Bitcoin Trading 2023: This is how BTC trading works

Bitcoin (BTC) is the first and most popular Cryptocurrency any times. It was founded in 2009 and since its inception has changed the way people see the world of business, investment and the market itself.

This article explains in detail how to use Bitcoin is about what the pros and cons are, how to identify the potential risks as well as the best tools to be safe with BTC to be able to act.

67% of retail investor accounts lose money when trading CFDs from this provider.

Content

    Everything you need to know about bitcoin

    Bitcoin trading risksBitcoin is a digital currencybelonging to an independent and decentralized payment system. It can be used anywhere in the world because, unlike banks, it does not depend on a centralized structure in which transactions are processed.

    This Cryptocurrency has its own network with open architecture, a Blockchain well-known database managed by the users themselves, who in turn record transactions as they occur. To access the platforms on which trading takes place, all you need is an internet connection.

    What affects the price of Bitcoin?

    There are many variables that go into the turnover rate Bitcoin involved so that there is not just one factor that can be singled out. Therefore, understanding the variables that can affect trading is imperative to trading successfully. Let's look at the most important factors below.

    OfferingIntegrationRegulations

    The offer

    The existing stock of Bitcoin is limited. So when the demand for the cryptocurrency increases, so does its market value. It is estimated that the 21 million Bitcoinavailable for purchase could be used up between 2100 and 2140.

    Integration and Public Perception

    When the public starts using crypto currencies, in this case Bitcointo integrate them into new payment systems, their perception will develop positively and therefore the price will also rise.

    The same goes for the press, comments on social media or opinions from influencers, all of which - positive or negative - have an impact on the fluctuation, flow and behavior of the currency.

    Regulations

    As with any currency and financial instrument, decisions about regulating or restricting operations, particularly in influential markets, can also affect their valuation in the market. This also results in the volatility that is characteristic of Bitcoin at a hunt.

    Three Simple Steps To Get Into Bitcoin Trading:

    The first thing to do when facing the Trading cryptocurrencies, in this case Bitcointo get started is to choose a platform that offers the user speed, security and confidence in carrying out transactions.

    For that, offers eToro a user-friendly interface to get you started with the Trading in BTC relieved. To do this, simply and quickly follow the steps below:

    Step 1: Register

    eToro registrationThe registration page of eToro asks for three basic pieces of information: username, email and password. All you have to do is enter it and accept the platform's terms and conditions.

    After doing this, you will need to verify your email address with an email sent to your chosen account and fill out a form with personal information where you will need to include your full name, date of birth and yours, among other things State your place of residence. This step is necessary to verify your identity. It is therefore important to provide correct information.

    The platform has an area called 'Dashboard' where you can follow the status of the verification, which takes about three days. Once this is done, the account is ready to be used.

    Step 2: deposit

    eToro deposit methodsNow is the time to fund your account. In order to deposit money on the platform, you need to go to the deposit area, select the payment method depending on the country you are in and enter the data requested there and the amount of the deposit. The minimum deposit amount is $ 200.

    For that offers you eToro a range of payment methods including Skrill, Neteller, and PayPal, as well as traditional methods such as debit card, credit card, and wire transfers.

    Once the money has been deposited, you can use the Bitcoin trading begin.

    Step 3: trade Bitcoin

    eToro-buy-stocks-There are several ways of using crypto currencies to act. One of them is buying the currency on an exchange or mining it with the chance that it will go up in value and you can make a profit on selling it.

    The second method is trading where the volatility of Bitcoin is exploited. In this mode there is much speculation about the possible values ​​that the Cryptocurrency can achieve or not.

    The broker eToro has two types of portfolios - a real one (where the money is deposited) and a virtual one that can be used as a demo. The latter has an area in which the user is provided with a fictitious capital in order to become familiar with the platform and the strategies in using the trading tools.

    Now all you have to do is get the one you want Cryptocurrency - in our case Bitcoin - Search and select and you can start buying, selling and swapping transactions.

    67% of retail investor accounts lose money when trading CFDs from this provider.

    What is Bitcoin Trading?

    The term Bitcoin Trading includes the three existing types of exchange through which Bitcoins can be purchased:

    • Mining: Mining is the method by which the Bitcoin Trading started. It consists in letting users make new transactions on the Blockchain process and in return with a fraction of BTC be rewarded.
    •  CFD trading: CFDs are available as Contracts for difference known, in which profits are only achieved if Bitcoin increases in price, always based on speculation on value. In this case, the investment is made through a broker, so you are not real BTC magazine.
    • Trading bot: These are usually AI-capable and are characterized by software that is exclusively for independent trading with BTC and other crypto currencies was developed by special algorithms.

    What Makes Bitcoin Trading So Interesting?

    One of the main pillars and at the same time the main attraction of Bitcoin the security that currency offers buyers is there BTC forgery-proof is. This is a product of what we have already mentioned, the Blockchain-Systems and the cryptographic signatures.

