Even though Bitcoin has reached a value of over $50,000 in March of 2021, experts believe that this cryptocurrency is yet to reach its peak. When they looked at previous halving events (which are indicators of Bitcoin price surges), they noticed that after the two previous halving events, Bitcoin spiked in value exactly a year and a half after the event ended. The last halving event took place in May of 2020, which is why it is believed that Bitcoin can spike even more in autumn.
This finding is more than a reason for people to sign up to the network. Each day, thousands of new traders sign up on the Bitcoin network in a quest to make money. That is why we decided to provide them with a bit of help and name some things that every novice trader needs to know. Let’s check them out.
You Got to Earn Bitcoin First
Before you sell Bitcoins, you must earn them, which is logical. There are two ways to do that. The most commonly chose way is to mine it. Why? Even though mining is extremely hard, it is free and it guarantees a profit in some way. With mining, users record and verify Bitcoin transactions and help in keeping the network alive by updating its blockchain. Each recorded transaction is called a block and it is part of the blockchain. The reward for doing this is Bitcoins.
The second way to earn Bitcoins is much easier but comes at a greater risk. You can resort to buying them, but the risk here is that Bitcoin is a highly volatile cryptocurrency and if its price goes down, there is a chance that you end up selling it for a lower price than the one you bought it for.
Find the Best Trading Platform
After you earn your Bitcoins comes the main activity – selling them. To do that, you must make sure that you find a suitable and trustworthy platform. Bitcoin Compass is one of the best trading platforms as this site offers an advanced AI system that helps you maximize your profits. This Bitcoin Compass review contains all the details that you need to know about the site and it’s worth a read.
Speaking of its AI system, it is worth taking a second and explaining how it works. The software takes all the data about Bitcoin from the market and analyzes it. The purpose of the analysis is to use the results to make accurate predictions on Bitcoin’s future fluctuations. The results are then shared with the registered traders, who use the intel to know when is the best time to sell their Bitcoins and maximize their profits.
Watch out for Scams
Scams have become one of the biggest disadvantages of the Internet. Even though Bitcoin is secure and it hasn’t been hacked in its history, that doesn’t mean that you cannot be scammed. Scammers can find a way to access the network and do everything they can to rob you of your money. There are three types of schemes that are used in Bitcoin scams – the Ponzi Scheme, the Exit Scam, and the Stop Drive.
The Ponzi Scheme is the most popular – with this scam people will promise crazy amounts of profits to investors. These numbers are often too good to be true, which is a clear indicator of a scam. Some people will fall for it and decide to invest their money and after they do that, scammers just disappear and are nowhere to be found.
Keep an eye on these scams and make sure you take all the necessary steps to protect yourself. If you are wondering how to spot a scam, here is a good guide.