How to Trade Bitcoin – The Ultimate Guide

How to Trade Bitcoin – The Ultimate Guide

How to trade Bitcoin?

In this how to trade bitcoin article, we’re going to discuss how you can secure your investment in a great opportunity and make sure that it’s profitable. However if you’re not informed about Bitcoins, we recommend reading WikiCrypto’s Brief History of Bitcoin. It will make sure you understand the rest of this article and can invest safely into Bitcoin.

Just imagine, had you invested $10 in Bitcoin in 2009, it would now be worth half a million dollars. We are not joking, you can look at the below Bitcoin Price Index:

coindesk-bpi-chart How to Trade Bitcoin - The Ultimate Guide

What is Bitcoin Trading? 

Bitcoin Trading (or CFD Trading) is a great way to take advantage of Bitcoin’s volatility while never having to carry the burden of actually owning the coins. When trading bitcoins on a platform such as Plus500, you can directly speculate on the short or long term price variation of the asset.

Here is a great video that explains how CFD trading works:

Technical Explanation:
Bitcoin Trading or CFD trading is essentially a contract for difference that is made on the market. So, if you’d like to invest in a CFD, you would create a basic contract in which you would either sell or buy a specific asset at a later date to a specific price. Now, during the time that you hold the asset, the price may increase or decrease, but depending on your initial speculation, you can make a massive profit. Thus when you sell it at the time that was specified in the contract, you would make a profit.

This works inversely as well. If you were to enter a contract in which you speculate that the price of bitcoin will go down. The contract would be to buy the asset at a later date and at a lower price. Now, if the price does go down, you will make a significant profit since the asset’s price is much lower than what they paid for. Hopefully, the asset’s value will increase thus making a great profit for you.

With the advent of the internet, Bitcoin trading is now accessible to traders and investors from all over the world. Bitcoin trading is legal in most countries except the US.

 

Where to Learn How to Trade Bitcoin?

Whilst writing this article, I started looking into the educational programs that Plus500 offers. The company offers live webinars on different subjects that anyone can watch and also eCourses on all the different types of trades available on the website.

The platform is very well designed -even for newbies-, and has great features available! Firstly, they offer a risk-management tool that will help you minimize your risks, although since this is a trading platform, your capital might be at risk. It is a very useful tool for new traders.

Plus500 has really gone out of its way to make sure beginners have the right start on the website, and can slowly start trading the coin of their choice with their own speculations.

So, Plus500 is pretty helpful in terms of the knowledge that one requires before investing into CFDs. This will give you a great introduction into how to trade bitcoin. 

Best Platform to Trade Bitcoins

Out of the 24 Bitcoin Brokers we reviewed in 2017, Plus500 was ranked #1. This came almost as no-surprise since Plus500 is already a leading trading website that offers thousands of assets, including Bitcoin, Ethereum and Litecoin. 

If you would like to open a free demo account, you simply need to click here. You can then start trading bitcoins at no risk while seeing the potential results of your speculations.

Once you will be more familiar with the platform, you can check our Tutorial on how to deposit money on your trading account in order to place your first real trade with Bitcoin.

 

Hopefully, this article helped you in your first Bitcoin investment. You can check out our full and free guide to bitcoin trading here!

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About Article Author

Michael Serrano
Michael Serrano

Michael is an engineer and a bitcoin evangelist. He has been involved in cryptocurrencies since 2013. His biggest wish? 1 billion users of bitcoin, ether and litecoin by 2020. In the last 10 years he has worked for various early-stage start-up as a back-end developer.

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