Monday, August 15, 2022

How To Get Into Bitcoin Trading

Good Reasons To Invest In Cryptocurrency

  • You believe that cryptocurrencies are the way of the future and will likely replace the traditional fiat money if this happens, you want to be educated, prepared, and experienced.
  • You support the social vision behind cryptocurrencies that currency should be decentralized and under full control of the people who use it.
  • You understand and appreciate how blockchain technology works you value the peer-to-peer aspect of transactions, their security, and confidentiality.
  • To Qualify You Must Meet One Of The Following Criteria

    Financial assets

    You have a portfolio of not less than HKD $8 million or equivalent. If you have more than HKD $8 million in your Saxo account we wont require any supporting documents.

    Total asset of a corporation

    The corporate have a portfolio of not less than HKD $8 million or equivalent. If the corporate have more than HKD $8 million in your Saxo account we wont require any supporting documents.And/or the corporate has a total assets of not less than HKD $40 million or equivalent.

    How Crypto Is Used

    Crypto-assets were first developed as a digital form of currency, to be used as money. Some stores accept crypto as payment for goods and services, and some ATMs let you withdraw it as physical money. However, crypto is not legal tender in Australia and is not widely accepted as payment.

    Crypto is more commonly used as a speculative, longer-term investment, as most people dont access their balance for everyday transactions.

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    How To Trade Bitcoin: Quick Start Guide

    Every time Bitcoins price rises, new investors and speculators want their share of profits. It is extremely easy for anyone to trade Bitcoin as the barrier for entry is so low. So, how do you get your slice of the pie? ?

    Well, this guide will help you make your trading decisions. So, before you get into the how lets start with the why.

    Look Out For Obvious Signs Of Scam

    How To Get Into Bitcoin Exchange Business When You Don

    Good coins have a transparent technical vision, an active development team, and a lively, enthusiastic community. Bad coins are not transparent, promote fuzzy technical advantages without explaining how to reach them, and have a community that is mostly focused on getting rich quickly. Perhaps the worst kind of cryptocurrencies are MLM coins like the now infamous scam Bitconnect.

    We will talk more about Bitconnect in a bit. For now, here are some of the more obvious signs of scam.

  • The Team

  • It really goes without saying that the success of a project is directly related to the credibility of the team. Lets put it like this: if you are investing your money into a company, wouldnt you want to know that the company is in good hands and that your money is going to be appreciated considerably?

    One of the most successful new projects of the current 2020-2021 market cycle is Uniswap. Although created in 2018 by ex-Siemens engineer Hayden Adams, Uniswap saw incredible success later on in 2020-2021. In March of 2021, it was generating fees of approximately $2-3 million dollars daily for liquidity providers who create a market for buying and selling on the platform.

    Now, compare that to this team:

    Yesyour eyes are not deceiving you, thats Ryan Goslings photo on the team page.

    Of course, most of the time, bad investment advice wont be this easy to detect. But there are steps you can take to thoroughly research the projects team and ensure their credibility.

    Read Also: What Is The Best Cheap Cryptocurrency To Buy

    How Did Kraken Become Popular

    Over the years since its launch, a lot of factors have contributed to Kraken as a trading destination of choice for a variety of cryptocurrency market participants.

    As cryto-mania started gripping the world around 2014, Kraken, along with Coinbase exchange, was selected to provide the market data of bitcoin trading to the Bloomberg terminal. Getting associated with the leading market data provider helped Kraken gain popularity among the trader community. Bloomberg clients were then able to access virtual currency prices, charts, news, and social media posts through appropriate Bloomberg services and terminals.

    Shortly afterward, Kraken partnered with the global leader in chart-service provider, TradingView. It continued to add more cryptocurrencies, like lumen, to its trading platform and enabled funding and trading in various fiat currencies like the USD, GBP, and JPY.

