Know the Pros and Cons of Trading Bitcoin

Article about Know the Pros and Cons of Trading Bitcoin

Aug 24, 2021

In the present scenario, huge people are interested in investing in cryptocurrency. More people are attracted by cryptocurrency due to its ease, decentralization, complete control over their assets.


Let us list out the reason for people moving towards cryptocurrency:


  • Limitless
  • Permissionless
  • Eradicate Location Barriers
  • Easy to handle
  • Decentralized
  • Transparency
  • Secured with Blockchain


These are reasons for people moving towards cryptocurrency. The cryptocurrency can be traded on the cryptocurrency exchanges.


A cryptocurrency exchange is a platform dedicatedly built for trading cryptocurrencies in a well-secured way. One can acquire cryptocurrency by having a crypto wallet to store, trade their cryptocurrencies.


The Crypto aspirants can acquire cryptocurrency with the help of cryptocurrency exchanges like Binance, LocalBitcoins, Paxful, Wazirs, Kucoin, & Huobi, etc.


Here we will see the pros and cons of trading Bitcoin,


Pros & Cons of Trading Bitcoin

Bitcoin is a virtual currency and costly. They need to be handled more effectively to earn profit and to protect it safely from vulnerable attacks online.  

Here are tips for trading bitcoins


Discovering a Secured Exchange to Trade Bitcoin 

Pros: Select Exchange with high volume and well secured.


A high-volume exchange will likely have more competing prices and huge buyers to trade your bitcoin. Security is very essential for cryptocurrency trading. In Incase, a highly secured exchange guarantees that the Bitcoin you stored on your wallet is safe, regardless of when you plan to sell your crypto. Binance is the worlds largest cryptocurrency exchange with huge crypto holders, high trading volume, and secured exchange. One can start their cryptocurrency exchange like Binance with a Binance clone.


Cons: Dont ever choose the exchange charging high transaction fees 


The crypto traders prefer the crypto exchange charging low fees and these enhance the trading volume and traders taking part in tradings. 

It will help you sell your cryptos as per your expected profit at any point in time without any delay.


Transfer Bitcoins to Selected Cryptocurrency Exchange

Pros: Securely transfer your Bitcoin.


Once after registering on the preferred crypto exchange, check all the security features and risks on the allocated crypto wallet. Examine the public address assigned and private address provided for you in the exchange. Scan the QR codes provide in the exchange before proceeding with any transaction on it.


Cons: Dont Ever Share your Private Keys With Anyone.

 

Private keys need to be stored, used securely, and not to be shared with anyone. If you are a newbie for trading, then you can seek help from the support persons available on the cryptocurrency exchange. You can get help through their exchange support system, app & email, live chat, and beware of fake people claiming authorized support service.


Exchange Bitcoin for Local Fiat Currency

Pros: Set preferred price on the Spot exchange 


For example, the Binance exchange has numerous trading pairs like fiat-to-crypto, nearly it has nine pairs for fiat currencies. Here, you can choose your preferred fiat currencies pair you want to trade Bitcoin on available pairs on the Spot exchange given. You can also trade for stablecoins and others cryptos as per your choice.


Cons: Dont Rush on Selling Crypto, unless it is needed.


You need to be very careful on trading, you can get live liquidity, rates on the dashboard. Here, you can pick the right pair that would benefit your trading instead of choosing fiat currencies, where you not going to draw fiat currencies at that moment.


Withdraw Local Fiat Currency

Pros: Prefer the withdrawal option that fits you best.


Cryptocurrency exchange like Binance allocates fiat wallet to the traders to help them on withdrawing fiat currencies according to their preferences. 


Cons: Dont Forget to complete account verification


The Cryptocurrency exchange like Binance requires verification on withdrawing. The user cannot withdraw any mode of currencies without completing the verification process for withdrawal.