Some Forex Trading Knowledge
There will be risks, and there will be rewards — all you would need to be is, an attentive trading analyst to avoid the former, and attract the latter. We would therefore recommend you to learn a little bit about Forex strategies and indicators — so as to predict the possible price actions before making any trade.
A large portion of this risk is credited to the bitcoin unconventional price fluctuation. To avoid such volatility, we recommend traders to short their funds on the first opportunity.
Trading bitcoin comes with statuary warning, sometimes from one’s own instincts — and sometimes from the government. You may also choose to read independent reviews, available online before making any decision.
These measures are taken to ensure that users do not use bitcoin for anti-social activities such as money laundering, funding terrorism, drug trafficking, etc.
For us non-miners, getting bitcoin is now easier than it was a year ago. It can be perfectly illustrated in a bitcoin fall from some $1,000 to the current $280.
What is Bitcoin Market?
The bitcoin market is a market where Bitcoin gets actively traded with other value-carrying assets. Unlike fiat currencies, which are minted under the confidence of nations’ economic and financial status, bitcoin is created without keeping such influential factors in mind.
Before you continue with this article on trading bitcoin, we have an impression that you should already familiar with, the basics of bitcoin.
Speaking of personal information, you need to know about a certain KYC and AML requirements before signing up to any exchange. These exchanges instantly convert your Bitcoin into USD or other fiat currency, and based on the price fluctuations between these two, one can simultaneously sell and purchase their holdings and make good profits — a process we know as arbitrage.
All you need to do is find a reliable Bitcoin exchange, sign up and provide the required personal information — it would simply make you eligible to purchase and sell Bitcoin directly from/to the markets.
According to some recent regulatory frameworks, the governments have asked Bitcoin exchanges to follow certain identification procedures (just like those practiced by banks) where a user is required to submit their confidential information.
To be safe check whether the Bitcoin Exchange is fully complied with the regulations, some are and some may not be just be advised to do your research before using any exchange; also check whether the exchange has been involved in any malicious and unethical activity in the past.
Now, one only needs to be in a right country to purchase and sell bitcoin, where exchanges legally act as intermediaries for currency transactions — something that also protects your funds from being mismanaged by external and internal attacks.
You really need to be sure enough before stepping in.
As we stated at the start of this article, Bitcoin investments are indeed risky and not for the weak stomachs. In the past, many exchanges have been targets of theft, including BitStamp , BitFinex and MintPal so take necessary precautions and use common sense to keep from becoming a victim, Do your research before getting started!