Bitcoin has brought a revolt in the online financial world. With the current buzz around bitcoin and other cryptocurrencies, many people are now interested in trading bitcoin than ever before. In fact, the number of wallet users went from 45 million to 63 million users in 2020 and still increasing, making it the highest number of wallet users ever. By taking advantage of the opportunities provided by bitcoin, you can earn smart money.

Like you, many individuals are also considering the option of bitcoin investing and trading. The first thing I want to do before we dive deep into the subject is to understand what Bitcoin trading is, and how is it different from investing in Bitcoin.

Usually, people invest in bitcoin because they believe in the technology, ideology or the team behind the currency. When people invest in bitcoin, it means that they are buying bitcoin for the long term. They believe the price will definitely rise, regardless of what happens along the way. Bitcoin investors tend to HODL the currency for the long run (HODL is the popular term in the crypto space that means “Hold”).

Unlike bitcoin investors, bitcoin traders view bitcoin as an instrument for making profits. They buy and sell bitcoin in the short term, especially when they think a profit can be made. Many people out there invest and trade bitcoin at the same time. Due to the sudden rise of bitcoin and cryptocurrencies trading, you can make a nice profit if you manage to correctly anticipate the market.

Far from most traditional markets like stocks and commodities, bitcoin trading is open at all times. It does not have an opening and closing time, you can buy and sell anytime it pleases you.

However, you should not start trading bitcoin for the fear of missing out. If you don’t understand what bitcoin trading is, you won’t make money from it as desired. There are certain things you must know before getting started with bitcoin trading, and the first step will be to understand the basics or getting a trading strategy.

There are many trading strategies you can choose from, such as Day trading, Swing trading and Scalping. It’s up to you to go for the trading method that suits you and will help you reach your target faster.

Bitcoin is a highly volatile asset, and if you are not careful, you may end up losing a significant amount of your trading capital. So, one simple rule of investing is to never invest in something you don’t understand. Ensure you do proper research and do your homework about bitcoin before getting started. Most importantly, understand the volatility. By so doing, you have a higher chance of succeeding with your trades in the long run.

After choosing your trading method, you will need to choose an exchange site to trade your bitcoin. There are many bitcoin exchange sites to choose from. With the increasing fraud rates in the crypto world today, this is enough reason why you must choose carefully so you don’t fall into the trap.

Some important features to watch out for when choosing an exchange site include security, reputation, user-friendliness and fees. To be sure you are making the best decision, compare the features.

It’s essential to make plans and determine your trading goals early. Most people start out trading without having a plan, they don’t know why they are entering a particular trade and when they should exit that trade. Setting your trading goals will help you in mapping out a plan that you can stick to in the long-run or short-run, depending on the trading strategy you would be interested in.

Finally, most people who start trading bitcoin stop after a short time because they don’t make any profit successfully. Due to the numerous platforms now available, bitcoin trading has become more accessible. This easy access does not mean you should rush into bitcoin trading without understanding how it works.

To be successful at bitcoin trading, you will have to put in enough time and money to acquire the important skills. Remember, there’s no such thing as easy money without risk. While you may be a beginner, you don’t have to be completely unaware. Take active steps before getting started with trading bitcoin.