More and more investors want to trade Bitcoin with StsRoyal. No wonder, the courses of the cryptocurrency could increase enormously in the past weeks and months. In 2017, it will create the digital currency, yielding more than 1,500 percent. Anyone who invested early in the motto could look forward to a correspondingly high plus in the portfolio. But is it still worthwhile to trade Bitcoin?
Bitcoin trading – the most important thing soon
- To trade bitcoin, traders must have a wallet
- This can be used by a variety of providers
- Subsequently, orders are created at Bitcoin exchanges
- Alternatively, traders trade in financial derivatives such as CFDs or certificates
- In any case, it is important to study the opportunities and risks of Bitcoin
How can you trade bitcoins?
At first, traders should be concerned with the question “How to trade bitcoins?” Because this “how” cannot be answered so trivially. A quick overview of how Bitcoin works:
Bitcoin was developed as a digital motto, in clear contrast to conventional cryptocurrencies. Behind the digital currency is again the so-called blockchain. Traders can imagine this as a kind of accounting journal:
Bitcoin’s network can handle transactions between individual users.
For example, if user A and user B make a transfer, write this into the blockchain.
The block chain is now also updated and updated automatically for user C. Indirectly he now knows that a transaction has taken place between A and B.
Become part of the network
At this point, resourceful investors should ask themselves how they are now part of this Bitcoin network. In principle this is quite simple:
Investors open a Bitcoin account.
You download a so-called wallet and synchronize the complete blockchain.
The investor is part of the network and can also transact with his wallet address.
Although there are different types of wallets, participation in the network generally ends in this way.
And where can you trade Bitcoin? After investors own their own wallet, they should search the Internet for Bitcoin exchanges. Coinbase is one of the largest providers in this field. The trade itself then proceeds as in conventional marketplaces also:
First, the trader creates a buy order. For example, he stops wanting to buy three Bitcoins. Based on the current market price which changes every second the platform shows how much money has to be spent on these three bitcoins in euros. If the investor decides to buy, he chooses a means of payment, for example bank transfer. If the trader verifies the transfer, the exchange automatically handles the purchase.