A beginners’ guide to trading Bitcoin and Crypto

So you’ve decided to delve further into the wonders of Bitcoin Crypto and how it works, or possibly how you could obtain your own. You’re in the right place as we’ve laid out in layman’s terms our beginners’ guide to Crypto.

How do I go about obtaining Bitcoin and Crypto Currencies?

“Bitcoin” is purchased via a cryptocurrency exchange are good places to buy or sell Bitcoins with different currencies.

 Binance is a well-known exchange and cryptocurrency wallet, which is easy to use.

In terms of security, it is just no different to a bank where they store your password, personal details and your private key to your Bitcoin wallet.

This is the Binance trading interface, it looks a little intimating at first but do not panic, WallStreetPremium are here to help and tutor you all the way
through the process. First of all you need to link your bank card to your account and add some funds. We recommend using a debit card as its usually
instant, think if you are waiting a week the price of your chosen Crypto could have changed by thousands while your waiting 7 days for your bank
deposit to credit, you will miss that golden window of when to buy.

Placing a Trade
You would first click one of the red or green amounts on the order book, or enter an amount into the price window near the green buy light, then
you will enter the amount in the bottom box of how much in $ you want to purchase and click the buy button, its really as simple as that. To sell
you just click the sell button and do the same again.

Trading Tools

We recommend using the following tools for purchasing and trading in crypto currencies, they make all the difference when trading, like a tradesman’s tools
if a tradesman has bad tools his work usually reflects this, so always start out with the right trading tools, it will stop you from making costly mistakes.

First of all we highly recommend purchasing a years subscription to TradingView you will get amazing tips from long term traders as well as being able to
chart all your moves and purchases, as well as setting alerts, we recommend the premium version but the Pro is a good start out plan.

Secondly we recommend you purchase dedicated trading software once your into the feel of trading on Binance, 3Commas.io is without doubt the best!
all the professional trader use 3Commas.io, it allows you to see all your positions at a glance and instantly close trades if they start to make a loss.

WallStreetPremium offer full tutoring on how to trade Crypto so why not let us help you learn how to trade like a professional.

Tutoring lessons take place over zoom software you do not need a webcam! just a microphone helps saves on the typing.
If you would like to take advantage of our 30 minute and 1 hour tutoring lessons please see the tutor page.

We offer various levels of tutoring from novice to advanced trading techniques including Technical Analysis.

We will now continue the article with all the technical information about Bitcoin and Crypto.

History of Bitcoin

To truly understand what Bitcoin is and the value it can bring to our world, it is very important to know why it was created in the first place.

Bitcoin first became available to the public in 2009 and is regarded as the first established cryptocurrency in the world.

Cryptocurrency is a digital asset that is secured with cryptography – complex mathematical algorithms – and can be a means of exchange for goods.

The creator of Bitcoin is an anonymous person or possibly a group of people, known as Satoshi Nakamoto.

In Bitcoin’s whitepaper – an academic document with details about Bitcoin – Satoshi Nakamoto states that the goal of Bitcoin is to create a new “peer-to-peer electronic cash system” that is completely decentralized with no central authority.

Some say Bitcoin was created in response to the global financial crisis in 2008 to put power back in the hands of individuals who suffered from the greed of large banks and central authorities which held all control.

What actually is Bitcoin?

Bitcoin is a digital currency that operates on a decentralised network.

Every Bitcoin transaction is recorded in a public log and users can remain anonymous in the network with encrypted keys.

Transactions can be made with no middlemen – meaning there is no need to go through a bank.

There is no government, financial institution or central authority that owns the decentralised Bitcoin system.

This means there is no need for account numbers, names or any other identifying features that connects Bitcoins to its owners.

People can buy or sell anything without it being traced back to them.

How are Bitcoins created?

Bitcoins are not printed like paper money but they are “mined” using computers to solve complex math puzzles.

At the time of creation, Satoshi Nakamoto decided that there can only ever be 21 million Bitcoins.

Currently it’s not that easy to create a Bitcoin, it takes a lot of computing power, which uses up a lot of electricity.

Miners are incentivised to create Bitcoins because if they solve a mathematical puzzle that creates a new Bitcoin, they currently get rewarded with 12.5 Bitcoins – that’s a lot of money.

Currently a new Bitcoin gets created every 10 minutes.

How do I store Bitcoins?

Once users purchase their Bitcoins on an exchange, they should immediately store Bitcoins in a “digital wallet”.

A wallet is simply a collection of addresses and the keys that unlock the funds within it.

The digital wallet is like a virtual bank account, which allows the user to send or receive Bitcoins.

They can also use it to pay for goods, like when buying a car, or saving money to finance a car.

The difference between most Bitcoin wallets and bank accounts is that the owner is fully responsible for the security of those funds.

Digital wallets

There are different types of wallets that users can have with different security levels for each.

Individuals can choose from a variety of types of wallets which include web, desktop, mobile, hardware, and paper versions.

Users have the option of selecting what works better for their needs with different security levels.

A web and mobile wallet stores the entire history of Bitcoin transactions, manages the user’s wallets and can initiate transactions directly on the Bitcoin network.

A desktop wallet enables software to be downloaded and installed on a laptop where users can store their coins and have complete control over them.

Hardware and paper wallets which store user’s private keys offline are thought to be the most secure way of storing Bitcoins.

Common hardware wallets used today are Trezor or Ledger Nano, which you can buy online.

A paper wallet is a mechanism for storing bitcoins offline and is made by creating a brand new public address and private key onto paper.

Users must keep that printed wallet with their private key details safely.

Again with a paper wallet there is no one to call when you forget your pin code or password, lose your private key.

What is the technology that drives Bitcoin?

The technology behind Bitcoin is called blockchain technology.

A blockchain is a public record of all transactions that is shared and maintained through a global consensus among everyone participating in the Bitcoin network.

The purpose of blockchain technology is to prove that transactions in the network are undisputable and prevent double spending of bitcoins.

There are alternative uses of blockchain technology that can be applied to various other industries and sectors, such as the real estate industry for fractional property ownership and the energy industry for peer-to-peer energy trading.

Blockchain technology has unlocked a new wave of innovative projects that are looking to transform the way the world works and operates.

What is its benefit as an investment tool?

Bitcoin is highly volatile, the price is highly speculative and the cryptocurrency market is largely unregulated.

Individuals who are looking to invest in Bitcoin must go in at their own risk and be prepared to lose all their investments.

The benefit of using Bitcoins to transact is that it can be transferred anywhere around the world and be withdrawn from any exchange no matter where the individual is.

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