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Trading Bitcoin in 2021
In 2021, Bitcoin is still the most popular cryptocurrency among investors. If you are interested in trading Bitcoin, we recommend that you take a look at the exchange of Coinbase, BitBuy and eToro. To register for the fair you can create an account. All you have to do is check your details and enter a payment method.
To protect yourself as well as possible when you first start trading in Bitcoin, we have listed a number of tips:
Read on below to learn more about investing in and buying Bitcoin in 2021!
It has been possible to trade Bitcoin for more than a decade, but for many investors it is still difficult to understand how it all works. That confusion is largely caused by the sheer amount of unreliable websites and online exchanges.
For those who need it, a little repetition first. Bitcoin is a digital means of payment that is mainly used for online purchases and to invest with. The means of payment is not marketed by a government, but it is set up by people online. You can earn Bitcoin through mining or you can just buy them with normal money.
If you are interested in trading Bitcoin, you will need to have a ‘wallet’ – a digital wallet – online that links you to the online exchange you want to use. You can also use a program on your computer for your digital wallet. Some choose to put their ‘wallet’ on, for example, a hard drive, so that it is not always on their computer. This way you can only enter it when you really need it.
We have written this article to help you a little in the process of trading Bitcoin. We try to answer the most frequently asked questions on this topic and we have listed a number of good sources to get started. Is it still worth investing in Bitcoin in 2022?
In 2017, Bitcoin investors saw a gain of more than 1300 percent. At its peak, Bitcoin was even worth $20,000. A year later, Bitcoin had lost more than seventy percent of its value and its value had fallen from $14,000 to $4,000 by the end of 2018. In 2020, the value of the means of payment has also been rather unstable, mainly due to the covid pandemic. The IPO of Bitcoin has dropped by fifty percent because investors took their money off the stock exchange because of the uncertain times.
In the second half of 2020, the market has recovered considerably. The U.S. stock market and the value of gold have both risen sharply. Many cryptocurrency investors speculate that the same could happen to the value of Bitcoin.
Below you will find a number of reasons why it might be a good idea to invest in Bitcoin this year.Wall Street now also uses cryptocurrency
In 2019, the Intercontinental Exchange (ICE) and Fidelity have created the opportunity for institutional investors to invest with cryptocurrency in addition to ‘ordinary’ money. And in May, JPMorgan announced that they were now going to process crypto transactions. They have also started offering their services for Gemini and Coinbase. In addition, from August it will be possible for investors to store their cryptocurrency at various American banks. All this shows that Bitcoin is slowly becoming more widely accepted on Wall Street, making cryptocurrency more important. Bitcoin is used more worldwide
Data from Blockchain_wallet shows that the number of ‘wallets’ with them has increased from 41 million to 52 million in the past year. Square has also reported an increase in Bitcoin revenue for the second quarter of this year. Their Cash App has turned over $875 million, which is a 600 percent increase from last year. And it’s not just in the US that bitcoin trading is on the rise. Other countries such as Peru, Mexico, Kenya and South Africa have also observed an increase in bitcoin trading. This shows that cryptocurrency is slowly becoming more accepted in the financial world, which makes it interesting for investors. Bitcoin often recovers from a crash
To date, Bitcoin has been declared dead many times – more than 380 times – by the media. But this has never actually affected the value of Bitcoin. After a collapse of the stock market, the value of the cryptocurrency climbs up again and again and often exceeds its own highest value. Bitcoin reached a value of $1,000 for the first time in 2013, after which it dropped to a low of $175 in the following two years. But at the beginning of 2017, the value was back at $1,000 and rose to the unmatched value of $20,000 per coin.
Another advantage of the cryptocurrency is that the use is a lot more anonymous compared to ‘ordinary’ money. It is also easy to use to pay online. This ease of use is at odds with the complexity of exchange rates and fees that come on top of currency exchange.
What this all comes down to is that cryptocurrency is becoming more and more widely accepted worldwide and is being used more often. This global acceptance and the data that shows that Bitcoin often comes back well after an economic setback are reasons to consider buying Bitcoin. Where can you trade Bitcoin?
There are many places online where you can trade Bitcoin. These all have positive and negative aspects. We understand that security is the most important consideration when someone starts trading bitcoin. That is why we have only listed exchanges that have a good reputation with investors.
Something to keep in mind is that some exchanges do not allow investors from some countries. This means that you have to look carefully at whether you can also trade on a certain exchange from the Netherlands. Also, some exchanges will only accept bank transfers, while others will also accept other payment methods.
On top of that, there are a number of extra costs when you start trading in Bitcoin on an exchange. It often costs money to deposit and withdraw and there are transaction fees. You should also take into account exchange rates and purchase limits when you decide to invest. Coinbase & Coinbase pro
Coinbase is seen as one of the best places to trade Bitcoin. The platform has over 13 million users and is insured, secure, regulated, easy to use, and accessible to a wide variety of investors. It doesn’t matter how much you know about the world of cryptocurrency. At Coinbase there are about 15 different cryptos available and the costs involved are the same as those with other platforms. Some parts are not available everywhere, but Coinbase can be used without restrictions from Great Britain, the United States, and the EU. So the entire platform is also available from the Netherlands.
The main difference between Coinbase and Coinbase Pro (the paid version) is that the pro version uses a more complicated interface. However, you do pay slightly lower commission costs with Coinbase Pro. Whichever version you use, all trading is done through Coinbase Pro.
To create a Coinbase account, do the following:
eToro
eToro is one of the most popular stock trading websites. The exchange has over 10 million users and offers a number of benefits to Bitcoin investors. eToro is an established company regulated by the UK’s Financial Conduct Authority. They ensure that users are protected, that the market remains stable, and that there remains healthy competition between financial companies. eToro offers a number of different deposit options and the costs for investors are low.
