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How to Start Bitcoin Trading

Posted: November 30, 2021 at 11:41 am / by / comments (0)

Bitcoins are a virtual currency that is not under the control of any central bank or governmental authority, and they can be traded for goods and services with merchants that accept Bitcoins. Every Bitcoin transaction is recorded in a public ledger known as the blockchain, which makes it possible to trace any transaction made between the two parties since its inception. For more information visit Bitcoin Evolution Review.

When we think of something as valuable as Gold, we tend to carry out an examination to find out the very best method to get our hands on that commodity. Bitcoins may not be tangible but they can certainly be exchanged for other currencies and this is what makes it different from the common ‘paper money system presently in use where central authorities can simply print more currency whenever they want thus devaluing their own currencies leading to inflation which causes prices of goods and services to go up.

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With Bitcoins there will only ever be 21 million in circulation, no one can just print more when required because unlike paper money, its value lies not in its supply but in the demand for them instead.

Now that you’ve read about how it works, let’s learn how to get our hands on some Bitcoin Trading.

1) Getting a Wallet

Before you can start buying and selling Bitcoins, you will need somewhere to store them so downloading official Bitcoin client software is the first thing you need to do. This software connects your computer directly with the network thus allowing access to the public ledger and enabling transactions when required. It also comes with additional security features which help protect your funds in case of theft or accidental loss.

If you are not tech-savvy then there are several online wallet services that can provide similar services without having to download anything at all since they function in the cloud using APIs (Application Programming Interface). However, it’s advisable not to use these online services for significant amounts of money since “you don’t control the keys”.

2) Buying Bitcoins

Once you have got yourself some Bitcoins, you can either spend them with merchants accepting BTC payments directly or sell them on exchanges for real currency. If you are selling your goods/services, setting up a wallet service is simple enough but if you do not want to go through all that trouble then online services will help you by providing both wallets and buy/sell services pretty easily since they support more than 32 countries.

You can also use Bitcoin ATMs in select locations. If it’s the other way round i.e., buying Bitcoins, exchanges provide 24*7 trading thus allowing users to buy as much as they want at any time of the day. It’s advisable to keep your transaction records for tax purposes since Bitcoins are still not considered legal tender in most countries.

3) Sending and Receiving Bitcoins

Bitcoins can be shared with anyone who has a Bitcoin address thus allowing its use as an ordinary currency enabling direct transfer of funds between individuals without the need for any intermediary. However, it’s advisable not to share your private key (a long series of numbers/letters) with anyone, or else they could access your wallet and take your Bitcoins out.

Asking people to mail you some small amount of BTC will make them send you money using their own wallets, then all you have to do is transfer that amount into your wallet provided by the service you use.

With Bitcoins gaining mainstream popularity, the next step will be to introduce it as a mode of payment at local shops since currently there are not many merchants who accept BTC payments directly thus making it difficult for the average user to live on Bitcoin alone. This lack of support from major companies is perhaps due to their refusal to deal with a currency which government is still hesitant in accepting as a legal tender and regards as highly volatile.

Final Words

One last thing, note that you cannot reverse transactions made using Bitcoins since they become invalid once processed successfully thus making fraud impossible through direct use of this cryptocurrency without relying on third-party services. It is advisable that you do not store large amounts in your private wallet unless it’s encrypted or stored offline/online.

There you go, that’s how you start trading Bitcoins, and hopefully, this article will help to clear some common misconceptions about cryptocurrencies that haven’t been debunked yet. If you have any further questions don’t hesitate to post them in the comments section below and we’ll get back to you as soon as possible.

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