Bitcoin – is it really a gateway to financial freedom or a big scam waiting to implode? This is one of the top questions that often boggles the minds of many who aspire to invest in this cryptocurrency.
The good news is that Bitcoin isn’t an overly-pitched scam. If it were, the cryptocurrency would have collapsed long ago. The fact that the coin continues to draw admiration from leading players in the mainstream financial sector further lends credence to its credibility.
But as a new investor, there are multiple things to get out of the way before taking your chances on Bitcoin. Read below for the top five things to know about Bitcoin trading.
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The first thing to determine before trading in Bitcoin is whether the coin is legal in your jurisdiction. Bitcoin is legal in many developed countries. These include the United States, Canada, the United Kingdom, and several European Union (EU) countries.
However, there are equally many countries that have banned the usage of Bitcoin within their borders. Notable ones include China, Qatar, Iraq, Nepal, Bangladesh, Egypt, Algeria, Morocco, and Tunisia.
The key takeaway here is that Bitcoin isn’t subject to international laws. Instead, each country and jurisdiction have specific laws on the coin’s usage for transactional purposes.
As an aspiring trader, the conventional wisdom is to check your local Bitcoin laws to determine whether you can legally trade in this cryptocurrency.
Bitcoin is a digital currency. Therefore, nearly all transactions relating to the coin take place over the internet. And that explains the importance of selecting a suitable trading platform.
The good news is that numerous digital companies provide Bitcoin trading services and you can buy bitcoin. Obviously, the challenge is usually finding a platform that suits your specific needs.
At the very least, you should consider a trading company that deals in cryptocurrencies, particularly Bitcoin. The platform should also implement powerful algorithms that trawl the internet for emerging trends in Bitcoin trade and then provide useful analytics. Other bonus points include ease of use, support availability, and service cost.
When looking for such a company, Finixio would be an excellent place to begin your search.
Finixio is a leading global digital media company that operates renowned tech brands and products in various sectors, including trading, personal finance, business software, health, iGaming, and cryptocurrency. The company has its own Finixio AI, an artificial intelligence product geared exclusively to Bitcoin trading. Finixio AI collects Bitcoin-related information intending to help investors locate potentially lucrative opportunities.
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It’s one thing for Bitcoin to be legal in your jurisdiction. But it’s an entirely different thing for the cryptocurrency to be subject to standard regulation. Bitcoin remains unregulated even in progressive economies like the United States. Despite the coin’s disruptive nature, the U.S Federal Reserve still focuses on regulating commercial banks, other non-commercial banking institutions, and the United States dollar. Cryptocurrencies fall right outside the agency’s mandate.
The apparent lack of robust Bitcoin regulations opens up potential loopholes for unscrupulous dealers. And while cryptocurrency transactions are processed across a hack-proof system known as the blockchain, there are always risks of getting swindled out of your hard-earned coins.
For instance, anyone can set up an online Bitcoin exchange platform without undergoing a rigorous accreditation process. Such traders are often keen on preying upon naïve investors yet to learn the land lay. This underscores the importance of working with a reputable trading company.
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Stories abound of Bitcoin traders who became millionaires overnight. When such reports reach the mainstream media, they’re often sensationalized to portray this industry as an untapped goldmine.
The truth is that you can set up a Bitcoin account today and be a dollar millionaire the next day. However, Bitcoin trading is far from the idyllic rags-to-riches experience it’s commonly hyped to be.
Like any investment, there are only two outcomes when you trade in Bitcoin – a profit or loss. Therefore, you must manage your expectations.
Experts recommend risking only that which you can afford to lose. Most importantly, remember that patience is a virtue in Bitcoin and cryptocurrency trading.
We’ve already alluded to digital platforms that provide useful analytics on Bitcoin trading. However, these tools may not always be sufficient to keep you up to date on emerging issues in Bitcoin and the cryptocurrency industry.
To keep further ahead, you’ll need to follow Bitcoin-related news on other reputable media outlets. These include both traditional media companies and social media outlets.
Pay particular attention to how Bitcoin fares against major global currencies. Analyze this data over a reasonable period (typically between one week and one month) before investing. It’s also prudent to be open-minded in your investment approach. Listen to all arguments and counterarguments before making a critical Bitcoin trade. It’s better to speculate for months than take a miscalculated risk.
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Despite what you’ve heard, Bitcoin trading remains one of the most profitable ventures. A little due diligence is all it takes to break into this lucrative business. We hope you can use this article as your ultimate guide to Bitcoin trading.
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