Cryptocurrency trading in 2024 has grown from a niche interest to a global financial force, with assets like Bitcoin and Ethereum capturing attention worldwide. As both a speculative investment and a transformative technology, crypto presents exciting opportunities.Â
Given what has been going on in the crypto space, you might be thinking about investing in Bitcoin or other cryptocurrencies. Before you do, you really do need to make sure you understand what makes crypto trading unique and the risks associated with it. This guide aims to help beginners navigate the fast-paced world of digital currencies, offering insights for exploring, profiting, or staying updated on the future of finance.Â
Bitcoin and Other Cryptocurrencies are Volatile
It would be unfair to send you out into the world of crypto trading without discussing the volatility of the crypto markets.
People are also reading…
As a point of reference, Bitcoin turned ordinary people into millionaires in late 2017 when the valuation ran up to almost $20k per coin. Shortly after that, the price took a nosedive, erasing massive gains for a lot of investors. That's the kind of volatility that the crypto market is capable of providing.
To be fair, those are the extremes. Just the same, it's very common to see cryptocurrency prices increase or decrease by as much as 10% on any given day. While Bitcoin is the main digital currency for a lot of investors, altcoins like TRON have been gaining popularity. TRON is very popular among content creators for its unique characteristics such as having no transaction fees and being able to support 2,000 transactions every second. This use case has gotten the attention of investors. , TRON had a $13.21B market cap and made over a 30% increase in less than a month reaching a price of $0.1478 at time of writing.Â
Finding a Trading Platform and eWallet
Before you can start trading Bitcoin, you will need to register with a good trading platform and open a personal eWallet account.
During the selection process, there are two things on which you will want to focus. First, security should be your top concern. Find a platform that offers access through multiple levels of security. Second, find a platform that operates in numerous different countries. One of the great things about Bitcoin is that it easily converts into every other currency. For example, you may need to convert your BTC to INR before traveling to India. You will want a cryptocurrency exchange that operates in those markets to be able to make that conversion seamlessly. Â
Understand the Blockchain Concept
While Bitcoin is largely a trading/investing option at this time, it is being used as a means of exchange. The entire crypto concept . It's the blockchain technology that makes digital currencies a decentralized monetary option.
As individuals or businesses exchange digital currency through their crypto wallets, the transactions are recorded on a registry. Each participant in the transaction is given a unique transaction key (no names or identifying information is included). The transaction does not go through until a majority of other Bitcoin stakeholders approve the transaction from their computers (this is normally automatic). Once it's approved, the agreed-upon amount of Bitcoin is transferred, and the transaction is attached to the end of the continuous blockchain.
Bitcoin Quick Hits
All Bitcoin transactions are irreversible. Before you hit the button approving your side of a transaction, make sure to double and triple check the amount of Bitcoin you are trading.
Bitcoin exchanges are open 24/7/365. Given the level of volatility, you should get in the habit of monitoring the price when you actually hold Bitcoin.
While Bitcoin's pricing is normally at five digits per coin, you have the ability to trade very small portions of a coin based on the amount of cash you are willing to invest.