    After having a smooth initial phase post-launch, Kraken made headlines in late 2014, when it was selected to support an investigation into the missing bitcoins, as well as the distribution of remaining assets to Mt. Gox’s creditors.

    Mt. Gox, which once claimed to be the largest bitcoin exchange, filed for bankruptcy in early 2014. It was struggling with a huge debt pile, and 850,000 lost bitcoins.

    Up to that point, Kraken was not among the largest exchanges, and was primarily serving European customers through a partnership with Germany-based Fidor Bank, and had just started in Japan.

    How To Trade Bitcoin

    will be used as an example for this guide. The process and basic principles remain the same across all exchanges.

    First, create an account on Kraken by clicking the black sign up box in the right corner:

    Youll have to confirm your account via email. Once your account is confirmed and youve logged in, you must verify your personal information. All Bitcoin exchanges require varying levels of verification as required by AML and KYC laws. Below you can find the first three verification levels:

    Once your account is verified, head over to the funding tab. You should see something similar to the screenshot below. Select your funding method from the left side:

    Kraken offers many deposit methods, which are listed here:

    EUR SEPA Deposit – EEA countries only

    EUR Bank Wire Deposit – EEA countries only

    USD Bank Wire Deposit – US only

    USD SEPA and SWIFT Deposit

    GBP SEPA and SWIFT Deposit

    JPY Bank deposit – Japan only

    CAD Interac Deposit

    CAD EFT Deposit

    Deposits made using the traditional banking system will take anywhere from one to three days. Bitcoin deposits require six confirmations, which is about one hour.

    Now, navigate to the Trade tab. Using the black bar at the top of the page, you can switch trading pairs. In this example well use XBT/USD. We want to buy bitcoins, so lets put in an order. Navigate to the New Order tab.

    Check the black bar at the top, and youll notice that the last trade price was $383.17.

    Using the order form theres also an option for Market.

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    Should I Invest In Bitcoin

    The answer is yes and no.

    Its a yes because if you have the steel to trade, you will make a lot of money.

    Suppose you found this blog in 2015 and bought Bitcoin with me, how much do you think you could be having- assuming you never sold it?

    A lot, isnt it?

    Well, do you think the current rate of Bitcoin growth will be sustained in the long term future?

    I advice caution here because most people are now much aware of Bitcoin than before.

    So that means many people are buying and holding or selling when they have a profit.

    I know most of my students here have Bitcoins in storage somewhere.

    I advised some of them to buy Bitcoins last year , which they did.

    Along the way, some sold their Bitcoin when price became a little bit unstable. Others decided to buy and hold up to this very day.

    I can assure you that these guys cant get to thank me any better.

    What to know with Bitcoin investing

    Bitcoin isnt affected by economic or geo-political factors.

    Generally, the price has maintained an upward trend.

    The recent devaluation of the Chinese Yuan created more demand from the Chinese people.

    This in turn caused the USD to increase in value in relation to the Yuan. It affected Europe-based exchanges as well.

    From what the world has seen, Bitcoin is apolitical. It is not influenced by Global chaos, governments or financial institutions in the world.

    Bitcoin Stock Vs Bitcoin Shares

    How to Invest in Bitcoin and Cryptocurrency (2021 updated)

    For bitcoin, the terms stock and shares are interchangeable.

    At the outset of bitcoin, approximately 50 bitcoins were mined from the genesis bitcoin block by a mysterious individual named Satoshi Nakamato. Today, after 3 bitcoin halving events, bitcoin miners are mining at a rate of 6.75 BTC per block which is far smaller than the original 50 BTC per block.

    As bitcoin and subsequent cryptocurrencies stabilize in issuance and value, they should become mainstream financial instruments because of the blockchain and appear on many forex exchanges as a result.

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    Why Crypto Is So Volatile

    Crypto is worth what people are willing to pay for it.

