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.
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.
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.
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.
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.
Shapeshift is a popular instant cryptocurrency exchange which allows users to trade a variety of cryptocurrencies. As it gained popularity it ended up becoming a victim of its own success, experiencing a rising number of issues and even multiple hacks. Today, Shapeshift has improved its services, yet its reputational damage lingers, with many looking for […]
When you’re an experienced investor who understands the movements of a certain market, you may wish to broaden your horizons and try more advanced trading products. Contracts for Difference (CFDs) could be one such product for you. Working with an online broker, you can trade CFDs in a variety of markets and countries, with a […]
Contracts for Difference, better known as CFDs, are a trading product which is ideal for speculating on financial markets. Best-suited for experienced traders, understanding what CFDs are and how they work can be somewhat confusing. This detailed guide will explain all you need to know about them, and if they are the right trading product […]
Binance is one of the largest cryptocurrencies in the world, offering a range of features at competitive prices. The exchange, which is based in Malta, accepts users from around the world and is a much-loved platform by the crypto community. Binance: An Overview Trading over 100 different cryptocurrencies, Binance can cater to traders looking to […]
Coinbase is one of the world’s largest cryptocurrency exchanges, trusted by millions around the world. It is based in San Francisco, USA, and it is considered to be the largest Bitcoin broker today. Apart from being a traditional centralised exchange, Coinbase encompasses several other cryptocurrency-related services, such as a wallet and developer API. Due to […]
Short selling Bitcoin and other cryptocurrencies is a way to make money when the value of a coin drops. It is an advanced investment option, better suited to experienced traders due to the high risks involved. This guide will show you five different ways to short sell Bitcoin. What Does Short Selling Bitcoin Involve? Short […]
Although cryptocurrencies were first invented by Nakamoto as a way to facilitate payments and get rid of financial intermediaries, they quickly evolved into trading assets due to their high volatility. As a result, asset and forex traders from traditional markets began trading crypto, as a way to turn a profit. While there are many ways […]
The constantly developing cryptocurrency industry is leading to new opportunities for you to make money with Bitcoin. Often likened to the goldrush which hit California in the nineteenth century, Bitcoin has generated some great returns for the more astute amongst its adopters. Today, there are many creative ways to make money with Bitcoin, and you […]