How to Trade Bitcoin - Cryptocurrency Trading for Beginners

There are currently several thousand different cryptocurrencies around, valued at almost 900 billion USD. Being highly volatile as trading assets, trading in cryptos can indeed bring in huge profits, and there is no reason why a beginner cannot be able to receive some hefty gains from their crypto trading transactions. However, cryptos are far riskier than other financial instruments and thus beginners trying their hand at this type of trading are also much more vulnerable to suffering huge losses suddenly and quickly.

As a general rule, you can buy cryptocurrency in three broad ways, the first is through a peer to peer transaction, i.e. from another person in possession of crypto, through an ATM which offers crypto, though those are scarce and almost exclusively located in the USA, or finally through crypto currency exchanges, usually online or brokers that offer cryptocurrency trading alongside their other services. Since cryptocurrencies are digital currencies, it is essential that you also have an electronic wallet, where you can store your crypto once you buy.

It is true that cryptocurrencies, as a digital alternative to fiat currencies, have often been associated with sinister transactions, while the field of cryptocurrency transactions is often plagued by fraudsters and crooks. Moreover, cryptocurrency trading is a highly risky venture due to their extreme volatility, while hackers are always trying to compromise the security of such transactions and steal away your funds. This being said, in most countries across the globe the usage of cryptocurrencies as a transaction medium is perfectly legal, while other countries have yet to regulate the field. How you can obtain and use cryptos however, still largely depends on your location, since for example you can legally and easily use and trade cryptos in the USA, but not in China for example.

The cryptocurrencies market operates round the clock and round the year, meaning it is a 24 hour a day, seven day a week market. This being said and though you can trade at any time, some hours are better than others for trading purposes since they offer both increased volatility and increased liquidity. At such times, trading is riskier but also comes with a higher profit potential. An example of such time, where increased volatility is often experienced, is at 12pm UK time, when both the UK and US markets are available for trading.

What online brokers offer cryptocurrencies? Demand for cryptocurrency trading has rapidly increased as more cryptocurrencies are launch and their usage is becoming more widespread. Consequently, many dedicated online crypto exchanges have emerged, while many established online retail trading brokerages have started addling the trading of cryptos to their offering to satisfy their clients and also enable them to further diversify their trading portfolios. To find out more about such online forex brokerages you could consider, you can access our dedicated post here.