BITCOIN AND CRYPTOCURRENCY TRADING FOR BEGINNERS: A Comprehensive Guide to Getting Started in the World of Digital Assets (2024)

Sybil Shepherd

Bitcoin and Cryptocurrency Trading For Beginners

First published by Sybil Shepherd 2023

Copyright © 2023 by Sybil Shepherd

All rights reserved. No part of this publication may be reproduced, stored or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise without written permission from the publisher. It is illegal to copy this book, post it to a website, or distribute it by any other means without permission.

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Contents

Chapter 1: Should you Trade Bitcoin?

Chapter 2: Best Crypto Exchanges

Chapter 3: Best Mobile Wallets for Trading Crypto

Chapter 4: Best Hardware Wallets for Trading Crypto

Chapter 5: Currency Pairs - Base and Quote

Chapter 6: Order Book - Bids and Asks

Chapter 7: Stop Limit Option

Chapter 8: Dollar Cost Averaging

Chapter 9: How to use BNB as a Trading Tool

Chapter 10: Passive Income with Coinbase

Chapter 11: How to Earn Interest with Compound Finance

Chapter 12: How to Sell & Withdraw Crypto from Coinbase Pro

Chapter 13: Binance Widget Trading Tool in Brave

Chapter 14: How to place Market Orders on Coinbase Pro, Blockchain & Binance

Chapter 15: How to Buy, Sell and Trade Crypto on eToro

Chapter 16: TOP 5 Crypto Picks For 2021

Chapter 17: How To Value DeFi Tokens

Conclusion

Chapter 1: Should you Trade Bitcoin?

Once, there was a moment when the value of Bitcoin stood at 44 cents. Subsequently, it experienced a remarkable ascent, reaching a peak of 30 dollars, only to undergo a subsequent decline, plummeting to 7 dollars.

And on another occasion, there was a moment when its value stood at 13 dollars initially, but then it surged significantly to reach 213 dollars. However, it subsequently experienced a sharp decline, plummeting back to 65 dollars.

On another occasion, Bitcoin experienced a surge from $147 to $1100, only to plummet back to $480. Similarly, there was a time when Bitcoin’s value escalated from $1100 to $19,000 before crashing down to $3,800. However, as of today, Bitcoin has reached a new all-time high of $28,240. This prompts the question: Is Bitcoin a valuable asset for trading? I hope your answer is affirmative. But let’s delve into the essence of Bitcoin. While some individuals dismiss it as a scam, there are those who hold Bitcoin in high regard, almost like a religious belief, so it’s important not to provoke discomfort in either camp.

Allow me to navigate through this spectrum and discuss objectively the significance of a robust monetary system. This entails exploring whether Bitcoin truly has the potential to reach the speculated $1 million mark and beyond. A milestone was achieved when Bitcoin surpassed the psychological threshold of $20,000. Using a Kardashian-esque scale to predict Bitcoin’s value, it could indeed evolve into a global currency, akin to a Type 1 civilization’s monetary standard – a form of currency encompassing the entire world.

Firstly, credit must be attributed to Bitcoin for enlightening me about the true nature of money. Beyond its financial gains, Bitcoin has provided insights into the concept of sound money. This comprehension is crucial for those engaging in Bitcoin trading or holding it long-term, as the latter can be a nerve-racking experience. Visualize holding a stock that surges by 30% one day only to plummet by 50% the next. It’s undeniably anxiety-inducing.

Money appears simple on the surface – a tangible $100 bill exchanged for goods. However, money isn’t a mere switch to be flicked on; it transcends such simplicity. Crafting a reliable currency is a formidable challenge. Unlike printed dollars, Bitcoin is digitally generated through a process known as mining. Imagine a vast network of computers worldwide working diligently to solve intricate mathematical puzzles. Despite seeming wasteful, this process serves a purpose, akin to a Rubik’s cube containing transaction records. When a Bitcoin is sent from one party to another, the transaction enters this cube, forming a public ledger, akin to a gaming scoreboard, appealing to governmental authorities for its transparency in tracking illicit activities.

These transactions await confirmation, achieved by solving the Rubik’s cube. With each block’s limited capacity, a new one is required approximately every 10 minutes. Consequently, this process repeats periodically, culminating in the release of newly minted Bitcoins. To maintain fairness amidst technological advancements, the difficulty of solving these puzzles increases systematically. This mechanism prevents the sudden dominance of a singular powerful computer in mining all Bitcoins.

Bitcoin’s distinctive value lies in its technical superiority as a form of money. It’s incredibly scarce and rare, a pioneer in its realm. A superior currency should possess five essential traits, commencing with divisibility. While gold and the dollar struggle in this aspect, Bitcoin shines by being divisible into 100 million units called satoshis. Durability follows; Bitcoin surpasses gold and paper currency by maintaining its structural integrity. Rarity is fundamental – Bitcoin’s scarcity is guaranteed, unlike the dollar that experiences inflation due to constant printing.

Uniformity and acceptability complete the criteria. Bitcoin’s fungibility, albeit facing challenges, is likely to be resolved through privacy-enhancing techniques. These attributes, which humanity has sought for ages, are embodied in Bitcoin. Today, institutional hedge fund managers are recognizing this, leading to massive investments, in stark contrast to their earlier skepticism. This influx of intelligence and capital is reshaping the landscape, as financial giants and corporations surreptitiously accumulate Bitcoin, shedding light on its true value.

A pivotal moment arrived on December 16th when Bitcoin triumphed over the psychological barrier of $20,000. Unlike the retail investor frenzy of 2017, the current surge is driven by smart money, further solidified by PayPal’s involvement and institutional interest. Economic uncertainties coupled with the Federal Reserve’s unconventional monetary policies contribute to Bitcoin’s remarkable price surge. A notable instance is Scott Minerd, CIO of Guggenheim Investments, admitting their hedge fund’s strategic acquisition of Bitcoin at $10,000. His team’s belief in Bitcoin’s fundamental value at $400,000 underscores the transformative power of this digital currency.

The potential extent of the Bull Run’s rise is uncertain, but for now, brace yourself for an exciting journey as we continue to surge ahead and establish fresh all-time highs. If you’re involved in investing, exercise caution and avoid allocating more than 10% of your total worth to this asset, unless you possess unwavering belief and a comprehensive understanding of every aspect of Bitcoin. Holding onto it and maintaining a judicious approach to speculation could likely lead to substantial rewards. Furthermore, given its volatile nature and its round-the-clock tradability, Bitcoin remains a favorite trading tool among traders, owing to its absence of fixed opening or closing values.

Chapter 2: Best Crypto Exchanges

In this chapter, I will guide you through a selection of my favored cryptocurrency exchanges. Whether you’re new to the world of cryptocurrencies, making your first Bitcoin purchase, or an experienced trader seeking the optimal exchange fit, the decision can pose challenges. The considerations encompass liquidity, trade volume, fees, security measures, and regional accessibility of the platform. But fret not, as I’m here to introduce you to cryptocurrency exchanges I’ve personally employed over time and walk you through the factors that led them to become my preferred choices.

However, it’s important to note that regardless of the exchange you opt for, and no matter how secure it’s reputed to be, it’s unwise to store substantial funds there. For enhanced security,