For beginners of cryptocurrency, you may be wondering how to start investing in Bitcoin and what features, benefits, and risks there are.

Knowing the characteristics of your Bitcoin investment before you start trading can reduce your risk. Also, in order not to miss the timing of the transaction, understanding the Bitcoin (BTC) transaction method in advance will enable you to transact smoothly. More detail can be found here:

How to start a Bitcoin investment

To start investing in Bitcoin, you must first open an account on virtual currency exchange.

Coincheck, a virtual currency exchange company registered with the Financial Services Agency, can easily register for an account with an email address.

After that, you need to perform SMS authentication, submit images of identity verification documents and ID selfies, etc. If you receive a postcard that arrives at home at a later date, you will be able to use all the functions of Coincheck.

 Bitcoin investment method

There are two types of Bitcoin investment methods, for example:

Bitcoin Investment Method 1: Cash Trading

In Bitcoin investment, there is a trading method called spot trading that buys and sells at the current price.

For example, if you want to buy Bitcoin (BTC) for sale for 50,000 yen, you can purchase Bitcoin (BTC) for 50,000 yen. Spot trading is similar to paying cash and receiving goods to buy goods at a supermarket or the like.

By purchasing Bitcoin (BTC) in a physical transaction, the Bitcoin (BTC) becomes it is own and can be used for remittance and payment for shopping.

Bitcoin Investment Method 2: Leverage Trading

Next, besides cash trading, there is also a trading method called leverage trading. Leveraged trading is a high-risk, high-return transaction compared to cash trading.

* Currently, leverage trading is suspended at Coincheck.

Bitcoin leverage transactions allow you to trade larger amounts of money than you have by using leverage. The feature is that you can trade from sell orders, so you can make a profit even when the market price is down.

Because high-risk, high-return investments are a characteristic of leveraged trading, if you are a beginner of cryptocurrency, it is a good idea to begin using leveraged trading after becoming familiar with physical trading.

To make a leverage transaction, you must first deposit yen. After payment, we will place a new order from the Bitcoin exchange. Check the required margin and leverage multiple before trading.

After confirmation, we place a settlement order to confirm the profit and loss. When the settlement is completed, the Settled Position is displayed, and the profit is fixed.

In the case of Bitcoin (BTC) leveraged trading, it is not possible to place an order when the margin maintenance rate is less than 100%, so make sure to check before trading. If the margin maintenance rate falls below 50%, a loss cut will be made for forced settlement.

Please note that there is no guarantee if there is any loss at this time.

Characteristics of Bitcoin investment

Features of Bitcoin Investment : Price Range

One of the features of bitcoin investment is that the price fluctuation range is larger than that of FX or stocks.

When the price range of Bitcoin (BTC) is large, the price of Bitcoin rises or falls by several tens of percent in one day. The fact that the number of market participants and the volume of bitcoin trades are still small, and that there is no stop price or stop price like the stock market, etc. can be said to be the causes of the price fluctuation.

Therefore, it can be said that the steep drop between rising and falling is a characteristic of the price range of Bitcoin (BTC). This price range easily influences beginners of cryptocurrencies, and it is sometimes difficult to make profits because they cannot hold them for a long time.

However, large price movements are also an opportunity to get huge returns. In October 2017, Bitcoin (BTC) showed a price movement of around 500,000 yen, but in December, the price exceeded 2 million yen.

With its soaring more than four times in just two months, Bitcoin (BTC) has received significant attention from traders around the world. The first year of cryptocurrency in Japan, 2017, was also the year that the person called the “Billionaire” who made huge profits in a short period was born.

Due to such intense price movements, Bitcoin (BTC) has become popular among traders as one of the high-risk, high-return investments.