Digital currencies have occupied a significant place around the world and caught the attention of many investors; Where it was an embodiment of the successive technological developments that swept the world in various fields, and the economic sector, mainly financial speculation, reaped the lion’s share of this technological development. These currencies emerged to achieve great success for various investors around the world.
The evolution of the financial system and the emergence of digital currencies
The financial system based on the idea of barter and exchange of commodities was the oldest financial system known to humanity until gold entered forcefully to determine the nature of this system, until coins appeared, followed by monetary dealing in paper currencies.
In the era of technological development, digital currencies have become the main interest in the financial arena. Many new and old investors are looking for the best methods to use these currencies for various purposes, whether for exchanges worldwide or investment of digital currencies.
The remarkable development in the world of trading has produced a digital currency that occupied the forefront of digital currencies, which is Bitcoin, which achieved a high market value. What helped it spread rapidly among investors’ categories; Therefore, all investors’ concern has become the possibility of achieving financial gains from trading in Bitcoin or other digital currencies and avoiding any risks involved.
One of the most prominent risks that any investor looking for correct trading operations is afraid of is the digital currency exposure in which he trades to severe fluctuations or that it is being hacked or stolen. On the contrary, another group of experts believes that these currencies should be wary of their money market fluctuations.
How to get started right in digital currencies trading
Suppose you want to start correctly in entering and trading in the cryptocurrency arena. In that case, you are facing two essential steps through which you can adequately begin to invest, and financial experts have identified the two stages as follows:
First: Start by selecting a safe trading platform that you can deal with, especially when many platforms work in this field, and each of them has advantages and disadvantages, and it is necessary to choose from them and choose a safe and experienced brokerage company that supports your trades.
Second: After that, start the seriousness of dealing by opening an account for the currency in which you will trade and buying this currency, and based on the value of the digital currency that you have chosen, you will start your trading process.
In this step, you also have to consider that a currency is like Bitcoin when you think of trading it; you must first buy only a part of it and avoid purchasing a real currency. In this way, you will prevent more risks by starting the process of splitting bitcoin, but if you are a risk-lover, you can begin trading the entire currency.
Brokerage firms have many types of digital currencies from which the investor can choose, the most famous of which are Bitcoin, Ripple, Ethereum, and Litecoin, in addition to another group of currencies.
Essential tips to ensure a successful digital currencies trading
Since the beginning of thinking about investing in digital currencies, the investor always looks for good opportunities and good performance that guarantees him stability and profitability without dropping the value of the currency he is trading. Now, for successful trading, some tips must be adhered to; The most important of them are:
· Determine your budget that can start trading without assuming massive trading amounts and increasing risk factors; Where the crisis doubles if the loss is made, especially in the case of borrowing from banks or companies that may be unable to repay it.
· Wait, be patient, and think deeply; To avoid any wrong decision. Correct trading requires extra care when making the right decision.
· Avoid obtaining information except for reliable sources in the trading world; Where you may lose everything you have because of false or rumor information based on your decisions.
· Let go of guesswork and make all your decisions come out of certainty and look based on documented information.
· Choose digital currencies that have achieved relative stability, and start trading with them and do not base your transactions on one digital currency, but choose more than one currency to reap profits.
· Make your mistakes an excellent opportunity to learn and avoid them in the future and build experiences that make you a good investor later on.
· Always follow up with analysts who have experience analyzing cryptocurrencies and acquire the ability to technical analysis of currencies, markets, and the nature of trading operations; To understand this big world.
· Make trading in different digital currencies a future path in which you must make more efforts to achieve success, and do not consider this field to be a quick profit method. Otherwise, you will quickly make losses.
Steps to start trading bitcoin
Bitcoin is one of the digital currencies that has spread widely worldwide and spread its fame among investors. It has also managed to attract many individuals to start their actual trading activity, aiming to achieve large profits and successes in this field. The separation between the investor’s continuation in this field or the rapid termination of his investments is the correct basis for building his trading methods.
Bitcoin cryptocurrency traders must realize that success in this field requires defining work according to necessary steps that govern trading operations and the decision-making process regarding buying and selling matters, according to the following steps:
· Open a Bitcoin account by choosing a trusted brokerage firm.
· Obtaining Bitcoin as a digital currency that limits trading through it is received by buying it from brokers for a fee that may be in dollars or euros.
· You do not need to start trading with full Bitcoin; That is, you can buy part of Bitcoin in what is called “Satoshi”; 0.5 Bitcoin represents 500,000 satoshi.
· Use your bitcoins to trade other digital currencies.
· You have to obtain Bitcoin directly through the broker; The purchased currency is sent to your wallet in your bitcoin account on the trading platform.
The risks of trading in digital currencies
Not all trading operations in digital currencies are safe and do not end with the planned gain, as the investor may be exposed to several risks that threaten the trading process, and the most important of these risks, which must be wary of:
Dealing with fake brokerage firms and being exposed to fraudulent operations.
Ignorance of the cryptocurrency market and making wrong decisions brings real loss.
Cryptocurrency being stolen; By hacking and hacking an investor’s portfolio.