Bitcoin Trading Related Important points for New Cryptocurrency Enthusiasts

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Many people start Bitcoin trading without actually knowing its negative side. One should know what can happen to his investment if Bitcoin would eventually become obsolete. Let us take a look on important points related to Bitcoin Trading that you should know before investing in Bitcoin.

Important Points Pertaining to Bitcoin Trading and Investment for Newbies

  • Bitcoin and other cryptocurrencies are still experimental digital assets.
  • Blockchain technology will change the way we do transactions but it is still is development face and world is yet to get a final product that will eventually become a universal currency worldwide.
  • As of this writing, in few countries Bitcoin is recognized by law and legal tender and in some it's totally banned. Know more.
  • No country can completely ban Bitcoin therefore hefty taxes up to 30% are being imposed on people who indulge in bitcoin trading.
  • BTC is very volatile in a single day you can dramatic shift in the prices.
  • It's not mandatory to buy one bitcoin. You can buy partial Bitcoin say 0.002 BTC or 0.25 BTC or any other amount.
  • Smallest portion of Bitcoin is called Satoshi.
  • Bitcoin is subject to market risk which means you may also lose your money (rare chances but still possible), therefore, systematically invest in Bitcoin. Its value may eventually become zero.
  • Only invest what you can afford to lose because whales (big BTC holders) manipulate prices.
  • Don't follow experts' advise blindly, do you own research.
  • Don't become impatient buyer. There is a large group of whales out there who creates media hypes and pick influencers to influence small investors.
  • Invest when everybody is selling and sell when everybody is buying.