COVID-19 pandemic dismantled the economies of the entire world. The stock market dwindled, people lost their job, governments instituted strict curfew and lockdown restrictions, the market was shut for days, but Bitcoin and other cryptocurrencies were only the ones that sprung to life.
The bitcoin market was never at such a level as it is during the pandemic. It proved to be proverbial ‘digital gold,’ and its value rose from its lowest of around $4000 in Q1 to over $23000 in December, swiftly smashing the previous highs of late 2017. Thus, when the investor’s portfolio suffered a considerable loss and affected the world economy, Bitcoin was the only one that provided much-needed support during the time of distress.
Like any financial asset, the price of Bitcoin is regulated as per the laws of demand and supply. In the age of social media, bitcoin has often gathered the negative coverage of instability and insecurity. However, the positive media coverage of Bitcoin, other cryptocurrencies, and its underlying blockchain technology has provided the fundamental base to its existence and helped it to reach heights.
This is why we’re here to spread our knowledge and years of experience in dealing with cryptocurrencies. Here we have created a go-to guide for you to begin your side business in trading bitcoins. Through this, you’ll not only be able to financially strengthen yourself but will learn a lot about how this trading system works. Let’s look into it now.
How to Trade Bitcoins
1. Start at a Licensed Exchange
The first step to take while trading bitcoin is to create an account at a cryptocurrency exchange. Signing up for a cryptocurrency exchange will always allow you to buy, sell, and hold cryptocurrency at your convenience. It is generally a best practice to use an exchange that allows you to withdraw your crypto to your wallet for safer keeping. We, VFM Brokers, are a licensed cryptocurrency exchange brokers. You can connect with us to learn how to set up an account, link it to your bank, transfer funds, and buy your first bitcoin.
2. Connect Your Exchange to a Payment Option
Once you have chosen an exchange, you now have to gather your personal documents. It can be your identity proof or any financial documents. The information required depends on the region; however, the process is almost the same. After the exchange has ensured your identity and authenticity, you can now connect your bank account directly, or you can connect a debit or credit card.
3. Choose Your Trading Currency
Once you have an investment account at a digital asset exchange and have funded it with US dollars or another accepted currency, you’re ready to trade bitcoins. You can straight away begin your trading process.
4. Begin the Trading Process
Once you have chosen exchange and connected a payment option, you can now buy Bitcoin and other cryptocurrencies of your choice. You can also sell your bitcoins whenever you think you’re in profit or otherwise. Your money will be directly transferred to your bank account.
Alternate Ways of Buying Bitcoin
While exchanges remain some of the most popular ways of purchasing Bitcoin, but it is not the only place where you can buy them. Here are some additional ways on how you can buy Bitcoin:
Bitcoin ATMs act like in-person Bitcoin exchanges where you can insert cash into the machine and use it to purchase Bitcoin that is then transferred to a secure digital wallet. You can check that in your region.
There are some peer-to-peer (P2P) exchange places where you can directly connect with the users and purchase their bitcoin. There are some platforms where you can browse through the listings of buy and sell offers, choose your trading partners and transact accordingly. Keep in mind that P2P exchanges do not offer the same anonymity and transparency as decentralized exchanges; however, they allow users to look around and get the best deal possible.
At VFM Brokers, we are committed to helping clients achieve their financial goals through industry-leading trading innovation. Our team members are always ready to guide you through the bitcoin trading process. You can anytime connect with us to know more.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Professional clients can lose more than they deposit. All trading involves risk.
The information on this site is not directed at residents of the United States, United Kingdom, European Union and Canada, and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.