Today, Bitcoin transactions are very common. Bitcoin’s high volatility can lead to rich investment returns. However, how should a novice buy bitcoin to start? How to pay attention to risks? Let bitcoin exchange JPEX tell you in 10 minutes!
Bitcoin (Bitcoin) is the world’s first virtual currency, born in 2008. In 2020-2021, the trend of Bitcoin is strong. The price of Bitcoin was close to US$70,000 on November 10, 2021, but fell below US$60,000 in the next 10 days, and its price was even higher at 12 of the same year. fell below $50,000 a month. In 2022, the global economic environment will be hit in many ways, including: the Ukraine-Russia war, energy supply constraints, inflation, and the Terra coin incident, all of which have affected people’s trust in Bitcoin, causing the price of Bitcoin to continue to weaken. Currently, the price of Bitcoin is between $10,000 and $20,000.
Like the traditional economic environment, the price fluctuations of Bitcoin will also have different cycles. In the past, 10,000 bitcoins could be exchanged for two pizzas; today, 1 bitcoin is equal to $20,000. In terms of long-term returns, buying or selling Bitcoin is the right decision.
Now, let JPEX take you to know more about Bitcoin, including: how to buy Bitcoin, how to trade Bitcoin, and how to invest in Bitcoin. Without further ado, let’s get started!
JPEX CRYPTO PLATFORM
JPEX is a licensed Bitcoin exchange that started operations in July 2020. JPEX aims to provide the public with a safe and reliable international currency buying platform, which can conduct a variety of virtual currency transactions, including: Bitcoin, Ethereum, EOS, etc. JPEX’s team members are top computer technology professionals from Japan, the United States and China, and JPEX’s advisory team has experience in serving Wall Street fund companies in the United States. Furthermore, JPEX’s business is regulated by the Australian Financial Payments Act. Currently, two Hong Kong-listed companies have invested in JPEX, namely HMVOD and China Tiangong Holdings. The former will invest 5 million US dollars in 2021, and the latter will invest 10 million US dollars in 2022.
JPEX provides the public with a bitcoin spot trading system, and provides professional investors with JPEX EARN encrypted asset value-added services, including: current financial management, mobile financial management and DeFi financial management. JPEX EARN adopts the technology developed by the Japanese intelligent technology team, and currently manages more than 2 billion US dollars in global assets.
How to buy bitcoin
Novices investing in Bitcoin often have questions about how to buy Bitcoin, such as: the safety of the way to buy, technical issues, and how to hold it. At present, there are three main ways to buy bitcoin: physical cryptocurrency exchange (OTC Shop), credit card purchase and cryptocurrency wallet transfer.
Method 1: Physical cryptocurrency exchange (OTC Shop)
The operating model of a physical cryptocurrency exchange (OTC Shop) is roughly the same as that of a physical currency exchange. People can exchange cash for stablecoins and then exchange stablecoins for bitcoin. At present, it is not difficult for us to see OTC SHOP on the road. OTC Shop can help you solve many technical problems encountered in the initial stage of investing in Bitcoin, from exchanging legal currency (Hong Kong dollar, Taiwan dollar, U.S. dollar, etc.) Bitcoin buying and selling, the whole process has a dedicated person to serve you. Therefore, we recommend that friends who are new to the currency circle can enter the road of investing in Bitcoin through OTC SHOP. More and more OTC SHOPs are popping up in Hong Kong, and Coingaroo and Crypto HK are well-known choices.
Method 2: Buy coins with credit card (Visa/Master)
The second way is to buy and sell bitcoin with a credit card. After opening an account on the cryptocurrency trading platform, you must first purchase USDT to recharge the account. After successfully buying USDT, you can set the buying and selling prices of the specified cryptocurrency in the background, and the system will automatically complete the Bitcoin transaction according to the settings. One thing to keep in mind when buying and selling Bitcoin via credit card is that the fees are usually high.
The following is the process of using a credit card to buy coins in the JPEX APP:
1.After successful registration with JPEX, open the JPEX App
2.Click “Credit Card Visa/Mastercard” on the homepage
3.Enter the amount of USDT to buy
5.Enter credit card information
Method 3: Cryptocurrency Wallet Transfer
At present, many cryptocurrency exchanges provide cryptocurrency wallet transfer services. Investors can transfer stablecoins and bitcoins in cryptocurrency wallets to another cryptocurrency exchange platform. JPEX Bitcoin Exchange provides the TRC20 blockchain with low fees. No matter how much USDT is transferred, only 1 USDT is charged for each transfer.
After successfully depositing USDT into the JPEX account, we can trade through the USDT/BTC combination, and we can buy Bitcoin with USDT.
Bitcoin trading strategy
The following will introduce 4 Bitcoin trading strategies, including: buy and hold, day trading, swing trading, and carry trading. When trading, you must understand the risks associated with investing in Bitcoin, and consider your own investment experience, financial situation, investment objectives, and risk tolerance before deciding whether to participate in relevant investment activities.
