7 Techniques for Bitcoin Beginners


7 Techniques for Bitcoin Beginners

Safe Milli
| August 28, 2020 Last Updated 2020-11-11T19:36:11Z
Beginning something is challenging, especially without proper knowledge of what is being done. Bitcoin, the most popular digital coin, has been on the news so much recently. Do you know why? Because the currency is a considerable investment that serious business minded people won't want to miss. The industry has witnessed an increase in the number of people joining the trade. That means several beginners might wish to help in working with Bitcoin. This discussion is a guide to newbies and will focus on some of Bitcoin's techniques for beginners. Below are seven useful techniques for beginners:

1. How to Acquire Bitcoins

The first thing a beginner requires is where and how to get Bitcoins. This needs a lot of insight and knowhow into it. Bitcoins can be obtained by purchasing them with fiat currency like dollars or exchanging them with other cryptocurrencies. Meaning, capital is necessary if you're to acquire the coins, which is why A1 Credit discusses the top coins to trust with your investment.

Your coins' security matters a lot since there are concerns about scams and the stealing of cryptos. So, you'll need to get a wallet (software that safely stores your coin). There are several wallets available, ranging from online, hardware, mobile, and desktop wallets. You can research on which one is most appropriate. I'll advise using a hardware one like the Ledger Nano S. It's not hacker vulnerable like the online or mobile ones.

Next , choose the exchange from which to buy the coins. The crypto industry avails
numerous of these platforms, and as a beginner, it might be hard to know which ones are suitable and appropriate. Again, taking some time to understand them can help prevent disappointments that result from losing funds. You can opt for legit sites like Binance, CoinBase, CoinMama, or other trusted ones ideal for your region.

2. Learn About the Bitcoin Market

As simple as it sounds, many new people enter the Bitcoin business with high expectations to be severely disappointed. Why does that happen? They don't take the time to study what kind of market they're stepping into. That's why you should invest some time before you spend money to trade BTC. The market is still "young", and lots of uncertainties unique to the crypto can occur.

All cryptocurrencies are volatile, and their markets change drastically and unexpectedly. Bitcoin isn't an exemption. Try and find out the nature of the market, the trends, what takes it feasible, and when to expect decline or rise in coin value. Once thorough exhaustion of all these aspects occurs, then someone can proceed to invest in what is properly understood. Expert Bitcoin investors will tell you that analyzing the market is crucial to Bitcoin's success, especially if you decide to trade and not mine it.

3. Understand What Moves Bitcoin's Price

This is closely linked to the above technique of knowing about the BTC market in order to trade crypto australia. Volatile items like Bitcoin can be attractive, but also risky. The prices can shift suddenly and considerably, even within a day. It can be $1000 for a coin in one hour, while at another hour, it can change to even $500. Thus, understanding what moves the market can help a trader prepare efficiently for outcome. Below are some factors that can cause significant impact on BTCs price:
  • Bitcoin's supply. The total available Bitcoins are 21 million, which are supposed to be mined entirely by 2040. Currently, there are over 18 million in circulation. The supply fluctuates depending on the rate of market entry of new BTCs. A high supply means low pricing and vice versa.
  • Public adoption. The more people embrace this crypto, the more it's value increases. We're yet to see what the future public approval holds for Bitcoin.
  • Media influence. Lousy media coverage about anything affects it negatively and impresses wrongly about it to the public. A positive press favors growth and value increase. The same is true for BTC.
  • Competition from other cryptos. Bitcoin is the dominant cryptocurrency with a 41% availability, but as others become more popular, Bitcoin's value risks decline.

4. Have a Trading Strategy

Most beginners will mainly trade Bitcoins compared to mining it. That requires knowing which strategies you can use and the one to select depending on your preferences. Each plan is suitable if you want to accomplish a particular objective. You can opt for include; day trading, swing trading, scalping, and automated trading.

5. Knowhow to Predict Price Movement

The profits made from the Bitcoin trade rely heavily on the price movements, and that's why traders have designed ways to predict this act. After knowing what affects the price, how do you analyze its progress? Two commonly used methods are technical and fundamental analysis. The technological process involves keeping track of market stats like past price movements and trading volumes, while the fundamental one evaluates the industry. It considers news updates about Bitcoin, technical developments, global regulations, and other issues that can impact on Bitcoin prices.

6. Ways of Making Money Using Bitcoin

If you want to exploit the crypto market fully, then knowing which methods can be used to make money is crucial. This technique is suitable as it offers someone multiple choices and opportunities to go about the Bitcoin investment. You can use several ways to ear from the crypto as a beginner, but four major ones are; HODLING, direct buying and telling on exchanges, day trading, and ICOs. HODLING is a perfect way to earn more profits, but it's long term. Day trading allows small and quick returns, and within a day, but it's a bit hard.

7. Things to Keep in Mind

As you proceed with Bitcoin investment, there are some vital points always to remember. Some people might fail to consider them and end up regretting it. First, don't risk more than you can afford to lose, and if a loss does occur, avoid investing much to recover it. Second, always keep learning. Whatever is discussed here is only a portion of what happens; continue learning and staying focused. Third, diversify the portfolio. After thriving well with Bitcoin, try and venture into other cryptos to reduce the risks of substantial losses. Lastly, have a plan on what you want to achieve and exit the trade if need be.

The Bottom Line

Since its launch back in 2009, Bitcoin has grown popular and attracted numerous people, some of whom are millions because of the trade. More people are also continuing to enter into the industry. If you're a beginner in Bitcoin, stop, pause, and think about your next move. The above discussed techniques can help you proceed well.
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