Bitcoin has reached its peak of popularity during 2020 and 2021 when it entered a bull cycle which was one of the best bull runs so far. The evidence shows that not only investors were attracted to make bigger investments in BTC, but also institutional investors and companies have supported Bitcoin and decided to accept BTC payments.
This is one of the reasons why there are a lot of new individual investors that join online trading sites, and also, the number of trading sites has surged in recent years. But, if you’re completely new to crypto trading and the crypto world, there are some things you need to do before you join a Bitcoin exchange site. Let’s take a look at some of the most important factors that you need to consider before you create an account and start trading.
Learn About Blockchain Technology
The first step is to learn how the blockchain network was designed and how it operates today. The blockchain network is distributed, peer-to-peer-based technology which functions as a payment system that isn’t influenced by any financial institution. In other words, every miner on the network has the power to approve a block of transactions.
As the main operations of the network are fulfilled by the miners, they are reimbursed in the form of transaction fees and block rewards. When it comes to the protocols in the network, the main thing you should know is that Bitcoin having is a specific protocol created to cutting half the block reward of the miners.
This has a ripple effect on every other aspect of the community because it further restricts the total number of BTC in circulation. The total number of BTC is already limited to 21 million. Moreover, it increases the cost of mining. Also, Bitcoin halving is one of the factors that promoted each bull cycle, as the demand for BTC over the years became larger than the available supply.
Register on an Online Trading Site
When it comes to online trading sites, basically, they are platforms where you can use other currencies, including cryptocurrencies, to buy and sell BTC. One of the latest trends in automated trading on state-of-the-art sites like https://bitcoincompass.io/.
This site features an AI-powered automated trading system that is able to read large data sets and facilitate trading at high win rate for its users. Actually, you can earn a return on investment here of up to 60%. In addition, this system is designed to work seamlessly on any device, including mobile devices. So, you can trade on the move, and you just need to make a deposit of $250.
Invest in a Bitcoin Wallet
Another important factor that will always impact your trading is Bitcoin wallet. Bitcoin wallets are storage options that make it possible for you to trade online, shop with your cryptocurrencies and also store them safely.
For this purpose, you will find different hot and cold Bitcoin wallets. More specifically, hot wallets such as mobile, online, and desktop wallets are designed to make it easier for you to access your funds, trade on the move and keep track of your assets wherever you are.
On the other hand, cold storage options such as hardware wallets are more expensive than the others, but they are created to ensure the maximum safety of your crypto funds. It is advisable to do your research and find a type of wallet and provider that works best for your needs.
As a new investor, it’s important to keep track of your assets, choose achievable financial goals, pick a safe Bitcoin wallet and open an account on a reliable trading platform. Also, you need to be aware of the protocols that impact the blockchain network and the transaction fees you need to pay for making BTC payments.