    This means that the price of crypto-assets can fluctuate at extreme levels based solely on market speculation. Factors that can influence the price of crypto include:

    • media focus
    • public announcements
    • the actions of individuals who hold large amounts of a crypto or who influence the price through social media

    How To Earn Money With Bitcoin

    Now that you have a clear concept of Bitcoin, lets look at how you can make some money with this digital asset. We outlined the following strategies to help you get started on learning more about how Bitcoin can supplement your income.

    Pick a strategy that makes sense to you and execute it today. There is plenty of information online to expand on the strategy mentioned below. However, the most important thing is that you take action. By taking action, youll get ahead of the masses, and book yourself a spot in the digital economy of the future.

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    How Does A Bitcoin Exchange Work

    Bitcoin exchanges connect buyers and sellers and act as a middleman, or a broker, in some cases. When you buy bitcoin using a bitcoin wallet, the transaction is recorded on the Bitcoin Blockchain, which publicly tracks bitcoin-based transactions. In some cases, exchanges may transact on your behalf and not deliver bitcoin to an external digital wallet.

    One: Choose A Crypto Trading Service Or Venue

    How To Get Started With Bitcoin Investing

    The first step in buying bitcoin consists of choosing a crypto trading service or venue. Popular trading services and venues for purchasing cryptocurrencies are cryptocurrency exchanges, payment services, and brokerages. Out of these, cryptocurrency exchanges are the most convenient option since they offer a breadth of features and more cryptocurrencies for trading as compared to other places.

    Signing up for a cryptocurrency exchange will enable you to buy, sell, and hold cryptocurrency. It is generally best practice to use an exchange that allows its users to withdraw crypto to their own personal online wallet for safekeeping. For those looking to trade Bitcoin or other cryptocurrencies, this feature may not matter.

    There are many types of cryptocurrency exchanges. Because the Bitcoin ethos is about decentralization and individual sovereignty, some exchanges allow users to remain anonymous and do not require users to enter personal information. Such exchanges operate autonomously and are typically decentralized, which means they do not have a central point of control.

    Although such systems can be used for nefarious activities, they are also used to provide services to the world’s unbanked population. For certain categories of peopleârefugees or those living in countries with little to no infrastructure for government credit or bankingâanonymous exchanges can help bring them into the mainstream economy.

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    Mistake #5 Not Learning The Lesson

    Regardless of whether or not you made a successful trade, theres always a lesson to be learned. No one manages to only make profitable trades, and no one gets to the point of making money without losing some money on the way.

    The important thing isnt necessarily whether or not you made money. Rather, its whether you managed to gain some new insight into how to trade better next time.

    How Many Cryptocurrencies Are There What Are They Worth

    More than 15,000 different cryptocurrencies are traded publicly, according to, a market research website. And cryptocurrencies continue to proliferate. The total value of all cryptocurrencies on Dec. 17 2021, was about $2.1 trillion, having fallen off an all-time high above $2.9 trillion weeks earlier. The total value of all bitcoins, the most popular digital currency, was pegged at about $868.7 billion.

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    Common Cryptocurrency Exchange Questions

    Here are some of the most common questions we get when it comes to our picks fr the best cryptocurrency exchanges.

    What features are important to look at when deciding on an exchange?

    There are a few major features we consider, including the number of tokens and coins available, the price or commission charged, the ease of use, the security of the platform, the customer service, and the features .

    What’s the difference between a crypto exchange and a crypto wallet?

    A wallet is designed for safe storage of your cryptocurrency. An exchange is designed to allow you to buy and sell cryptocurrency easily and quickly. A wallet will hold your private keys security, while when you use an exchange, you provide the exchange your private keys. The exchange then acts as your custodian.

    How do you buy cryptocurrency?

    You open an account at any of these exchanges, deposit your funds, and then you can “exchange” your USD or fiat currency for the cryptocurrency of your choosing. Some cryptocurrency only have specific pairs they trade with, so depending on what you want to buy, you may need to buy something like Bitcoin, and then exchange the Bitcoin for another token.

