Bitcoin investment has become a common practice worldwide. Whoever can afford it, buy it. The process to invest in BitIQ is quite easy. But, making your investment effective is harder than that. It includes some extra factors that are needed to be concerned. Here is the whole elongated process of bitcoin investment following what will just not let you buy some bitcoins but also make you a good profit.
Plan a trading strategy: The first important thing that most people ignore is planning investment strategies. Different market situations and different needs will determine what your investment strategies will be like, day trading, scalping, range trading, etc. Also, you must decide on the entry price and exit price and an exit strategy to minimize the risk of loss like fixing a stop loss setup.
Decide the capital amount: The more you invest the more you make a profit as well as the more you tend to lose. So, decide your capital amount. Try to keep it low as much as you don’t mind if you somehow lose it.
Search for a good trading exchange: Then, your next job is to find out a reliable and good trading exchange. For that, you need to search for the customer’s reviews on some of the reputed exchanges. And, if it’s possible visit their office address to communicate with them.
Analyzing all these things you have to choose the trading exchange that will be good for you and is reliable too.
Registration: You need to complete the registration process in order to start Bitcoin trading. The registration process is simple in most exchanges. It is a simple verification of your IDs. A few exchanges may ask for a detailed registration that will include providing some extra documents.
Open a trading account: The time registration is done, a bitcoin trading account will be opened. You will get a private key and a public key that are the only access to your bitcoins and investment.
Link accounts: Now, you have to link that bitcoin trading account with a bank account you already have. It is because of making internal transactions.
Fund the trading account: The trading account needs some initial funding to buy bitcoin. So, transfer some money from your bank account to the bitcoin trading account.
Choose a bitcoin wallet: A bitcoin wallet is needed to keep your bitcoin access keys safe. So many people don’t have bitcoin wallets and like to keep them on their trading accounts. But it has some amount of risk because you are holding them on an online trading account. So, it is better to buy a bitcoin wallet when you are investing in bitcoin. And, if you choose to have a cold storage wallet it is the best thing you will be doing.
Buy bitcoins: Now, finally, you are ready to buy bitcoins. Buying bitcoins differs from types of exchange platforms.
In a centralized exchange platform, you will be providing two ways to buy bitcoins.
One is the market order where bitcoins will be purchased at the current bid price. The second one is limit order where you can fix a limit and when the market price will hit that limit the platform will execute the buying process.
Analyze the market and hold it: Now the main part of bitcoin investment comes. The investment includes some holding period. How long the period will be and when to sell your bitcoins will be determined after analyzing the market and its price movement. Make sure to hold till the price doesn’t lift higher than the buying price.
Sell bitcoins and make a profit: Once you see the price of bitcoin has increased greater than the buying price, it’s time to sell them. The selling process is quite similar to buying which is just making a sell order. Here also, centralized and decentralized platforms involve different styles of bitcoin selling like selling through the platform and selling directly to the buyer.
As of now, you might have learned to effectively invest in bitcoin. If you want to make some extra money using Bitcoins and other forms of cryptocurrency, you can get started today with the help of this guide.