what is bitcoin trading?

Traditionally, bitcoin trading has involved the buying and selling of the cryptocurrency on an exchange. But, you can also trade on bitcoin by speculating on its price movements using CFDs.
Successful Bitcoin trading involves buying low and selling high. Unlike investing, which involves holding Bitcoin for the long run, trading involves trying to predict price movements by studying the industry as a whole and price graphs in particular.
Bitcoin runs on a decentralized computer network or distributed ledger that tracks transactions in the cryptocurrency. When computers on the network verify and process transactions, new bitcoins are created, or mined. These networked computers, or miners, process the transaction in exchange for a payment in Bitcoin.
As of November 2023, bitcoin was legal in the U.S., Japan, the U.K., and most other developed countries. In general, it is necessary to look at bitcoin laws in specific countries. In the U.S., the IRS considers bitcoin and other cryptocurrencies property, issuing appropriate tax treatment guidelines for taxpayers.