How To Trade Bitcoin

Trade BitcoinOk, so you heard somewhere that trading Bitcoin would be a good idea. Let me tell you, it won’t. You could make boatloads of money exchanging cryptocurrencies back and forth (or lose it), and I will give you in this chapter a technique I use to make some regular gains in bitcoins or litecoins or any of the thousands of cryptocoins that you can find in this crazy realm.

However I wouldn’t advice anyone to risk his or her money on trading, especially money you can’t afford to lose. So if you try these techniques don’t do it because I am telling you, I only print this information for academic and informative reasons and not to encourage anyone to trade currency.

Please contact a professional advisor before trading your hard earned money, I don’t accept any responsibility for the use you give to the information that I am about to share; what you do with this information and / or if you lose any money trading I will take no liability what so ever.

Ok, so if after all the discouragement you still want to read about Bitcoin Trading here we go:

The idea on trading anything, and Bitcoin in particular, is to buy cheap and sell expensive, or to buy low and sell high.

So what are we trading anyway? we will be trading the exchange difference between two altcurrencies, let’s say we buy Litecoins with our Bitcoins; after a few hours, if our trading was right, the Litecoin might have gained a few points, so we sell it back to buy Bitcoin and make money on the difference. Then we go and look for the next opportunity, and we keep on doing this until we are fed up with millions of altcoins.

So how exactly can you do this?

First go to your Coinbase account and buy a few bitcoins or small fractions of bitcoins, start small to practice, you can increase your exposure later once you are profitable and you understand the process.

Then you want to sign up for exchanges, you can use cryptsy.com and exmo.com to start with, however you will need to have accounts in many more exchanges, as you’ll see in a minute. In these exchanges you will be able to buy and sell a wide number of altcoins and you will have an address to receive your bitcoin from your Coinbase account or your wallet so you can start trading.

Ok, next you can find a list of the altcoins market’s share and in which exchanges to find them here:

www.coinmarketcap.com.

There you will find a table with the different altcoins and also the amount of VOLUME they are trading. You should sort them out by the volume as the sorting criteria, because you should only trade currencies that have at least $40,000 of volume for the day or more. On any given day there could be between 12 and 20 within this range.

We do this because we want to buy and sell easily and not get stuck with some thinly traded coin that no one will take from us when we want to sell it. You really want to be where the traders are and take advantage of the Volume of transactions in a specific coin.

So we will be looking for volume spikes, for that we will use the column named % Change (24h). In this column we can see the hottest coins and the ones we’re interested in buying.

For example right now as I am writing this lines I can see Nautiluscoin going up like crazy, 90.72% in the last 24 hours!

So I go and check in which exchange I can find this atlcoin:

I click on the coin can see they have it on Bittrex, Criptsy and Poloniex.

But as you can see the volume, and the price is much better on Bittrex, so I rush to Bittrex and open an account (it should be ready in a few minutes) and deposit the bitcoins I want to use to trade.

So by now we know:

How to identify possible coins to trade – go to coinmarketcap.com and sort them by volume

Which ones can be candidates – the ones that have over $40,000 of 24h volume

Pinpoint the one that can give us profits – The one that is having a crazy positive spike in the last 24h, anything over 40% or 50% can do the trick

Find the altcoin’s market – click at the coin on the table and you can find in which markets it’s trading and at what price, go for the highest volume and the best price.

Move our trading coins to the exchange and get ready to trade

Ok, we will stop here for a second to understand a bit better why we chose coins with price and volume spikes.

In this trading strategy we will normally tend to follow the trend, or what other traders are doing; so if people rushes to buy a specific coin we will rush to buy it too, we don’t care for the reasons of this sudden interest. We only know that for now there is a mania for such coin that went nuts in a short amount of time and we want to capitalize on that mania.

It’s important to understand that we’re not buying for the long term. This sudden interest could last only a few hours or a few days, that’s fine for us, we will stay in the trade only for a few minutes or hours and then get out with a profit.

We don’t want to be the first one to jump into the pool or the last one. We just detect where the flow is going and take advantage of it for a little while and then go out. On a single trade you could make anywhere from 5 to 10% or more of your capital in a few hours, so the potential is really huge.

Ok so now let’s trade those coins!, let’s say we have 1 bitcoin to trade. In Bittrexthe exchange rate is$ 0.069891 so we can buy a 14.3079 Nautiluscoins with our 1 Bitcoin.

