Trading Crypto online can be tricky if you don’t know what you are doing, but you will also need to learn a few other skills and terms. What is a BTC Address? What is BTC? What is ETH, LINK, XRP, there are hundreds of these codes in the crypto space. What is a Digital Wallet? What is Blockchain? To trade crypto online you do need to know what some of these terms mean but don’t stress you do not need to know it all to be a successful trader.
Let’s break it all down and talk about a few of the basics you need to know.
What is BTC
BTC is an Acronym for Bitcoin a cryptocurrency, a form of electronic or digital cash. It is a decentralized digital currency that can be sent from user to user on the peer-to-peer bitcoin blockchain network without the need for intermediaries. It is powered through blockchain technology.
BTC is only one of the hundreds of cryptocurrencies and the one you hear the most about because it was the first and it is the most commonly traded crypto.
Some other examples are
UNI – YFI – BSV – BNB – SXP – TRX – BCH – THETA – EOS
This is just a few of the hundreds that you can now trade in various ways.
What is a BTC Address
A Bitcoin address or BTC address is an identifier or string of alphanumeric characters that represents a possible destination for a bitcoin payment. Typically, looks something like this – 1BvKRBUFytWmrxTFn6Mu4m4GYg7xJaKRI5
If you want to know more Wiki has a good definition of A Bitcoin address
You can get a BTC address so you can send and receive Bitcoin from any exchange that deals in crypto or an online wallet service.
Similar to sending an email, you can send bitcoin to a person by sending bitcoin to a unique BTC address.
A BTC address should be copied and pasted using the computer’s clipboard wherever possible. It is unique, including capitalization and for this reason, an incorrect address will most likely be rejected. The possibility that an incorrect address is accepted is approximately 1 in 4.3 billion. Now you know what BTC is and a BTC address lets talk about a wallet to hold your coin.
Best Crypto Hard Wallets
What is a Digital Wallet
A digital wallet is just as it suggests – A place to store your crypto coins. I remember when I first bought BTC it was around 10 years ago and it was a big ordeal and very confusing, these days it is relatively easy. There are numerous options available to store your coins. A place like CoinJar is a good place to start especially if you’re in Australia, they are based in Australia. In a place like CoinJar or CoinSpot you can purchase digital currency and store it in your digital wallet, another good option to start no matter where you live is Coinbase.
Check out the video below from Coinbase that will give you a bit of an idea about wallets and a BTC address.
An option like these is a good place to start if you are going to trade cryptocurrency because you can link your bank account and transfer/convert your fiat currency into crypto and store it. You can also send crypto to your digital wallet and withdraw it straight to your bank account. You can invest, exchange, buy swap and sell all under the one roof.
There are also what they call Hard wallets you can use for storing your crypto offline they provide cold storage for your coins but we may delve more into that at a later time. Most crypto exchanges operate in a way now that you can just transfer your fiat currency into a digital wallet linked to your account and start trading straight away.
You really need to spend a bit of time researching your needs to find what is going to work best for you as far as transferring /holding your digital assets. Some are good some are bad do your research. Some have high fees and limited services. I could go on forever talking about digital wallets so will leave it there and devote another section to this topic.
What do I Need to Trade Crypto
So you want to start trading well hang on there are a few more things you should know first. I am only going to discuss the basic of what you need in this space I will go into details on another post for each topic, this is just a brief overview.
Now you have your Digital wallet setup and you may have even purchased some crypto, now you need a place to trade your crypto. There are many options to do this as well. As you are probably already aware crypto does not have the best reputation there are a lot of scams and unethical dealings out there so I am only going to talk about what has worked for me and what I would recommend. Firstly I want to say I don’t trust anyone else to look after my money I make all my own decisions, I believe no one else has my best interest in mind except for me when it comes to my hard-earned cash/crypto.
I make my own trading decisions and place my trades myself on a reputable exchange like FTX or Binance These are some of the largest and most trusted exchanges in the crypto space. Because they are the largest they have a lot of liquidity which makes for good trading.
Charts you will also need some charts to watch your trades setting up and implement your strategy. Most exchanges have their own charts but you are going to want a dedicated charting platform for your technical analysis. I use Trading View for my charts they are very easy to navigate and the free version is good to get started.
I won’t go into strategies, mindset or psychology of trading but you do need to have some skills in these areas for successful trading. I will cover these in other posts, let me know if you want me to discuss a particular topic, just drop me an email email@example.com.
Putting the pieces together now you have a BTC Address
As you can probably tell by now if you have read this far that I trade technical analysis and place all my trades manually, I don’t trust anyone else to do this for me. I don’t use trading bots and don’t copy trade. I have only briefly touched on what is required to trade crypto and putting it all together is not hard but needs to be done the right way to ensure success. A BTC address is one small part, you will need an address for each coin you want to hold in your wallet. There are a few more things we need to talk about before you jump into the exhilarating world of trading Crypto but I hope this information has given you a bit of an idea what a BTC address is and what it takes to trade crypto successfully.
Be the Best you can Be