- Dolapo Ojelabi
BEFORE TRADING BITCOIN, WHAT SHOULD I KNOW?
Updated: Sep 19, 2020
Quite a number of people have rejected the idea of digital assets like bitcoin and altcoins, this is due to the fact that they lack sufficient information about it. it’s funny how some people would scoff at bitcoin but would buy a lottery ticket or join different online betting sites.
The first thing for you to do when considering bitcoin is to do your research. The importance of information cannot be overemphasized in this century. It is not guaranteed that you are going to make money from trading bitcoin, more so you might even end up losing money. It is advisable for you to speak to professionals in the field in order to understand the risks, laws, regulations and restrictions by your home country.
Know what you're buying: just like when you decide to buy a stock, you study it in terms of rising and falling in its price, how the company has been doing over the year etc., You should also do the same with bitcoins. Bitcoin is a type of cryptocurrency meaning it’s a decentralized digital currency meaning it is not controlled by any regulatory body e.g. Government, private entities, Banks. Therefore, they can’t manipulate its value. The price of bitcoin is determined based on what someone else is willing to pay for it. it boils down to demand and supply.
Learn to trade: Trading bitcoin is done through digital asset exchange platforms like Naijacrypto.com which is the fastest growing Nigeria owned exchange platform. It is easy to use and understand. Research on sites that offer a demo account. However, it is advisable to trade with actual money, it helps you to learn faster and be more conscious since you know money is a stalk.
Lastly, Don’t be greedy: if you’re looking for how to get rich in a couple of days then Bitcoin is not for you. No one can actually determine the rise and fall in prices of bitcoin, most people only speculate. It takes time and lots of information to fully know how to speculate which will help you to know the best time to sell and buy to make money.
Point to note is Bitcoin simply allows you to be your own Bank. The irony of it all is that some Banks are against the use of cryptocurrency because it threatens their power and control over money.
You have questions? Leave a comment below.