins as a form of investment. The value of bitcoin is expected to rise in the future, allowing them to cash out at a better price.

ETFs that invest in bitcoin

Investors can indirectly participate in the Bitcoin market by purchasing bitcoin exchange-traded funds (ETFs). If investors own Bitcoin ETFs, they are unable to hold and trade Bitcoins on larger exchanges.

In October, the New York Stock Exchange introduced a Bitcoin futures exchange-traded fund. Futures contracts, unlike real Bitcoin, frequently back ETFs that monitor Bitcoin futures. Investing in exchange-traded funds (ETFs) is a regulated financial product.

The convergence of ETFs and Bitcoins was unavoidable as their popularity expanded. Investing in the bitcoin market directly through Bitcoin ETFs eliminates the need to buy bitcoins. Based on our currency calculation, the current value of Bitcoin is 54.35 lakhs.

CFDs on Bitcoin

Cryptocurrencies are also gaining popularity as a substitute for traditional investments or CFDs.

Bitcoin's price surged to more than $19,000 by December as a result of the significant media coverage generated by its rise in value. Bitcoin's value had risen from roughly $1,000 to over $19,000 by December of that year. When prices move quickly, trading becomes more crucial.

Bitcoin futures contracts are now available on established exchanges like CBOE and CME, further confirming the new asset class.

The most frequent way for people to learn about cryptocurrencies is to buy them and put their money into them. However, there are certain drawbacks. The first thing to keep in mind is that bitcoin transactions take longer to complete than forex exchanges that are instantaneous. Unregulated exchanges have also been found to have hacked Ethereum and Bitcoin wallets.

Futures on Bitcoin

ETFs, like stocks, can be bought and traded. Unlike mutual funds, however, ETFs can be bought and sold at any time during market hours. Bitcoin ETFs, for example, allow investors to make contractual arrangements to buy or sell Bitcoin at a set price in the future. Commodity trading is commonly utilised to do this.

The Benefits of Bitcoin Trading

1.      

Transactions that are lightning-fast:

A fiat cash transaction can take days, if not weeks, to complete. With cryptocurrencies, this is not the case. Your money will be sent immediately, no matter what time it is! Because there are no middlemen, there are no delays or hassles. To send Bitcoin to a friend in another country, go to the Bitcoin Loophole website. The transfer will be carried out without any constraints once you provide the recipient's bitcoin address (unless the recipient reverses the transfer).

2.      Transaction Fees Are Reduced:

Is it feasible to make a larger withdrawal from your bank account than $35? If you withdraw more than $1000, you may be charged. Unlike Bitcoin transactions, which are fee-free except for a modest transaction charge, Bitcoin transactions are fee-free (for processing the transaction). As a result, you do not need to be concerned about this.

3.      Personal space:

Bitcoin transactions are anonymous for people who value their privacy. Owners of bitcoin wallets have a public key that serves as their bitcoin address, and this key is the sole piece of information needed to complete a transaction. Bitcoin, unlike credit cards, requires your name, address, and other personal information. You only need the recipient's address to take payment!

Bitcoin Trading Risks

At this time, cryptocurrency development is still in its infancy. Bitcoin has been around for over 10 years, but it has yet to mature into a truly robust currency. It is impossible to anticipate the market's future due to all of the changes in the market over the last several years. Bitcoin's value may eventually plummet. Investors should proceed with care and thorough diligence while considering this investment. Take steps to protect your assets in advance of the market's future.

2. Are you looking for a currency or an investment opportunity?

Cryptocurrencies have the potential to be extremely useful online vehicles of exchange. Bitcoins, on the other hand, are frequently purchased as investments in the same way that stocks are. Bitcoin is thought to be a suitable retirement investment by some. Investors, however, incur risks when there is no regulation, no tangible collateral, and markets that are constantly altering. Bitcoin may have some advantages, but it is best to proceed with care. It is preferable to make tiny investments and take small steps.

3.      Economic Loss

Bitcoin is frequently referred to as a Ponzi scheme, in which the wealthy profit from the gullibility of the masses. The bubble economy grows as more individuals acquire bitcoins. Bitcoin will become worthless when the bubble bursts. Many people will hold onto cryptocurrency, hoping to sell it, but cannot do so because of the bubble. The investment that does not provide a return causes a significant financial loss.

