As the cryptocurrency market continues to thrive, more and more consumers are looking for new ways to get in on the investment. Bitcoin, easily the most widely known cryptocurrency, is gaining more popularity by the day, causing investors and crypto newbies alike to start looking for ways to trade. Once you’ve bought Bitcoin, you can sit on the investment to watch your profits grow or opt to trade it for other assets. Getting in on the exchanges can really make a difference in how quickly your investment increases.
Before you trade Bitcoin and get in too deep to turn back, it’s best to get familiar with how the process works. Check out these six useful tips for how to exchange Bitcoin in 2021.
#1: Become a Day Trader
In cryptocurrency (and in other financial markets), day trading is a popular way to make quick trades, as the name suggests.
According to Cove Markets, day trading typically involves watching the movement of crypto in a single day. Day traders will buy and sell in a matter of hours based on short-term price fluctuation.
This fast-paced and often risky form of Bitcoin exchange definitely isn’t for everyone, but it can pay off in the long run if you know the right moves to make!
There’s definitely a lot to learn, like any fees associated with this type of trading to the level of security offered by various platforms. It takes time and practice, but becoming a day trader can earn you quite a bit of cash when it’s done efficiently.
#2: Use A Crypto ATM
Right now, with the value of Bitcoin up higher than it’s been in months, there’s a constantly increasing market for exchanging Bitcoin for cash.
One of the more commonly known methods of buying and selling Bitcoin is through crypto ATMs, which are now popping up all across the United States. These modernized machines make it easy to open up new accounts and start investing, all with just a few taps on a screen.
For current Bitcoin investors, you can also cash out your assets using a crypto ATM to get your earnings right on the spot. You simply log in using your phone number to find all your savings and complete the transaction in a safe, secure location.
Sketchy cryptocurrency ATMs are a thing of the past. Now, they are being placed in highly monitored malls and big-name gas stations for your convenience AND your safety.
This new form of crypto tech can make your financial decisions with Bitcoin a little bit easier and a whole lot safer.
#3: Gain Access to Cryptocurrency Exchange Markets
To get in on some of the big action in trading, you’ll want to find a cryptocurrency exchange market after you check the crypto exchange list that specializes in trading Bitcoin and other types of crypto.
Unlike traditional financial markets, exchanges made for cryptocurrency act as both the broker AND the place to trade, eliminating the need for a middle man. In these platforms, you will find only crypto trading.
The only downside of a cryptocurrency exchange is that it is not as highly regulated as some other methods of trading, leaving some room for hacking or other unsavory activity.
That being said, you can do research to find the best exchanges and learn how they work before inputting any banking or financial information.
It’s easy to set up an exchange anywhere that it is a legal and accepted form of transaction, making it a top choice for Bitcoin investors looking to trade more.
#4 Find an Online Broker
If you aren’t interested in an exchange that focuses solely on cryptocurrency, an online broker is the way to go. They deal with other types of assets, but many offer crypto trading because of how popular the market is becoming.
With online brokers, you can get assistance trading across markets to really maximize your profits.
Another major benefit is that online brokers are some of the most highly regarded and trusted members of the financial industry. They are licensed and the business is fully regulated, giving you more peace of mind that your assets will be safe.
#5 Make Sure Your Assets are Safe
On the topic of trading safety, it’s important to make sure that where you are trading is a reliable resource. Crypto ATMs fall under this category, as do many online brokers who will work with your best interest in mind.
In order to avoid cryptocurrency loss or theft, you have to keep a close eye on any investments you have made in Bitcoin or any other cryptocurrency. It’s an unfortunate truth that hackers and scammers try to take cryptocurrency, but you can take steps to protect it.
There are different types of virtual wallets, some of which are more secure than others. The biggest, most important step to protecting your funds is to keep your private key just that—private.
You can also further protect your assets by setting up added securities to your account, which acts as an additional barrier between your investments and a hacker with your username and password.
Protect your account with your phone number and even your email address or a security question to minimize the chance that someone can get your information.
#6 Watch the Market Trends
Since the value of Bitcoin is largely determined by its popularity at a given time, you’ll want to closely watch the market trends to see how well (or how poorly!) you may be doing.
As more big companies start implementing Bitcoin as a form of payment, Bitcoin is likely to go up because of how wide-spread its use is becoming. Any positive press or beneficial social media chatter will cause Bitcoin to increase.
In the same vein, any negative press or scandals that take place surrounding Bitcoin can quickly cause the value to decrease. It all depends on what’s going on in the world and how receptive consumers are to Bitcoin at the time.
Keep an eye on the trends, keep your Bitcoin safe, and find an exchange method that works the best for you to make the most of your trading experience. Who knows, you may watch your assets multiply!
Carolyn Coley is a blockchain reporter. She joined Smartereum after graduating from UC Berkeley in 2018.