The cryptocurrency, Bitcoin shot into prominence with an exponential rise in its price which made everyone jump onto the Bitcoin bandwagon. This was also followed by a steep fall and the cryptocurrency has since then been known for its extremely volatile nature. Bitcoins can be mined or you can get Bitcoins by purchasing them through a Bitcoin exchange. There are primarily two ways in which one can trade Bitcoin, either by buying and selling the Cryptocurrency or through speculating on its value without actually owning Bitcoins.
Trade Bitcoin through Exchanges
There are various exchanges available for trading in Bitcoin, both in India as well as across the world. After completing the required KYC verification, one can become a trader on these portals and buy or sell Bitcoin. These portals are of an online nature, after registering on the portal of a Bitcoin exchange and submitting some documents, one can trade in Bitcoins by paying through any online banking payment method.
Speculating on the Value of Bitcoin
This method of trading where speculation is done on the value of Bitcoin without owning Bitcoins is also referred to as a Contract for Difference Trading (CFD). Trading in CFDs the trading is never carried out on an Exchange. Rather, organizations source buy and sell prices from a large number of exchanges on the basis of which this speculation is carried out. In order to trade in Bitcoins in this manner, all you need to do is to create a trading account on the portal which is providing such services and trade through online modes of payment.
Whether trading is done through actual ownership of Bitcoin or through speculation, it is very important to build a trading plan in order to ensure that the ratio of the risks to rewards is in your favor. Given that Bitcoins have had a history of volatile trades, proper research on the price fluctuation and trends should be performed before entering into a trade.
If still interested in bitcoin, here’s a handy guide for investing in cryptocurrency.