    How much money do you need to get started?

    You can get started with most of these exchanges with as little as $5.

    Buying And Storing Crypto

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    You can buy or sell crypto on a crypto trading platform using traditional money. Crypto is kept in a unique digital wallet or hardware wallet.

    A users wallet has a set of private keys that are used to authorise outgoing transactions on the blockchain network. A wallet may be a software or hardware wallet. A hardware wallet stores these private keys on a secure hardware device not connected to the internet. This can protect the users wallet from hackers.

    Scam alert: an increased number of Australians have reported losing money through crypto-asset or cryptocurrency scams.

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    Why Are Cryptocurrencies So Popular

    Cryptocurrencies appeal to their supporters for a variety of reasons. Here are some of the most popular:

    • Supporters see cryptocurrencies such as bitcoin as the currency of the future and are racing to buy them now, presumably before they become more valuable

    • Some supporters like the fact that cryptocurrency removes central banks from managing the money supply, since over time these banks tend to reduce the value of money via inflation

    • Other supporters like the technology behind cryptocurrencies, the blockchain, because its a decentralized processing and recording system and can be more secure than traditional payment systems

    • Some speculators like cryptocurrencies because theyre going up in value and have no interest in the currencies long-term acceptance as a way to move money

    Crypto To Crypto Exchanges

    Crypto-to-crypto exchanges solely offer trading in and out of different cryptocurrencies, with prices of altcoins pegged to Bitcoin or stablecoins like Tether or USDC.

    These exchanges have been referred to as altcoin casinos as they are essentially gambling on price swings of many of the more obscure altcoins available.

    However, these exchanges sometimes offer excellent trading experiences and can be used to access other cryptocurrencies widely not available on fiat on-ramps. Binance is one the leading cryptocurrency exchanges in the world and is a centralized crypto-to-crypto platform.

    Also Check: What Is The Easiest Crypto Coin To Mine

    What Is The Miners Reward

    There are two types of rewards that miners earn the first is transaction fees for validating transactions, and the second is the block reward.

    The miner who manages to solve the aforementioned cryptographic problem receives a block reward, which is the second type of miners reward.

    As of writing these lines, every block has a reward of 12.5 bitcoins. According to the Bitcoin protocol, every four years there is a halving event, at which time the reward is cut in half. After the halving of mid-2020, the reward will become 6.25 bitcoins per block until the next halving event.

    Mistake #1 Risking More Than You Can Afford To Lose

    Things to Remember If You Want to Get Into Bitcoin Trading ...

    The biggest mistake you can make is to risk more money than you can afford to lose. Take a look at the amount you feel comfortable with. Heres the worst-case scenario: youll end up losing it all. If you find yourself trading above that amount, stop. Youre doing it wrong.

    Trading is a very risky business. If you invest more money than youre comfortable with, it will affect how you trade, and it may cause you to make bad decisions.

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    How To Buy Cryptocurrency On A Decentralized Exchange

  • First create an account on a centralized exchange
  • Create a hot wallet by adding as an extension to your browser
  • Be sure to physically write down your secret passphrase on paper and keep it safe!
  • Transfer crypto from the wallet on your centralized exchange to your hot wallet
  • Evaluate and choose a blockchain ecosystem you want to use
  • Find a decentralized exchange that has the liquidity and assets you want on the ecosystem you want
  • Buy crypto!
  • The question, what type of exchange to use depends on a number of factors. What is your risk tolerance? What are your investment goals and timelines? What is your investment or trading strategy? How important is security, privacy, or decentralization to you?

    There are a lot of variables and trade-offs to consider, and no one-size fits all answer. One thing is for certain: crypto investing can be risky so do your own research, and do not make investments without strong conviction.

    If you want to learn more about how to safely invest in CeFi and DeFi exchanges, our Crypto Investment School course has a comprehensive curriculum taught by crypto investors whove got real-world experience.

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