Cryptocurrency trading has seen a meteoric rise in popularity, with Bitcoin being its most recognized form. In contrast to traditional currencies and payment systems, Bitcoin operates on a decentralized digital platform allowing users to carry out trades without involving third parties such as banks or other financial institutions. As the market leader, Bitcoin is listed on all crypto websites, and the current Bitcoin price is $23,911 (February 23, 2023). One of the most traded pairs with this asset is BTC to USDT. In this article, we will explore how cryptocurrency trading works, using Bitcoin as an example.
How to Buy BTC and Trade It?
When someone wants to buy Bitcoin, they typically do so on a cryptocurrency trading platform. Such services allow users to purchase and sell BTC using fiat currencies or other digital assets. Here is the simple algorithm:
- Users first need to create an account on the trading platform.
- Deposit money using various payment methods.
- Once the money is deposited, the user can make an order to purchase BTC.
All you need to do is state the number of Bitcoins that you wish to acquire, in addition to the price you want to spend on it. If a seller exists who is also amenable to this arrangement, then your trade will be executed and credited into your account instantly. The same process applies if one wishes to sell their Bitcoin – simply mention how much they would like to sell as well as the cost you hope for in exchange. If there is an investor interested in buying Bitcoin at that value, the transaction will be processed. That is how the p2p exchange works.
When it comes to regulated crypto platforms, you would not claim the BTC price; instead, you would buy or sell coins at a current market rate indicated on the platform. If you choose spot market trading, you can still set the price point, wait for BTC to reach that price, and then buy or sell coins at the set price. This option works with the spot markets on regulated crypto platforms.
The Bitcoin price live is determined by supply and demand. When there are more buyers than sellers, the value of Bitcoin will go up, and vice versa. This makes Bitcoin trading similar to regular financial markets, where the price of a stock is also determined by supply and demand.
One of the benefits of Bitcoin trading is that it operates 24/7, unlike conventional markets that are only open during certain hours of the day. So users can trade Bitcoin at any time, making it a popular asset for those willing to trade outside of regular market hours.
To purchase and trade BTC, welcome to the WhiteBIT crypto platform. It has an easy-to-handle interface, so even if you are a beginner trader, you will easily cope with buying Bitcoin on the first try.