However please don’t follow into the trap of thinking that you’ll have to buy your shiny new Nautiluscoin for the “last price” found on the price rates.

You will see there’s a list with all the people bidding and offering different amounts of coin. You must try to low-ball the offer as much as possible. In all the exchanges you will find a table like this with the buy orders and sell orders, in this table you will find what is people paying to buy and sell their coins.

As you can see, trading will require a lot of time and commitment from your part, try not to over do it and it’s better if you start with low expectations and risking little money until you feel confident about what you’re doing.

So once you have bought your Altcoins you only have to sit and wait to see if the market keeps rising, normally it will and after one hour or maybe two or even three you will have a profit. However I’d never recommend going away from your screen leaving your trade open, if you go to sleep or need to do something just buy back your Bitcoin and stay safe.

If things go wrong and you start to lose money, pick a number you are willing to lose every time, let’s say 10% as an example, and if price just go against you and hit that price point simply sell and buy back your Bitcoins, don’t worry, you’ll have plenty of opportunities to recover.

Airbitz Has Built The Best Bitcoin Wallet

Airbitz WalletWhether you’re a frequent Bitcoin user or a casual one, you probably fear that using one of the many wallets available on the internet may either leak personal information or any other safety problem. Fortunately, Airbitz has built one of the safest and most efficient Bitcoin wallets on the internet. The mobile app is easy to setup and use and it has many safety features, which ensures you will be able to use your bitcoins anytime anywhere without a problem.

Setting up is easy

One of the best things about the new Airbitz wallet is that it is extremely simple to use. You can setup a secure and encrypted Bitcoin wallet, which is also backed up without wasting your valuable time, unlike in the case of other wallets. Within a few minutes of the installation, you can start receiving or sending bitcoins to and from anywhere in the world – this is how easy it is! Not only is the Airbitz wallet easy to setup, but to use as well, as the simple user interface allows you to transact bitcoins with just a few buttons. You also get a curated map as well as directory of any online businesses using bitcoins as well.

Simplicity and complexity combined

The new Airbitz wallet is so simple to use that you can even teach your parents to use it in under five minutes. However, advanced users won’t be disappointed, since all the complex features are still there. For the casual user,  the app only requires creating a login, a password as well as a 4 digit PIN. Following this easy step will ensure that the encryption, backup, as well as the recovery of information will be done automatically with no extra steps to be taken. You can then send bitcoins in seconds using SMS, emails, QR code or Bluetooth.

Safer than ever before

The latest Airbitz app isn’t just easy to use, but a lot safer as well. Most bitcoin wallets you can find online all share the risks of having to deal with complicated processes you’re not familiar with, such as encrypting or backing up information regarding private keys. With Airbitz, you can rest assured that you won’t have to deal with any of it, as the keys and wallets will be encrypted as well as backed up automatically. If your mobile device is stolen, then you won’t face any risks, as you can just enter the user login, password and PIN on any other device to regain access to your bitcoins, as well as wallet information.

Privacy at its best

You should also be glad to hear that the Airbitz doesn’t store any unencrypted information on the mobile device, and neither does it transmit it on the network. And even when the Airbitz servers are down, you can still have access to your funds, as the app will directly access bitcoin network codes.

So if you want to use the best bitcoin wallet there is, then you should download and install the latest Airbitz app and start sending and receiving bitcoins safely!

How To Get Started With Bitcoin

BitcoinIf you’ve been following whistle blower or hacker related news, you may have noticed that some group websites have started to accept donation in a form called Bitcoin. Now what exactly is Bitcoin? I’m going to explain what the coin is and I’m going to demonstrate how to start using it yourself.

So what is Bitcoin? Bitcoin is a digital currency parred by a peer to peer network used primarily for internet transactions. So what are the benefits of using Bitcoin? Well it’s as anonymous as cash. It’s impossible to charge back, unlike PayPal or a credit card. It’s not controlled by central government and it is impossible to inflate by mass printing. So let’s get started using bitcoin.

Well the first thing we have to do is get a wallet, which is a program that is used to store our Bitcoin. There are desktop wallets available and there are online wallets that are available. The most popular desktop wallet is available at Bitcoin.org. And just go ahead and download the client for your operating system.

