Apr 14, · While long term traders prefer to hold their bitcoin positions for extended periods of time, day traders have discovered that Bitcoin is lucrative for many reasons: Crypto trading is more volatile than stock trading. Bitcoin is traded 24 hours per day 7 days a week. Bitcoin /5(48). Bitcoin trading can be extremely profitable for professionals or beginners. The market is new, highly fragmented with huge spreads. Arbitrage and margin trading are widely available. Therefore, many people can make money trading bitcoins. There are several ways on how to make money trading bitcoin. Just like the stock market, bitcoin trading involves buying at a low cost and selling when the price has gone up. In order to start trading, you need to set up an account with a reliable online exchange site, then deposit funds into the account/5(8).
How to make money in trading bitcoinHow To Make Money Trading Bitcoin As A Beginner In - J.K. Diego
In order to start trading, you need to set up an account with a reliable online exchange site, then deposit funds into the account. Once your account has been successfully verified you will then need to monitor the trading market for an opportunity to make profit through buying and selling of the bitcoins.
The exchange site will charge you a certain percentage for each transaction, depending on the amount of trade. You will also be able to convert local currencies to bitcoins, and also bitcoins to these currencies.
However you must bear in mind that bitcoin currency is highly volatile and if you are not well versed with the trade you may end up losing a lot of money. You can also decide to trade bitcoins using cryptocurrencies. There are over 40 digital currencies listed on some of the major online exchange sites and you can keep changing your bitcoins into any of these currencies, in a way that makes you realize some profit.
Instead of engaging in the trade yourself, you can also choose to engage the services of a bitcoin trade broker, who will manage your funds, monitor the market, store and trade bitcoins on your behalf. In a nutshell, an ordinary trading process involves four simple steps which include:. Although bitcoin trading is very easy, the secret is normally not investing any money that you would not afford to lose because, you may be forced to sell your bitcoins at a loss, and the bitcoin economy may crash at any time.
You will also need to think of a secure place where you can safely store your bitcoins. This can be done by yourself using a bitcoin client but only after ensuring that your computer is well secured to avoid losing your money. You can also store them online with your exchange provider, and beware of trading scams which have also become very popular.
The crash of Bitcoin in is the perfect example of this. The second fundamental flaw is that we forget that the person with the most information will usually win. There are huge investment banks, and major financial parties interested in cryptocurrency. They have access to a lot more information than I do.
While the financial market is heavily regulated, the crypto market is still in a grey patch. There have been a huge amount of speculation about large sell offs, and insider information. Now remember, these investment banks literally hire the best minds in the industry, and spend millions a year on the top research around the world.
Last year, according to Hedge Fund Research Inc. The year before, the average hedge fund earned 6. People who succeed are going to share it more than those that lose. We think we can beat the odds, even though the systems are designed to on average make us lose more than we gain. He said, if he can guess the next 3 market movements right, you should join his course.
But what he did was email 5, people that he thought it would go up, and the other 5, people that he thought the market would go down. An index mutual fund is said to provide broad market exposure, low operating expenses and low portfolio turnover. These funds follow their benchmark index no matter the state of the markets. Index funds are generally considered ideal core portfolio holdings for retirement accounts, such as individual retirement accounts IRAs and k accounts.
Legendary investor Warren Buffett has recommended index funds as a haven for savings for the sunset years of life. But there are more and more index funds being created around niches as well like emerging countries as well as ethical and sustainable companies. The world economies have been around for quite a while, crypto is quite new. There has been many better versions created which process faster, are more affordable to transfer, and are safer.
So while Bitcoin is doing well ATM and I do have money in Bitcoin but not everything, I tend to invest in an index for the reasons outlined above.
So instead of investing in large chunks, you instead invest as much as you can consistently each week. So rather than putting huge amounts at once and trying to win today, change your mindset to the long term. If you actually believe that crypto is here to stay, then why are you trying to win tomorrow?
This strategy is very popular in the stock market and very popular to do with index funds because you believe in the future of that particular country or economy. Crypto still has the risks where although there are practical elements, it could all just become worthless as an investment. What a year for scams. Unfortunately there were a HUGE amount of scams.
Ideas that had no way to take off. But essentially a company would create a coin, start pre-mining it, launch an ICO, sell all the coins they pre-mined and then walk away while everyone else suffered.
There were also a lot of coins that were purely there to work as a pyramid scheme. The biggest was what I call scamcoin coin but others called Bitconnect.
Bitconnect could successfully pay people out if they withdrew their money because so many more people were putting money in AND the price of Bitcoin was growing hugely. So while there are legit companies doing ICOs, please do your homework.
Read their whitepaper. Double check the team who are running the company. Read what other people think. First of all, thanks so much for reading the above.
I personally still invest most of my money in index funds US, NZ, and other countries and in the bank. I run a marketing agency and do a few other things that pay the bills and give me security. Seeing the after effects of the general population being scammed, losing money when price crashes, and everything else has left me pretty somber.
Finally, this is obviously not investment advice. This is what I've seen from my personal experience. There were more than enough stories of people putting everything into the market because they listened to a friend, or simply saw everyone else investing and the price of Bitcoin continuing its increase and losing it all.
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