Is it Legal to Trade Bitcoin in the United States?

Bitcoin is the most widely used cryptocurrency at the moment. Bitcoin may now be bought on a variety of platforms, including exchanges, brokerages, crypto wallets, and even electronic wallets such as PayPal.

All residents have access to the eToro brokerage platform. Because of its simplicity, convenience of usage on mobile devices, and ability to copy other traders, it appeals to younger investors. People feel more at peace when they can acquire and sell sophisticated assets like Bitcoin more readily. There are no commission costs with eToro, so you get to retain more of your hard-earned cash.

Trading Strategies for Bitcoin

1.     

Do your homework

DYOR is a popular crypto acronym. However, before you invest, make sure you do your homework.

As much information as possible should be gathered. Experts can also provide useful information online or through social media. In addition, there are a plethora of review sites that provide useful information.

2.      Be wary of dubious schemes

The bitcoin industry draws scammers and anyone looking for victims due to its highly unregulated nature. As a result, examine the security quality of any cryptocurrency platform before investing. This is something that online reviews may assist you with.

Furthermore, we advise only dealing with licensed brokers. eToro, which is regulated in multiple countries, has a long history of success, and using a service like this is far safer.

3.      Invest Only Money You Can Lose

In general, cryptocurrencies are dangerous, and Bitcoin is no exception. As a precaution, only invest money you can afford to lose.

To invest in Bitcoin, you shouldn't have to lie to yourself or take out a loan. Rather, only invest when you have enough money to lose if things go wrong, and be prepared to lose your entire investment.

Investing and trading in Bitcoin is simple, even for newcomers. Along the way, your trading and financial skills will grow. You'll be making a lot of money before you know it.

Is It Too Late to Invest In Bitcoin?

When Bitcoin hit a new all-time high of about $67,000 per coin last week, many people assumed they would never be able to participate in it due to its high price. The question they're posing is, "Is it too late to invest in Bitcoin?"

It will be too late if every Bitcoin is mined, staked, and stored in a secure online vault or cold storage device. The end of money is approaching, especially when you consider that there are approximately 48 million millionaires on the planet and only 21 million Bitcoins will ever be produced.

To summarise, even at these high Bitcoin valuations, it's a good idea to dollar cost average or invest as much as you can each week or month, even if you can't afford it. Particularly since the grandfather of all crypto-currencies can be purchased in fractional amounts. Once the currency has been purchased and safely stored, its value is likely to rise even further.

The Best Bitcoin Trading Platforms in the United States

1.      

eToro - Overall Best Bitcoin Trading Platform

Bitcoin traders like trading on eToro, a popular cryptocurrency exchange. This online broker offers a diverse variety of assets and markets through which you may invest in the most popular digital currencies. You may buy Ave, Kyber Network, and Augur Defi tokens in addition to Bitcoin, Ethereum, and Ripple.

eToro's expansion to a customer base of over 20 million investors has been fueled by a number of causes. To begin with, eToro is a simple platform to use, so even if this is your first time purchasing Bitcoin online, eToro will be able to assist you. Due to its exceptionally low commission rates, eToro also offers no-fee Bitcoin trading.

Bitcoin brokers that can compete with eToro in terms of fees are hard to come by. Commissions are not charged by eToro. You can acquire Bitcoins without paying a commission using the online broker. Deposits with the broker, however, are subject to a 0.5 percent F.X.

Toro accepts withdrawals and deposits by a variety of common methods, including PayPal, Neteller, debit, and credit cards.

eToro is a highly regulated platform. The Financial Conduct Authority (FCA) of the United Kingdom, the Cyprus Securities and Exchange Commission (CySEC), and the Australian Securities and Investment Commission (ASIC) are among its licenses (ASIC). In addition, the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) have also registered it (FINRA).

2.      Capital.com - A Reliable Bitcoin Exchange

Stockbroker Capital.com has grown in prominence throughout Europe since its introduction in 2005. Among the more than 3,000 instruments accessible, many stock CFDs are available. The system contains approximately 2,400 stocks, allowing anyone to trade equities from all over the world. It is also possible to trade ETFs, indexes, commodities, and currency.

Commission-free trading and minimal spreads are available on a low-cost European trading platform. Spread betting and CFDs are both available at Capital.com, therefore any profits you make from spread betting are tax-free.

