For a long time, money has been the medium of exchange. However, innovation and advancements in technology have brought cryptocurrency to the world; a digital asset that can be used as a means of exchange and at the same time investment.
Bitcoin is the first fully implemented decentralized cryptocurrency. Bitcoin is giving all of us an opportunity to be our banks. The process of selling and buying Bitcoins is one of the fastest and the easiest ways of making money. The currency’s value fluctuates every day making it a perfect target for traders. Bitcoin is not only rewarding but also risky because no one knows how high or low the value of the coin can get.
Reasons for Trading Bitcoin
Bitcoin is not a fiat currency; this means that its price does not directly relate to the economy of a single country. Since Bitcoin was introduced to the market, its price has reacted to a wide range of events all over the globe. Some countries have had economic panic and uncertainty and as an effect, see an increase in bitcoins price.
It Trades 24/7
Bitcoin does not have an official exchange, unlike other stock markets. It has hundreds of exchanges around the universe, which operates 24 hours a day and seven days a week. This creates some opportunities, but most of the exchanges remain at a constant price.
Most Bitcoin users know it for its frequent and rapid price changes. Its volatility creates unexpected opportunities for traders who are able to benefit from it anytime. This can be a huge risk for inexperienced traders.
Bitcoin Trading Rules for Beginners
If you play your cards well as a beginner, you will find Bitcoin trading profitable. The profit you will make is dependent on the market’s movement pattern. As a beginner, it is important to note that Bitcoins value fluctuates differently throughout each trading event. This phenomenon is very risky if misguided. As a newcomer who is interested in making profits in the Bitcoin market, you can follow these rules.
- As a beginner, take full advantage of the available technology so that you can make maximum profit.
- Don’t risk everything on one endeavor. Ensure that you have broken down the amount of money you want to use in the Bitcoin for various positions at different betting levels.
- Makes sure that you have understood the market condition which is a continuous process. For you to understand the market conditions, you need to invest your time, effort and a lot of concentration.
- When trading the Bitcoin, stay focused, unemotional, and stay professional and know the exact time to cash in.
- As a beginner, you should understand that, losing and winning is an integral part of Bitcoin trading and cumulative gain is what counts.
Ways to Make Money Trading Bitcoin
Buying and Holding Bitcoin
The first step you should take if you want to make money as a beginner while trading Bitcoin is obtaining a Bitcoin wallet. The wallet is used to send, receive and store all the Bitcoins you have. Bitcoin wallets can be obtained from an online based service. After obtaining the Bitcoin wallet, you can establish as many Bitcoin addresses as possible, and this allows you to receive Bitcoin from others people in the industry.
The process of mining Bitcoins entails the use of distinguished machines which are expensive, and they use a lot of electricity to solve all the mathematical problems in exchange for Bitcoins. Bitcoin miners users allow Bitcoin transactions by sharing the processing power they have. You can reward new Bitcoins in exchange for a functioning Bitcoin network.
If you are a beginner who enjoys playing new games, you can visit a Bitcoin faucets website. You will generate revenue from the ads placed on the page and pay a small amount of revenue to its users. All you are required to do is to sign up for the Bitcoin address you have and start earning money worth of your Bitcoin every day. This is a slow way to earn money, and this site allows anyone who is new to Bitcoin to obtain bits of cryptocurrency for free.
Completing Microtasks for Bitcoin
The following platforms allow you to earn Bitcoins after completing various micro-tasks.
- Bistro – this is a smartphone app that pays you Bitcoins for undertaking small tasks such as watching promotional adverts, filling out survey forms, and app testing.
- Bitcoin Reward – this enables you to earn money for watching videos, downloading items, filling out market surveys, and other minor tasks.
Day Trading Bitcoin for Profit
Financial market lovers and those who regularly trade online can make money easily using the day trading Bitcoin. When using the day-trading to earn money, you buy when the currency is at its lowest and wait for the price to increase before selling them and making the profit.
Bitcoin Trading Tools and Resources
As a beginner, you should consider using the following tools if you want to make money through trading Bitcoin:
- Trading Signals Platform: Receive real-time trading signals from expert technical analysts on cryptocurrencies
- Bitcoin Charts: they help you understand Bitcoin’s history for the past few months or years
- Trading Reviews: the trading reviews are a great source for trading charts and other Bitcoin ideas.
- Telegram: If you want to be involved in the community and trading, Telegram is a must.
- Discord: Similar to Telegram, Discord is where many of the day traders discuss.
The variance in Bitcoin prices enables different investors in making the profit by trading cryptocurrency. This is carried out as either a long-term investment or a short-term investment. Before involving yourself with Bitcoin trading, it is important you understand it. Cryptocurrencies are very new in the market, and lack of adequate knowledge about them makes it difficult to trade them as they are. While trading Bitcoin, you can either consider trading it as a commodity or as a currency. This is easier because you can use trade it just like the Forex market is traded. This enables you to see both your financial gains and losses easily and keeping everything simple.