How Does Bitcoin Trading Work – How Is It Done?

OlufisayoJune 15, 202015,298 views

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2009 was a pivotal turning point when things in the trading world took a different path. Satoshi Nakamoto came up with something that nobody had ever seen before – bitcoin.

Bitcoin was the first currency that got released, followed by many other ones later.

Before bitcoin got released, people would trade forex only. With the cryptocurrencies appearing, another excellent opportunity came up.

What is trading?

Investopedia describes the trade as “a basic economic concept involving the buying and selling of goods and services, with compensation paid by a buyer to a seller, or the exchange of goods or services between parties.”

So, trading is exchanging things, whether they are material, or virtual like the cryptocurrencies. Trading dates a long way back. According to Wikipedia, trade originated with human communication in prehistoric times.

People would barter goods and services from each other before the innovation of modern-day currency.

How is bitcoin traded?

Trading bitcoin sounds way more complicated than it actually is. Especially for beginners, it might be more confusing.

There are two key things that you need to start trading bitcoin:

A secure wallet to store your coins
An account in one of the cryptocurrency exchanges to buy and sell bitcoin

You need to pick one of the cryptocurrency exchanges, set up an account, and start trading. There are many exchanges out there. Here are the most reliable ones:

Coinbase
Binance
com
io
LocalBitcoins
Bitfinex
Bittrex
Coinmama
Kraken
Changelly
Prime XBT
BitMEX

You can visit one of their websites, open an account, and you are good to go. It is preferred, though, that you have some general knowledge related to cryptocurrency before investing money.

Trading can also be done using trading bot, which are software platforms that will trade on your behalf. The bitcoinpro trading robot is a good example that provides the best for its users by enabling them to take advantage of the immense potential in bitcoin trading.

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