There may be literally hundreds of cryptocurrencies available today, but Bitcoin is the oldest and the best-known of them all. And now that it’s going mainstream, more and more people are considering getting onboard with Bitcoin trading.
At CryptoParrot, we’re committed to helping everyone get to grips with learning how to successfully trade Bitcoin. Whether you’re a seasoned trader or a complete newbie, we’ve got everything you need to get started.
Before we can dive into an explanation of Bitcoin trading, we first have to establish what Bitcoin is. Created in a white paper by a mysterious character known only as Satoshi Nakamoto, Bitcoin was the first cryptocurrency to launch back in 2009. Operating in a completely different way from traditional fiat currencies, Bitcoin is ‘mined’ by computers solving complex mathematical algorithms, with every transaction irreversibly locked into a blockchain.
Each block in the blockchain contains information about every transaction contained within it, making it into a permanent ledger that can’t be hacked or altered in any way. This makes it ideal for generating completely frictionless peer-to-peer transactions without any involvement from governments, banks, or other financial institutions. The blockchain is stored across thousands of computers, all of which update their records so that the cryptocurrency’s integrity is perfectly preserved at all times.
Investing or trading Bitcoin – what’s the difference?
When you’re first considering dipping your toes into the cryptocurrency waters, Bitcoin is almost always the first port of call. As the oldest crypto, it’s also the best known, and now that it’s becoming more widely accepted as a payment method for goods and services, it’s rapidly becoming the most mainstream of all the various cryptocurrencies.
An uptake in the use of Bitcoin means that more people than ever before are starting to consider it as a form of investment. The value of Bitcoin has been known to rise massively, so people who bought into the cryptocurrency early on have managed to make some spectacular profits from their investment. But should you be purchasing Bitcoin with a view to long-term investment or shorter-term trading?
When you invest in Bitcoin, you buy the crypto to hold until its value rises. Most Bitcoin exchanges allow you to store your crypto on their sites, but this isn’t something that we recommend. For maximum security, it’s always best to use your own wallet, which can easily be downloaded and updated to keep it secure at all times.
Trading Bitcoin to maximise potential returns
But when you invest your Bitcoin, you can’t take advantage of rapid rises and falls in its value. This is where Bitcoin trading comes in, representing the opportunity to respond quickly to changes in prices, buying and selling your digital assets with the aim of maximising your returns. A well-timed Bitcoin trade can return hefty profits in a very short space of time, but you need to know what you’re doing to reap the best rewards.
Bitcoin trading usually takes place in the short term, and often within the space of just a few hours. You’ll need to keep your wits about you, but with a little know-how and some advice from the experts, just about anyone can learn to trade Bitcoin.
We aim to simplify the whole process here at CryptoParrot. We do this with the help of our simulated exchange, which lets you trade Bitcoin using real-time information to guide your decision-making processes. Even if you’ve never bought, sold or traded Bitcoin previously, we’ve got everything you need to start trading straight away, completely without risk.
The advantages of trading in Bitcoin
Although it’s still relatively new, Bitcoin has quickly established itself as a digital currency to watch, with thousands of people clamouring to buy into it in recent months. It may seem counter-intuitive to buy into a currency that you can’t physically hold in your hand, but the success of Bitcoin has been so great that hundreds of other cryptocurrencies have been developed, including Ethereum, Litecoin and Bitcoin Cash.
But no matter how many other ‘altcoins’ arrive on the scene, Bitcoin remains the original cryptocurrency, and that gives it increased status amongst crypto fans. So even if other cryptocurrencies may seem to be doing well, Bitcoin holds a special place in people’s hearts.
And big businesses are also starting to see the advantages of Bitcoin. The digital currency is rapidly going mainstream, with new partnerships being announced almost every day. These days you can buy cars and houses using Bitcoin, and with more retailers coming on board, it’s only a matter of time before Bitcoin becomes as widely adopted as traditional fiat currencies.
