What Every Beginner Bitcoin Trader Should Know

It's 2021 and Bitcoin trading is no longer news to the average person who is particular about growing wealth. The most recent statistics show bitcoin's trading volume to be 63.57bn USD with about 367,397 transactions per day. Bitcoin is the most expensive cryptocurrency and it keeps gaining value every day, as its price currently sits at 47,500.90 USD.

While these stats may seem fascinating, especially with the tremendous growth in the last decade, more people are beginning to find bitcoin trading interesting. But before you get started, there are certain things every beginner bitcoin trader should be familiar with.

Always Do Your Research

The first step to getting your investment right is by doing proper research before getting started. Learn all about the basics of bitcoin, which includes its history and how it has grown over the years. Know how volatile it is and what moves the price. The high volatility of bitcoin can be both good and bad for you, which can mostly depend on how well you know the market and trade.

By doing your research, many things will not catch you unaware and it could also help your risk management in the long run. Also, always follow the news and trends to know what is happening with the market per time. This should influence your trading decisions positively.

Know Your Why and Have a Plan

Knowing why you have decided to trade bitcoin goes a long way in helping you achieve your goals. It's no news that many people start trading due to the fear of missing out, which can be dangerous in the long run. There are many other valid reasons to trade or invest in bitcoin, which include saving up for retirement, having an additional source of income, or being financially stable.

Regardless of your reason, knowing your why can help determine your trading option and how long you plan to trade for. For example, if you're holding bitcoin for the long term, you won't be compelled to sell your bitcoin when the market is bad like many others would.

Choose the Right Platform

There are several bitcoin wallets and exchanges such as the bitcoin system to help you trade and invest effectively. However, not all platforms are suitable for you and your decision can make or mar your investment plans. Key things to look out for when choosing include the safety standards, reputation, payment methods, transaction fees, user interface, and more importantly if it can be used effectively in your location.

Bitcoin is Global and the Market is Always Open

Bitcoin operates in about 90% of countries around the world, which makes it easy for most beginners to start with it. The market is also open 24/7, which means you can trade any time and anywhere from the comfort of your home. There's no rush and don't let the fear of missing out trick you into making the wrong decision at the wrong time.

Bottom Line

While bitcoin may be the most popular crypto today, you can still diversify your portfolio to include other cryptocurrencies. This helps create a balance in your portfolio and also helps with risk management.