1.Buy and Hold
As the name implies, buy-and-hold refers to the long-term holding of Bitcoin after an investor purchases it. This is arguably the simplest trading strategy, and investors using this strategy pay little attention to short-term price movements and focus on Bitcoin’s long-term returns. Therefore, investors do not need to keep an eye on the latest market information. As long as they choose the right investment projects, they can reap positive returns in the long run. Some investors also use a “monthly payment” strategy, which means that a certain percentage of their salary is purchased each month to buy Bitcoin and hold it for a long time. All in all, a buy-and-hold strategy is more suitable for novice investors.
Day trade is a short-term trading strategy, and the trading cycle is usually completed within one day. The goal of day-trading investors is to earn differential returns by watching Bitcoin price movements and buying low and selling high. Day traders in most cases close their positions during the day, not overnight.
Intraday trading requires technical analysis to make trading decisions, such as analysis through candlestick trends and moving averages. Day trading investors need to spend hours to a whole day looking at different data to execute trades, which is a time-consuming and obviously risky investment strategy. Therefore, intraday trading is more suitable for advanced traders.’
Swing Trade is a medium-term trading strategy that trades between Day Trade and Buy and Hold strategies. Investors typically hold bitcoin for a specific period, but rarely for more than a few weeks or months.
The benefit of swing trading is to reduce the unease caused by the high volatility of Bitcoin prices and reduce the impact of unease on making irrational trading decisions. Therefore, swing trading is also a trading strategy suitable for novice investors.
Arbitrage Trading refers to buying Bitcoin from one platform and selling it on another platform to profit from the price difference. For example: if the price of Bitcoin on Binance is $20,600 and the price on JPEX is $21,040, investors can buy Bitcoin on Binance, and then transfer the purchased BTC to JPEX to sell at a higher price, which can Earn 21,040 – 20,600 = $440 price difference. Therefore, investors can earn profits by buying and selling Bitcoin through the price difference between multiple cryptocurrency exchanges.
Bitcoin’s trading direction
The trading direction of Bitcoin will be divided into buying and selling. Buying is to use USDT of equal value to exchange for Bitcoin according to the price of Bitcoin at that time. Selling is to exchange the equivalent value of USDT according to the value of Bitcoin at that time.
Register JPEX account to buy Bitcoin now
After reading the above content, do you want to start Bitcoin trading? Click the link below to download the JPEX APP now! For more information, please read the following Q&A.
Frequently Asked Questions about Investing in Bitcoin
What is Bitcoin?
Bitcoin is a kind of cryptocurrency based on decentralization, using peer-to-peer network and consensus initiative, open source code, and blockchain as the underlying technology. On October 31, 2008, “Satoshi Nakamoto” published the Bitcoin white paper “Bitcoin: A Peer-to-Peer Electronic Cash System”, which uses decentralization and cryptography to achieve security, high transparency, anonymity and Transactions that cannot be unilaterally tampered with. Currently, most countries, government agencies, and academia treat Bitcoin as an investment product, not a currency.
What is a stablecoin?
Stablecoins refer to cryptocurrencies with stable prices. Common examples include USDT launched by Tether, USDC launched by Coinbase, and BUSD launched by Binance. Most stablecoins are pegged to the value of fiat currency (USD), and the exchange rate with the USD is maintained at 1:1, which means that the value of each stablecoin is equal to 1 USD. So why can stablecoins be linked to the value of the US dollar? Because the company issuing the stable currency will find a third-party bank account to deposit and manage the USD equivalent to the stable currency issued to support the stable currency issued by itself. For example, if Coinbase newly issued 500,000 USDC stablecoins, they would have to deposit $500,000 in their bank accounts to ensure the actual value of USDC.
Is it legal to buy bitcoin?
Let’s start with the Hong Kong Monetary Authority’s definition of Bitcoin. Bitcoin is not legal tender, but a virtual commodity circulating on the Internet. Its value is not supported by physical objects or issuers, so it has no fixed value. Since Bitcoin is not under the supervision of the Hong Kong Monetary Authority for the time being, the security risks of Bitcoin transactions will not be protected.
In Hong Kong, people can buy and sell bitcoin, but in the event of an accident in the course of bitcoin trading or the collapse of a bitcoin exchange, investors cannot seek legal assistance. Therefore, investors must be careful when participating in Bitcoin investment in Hong Kong.
How will Bitcoin price be affected?
The price of Bitcoin is highly volatile and can change easily. In addition, the Bitcoin trading market is open 24*7, so its price fluctuations can occur at any time. The price of Bitcoin will be affected by factors such as the total circulation of Bitcoin, key events and scandals in the currency circle, hacking, malicious short selling, or macroeconomics.
How does Bitcoin play well?
Whether investing in Bitcoin or all speculative products, to play well, you must first know how to protect your principal and be aware of risks! Novice investors should avoid “All In” any speculative products, especially virtual currencies. In addition, to play well, you must regularly absorb information from the currency circle, increase your understanding of the cryptocurrency market, and establish your own exclusive trading strategy.
What is a cryptocurrency exchange?
Cryptocurrency exchanges are platforms that operate the buying and selling of cryptocurrency assets, which can be divided into centralized and decentralized exchanges. JPEX is one of the accredited centralized cryptocurrency exchanges. Cryptocurrency exchanges provide a variety of services, including basic cryptocurrency trading, electronic wallets and asset management, financial lending and interest collection, derivatives trading, and consumer debit cards.