How To Make Money Trading Bitcoin

If you are considering Bitcoin trading, then you will soon learn that it is an extremely profitable venture for both the beginners and the professionals alike.

The fact that the Bitcoin market is still new and highly fragmented with large spreads means margin and arbitrage trading is readily available. So many potential traders can engage in Bitcoin trading and make money. Below we explore how to make money from Bitcoin trading by providing some helpful tips.

If you acquire Bitcoins and sell them at a higher price, you will end up making a profit. On the other hand, if prices go down, then you will be in the unfortunate position of choosing either to sell your coins at a loss or wait a little longer with the hope that the price will go back up with the potential risk of higher losses if Bitcoin prices continue to drop.

Are you a long-term trader or short-term trader?

In the market, there are two main types of Bitcoin traders classified as long-term and short-term traders. The classification is based on how long each of these traders wishes to continue holding onto a position of the trade. To trade you can use websites like Bitfinex and Bittrex – They are exchange to trade.

Note that the long-term traders carefully study price trends for longer periods. This helps them determine whether they can buy and continue holding onto their Bitcoins over longer periods of time in the hope that they will make a profit by selling at a higher than the initial entry point.

Short-term traders, on the other hand, perform an analysis of the intraday Bitcoin price behavior and aim to benefit from the price swings. The short-term traders tend to thrive in the volatility of the market, a factor that points to the characteristic of the crypto currency. In the early stages, the Bitcoin price swings were so big due to the little event in the crypto currency space, which had a major effect on Bitcoin price. As the adoption of the crypto currency grows and becomes even more stable, the volatile nature of the price has considerably reduced and experts agree that trading the cryptocurrency today is better compared to the earlier years.

As mentioned earlier, trading Bitcoin is an extremely profitable venture if you do it right. The value of Bitcoin rises and falls in a dramatic way throughout any trading day, meaning the phenomenon can be quite risky if you make a misjudgment.

Join A Bitcoin Multiplier

There are things known as “Bitcoin Multipliers” which are essentially network marketing schemes built around Bitcoin and things like mining pools.

A few examples of these which are big in the industry are USI Tech, BitConnect and EthConnect. The biggest one at the moment is BitConnect however USI Tech is catching it up and will be launching their own ICO soon.

Read a full USI Tech review here: http://nobsimreviews.com/usi-tech-scam

Determine Your Trading Strategy

You should determine whether you will be a swing trader, a day trader or long-haul trader. A good strategy involves looking for trades with the potential of making at least 10% – 25%. If you choose to trade for anything less than this, the spread and the fees could potentially eat away your profits. With the right knowledge, you can have good trade setups as well as the best opportunities for trade.

Important Points To Remember

i. Avoid the temptation of investing your entire life savings or any other moneys that could possibly change your life in a drastic way. This rule particularly applies in instances of high-level uncertainty within the market.

ii. Understanding the Bitcoin market requires lots of time considering it is a continuous learning process. Carry out lots of research and keep yourself updated on the current trends in the market.

iii. Split up your capital into smaller lots allocated for multiple positions. Also, make sure the price levels are different. This way, you will be able to spread out the risks.

iv. In order to maximize your level of profit, it is advisable that you make good use of the available technology.

v. Just like winning, losing is a vital component of trading. Even so, cumulative gains count the most.

If you have always wondered how to make money from Bitcoin trading, then you might want to consider applying the tips provided above.

Do not fall for the trading scams that involve trading robots.

Remember, anything that promises to make rich on autopilot is simply a scam.

However, if you apply the right strategy in Bitcoin trading, you can make tons of cash. Like any other type of trading, you risk losing your capital.

Therefore, new traders should begin trading with smaller amounts. Beginners should also take their time to learn the vital Bitcoin trading strategies and have a good grasp of the market signals.

3 Ways To Profit With Cryptocurrency

The cryptocurrency compared with fiat currency (paper money or coins) comes with a number of advantages and that is the reason for the cryptocurrency mania among investors.

Some of the advantages include better security, universal recognition, privacy provided and lower or no transactions. For example, when you use cryptocurrency especially for purchasing property, you are able to eliminate middlemen such as lawyers and brokers.

Another important advantage which has not been mentioned is that often the value of a cryptocurrency is stable and can be very profitable in the short or long term. For example, the price of 1 Bitcoin has reached $12,745 which happens to be a new record high.

Because of the reasons above, and out of your curiosity, you may have been asking yourself,how do people make money from cryptocurrency? Before exploring that question, it is important to highlight the fact that there are a number of cryptocurrencies, more than 100 in total.

As per the market share, Bitcoin, Ethereum, Ripple and Litecoin are some of the most popular cryptocurrencies. Since Bitcoin is the most popular, other cryptocurrencies are often referred to as altcoins, alternatives to Bitcoins. Subsequently, below are the 3 ways how I make money from cryptocurrency.

I. Buy A Cryptocurrency

This is often the first option and thus the most popular because it is a bit easy. You can achieve this by signing up to bitcoin wallet service and there are different exchanges that exist including the popular one which is Coinbase. There are also other popular reliable options such as Xapo and Blockchain.info.

When you signing up, you will be required to provide your name, email address and of course set a password. It is important that you secure your account by using the two-factor authentication, and don’t use your phone number. That is because it can be risky; criminals can steal your information and use it to pilfer from your digital wallet. The last stage is connecting your wallet to your bank account, credit card or debit card.

After you have set up your digital wallet, you can be able to purchase Bitcoin,Ethereumor Litecoin at the prevailing market rate. Of course the next phase is waiting and hoping that the price or the value of the cryptocurrency goes up or appreciates so that you can sell for profits. The process can be simplified as buying and hold.

Like all investments, prices of cryptocurrencies tend to fluctuate and hence you may have difficulties buying and also in waiting for the values to rise, which may not happen overnight.Coins like Ripple and Dash are increasingly being used because they are more affordable.

II. “Mine” Cryptocurrency Using A Supercomputer

This is often not a realistic option for many people because mining of cryptocurrency is a process which is technical, requires computer programming proficiency. Moreover, computers that are setup to mine cryptocurrencies use powerful graphic cards and have the higher processing power to be able to solve complex math problems.Because of that you need to heavily invest in graphics cards. In addition, the computers tend to consume a lot of power.

Put in a simpler way, with this way of making money from cryptocurrency, you are simply getting compensated or paid for keeping the books or accounting for the platforms behind the cryptocurrencies.

Short of a warehouse of computers that are operational twenty-four-hour-a-day to mine cryptocurrencies, your chances of making lots money will be very slim.

III. Accept Payment In Cryptocurrency

Another great may of earning money from cryptocurrency is through accepting payments for your services or goods in cryptocurrency.

Of course to achieve that, you must have a digital wallet, and also have customers who are willing and ready to pay in cryptocurrency. To get such customers, a little research will do the trick.

Furthermore, you must be able to do comprehensive research and be able to compute how much of a cryptocurrency will be worth your good or service. That will be based on the value of the cryptocurrency. I understand it can be tricky but it can be achieved. For example, depending on the product or service, I can ask for one-third or one-fourth of Bitcoin for payment.

For other cryptocurrencies that are less valued like Ethereumand you are being paid by it, you can ask for 3 or 4 ETH.

In conclusion, depending on how you choose to make money from cryptocurrency, one important factor that must be considered is the market conditions.

For instance, in case you have bought a coin and it falls in value, you must wait until the value rises again to be able to sell. And in a case you mine a cryptocurrency that is less popular; there may not be sufficient demand essential for selling your coins and making profits.

To see the top coins to invest in visit Coin Market Cap