To start with, bitcoin is defined as a digital currency that is usually not backed by the government or a central bank of any Country. It may also be described as a peer-to-peer currency which does not involve the use of coins regardless of the suggestive name, “bitcoin”. Being a virtual currency and as used in trading, there is no need of an authority to use bitcoins during a transaction nor is there a need for middle men for the same. Wonder how you can own a bitcoin? Owning a bit-coin is very simple and easy. This is possible by buying the bitcoins at a preferable exchange through the various online exchanges. These are BTC-E.com for forex traders, coinbase.com and bitstamp.net. However, other forms of buying a bitcoin exist through auction sites like e-bay for example.
Having known that so far, day trading is another aspect in bitcoin trade hat cannot be overlooked. Generally, day trading is known to be the buying and selling of securities within a short period of time usually the same day and subject to minimal price fluctuations. Regardless of its risky nature, for the online business enthusiasts; day trading can be the most profitable business you could ever imagine of. This is because you can easily reap large sums of money at a go. Additionally, the transactions involved can take even a minute or less which gives day trading a higher credit as compared to value investments which may take longer time. Generally speaking, to be on a higher notch with day trading, experience is also fundamental. This makes day-trading a learning process for beginners at first.
To start with, you should rather consider larger exchanges since they have a better speed of trading and liquidity. This is in contrast with smaller exchanges that have lower volumes and spread values of buying price and selling price. If you are a beginner and you would like to enjoy an easy and fast buying and selling of bitcoins, bitstamp exchange is the way to go. It has an added advantage in bitcoin trading due to its reputation and market size.
To make and increase your profits, there are two techniques that you can use; leverage and short-selling. Leverage refers to borrowing money on short-term basis to be able to speculate on the bitcoin trade. On the other hand, short-selling is a means of profiting by buying bitcoins at a lower price and selling them at a higher price. This takes advantage of downwards price movement.
With that in mind, you can always be prepared to face bitcoin trade and pocket your dollars.