Bitcoin was invented in 2008 and finally launched in 2009 as open-source software; the crafting of which is commonly credited to Satoshi Nakamoto; a pseudo name given to a person or a group. Therefore, Bitcoin is the oldest and most popular decentralized digital ledger to date in a pool of more than 19,000 cryptocurrencies. Bitcoin transactions are made through a public distributed ledger called blockchain technology on the peer-to-peer bitcoin trading network.
While earlier after its launch predicting Bitcoin price movement was not easy, for now not only there is a lot to know about the cryptocurrency market, but the way it works as well as how to track the market movement. In comparison, Pro traders use market analysis and even tools to execute trade calculations and analysis.
Bitcoin Price Movement Triggers
While many cryptocurrency experts call the latest drop in the price of Bitcoin a bubble, others like Kate Waltman, a New York-based certified accountant, opines, “The most knowledgeable educators in the space are predicting $100,000 Bitcoin in Q1 2022 or sooner.” However, to take the best opportunities of the crypto market movement; it is essential to understand the market triggers:
There is a limit set for the current bitcoin supply at 21 million. While 18 million currencies are already in circulation; the total limit is estimated to be exhausted by 2140. When supply is unlimited, demand is met easily. However, with a finite supply, demands tend to raise the value of the commodity, in this case, Bitcoin.
Central banks and Federal Reserve banks, along with many international banks, are considering the integration of Bitcoin’s public profile into new payment systems, banking frameworks, etc., since major companies like Amazon, Overstock, Nike, etc., are considering accommodating Bitcoin payments.
Many new companies and brands announce new investment plans and payment integration plans with cryptocurrencies, which, when released on media, automatically influence the value of cryptocurrencies.
Basic Steps of Bitcoin Trading
Select a Crypto Exchange
To trade in Bitcoin, you need a trading platform where buyers and sellers are connected; and crypto exchanges play this role. The most popular ones in the crypto world now are Coinbase WazirX, Cash App, UnoCoin, CoinSwitch Kuber, BitMart, and CoinDCX.
To begin with trading, after selecting an exchange; you need to start an account with them. In most exchanges, you need to fill up a KYC with essential credentials like your preferred cryptocurrencies, the highest amount of trade, the amount of currency you want to keep in your wallet, payment options, etc. To verify your credentials and credibility, you must submit copies of your ID proof, photo ID, etc.
Set Your Account
If you want to purchase Bitcoin s or other altcoins; you need to check at the preliminary stage about the list of cryptocurrencies the exchange deals with. Once you are all set, you must load your account with money for purchases. However, make sure to check the exchange terms regarding the waiting period before you can start trading.
Once you are all set, you need to pick your preference in cryptocurrency you want to trade. It is best to research potential digital currencies, apart from Bitcoin, like Polkadot, Ethereum, XRP, Binance Coin, Cardano, Solano, Tether, and Dogecoin, to list a few.
However, before picking a crypto exchange; you need to check on a few things:
- Review feedback about the crypto exchange
- Check the digital currencies they deal
- Terms on liquidation
- If the exchange has an insurance policy
Wrapping it up !!!
It might feel like an unknown island to beginners to find a way to understand trading patter. However, a few established strategies like the Elliott Wave Theory exist. While this theory follows a particular pattern of the market movement; one can also go by expert opinions in the market. News flashes daily surrounding new developments, brands planning for investments in cryptocurrencies, and Nasdaq’s opinion on cryptocurrencies. You can even follow this to make a fortune out of cryptocurrency investment or even try oil profit trading; an investment with great opportunities. Investment of any kind should always be backed by thorough research and an understanding of the market. It helps in making the right decision.