How to start Bitcoin trading? - letsdiskuss
Official Letsdiskuss Logo
Official Letsdiskuss Logo



Indians Guide

blogger | Posted on | Science-Technology

How to start Bitcoin trading?


Entrepreneur | Posted on

If you’re in India, do you really want to invest in Bitcoin? In 2019 and following, particularly for the Indians, cryptocurrency isn’t necessarily the best way to go. Not that "Bitcoin is dead" -- favorite rhetoric critics always throw. In fact, there's a good chance that cryptocurrencies get a resurgence after having the worst year in 2018. And there's a chance that it eventually gets a mass adaptation even by the institutional investors.

Letsdiskuss (Courtesy: Bitcoin Exchange Guide)

But in India, the biggest concern isn’t necessarily the profit. The big concern is the stance that the government and RBI have taken against these virtual currencies.

Now note, as is falsely propagated by many, cryptocurrency is NOT illegal in India at the moment. Yes, government and RBI have asked investors and traders to not get involved with this new asset. And they have taken the measures to throttle the growth of the likes of Bitcoin and Ripple in the country. The banks and financial institutions are prohibited to deal with any company or agency that deals in cryptocurrencies. Following this diktat, India's premier cryptocurrency exchange Zebpay decided to shut down its operations. BUT cryptos aren’t illegal in the country.

investing-in-bitcoin-letsdiskuss (Courtesy: MarketWatch)

In case, if cryptocurrencies rise to the mainstream again, this time the government and central bank might very well decide to ban them. So, entering the crypto market at the moment, in India in particular, is not exactly the right option. There are just too many complexities on way. Besides, investing in Bitcoin and trading it is a whole different thing. The idea of trading cryptocurrencies is still quite premature. No one knows, with such a volatile market, how much the successful traders make in profit; and most importantly, how much time they dedicate in reading charts. So, even till this day, Bitcoin trading remains a less-popular option.

All being said, if you still want to go with Bitcoin trading, the process is quite simple. The fundamentals are the same as trading stocks. You buy low and sell high. You have a proper trading strategy and well-defined take-profit, stop-loss positions.

But it all starts by finding good Bitcoin trading exchange. In India, the number of these exchanges is very less at this moment. Following the exit of Zebpay, Koinex has become the most preferred cryptocurrency exchange. Wazirx is another renowned name with robust trading infrastructure. You can also trade BTC using peer-to-peer exchange; LocalBitcoins is the most popular option, but be very aware that the chances of fraud on P2P platforms are very high.

Once you have picked a good Bitcoin trading exchange, go through their policies and guidelines. With so many limitations in deposits and withdrawals today, it's very important that you follow the guidelines of these exchanges very closely. Today, it's very likely that you will trade directly with another trader, with such exchanges acting only as a mediator. So, be careful. Keep an eye on the market trends. Learn about technical analysis. Anticipate market movements carefully and act fast. And also, keep an eye on the news to see what the government and RBI are up to in terms of how they are planning to deal with cryptos.

investing-in-bitcoin-letsdiskuss (Courtesy: Steemit)

That's how you trade in Bitcoin.

But I still believe, cryptocurrencies aren't the way to go with your money right now. The whole scene seems quite uncertain. Instead, you should invest in share market and real estate. But if you do decide to enter that crypto market, don’t trade BUT invest. Buy BTC and a few other virtual currencies and then hold.

Good luck!