High volumes of liquidity make Bitcoin readily accessible to everyone, with widespread adoption helping to fan the flames. This makes it highly attractive as a trading proposition, with new traders hoping to finesse their skills so that they can take full advantage of the opportunities on offer.
How can CryptoParrot help?
Here at CryptoParrot we aim to make it possible for everyone who wants to trade Bitcoin to do so safely and easily. In addition to offering our simulated exchange as the ideal practise space to learn about BTC trading, we also offer help and advice from experienced traders. Together we’re building a community of like-minded people with one thing in common – the desire to trade Bitcoin safely and learn more about the processes and strategies involved.
Start your Bitcoin trading journey with CryptoParrot, and you’ll be able to help new traders on their journey too. You’ll also be able to win cool prizes, take part in fun competitions and even earn yourself real Bitcoin as you progress.
Types of Bitcoin trading
To get started with Bitcoin trading, you need to buy Bitcoin when the price is low and sell it when the value increases. That makes it sound much easier than it is, as the market is subject to various influences which can affect Bitcoin’s value. When the value is increasing, it’s known as a ‘bull’ market, and when the value drops, it’s known as a ‘bear’ market.
But that’s just for starters. Once you actually start diving deeper into the world of Bitcoin trading, you’ll soon find there’s lots more to discover. So let’s take a look at some of the types of Bitcoin trading you can expect to encounter as you’re starting out.
As the name suggests, Day Trading lets you take advantage of upwards and downwards movement in the price of Bitcoin within the space of a few hours. You could complete just one trade during the course of a day, or you could study the markets much more closely and undertake lots of trades to capitalise on price fluctuations.
Trend trading takes a longer-term view of Bitcoin’s worth, so you won’t have to study the markets with the same level of intensity as for day trading. This approach lets you decide whether the market is on an upwards or downwards trend, allowing you to dive in and out to maximise potential returns.
Hedging lets you cover all eventualities, by adopting the opposite strategy to your main one to react to changing circumstances. So if you’re holding on to your assets for the time being, but you want to take advantage of short-term movements, you can use CFDs to offset potential losses. A CFD operates much like an IOU in trading terms, letting you take advantage of changing prices without having to buy into the asset directly.
HODLing started off as a simple misprint in a cryptocurrency forum, when someone intended to hold onto their Bitcoin assets. But the typo gained a life of its own, becoming known as shorthand for ‘Holding On for Dear Life’, used to describe holding firmly onto your crypto assets. Although it’s become a popular term among traders, it’s important to remember that HODLing your Bitcoin means you won’t be taking full advantage of changing market values, so it’s not the most useful trading strategy.
Once you start to dig a little deeper into the world of Bitcoin trading, you’ll quickly find plenty of other options too, including scalping and swing trading. And throughout your journey you’ll find CryptoParrot by your side, ready to offer help and assistance whenever you need a helping hand.
All investments involve risks, including the possible loss of capital.
How to get started with Bitcoin trading
Now that we’ve whetted your appetite, you’re probably wondering how to get started with Bitcoin trading. And once again, we’re on hand to offer our help and support. We aim to make it as easy as we possibly can to sign up and start trading, so if you want to find out how to trade Bitcoin without any financial risk, here’s how to get started.
Find your Bitcoin exchange
A Bitcoin exchange lets you deposit funds in the fiat currency of your choice, which you can use to buy Bitcoin. Some exchanges only offer Bitcoin, whereas others may offer a wider variety of cryptocurrencies. Whichever exchange you chose, be sure to read customer reviews and check up on any licenses to make sure it’s legitimate.
But when you’re just starting out your best option is our CryptoParrot simulated exchange, which uses real-time data for a truly realistic trading experience. We give you virtual money to start trading with, so you can watch your portfolio grow as you learn to trade. And if you do well we’ll reward you with badges and other cool prizes, including real Bitcoin!