    The security of Bitcoin refers not only to transactions, but also to the ability to restore value in times of crisis. One example of this is the Covid 19 crisis: Since it is at BTC to a completely inflation-protected currency its restitution process is faster compared to many financial instruments and even the economy.

    On the other hand, the high pulls volatility more and more people to Trading in BTC because it is a currency that changes its value rapidly at constant time intervals. This results in both a risk and an opportunity window, which, with good analysis, can bring excellent results in the short term.

    Different methods for trading Bitcoin

    Bitcoin stockThere are several ways of doing this digital currency to acquire and trade. However, there are two methods that can be used for the Bitcoin trading the most popular and recommended are: investing in real Bitcoins and the acquisition of Bitcoin CFDs.

    Direct trading and foreign exchange procurement:

    By eToro is it very easy Bitcoins to acquire or trade directly. The platform is dynamic and also easy to use. All you have to do is deposit the desired amount, BTC as well as select their preferences for trading and then carry out the transaction.

    Acquiring Bitcoin CFDs:

    Bitcoin CFDs are ideal for those who are not interested in Coins to buy in order to accumulate them, use them as currency or trade in them, but only from increasing BTC- Want to benefit from the price. However, it is important to acquire or have a knowledge of how the stock markets work, as these types of transactions are over-the-counter, which means they are unregulated and operate according to the parameters set by the broker.

    By CFDs is it possible to access the Bitcoin price development to speculate without the Bitcoin actually owning it. They are an excellent financial derivative that, in conjunction with leverage, can achieve very good and high returns. In short, only a small investment is required for adequate exposure.

    For the CFD trading Plus500 the broker of choice. It allows quick and secure account opening, deposits by credit card, PayPal or other payment methods, and in many cases no validation and verification of the user's identity is required.

    There is also the option of un-leveraged deals where you work on a 1: 1 basis. In this case there is the advantage over the direct one Bitcoin-Exchange in that the funds can be withdrawn immediately and with no transaction limits.

    While there are many benefits to this type of trading, it is important to note that it comes with a higher level of risk. Therefore, this method should only be used by experienced traders.

    What should you watch out for and what are the risks in BTC trading?

    With any investment, whether in cryptocurrencies, digitally or conventionally, it is necessary to be careful and be aware of the possible risks that are associated with it. So here are a few things to keep in mind when trading.

    Risks from external attacks - hacking:

    AVG Antivirus protection against hackersDue to the decentralized nature under which Bitcoin familiar with the Block chain technology works, it is almost impossible to have hacks on the accounts on which Bitcoins are stored. In fact, BTC as one extremely secure digital currency.

    However, there are also concerns from potential investors. From a security and prevention perspective, there are some recommendations regarding the brokers used for trading:

    The first thing you should do is get one select trusted broker. It is important to check reviews, both from financial portals and those who routinely work with the platform. This increases the trustworthiness of the user and the platform is supported by those who earn their money.

    Once you have selected a broker, you should take the time to read the site's regulations and operating guidelines. What matters is how the platform would act in the event of bankruptcy, whether there is any hedging or regulation in place to protect you, and whether your funds are considered equity or part of the broker's business account.

    Risk Management

    The entry into the BitcoinThe world offers numerous opportunities for growth as long as it is handled with caution and with an understanding that the course the investment takes is the result of how the respective risks are handled. Many experts claim that the value of BTC will continue to rise. However, this is something that cannot be fully guaranteed due to the constant changes and movement of the market in general.

    An excellent way to understand and gain experience managing risk on this type of investment is to use the demo modes that brokers offer. These offer the opportunity to experiment without sacrificing the capital available for the investment.

    Much is said about the management of the trading decisions that go into entering the world of the Bitcoin trading However, one element that is often neglected is the management of emotions: although we are dealing with algorithms and purely financial elements, the trader is not immune to tension or moments of euphoria that, when managed incorrectly can lead to a loss for the investor.

    67% of retail investor accounts lose money when trading CFDs from this provider.

    FAQ - Frequently asked questions about Bitcoin trading

    How does Bitcoin trading work?

    Trading this digital currency simply works through reliable brokers that allow you to buy real bitcoins or crypto CFDs.

    What is Bitcoin Trading?

    Bitcoin trading is a general term that refers to the different types of BTC trading. This includes buying real coins, trading CFDs, mining bitcoins and trading via bots that manage bitcoins.

    Is Bitcoin Trading Safe?

    Bitcoin trading is a system that is currently considered relatively safe. The decentralized blockchain technology helps rule out hacker attacks. On the other hand, the currency is gaining more and more acceptance among traders and even in politics, which increases demand and allows the rate to rise further. In addition, there are more and more regulations, which further increases safety.

    What is a Bitcoin trading bot?

    A bitcoin trading bot is a computer program based on artificial intelligence that uses complex trading algorithms to predict the future of bitcoin in order to derive trading decisions from it. These bots are offered by brokers and are particularly popular with novice traders as they don't require any experience to use them.

    About Kevin Seeberger

    Kevin Seeberger is a graduate economist with a focus on e-commerce & marketing. He takes care of various topics related to computer security, cryptocurrencies and reviews.