One thing about cryptocurrency is that no matter how low it dips, investors are always sure of bull runs. However, the space that exists between the two extremes is where several cryptocurrency experts take advantage of — and this is called cryptocurrency trading.
Bitcoin is by far the most successful cryptocurrency right now. Thus, it is the currency that has the highest number of traders.
What is cryptocurrency trading? It is the act of speculating on the rise and fall of a digital currency and sometimes trading coins within that margin through an exchange. To become a bitcoin trader, you must be able to predict the rise and fall of currencies to a certain extent, or you’re going to lose a lot of money.
If you learn the correct way to do it, though, there’s a lot of money to be made by trading bitcoin, and in fact, a lot of people make thousands of dollars monthly just from bitcoin trading.
How to open a bitcoin trading account
It is stressful to buy and sell a cryptocurrency, so one of the most important decisions you will make on this journey is choosing an appropriate trading platform. There are several popular trading platforms that you can use. Some examples are Binance, Coinbase, Kraken, EToro, and several others.
Of all the options, Binance is widely considered the best cryptocurrency platform overall, so this tutorial will share how to open a bitcoin trading account using Binance. Later, you will see the benefits of bitcoin trading accounts to investors.
How to trade on Binance
Before you start trading on Binance, you will need to set up a Binance account. Doing this is straightforward. All you need to do is download the app from the app store (or from Google play), fill in your information, agree to Binance’s terms and conditions, complete a puzzle to prove you are not a robot, and then set up two-factor authentication. Once this is done, you are ready to start trading.
Related article: 10 companies boosting real estate industry with Bitcoin.
Below is a step-by-step process for how to trade on Binance.
- Create a Binance account by following the instructions above.
- Click on the taskbar, then click ‘exchange’ and then ‘basic’.
- Once you have done this, choose a trading pair. There are several options open to you at this point because Bitcoin allows you to exchange bitcoin for 143 other cryptocurrencies. The same goes for cryptocurrencies like Ethereum. However, if your account has only Ethereum, then you cannot deal with Bitcoin; you will have to stick with trading with Ethereum. An alternative to doing this is to convert your currency to Bitcoin.
- Choose the type of trade that you want to complete. Binance allows users to choose one of three types of trading.
– Market orders: A market order is the most straightforward and fastest trade that can be executed. This lets traders complete trades at market rates.
– Stop limit orders: This is a more advanced type of trade and is often used by pro traders. Here, traders can specify that they want to buy or sell coins once they reach a certain price.
– Limit orders: Limit orders work for the users more than the traders. Here, a user can set a maximum price that they are willing to sell their coins. Traders must then wait for the seller to accept their price before buying or selling their coins.
5. Select the amount that you want to trade. Check the current market price, and if you’re comfortable with it, select the amount of coin that you want t buy. This can be entered either as a percentage or as a certain amount on your account’s Ethereum. The rest will be handled by your cryptocurrency platform.
Benefits of opening a bitcoin trading account
As mentioned previously, Bitcoin is the most popular cryptocurrency platform, and that is because the platform is entirely safe, with no transaction fees and zero tax.
Also read: How to find the Best Bitcoin wallets of 2021.
Apart from all that, there are other benefits of bitcoin trading, and five of them are outlined below:
- Advanced security: You don’t need to give out sensitive information to complete a bitcoin transaction, like your bank details. All you need is a valid account on a trading platform. An added plus is the fact that you can’t be scammed while conducting crypto transactions — if someone refuses to complete their own end of the transaction, you can simply report them and get your coins back.
- Reduced risk: Cryptocurrency is completely risk-free because it is located on a blockchain, which makes all financial and personal safe. You can track public transactions, of course, but as far as losing your money while trading cryptocurrencies, that’s not going to happen as long as you take the right precautions.
- No tax on transactions: One of the biggest draws of cryptocurrencies for investors is the fact that there is no tax (or transaction fees) on the money spent while trading cryptocurrency. Where traditional institutions remove taxes on transactions, digital currencies are free of such levies and help people save quite a lot of money.
- No global boundaries: In many cases, it is very hard to send traditional currencies across borders, anytime and anywhere. With digital currencies, this is not the case. With digital currencies, even large transactions can be completed in a snap without any kind of limitations.
- Low deposit account: A trader can start with as low as $20 on a trading platform. Some trading platforms even offer a sign-up bonus.
Bitcoin trading is a risky thing to do, but the profits are great if you do it right — up to thousands of dollars every month. Of course, several people dedicate hours to learning the rubrics of cryptocurrency and monitoring the market, but you can choose to spend as little or as much time as you can on it.
Apart from the money, there are several more benefits of opening a bitcoin trading account, ease and reduced risk. Opening a bitcoin trading account is fast and easy, especially with popular trading platforms like Binance. All you need to do is set up an account by following the instructions above, and you’re ready to go.
You may also like to read our latest article, How to convert bitcoin to CAD, bitcoin to Euro, and more.