So once the client is installed, you can go ahead and go to start, all programs and Bitcoin and launch the Bitcoin software. And once you launch it, you will see the Bitcoin program. Go ahead and note your Bitcoin address as you will need that for use in your Bitcoin transactions.

Now if you would prefer a online wallet go ahead and open up your web browser. And go ahead and navigate to myBitcoin.com and go ahead and sign up for this website. And once you sign up you will see your payment address on your front page and go ahead and note that.

So once you have bitcoins, we’re going to go ahead and show you how to get some free coins were to that. Go ahead and proceed to open up a web browser. Then go ahead and navigate to the free Bitcoins.appspot.com, also known as the Bitcoin faucet. This website will provide point zero zero zero one Bitcoins to any user who just clicks. Get some now. I have already grabbed some but if you go ahead and click it you will see a prompt to put in your coin address.

Now there is one more way that I’ve seen to get free coins and this is a possibile if you open up a web browser navigate to dragons.tl and download this game. This is a casino style game that even though I do not recommend gambling, it will provide you with free Bitcoins by going head to the twenty four statues in the game and examining them and receiving free of BTM.

So once you have point zero one zero BTM, you’ll be able to withdraw the coins. So go ahead and copy your Bitcoin address from your wallet and head over to the utility and then click withdraw coins and then in here just go ahead and click control v or paste in your Bitcoin address and type in your amount that you want to withdraw. And then go ahead and click on OK. And then all you have to do is wait about ten minutes to a half an hour or so for a transaction to be confirmed and you should see that coins added to your account.

Those are only two of the ways to get free Bitcoin but they are currently the most popular way of getting coins is buying them through a currency exchange and because Pay Pal doesn’t allow this kind of stuff, we need to use a different middleman to bring our currencies into the exchange. The most popular popular one used is Dwolla. So go ahead and navigate to Dwolla.com and sign up for an account. Then once you go ahead and log in and insert your bank account information to set up a wire transfer.

So go ahead and click on add bank account  and add in your banking information. So once you have set up wire transfers and it’s verified. Go ahead and sign up for a Bitcoin exchange. And then proceed to click add funds.

Once you’re here open up Dwolla as a new tab. Next add some funds and you can do this by putting in the account number into details at the exchange site. Next, go ahead and type in the amount that you want to add to the exchange. And under source, be sure to choose your bank accounts and payment type as services and assume the costs.

So once you have added some funds to the exchange go ahead and click on trade. And once you click on trade go ahead to choose the amount of coins that you want to buy and click on buy coins. Once you have bought the coins go ahead and withdraw them to your bitcoin wallet using your Bitcoin address.

One more way of getting coins is through Bitcoin mining. Mining is the process of generating blocks used to record Bitcoin transactions over the network and blocks are necessary to prevent double spending. Now blocks are generated by Bitcoin miners and here are some benefits for Bitcoin mining.

Whenever you generate blocks, which by the way requires a large amount of G.P.U. or C.P.U. power, you are awarded fifty BTM or Bitoins per block plus any transaction fees that are sent to the network. Note that one block is generated every ten minutes.

So in order to do some Bitcoin mining we’re going to go ahead and open up a web browser and sign up to join a mining pool. Now one I’ve seen that’s very easy to use for beginning miners is bitmining.com. So go ahead and sign up for this website. And once you’ve signed up go ahead and add a new machine and add in your Bitcoin payment address. And then you’re going to want to proceed to go to tools and download the coin mining tool. And please know that you’re going to need Java to run this Bitcoin miner.

Now that you have download the program you go ahead and enter in your log in credentials. Next click on engine start. And then you should be mining bitcoins. If you have a more up to date graphics card and processor you should be able to mine coins.

I’ve explained how to get your own coins. And now one more thing that I have to show you is how to make payments and this is whenever you do any transaction over the Internet using Bitcoins to make a payment.

We’re just going to use our coin wallets and depending on which client you use there should be a place to send your coins. So go ahead and click that button or link and paste in the address that you want to pay coins to and type in the amount. Depending on the amount you may be required to pay a transaction fee and this is to pay for the miner because miners are making the blocks for you. Go ahead and adjust it appropriately and pay for transaction fees and then that’s it. You’ve successfully sent coins to the specific person that you’ve done business with.

So now what. Well, there’s many things that you can do a Bitcoins. If you still don’t know what to do with them while they are very good investment. In fact that coin has bruises from pennies in value in 2002 to around fourteen or $240 a coin today.