The tools they provide may be one of their best aspects. It provides outstanding online teaching resources, including webinars, in addition to a trading platform driven by artificial intelligence, trading insights, technical indicators, analytic tools, and advanced charting.

Capital.com is a very secure free trading platform thanks to its FCA license. As an alternate payment method, PayPal, Apple Pay, Neteller, and Skrill are accessible.

3.      Coinbase is the largest cryptocurrency exchange in the United States.

Coinbase is the world's largest cryptocurrency exchange. On the exchange, customers will have access to a simple interface and a wide selection of trading pairs.

Coinbase, based in Wilmington, Delaware, is the largest cryptocurrency exchange in the United States. Because of the user-friendly design, even beginners can trade on Coinbase. Coinbase Pro, on the other hand, can be used by experienced traders.

Another well-known cryptocurrency startup is Coinbase. Coinbase Pro has both an exchange and a trading platform. A commercial payment platform, custody services, and the cryptocurrency COIN are also available to consumers.

4.      Binance — Top-Rated Cryptocurrency Exchange for Bitcoin Trading

In terms of daily trade volume, Binance is the most popular cryptocurrency exchange. Binance boasts a daily trading volume of more than $50 billion, making it one of the world's most popular exchanges. Users of Binance can take advantage of a number of various options on the platform.

You'll be able to get your hands on a variety of cryptocurrencies, including Bitcoin and Ether, as well as a lot of liquidity, as most assets see a lot of trading activity.

On its platform, Binary offers trading charges that start at under 0.1 percent of each trade, as well as simple KYC requirements. Binance offers consumers access to crypto futures in addition to crypto futures and leveraged trading, allowing them to buy more crypto than they actually own.

Binance also allows you to buy bitcoins using fiat currency. If you live in a country where bank transfers are quite inexpensive, you might have to wait a few days for your payments to arrive. If you want to get your wins as soon as possible, you should use a credit or debit card.

5.      RobinHood - A User-Friendly Bitcoin Exchange

Robinhood, a U.S.-based online brokerage developed by Vladimir Tenev and Baiju Bhatt, was started in 2013. The platform claims to democratize money for all in its mission statement. This is accomplished by allowing the average trader to invest without having to pay any commissions or meet any minimum stake requirements.

You have access to a large number of US-listed stocks and ETFs with Robinhood (NYSE and NASDAQ). In addition, investors can invest in Crypto trading markets and even stock options. Robinhood is not only free to use, but it is also quite simple to use.

Signing up and investing in an asset takes only a few minutes, and no prior experience is required. Over the last few years, Robinhood has developed at a breakneck pace, with a client base of more than 10 million dealers. The first country on the broker's list to enter Australia. Robinhood will go public in 2021.

6.      Kraken - Inexpensive Compared to Competitors

Kraken is one of the largest and oldest cryptocurrency exchanges, having been established in 2011. It has gained over 4 million users since its inception in 2013. On the platform, users can trade and stake 66 different cryptocurrencies. 

FinCEN regulates Kraken in the United States and FINTRAC in Canada as a Money Service Business (MBS). In addition, these organizations oversee a number of subsidiary firms, including the FCA in the United Kingdom, AUSTRAC in Australia, and the FSA in Japan.

Among Kraken's many features is the ability to trade cryptocurrency futures, which is not available on most other platforms. It's also simple to use, with large margins depending on the user's currency. On Kraken, for example, you may trade BTC with a leverage of up to 10x.

Conclusion

Bitcoin will affect the future of finance. Bitcoin will continue to exist for a long time. Crypto exchange marketplaces have exploded in popularity in recent years. A trillion-dollar industry cannot be ignored by regulators. As a result, several governments acknowledge digital currencies, either explicitly or informally.

Those who are dubious of bitcoin should put a percentage of their portfolio into these blockchain assets, according to Goldman Sachs. Buying and selling products and services will be drastically affected as a result of cryptocurrencies in a short period of time.

Despite the volatility of crypto assets, market research and analysis can yield large rewards on investment.

We recommend using eToro to complete your background study on any cryptocurrency because it gives professional analysis, trading tactics, crypto price analysis, and other information that will help you decide whether or not to invest.

Investing in cryptocurrencies in the United States can also be made easy with the help of a regulated broker. The ability to mimic deals completed by expert traders is one of the platform's most significant features.