There are several ways of trading Bitcoins. In this article, you can learn all about Bitcoin trading and how to buy Bitcoins.
Bitcoin Trading with CFDs
Many people trade Bitcoins as CFDs (Contracts For Difference) through a broker. When trading Bitcoins as CFDs, you trade your Bitcoins as you would trade a CFD stock or any other asset. You either win or lose money depending on whether you are “long” and believe that the asset will go up or “short” and believe that the stock will go down. With a CFD, you do not own the Bitcoins but speculate on the direction that the asset – here, Bitcoins – will take.
Some of the large brokers in Bitcoin trading are:
82% of retail CFD accounts lose money
The advantages of trading Bitcoins as CFDs are:
- A high degree of security. You do NOT own the Bitcoin when you decide to “buy Bitcoin” in a CFD, and therefore, the risk of being hacked (ransomware) and losing your Bitcoins is gone.
Bitcoin Exchanges – Buying Bitcoins
Another way to trade Bitcoins is through a Bitcoin exchange. A Bitcoin exchange is an exchange that allows you to buy and sell Bitcoins online.
Some of the most famous Bitcoin exchanges in the market right now are:
The advantages of using a Bitcoin exchange for Bitcoin trading are:
- You actually get your Bitcoins. When you press “Buy Bitcoin,” you really own the Bitcoin)
- Also, you do not have to renew your assets all the time and pay a fee.
When trading Bitcoins, some tools are good to know to trade crypto cash. Here are the most important ones:
Bitcoin wallet
Like real coins, Bitcoins need a place to be. Bitcoins need a wallet. Since Bitcoins are digital, so is a Bitcoin wallet. Some of the most popular wallets for Bitcoins, and any other crypto-cash currency, by the way, are Electrum.org, Blockchain.info, and Jaxx.io. Most Bitcoin wallets are free. A Bitcoin wallet makes it possible to trade Bitcoins with other individuals around the world. It would help if you had a Bitcoin wallet to buy and sell Bitcoins.
BlockTrail
It’s not as important as the Bitcoin Wallet, but it’s nice to have. BlockTrail is a product owned by Bitman that helps you test your Bitcoin addresses and ensure that the exchange network approves your buying and selling transactions.
BlockTrail is most famous for its Bitcoin mining equipment and offers a great Bitcoin wallet.
Ransomware
In an area with high value, you also have bandits, and the Bitcoin area is no exception. Bitcoin ransomware is an evil computer virus that blocks your files’ access and demands a Bitcoin ransom to un-block your files. If you are hit by ransomware, contact an expert who can provide you with the right support and help you pay the ransom fast. If you want to avoid ransomware when you trade Bitcoins, you should trade CFDs instead (see the first part of the Bitcoin trading article).