Sign up and create a profile
Your Bitcoin exchange will want some personal information in order to set up your account. You’ll usually be invited to confirm your identity, so allow sufficient time for your documentation to be approved, if that’s the case. Most exchanges allow you to set up two-factor authentication, which is a good idea to prevent fraudulent access to your digital assets.
But if you sign up with CryptoParrot you won’t have any of your own funds on the site, so your money is never at risk. Be sure to set up your profile so that other site users can find out more about you! Our friendly community is key to our success, so we encourage our members to communicate and help each other as much as possible.
Once your account has been approved and you’ve deposited some funds, you can start buying Bitcoin. Or if you’re on the CryptoParrot site you can dive straight in with your virtual funds to get started. This is where a little research goes a long, long way. The more you can learn about trading techniques, the better your chances of success.
It’s perfectly possible to spend several hours studying the Bitcoin market to maximise returns from day trading. But if that sounds too intensive, don’t worry – you don’t have to commit to spending that much time. The important thing is that you take your time to understand exactly what you’re doing, and that’s where CryptoParrot comes in.
Learning to trade Bitcoin can be as simple, or as complicated, as you choose to make it. There’s a lot to learn about cryptocurrencies and the way they behave, as well as the various trading techniques and styles that can have an impact on your overall results. But when you use the CryptoParrot virtual balance to fund your trading, your own finances are never at any risk. You can learn to trade Bitcoin in complete safety,
Join the Bitcoin revolution and start trading today
Here at CryptoParrot we don’t think Bitcoin trading should be restricted to the experts. Bitcoin was created for everyone to enjoy, and we’re here to help and guide you through the trading maze so that even newbie traders can reap the potential benefits.
Sign up today and start trading Bitcoin without any financial risk. Finesse your skills and learn to trade like a pro, while earning cool rewards. Our friendly community is on hand to offer help and support so you can trade with complete confidence, without any of the associated financial risk. So what are you waiting for? Get ready to start your trading journey today with CryptoParrot!
Bitcoin trading FAQ
💰 Can I make money from trading Bitcoin?
It’s possible to make money from Bitcoin trading, but there are no guarantees of success. You can give yourself an advantage by using the CryptoParrot simulated exchange, which lets you trade Bitcoin and other cryptocurrencies completely risk free. Head up our leaderboards to win cool prizes, and learn from the experts to become a skilled Bitcoin trader.
✔ Is Bitcoin a good cryptocurrency to trade in?
Bitcoin is the oldest and best-known of all the cryptocurrencies, which makes it a popular choice for anyone keen on exploring trading. But like all digital currencies, Bitcoin is highly volatile, so fortunes can be made and lost relatively quickly. Start your Bitcoin trading journey with help from CryptoParrot and learn to trade in complete safety with no financial risk.
✋ Is it easy to trade Bitcoin?
Bitcoin trading may sound complex, but once you master the basics it really isn’t that difficult to get to grips with. Here at CryptoParrot we have all the help and advice you’ll need, together with a simulated exchange that lets you trade in real time. Grow your portfolio, win cool prizes and engage with other users to learn all about trading Bitcoin in complete safety.
❔ Where can I learn how to trade Bitcoin?
Here at CryptoParrot we’re committed to making Bitcoin trading accessible to everyone. Our state-of-the-art simulated cryptocurrency exchange lets you buy and trade Bitcoin completely risk free, using real-time prices. Learn how to trade, take part in fun competitions and head up the leaderboard to win cool prizes. You’ll be learning how to trade Bitcoin as you go, benefitting from the advice and support of more experienced traders along the way.
💲 Is Bitcoin trading a good way of making money?
Bitcoin is a highly volatile cryptocurrency that can generate big profits for some traders, but you need to know what you’re doing. At CryptoParrot we’ve created a virtual simulated exchange where you can practise Bitcoin trading completely safely, with no financial risk. Learn to trade like a pro as you learn from the experts, take part in cool competitions and compete to win prizes.