Category: 02. Basic Trading

Basic Security Techniques

In addition to picking out the right exchanges, investors can reduce their chances of getting hacked by learning more about security techniques. One of the most basic techniques is two-factor authentication, which requires users to take more than one step to confirm their identity. Not all forms of two-factor...
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Select An Exchange

Finding the right exchange is a crucial step for a new bitcoin trader. Many digital currency exchanges have been hacked, including Bitfinex, which has at times been described as the world’s largest bitcoin exchange.[20] Bitfinex suffered a hack during the summer of 2016, during which it lost roughly US$70...
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Learn Bitcoin’s Price Drivers

In order to trade bitcoin effectively, investors should be familiar with the major variables that help determine the digital currency’s price. At the most basic level, bitcoin’s price is a function of supply and demand. The total supply of this digital currency is capped at 21 million, which means...
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Do Your Own Research

This one may sound like a given, but it is particularly important for traders considering a highly volatile asset like bitcoin. The digital currency is a very new asset relative to many other securities. While stocks and bonds have been around for some time, the first bitcoins were produced...
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Investing vs. Trading

Once an individual has evaluated whether bitcoin is right for them, they can begin looking into whether it makes more sense to invest in the digital currency or trade it. While these two may sound the same, they are different. When differentiating the two, the easiest way to think...
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Why Trade Bitcoin?

For starters, investors may want to first consider why they would want to trade bitcoin. After all, many market observers have stated that the digital currencies come with substantial risk. For example, European Union regulators warned in early 2018 that cryptocurrencies are “highly risky.”[1] Legendary investor Warren Buffett has repeatedly warned...
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