You heard about Bitcoins and it got you interested. Bitcoin is a cryptocurrency. There are thousands of cryptocurrencies sprouting every day aside from Bitcoin. However, Bitcoin is the most popular. Part of its success is because of the encryption software that controls it. Basically, Bitcoin is a digital currency and it doesn’t need coins to mint or bills to print.
It is decentralized, which means there is no government or banking institution that controls it but this doesn’t make it illegal. The anonymity of Bitcoin is appealing to many. The value of the Bitcoin is determined by how much people want to pay for it. Without the government, the value is totally dependent on the people. Bitcoins invite speculation and manipulation, which make it volatile.
Now that you have a basic understanding of Bitcoins, it is time that you know how to buy and sell it. Trading Bitcoins can potentially give good returns at the end of the day. Here’s your guide from buying to selling Bitcoins:
Choose a digital currency exchange
The first thing that you should do is to look for a digital currency exchange. If you are not sure what to consider, read the reviews and make an informed decision based on that. Sign up and complete the details required. Do not forget to add your bank account details.
Choose a wallet app
You need a wallet app for each type of cryptocurrency you want to buy, store and sell. There are exchange platforms that do not require downloading separate wallet app because they have their own private servers for the different cryptocurrency.
Check prices and buy some crypto
After setting up the account, you are ready to buy some crypto. Before buying, you should first check the prices. If you are ready to buy, just hit the Buy icon. Enter the Bitcoin amount you want to buy and the calculator will indicate the value.
Complete your transaction
If you have wallet inside the exchange, you should choose the crypto wallet and then click on the buy button to be directed to the confirmation page. An email will be sent to you every after a transaction.
Track the prices
Track the Bitcoin prices and create a price alert. If the cryptocurrency reaches your target price, you will be notified so you can either buy more or sell.
There are many ways to sell bitcoin. You can sell via exchange, peer-to-peer transaction and direct trade. Selling via exchange is not very difficult. You can simply put a “sell offer”. The offer should state the cryptocurrency type you want to trade and the amount or price per unit. As soon as there is a matching offer, the transaction will automatically take place. The funds will then be credited to your account and you can withdraw them.
Another way of selling Bitcoin is via direct sales. This refers to selling directly with another person. You can also consider peer-to-peer trading (P2P). This involves websites that work as a mediator to bring people with the same needs together. Selling Bitcoins is also possible through Bitcoin ATM. The disadvantage is they charge high transaction fees and it is difficult to locate.