Bitcoin was the very first digital currency, introduced by Satoshi Nakamoto in a whitepaper in 2008. It is a payment system that works on mathematical proof. The major reason for its popularity was its ability to work independently of any central authorities. It allows individuals to transfer money in a verifiable and secure way.
How to Trade Bitcoin
In 2017, Bitcoin reached the $20,000 mark, catching the attention of every investor and speculator. Since then, the number of people investing and trading bitcoin and other digital assets has gone up significantly. The volatile nature of the cryptocurrency market makes it attractive for both long-term and short-term traders.
There are various ways in which you can trade Bitcoin and altcoins. Results will vary, depending on the investment amount and the time duration you are willing to give. Broadly, there are 4 major types of crypto trading:
- Day trading: It is when a trader opens and closes his/her position within a single trading day. People who wish to earn from short-term trading pursue this. To be profitable at this, one has to be very careful about the current news and prevalent patterns in the market.
- Swing trading: Swing traders are those who catch trends in price movements. They study the market for patterns and once they are sure that the market will become bullish, they start investing.
- Scalping: Scalping is making several trades in one day, on slight price movements. People who prefer making several small profits over a big profit take part in this type of trading.
- Passive trading: Passive trading is solely for long-term traders who wait for a big price drop to purchase crypto assets. These traders then wait until the price achieves a good hike to sell it back.
To buy, sell or trade Bitcoin, you will need to set up an account with a reliable crypto exchange, such as Marketscap.com. It is an advanced trading platform with various professional-grade tools. The platform has over 800 cryptocurrencies listed and lets you trade both crypto-to-crypto and crypto-to-fiat.