Last updated on March 17th, 2015 at 11:10 pm
Are you looking to get into Bitcoin trading? A lot of people have gotten involved in this highly lucrative and fasting moving market. From techies to retirees, Bitcoin is becoming a favorite investment vehicle for many people. Still, while you could potentially make a lot of money in Bitcoin trading, there are a lot of important concepts you need to understand. And that’s why we have written this guide.
We have written this guide to help beginners with the entire Bitcoin process. We will cover the basic concepts of Bitcoin, how to begin trading, and also some of the more advances investment topics you need to know. While Bitcoin is complex trading instrument, and there is no way we could cover every topic in such a short guide, we will provide you with the resources you need to start trading!
A Brief Introduction to Bitcoins
If you are looking to get involved in Bitcoin trading, then there’s a good chance that you are already familiar with Bitcoins. If so, you can skip through this section. If you’re unfamiliar with Bitcoins, however, we’ll quickly bring you up to speed.
Bitcoin is an all-digital, peer-to-peer currency that was created by someone (or a group of people) working under the pseudonym of Satoshi Nakamoto in 2009. Let’s be clear, Bitcoin was not the world’s first all-digital currency, several companies and organizations had in fact tried to create all-digital currencies. All of these efforts failed, however, because they tried to rely on central clearing houses to control the creation and flow of the currency itself.
Bitcoin revolutionized the world by relying on the online community to create Bitcoins and monitor their flow. Bitcoins are created through a process called mining. If you’d like to learn more about the mining process, there are plenty of detailed explanations regarding Bitcoin mining online. It suffices to say, however, that the mining process involves solving extremely complex using computers. Once the equation is solved a “block”, or section of information, is added to the blockchain, which is the online public ledger that allows everyone to monitor Bitcoin transactions.
Bitcoins are also unique in that all transactions are made peer-to-peer, usually using exchanges such as Mt. Gox. All Bitcoin transactions are anonymous and nearly impossible to trace. This is great for people looking for privacy in their financial transactions, but it also creates some potential hazards. If you are somehow “ripped off” through a scam or other in another situation, it will be nearly impossible for you to recover your funds. Always keep that in mind!
Bitcoin Transactions and Investing
Anyways, transactions are the central focus of this guide. So in the following sections, we will help you get started with Bitcoin trading and investing. Not only will we provide insights into how you can conduct your transactions safely, but we will also walk you through the process. We will also help you understand how Bitcoin markets work and how you can start to formulate investment strategies.
Of course, just because we will teach you how to trade, and provide you with key strategical insights, we cannot guarantee that every trade you make will be a success. Bitcoin is a highly volatile market and while a lot of traders make a lot of money, the simple fact is that some traders lose money.
The simple fact is that there is no inside trading strategy that will guarantee your success. Sure, some “experts” claim they know all the secrets, but the truth is that markets can be unpredictable. Even with the best strategies, and loads of research, you still may lose money on a Bitcoin trade. For this reason, we suggest that you only invest money in Bitcoin that you can afford to lose.
Still, we will outline a lot of important concepts and strategies that will maximize your chances of success. By doing so, we will maximize your chances of success. Further, by focusing on fundamentals and the underlying processes that drive Bitcoin, we will provide you with the knowledge and insight you need to develop your own trading strategies without stifling your own creative thought process.