Trading Bitcoin: Earn Money Buying And Selling Cryptocurrency

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Trading Bitcoin: Earn Money Buying And Selling Cryptocurrency

With the feasibility of creating Bitcoin through mining decreasing with every halving, many are looking to turn a profit by trading Bitcoin and other cryptocurrencies. There are many advantages to trading over mining, not least that you can get started right away. Here are a few ways which can help you earn money trading Bitcoin successfully.

Crypto Trading Bots

Trading bots have been used in traditional markets for a while, and are now available to crypto markets as well. Bots remove the majority of human flaws, such as emotional trading, uncertainty, and tiredness. They operate 24 hours a day and never get bored checking, double checking, and triple checking Bitcoin prices across different exchanges.

Some crypto trading bots are also able to carry out arbitrage. This is the process by which different cryptocurrencies are bought and sold on different exchanges. For example, a bot might purchase Bitcoin from Binance at a low price, and see an opportunity to sell it for profit on another exchange, such as CEX.

The selection of trading bots is growing, and whilst there are some free versions, these are generally not recommended. Subscription bots have a better track record, but might be expensive, based on the value of your trades.

Human Psychology

There are tens of thousands of people trading crypto every day, and a good number of these are in it just for FOMO. In order for you to turn a profit trading Bitcoin, you need to understand the very basics of human psychology. Inexperienced traders tend to fear bear markets and panic sell in order to retain some of their investment.

You should not fear such markets. Even when Bitcoin drops 30%, keep your investment and consider investing further. An external factor, such as positive crypto news or a bull market will bring those novice investors back and raise the price once more. Then, once you reach your profit goal you can sell, and wait for the next bear market to reinvest.

You can also analyse several online tools to help you arrive at a conclusion about whether to sell, buy more or hold your investment. After you register, you can access several market sentiment tools provided by eToro. These tools are worth checking especially at peak price speculation.

eToro Market Sentiment Tools

Airdrops

Airdrops are ways to get free coins with little effort. They are usually provided to users in exchange for their time or feedback. Marketing campaigns for a new coin could also lead to free coins, and you can find several of these on Coinbase. Once you have the free coins it is up to you whether to store them in a crypto wallet or whether to sell them for a profit.

Interest

An often overlooked possibility to earn money with Bitcoin is through interest. There are several ways to achieve this, both through crypto lending platforms, margin lending, and by owning PoS coins. Interest rates vary considerably but can earn you upwards of 12% per annum at a very low risk. By investing your crypto in this way you will be turning a profit in times when trading might not provide the best return.

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