Bitcoin has become synonymous with cryptocurrency. That’s because it’s the most popular digital currency ever created. It’s pretty much the entry point for most crypto traders.
But if you’re new to Bitcoin and are wondering what the currency is all about, this article is for you. Read on for everything there is to know about this crypto coin, including its legal status and how to trade it.
What Is Bitcoin?
Bitcoin, commonly abbreviated as BTC and assigned the trading symbol ₿, is a digital currency designed to be transferable across a peer-to-peer network.
The currency was invented in 2008 by a faceless individual or group of people going by the name Satoshi Nakamoto. It began operation the following year after it was released as open-source software.
How Do You Trade In Bitcoins?
As already indicated, Bitcoin is a digital currency. The implication is that nearly all currency transactions take place on the internet. Here’s a brief procedure on how to trade in Bitcoins;
Set Up a Bitcoin Brokerage Account
The first step in trading Bitcoins is to set up an account with a cryptocurrency brokerage firm. Fortunately, there are plenty of crypto brokerages on the market.
Just remember to establish a company’s reputation before signing up with them. It would also be best to opt for a crypto brokerage specializing in Bitcoin trading. Besides, consider a company that implements a user-friendly interface and maintains round-the-clock customer support.
After honing in on the best crypto brokerage, furnish them with your details to enable them to set up a Bitcoin trading account for you. These include your official name, date of birth, email address, telephone number, and Social Security Number (SSN).
Integrate Your Account with a Trading Platform
This is a step many newbies often skimp on, yet it can significantly affect your chances of excelling at Bitcoin trading. Once you’ve set up your standard Bitcoin brokerage account, you’ll need to integrate it with third-party productivity platforms like Finixio.
Finixio is a globally-renowned digital media company that manages high-end tech brands across various sectors, including personal finance, iGaming, business software, and cryptocurrency.
Integrating your Bitcoin brokerage account with Finixio allows you to take advantage of the company’s powerful artificial intelligence product, Finixio AI. Finixio AI is designed to support Bitcoin traders by providing helpful information on industry trends.
Fund Your Account
After opening up a Bitcoin brokerage account and integrating it with a suitable trading platform, the next step is to fund it. To go about that, you’ll need to link the brokerage with your bank account.
Most Bitcoin brokerages support funding through debit cards and wire transfers. For example, the Xcoins platform provides a facility to instantly buy Bitcoin with a debit card. However, a linked bank account transfer is usually the most affordable option.
Experts also recommend storing sufficient funds in a secure wallet on the Bitcoin exchange to improve access to them. This is especially important for aggressive traders or those who want to hold on to Bitcoins for the long term.
Choose How to Trade
There are multiple ways to trade Bitcoins.
The most popular one is the speculative approach, where you purchase Bitcoins when their values are low and hoard the coins to sell them when their values rise. Similar to trading in traditional company shares.
There’s also the option of paying for goods using Bitcoins. You’ll only need to ensure that the seller generally supports crypto payments and Bitcoins in particular.
Automate Your Account
Account automation is paramount when dealing with any form of online trading. Since Bitcoins are almost exclusively traded on the internet, it would be prudent to automate your Bitcoin account with a suitable trading bot.
Again, this is another area where you’d benefit immensely from Finixio’s artificial intelligence product. Trading bots can design a trading strategy customized for your investment goals. Besides, they provide a hands-off approach to Bitcoin trading in that you don’t have to monitor the trends around the clock actively.
What Affects Bitcoin Prices?
As with any currency (be it traditional or digital), the price or value of Bitcoin is affected by the laws of demand and supply. High demand for Bitcoin translates to a diminished supply, raising its value.
Bitcoin’s value also comes down to competing cryptocurrencies. It’s worth noting that Bitcoin is the most popular cryptocurrency, but not the only one. There are plenty more digital currencies, including Ethereum (ETH) and Dogecoin (DOGE). A rise in the demand for these alternative coins would adversely affect the demand and value for Bitcoins.
There’s also the question of investor sentiments. Whether factual or baseless, trending Bitcoin information can influence investor confidence in the crypto, ultimately affecting its value. Media outlets and financial regulators continue to play a crucial role in shaping the perception of Bitcoin and other cryptocurrencies.
Is Bitcoin Legal?
Bitcoin is generally legal in many developed economies. The United States, Canada, and United Kingdom are among the leading economies where investors can freely trade Bitcoins.
However, Bitcoin is illegal in at least nine countries. These include China, Nepal, Qatar, Iraq, Bangladesh, Morocco, Egypt, Algeria, and Tunisia.
Since Bitcoin laws vary across countries and jurisdictions, your best bet is to check your local regulations before trading.
Summary
There goes our definitive guide to Bitcoin. We hope you can now trade in this cryptocurrency from the point of information. However, as a beginner, be cautious while investing in Bitcoins.
Also read: What are the Things That You Can Shop for With Bitcoin?
