This deluge of digital money that is sweeping through global investors is not only getting easier, but also more risky every day. While initially a simple peer-to-peer system for small transactions, it is now used for large investments and luxury purchases abroad, which has introduced new strategies and uses. How does it really work?

Bitcoin is a currency like any other. Not only can it be used to buy and sell, it can also be used to invest and share, and it can even be stolen. While the initial introduction of the technology came with a desktop program, it can now be traded directly through a smartphone app, allowing you to buy, sell, trade, or even cash in your bitcoins for dollars right away.

Investing with bitcoins has become very popular, and large sums of money are invested every day. As a new investor, the rules remain the same as for investing with real cash. Don’t invest more than you can afford to lose and don’t invest without a goal. For each operation, consider certain milestones. The “buy low and sell high” strategy is not as easy to implement as stated. However, a great way to be successful faster when you decide to trade bitcoins is to learn the technicalities. Like cash investments, there are now several bitcoin charting tools to record marketing trends and make predictions to help you make investment decisions. Even as a beginner, learning to use graphing tools and to read graphs can be of great help. A normal chart will generally include the opening price, the closing price, the highest price, the lowest price, and the trading range, which are the essential elements you need before making any sale or purchase. Other components will give you different information about the market. For example, the ‘order book’ contains lists of prices and quantities that bitcoin traders are willing to buy and sell.

Also, new investors will often quickly open unprofitable positions. With this, however, remember that you have to pay an interest rate for every 24 hours that the position is open, except for the first 24 hours that are free. Therefore, unless you have enough balance to cover the high interest rate, do not keep any unprofitable positions open for more than 24 hours.

While bitcoin trading still has its drawbacks, such as transactions that take too long to complete and there is no reversal option, it can greatly benefit you with the investment, as long as you take small steps in the right direction.