We do not want to spend a good portion of time setting up and getting started in the cryptocurrency industry?
Why is that the case right now?
The answer is quite simple; we all know that the cryptocurrency industry moves fast, and reacting or executing in a slow manner will cause you to miss out on compelling gains.
The fact is that many in this digital asset sector are present there to maximize their chances for gain. Therefore, if that is the case, that would mean that they should improve their preparation and execution time overall.
But how will you trade bitcoin quickly? What are the best ways to do so at the current moment? It is a great question to ask because the current era has a wide array of options for individuals to tap into and utilize. Indeed not all of these options are the most efficient; each of them has its unique advantages and disadvantages.
That is why we will delve into this topic and rigorously yet comprehensively analyze the matter.
The First Step: How to Purchase Bitcoin
Of course, the first step in this process is to purchase bitcoin. While it might seem as if it is a straightforward process, it can be a bit complicated.
Why is that?
Well, the truth is that there are several reasons to buy bitcoin and different corresponding ways of holding it based on your intentions. Secondly, we know that different companies support various citizens across the world.
For instance, BitMEX does not allow United States citizens to use its exchange for regulatory reasons. Such is the case for several other institutions as well. But you can buy bitcoin quickly with an ATM, over the counter platforms, and peer to peer entities like local bitcoins and the like.
That is why you want to make sure to make the right decisions across the board when buying bitcoin.
Now, we’ll talk about these aspects a little bit more in-depth.
The first aspect here is your reasons for purchasing Bitcoin. There are two types of people who purchase bitcoin.
- There are those who want to buy the leading digital asset and sit on it
- Then some want to buy it and sell it regularly
The first group of people is called holders; the second group is called traders or speculators.
Holders buy because they like the fundamentals of bitcoin supply, the bitcoin market cap, the nature of the press, regular btc integration and improve infrastructure, and overall critical events that continue to occur. The first group will buy through an exchange and might be price and speed insensitive.
Then they will most likely transfer their bitcoin to a hardware wallet or another cold storage unit.
A few of these people who like to hold their coins will go and allocate a portion of their entire holdings to an entity or platform that will provide them with interest on their deposits.
Remember that holders will vary on how they act but have the main characteristic of thinking about the long term.
Holders might choose to buy bitcoin in bulk every season or dollar cost average every month into their account. What is the quickest way for them to buy it? As noted earlier, it would vary based on their location and the companies that are present to cater to them.
Remember that it is important to choose two companies or two applications. One company might face surge issues and may not execute buy orders, so you have a backup automatically present.
For instance, I remember a time when Coinbase, a global platform, had issues to where some users could not buy on the platform, and others could not sell. Further, it was hard to contact customer service, making it even more frustrating at the time.
If one had another option already set up and ready to go, they would have frustrations with Coinbase but would have been able to buy as usual. Another point here is to get through the process of signing up for several of them funding each of these accounts after conducting the KYC.
The initial hassle is the know your customer (KYC) verification part that many of these entities impose on their customers. That is why it is vital to get this part out of the way as quickly as possible when setting up your account.
Remember, holders are interested in accumulating as much bitcoin value as possible and diverting it to safe and secure cold storage locations.
- Holding Crowd favorites: Binance, Coinbase, EXMO, Kraken
- Holders transfer to Hardware Wallets: Trezor and Ledger
- Interest Depositing Institutions: Celsius, Blockfi, other exchanges
Buying Bitcoin for Trading
Now, we will talk about those who choose to speculate.
People who choose to trade and move with the markets on a regular basis must follow a similar process as the group above but may use different options.
They can acquire the leading digital asset by navigating to Binance or Coinbase and opening up an account. These individuals will also need to open accounts at different speculation hubs to ensure trading in times of surge or issues.
They also have the option of using a contract-for-difference financial vehicle to estimate bitcoin value without ever buying the digital asset.
The variation is that the first trader will hold the actual bitcoin for a while whereas the CFD purchaser will merely speculate on value with no holdings. To be sure, there are CFD contracts for many asset classes ranging from digital tokens to stocks and bonds.
People use these financial contracts to input a small portion of funds but still control more significant amounts. In essence, these contracts provide for a good piece of leverage. Exposure to larger numbers is what makes CFD’s pretty hot and tempting for many individuals. But of course, the problem here is that there leverage you take on, the more potential losses you might have over the short term.
Specific providers offer this financial vehicle, and it is usually not regular exchanges that do so. Users can navigate to a platform that does offer this option and take advantage of the CFD option.
People use this option if they do not care to hold bitcoin at all and are more interested in only trading the price. They may turn to CFD’s if they think that their funds are safer without touching the actual asset. Further, these sophisticated traders may prefer more regulation, better customer support, and better matching engines.
Finally, traders may want to avoid all the fees present, ranging from withdrawal to trading costs, to others that exist in the traditional process. Lastly, they don’t want to deal with excessive wait times or other issues that might exist with Binance or Coinbase.
Traders who participate in a CFD platform can appreciate seamless transactions with more liquidity at specific price points. But when trading on a traditional exchange, one must think about the issues of not filling an order at the right price.
But as I said, with a CFD contract, you never ever hold the asset.
Finally, more sophisticated traders will seek to implement trading bots to purchase assets over time. These speculators implement automated tools to conduct the day to day decisions. They will refine and choose parameters for the robotic instruments to execute a proper buying plan.
What to Remember When Buying
The first point to realize when buying bitcoin is to have a proper acquisition plan. A great plan will allow you to buy quickly without any hesitation. That means that you will know why you are buying, your current and future goals, and how frequently you want to participate in the markets.
Further, you must think about the level of risk you want to take on by buying bitcoin at specific price points. Think about the total capital you will allocate to purchasing bitcoin in the short term and long term. That means you must have a proper risk to reward ratio to handle the process and do it well. Finally, make the decision to purchase bitcoin in an exclusive fashion to keep your approach simple.
Selling Bitcoin Quickly
Professional traders seek to be as efficient as possible when selling bitcoin.
Why?
They want to capitalize on price movements right then and there. Thankfully, don’t have to worry about the initial steps outlined above.
They have already taken care of opening up an account, creating buying and selling plan, and taking on automated helpers from different players such as Bitsgap.
Now, those who seek to be day traders or swing traders in this digital asset sector must make sure to sell at the right times. They can try and do this by themselves, but the smartest and fastest option would be to use automated bots.
Why would you use augmented automated helpers?
The answer is simple; they help you take the actions according to a specific plan without being in front of a computer screen, cell phone, or tablet. These automatons will sell and reacquire the assets according to specific parameters.
The Medium: Remember that you can sell bitcoin on exchanges or through a CFD platform.
Conclusion
Buying and selling quickly will vary according to the entity used in the beginning. But remember that having a plan and being responsible throughout the process will let you acquire and divest bitcoin quickly and securely.
The critical point here is that you do not want to lose any capital at all. Therefore making prudent decisions from a safety and security standpoint will be quite essential.
Speed quite certainly matters within this sector, but security and safety are paramount factors.
There’s manual inputs at first, but bots can streamline regular buys and sales if you have a plan. That is why having a plan and different strategies to turn to is not “a nice to have” but a “must-have” in the digital asset sector.
Last but not least, always prioritize platforms and entities that will offer excellent user experience in their design. You want to find out the way to buy and sell in as little as six clicks.
If you are able to follow this general advice, I am sure that you will not have any issues in being effective and efficient in your bitcoin buying and selling activities.
Have a good speculation experience!