You can make money with Bitcoin in mainly 3 ways. These include; Bitcoin mining, Investing in bitcoin or buy and sell bitcoin on the market.
Let’s start with how you can buy and sell bitcoin.
How to Buy and Sell bitcoin
A. Buying Bitcoin
You can buy Bitcoin online using your credit or debit card or find a bitcoin exchange.
First you need to download a bitcoin wallet from sites like blockchain.info.
For a mobile app use bitcoin wallet for androids or block chain bitcoin wallet for iOS and fill in the required information.
After owning a bitcoin wallet, you can now buy bitcoin from any bitcoin exchange using a credit or debit card, bank transfer.
Click on the buy button.
It is done instantly!
The bitcoins are then transferred to your bitcoin wallet.
Bitcoin price can vary around the world so be sure to do your research to make sure you are getting a fair deal.
B. Selling Bitcoin
There are different ways to sell bitcoin.
They include;
- Selling bitcoin online
- Selling bitcoin in person.
Let’s discuss these in detail so that you can easily choose what is more convenient.
Suppose you want to sell bitcoin online.
Here is what you do:
1. Do a direct trade with another person facilitating the connection.
Here you can use websites like Coin base or local bitcoins in the US, Bit Bargain and Bittylicious in UK
These give opportunities to bitcoin sellers to register and post their offers.
They are called upon in case bitcoin buyers avail to trade.
The transactions are directly between the buyer and the seller but it is done on the website.
2. Use an Online exchange.
These work as Forex market brokers. This works only if you are registered with an online exchange.
To sell your bitcoins, place a sell order stating the amount, currency (bitcoin) and the price per unit at which you are selling.
You will then be matched with a buyer who has the same order and the transaction will be completed with currency credited to your account.
. Alternatively, you can use a peer to peer arrangement.
This is a market place that brings together bitcoin owners who want to use bitcoin to buy goods from sites that don’t accept bitcoin and the others with credit card but want to buy bitcoin.
These are the bitcoin sellers and bitcoin buyers in same place.
The market place acts as an intermediary and helps the two people to meet their needs.
While selling bitcoin in person one just makes it so simple for you.
All you have to do is know the person interested in buying bitcoin.
Once you all agree about the transaction, scan the QR code on your phone. Use the bitcoin wallet to send the bitcoins and collect your cash.
Carrying on these transactions involves a lot of money and you often meet with strangers.
It is always advisable to always make enough research before getting involved with any of these sites because some may not be what they say.
Be aware of fraudsters. While meeting people in person choose to meet in public places just to feel safe.
Keep your wallet address secret!
Other than buy and sell bitcoin, there other ways make money from Bitcoins
other WAYS OF USING BITCOIN TO MAKE MONEY?
Let’s look at each in detail;
1. Bitcoin Mining
This requires you to solve complex mathematical equations with your computer hardware to be able to generate bitcoins.
When you find the right number you are rewarded with new bitcoins and then added to the network. The miner validates transactions and records them into the block chain.
2. Investing in Bitcoin.
Like stock, shares and fiat currencies, bitcoins also appreciates and depreciate in value.
You can choose to hold your money in bitcoin when it has appreciated over the other currencies and sell it at a future higher price.
This is where you take advantage of any exchange markets where people use fiat currency to buy bitcoins.
For instance,
You can use Yens to buy more bitcoins and sell it at a later date on the network for higher price in dollars.
Alternatively, you can speculate the future price of bitcoin with other local currencies.
3. Bitcoin Price Speculation
Unlike stocks and the currency market, bitcoin is the most volatile digital currency on the market.
When predicted right you can to make big profits from the market. However, when wrong, you may lose all your money
You can trade Bitcoin basing your prediction on either technical analysis or fundamental analysis or both!
In this case, you don’t have to first buy bitcoin to trade it.
Some brokers provide bitcoin pairs with other local currencies on their platforms.
This gives you a chance to trade bitcoin without having to first buy it.
The most common currency pairs is BTC/USD. Other fait currencies you can trade with Bitcoin are; GBP, CAD, EUR, CNY, JPY.
Take a look at the BTC/USD, 4-Hour chart below
From the above chart, we have a rising wedge which is a sign of reversal to the downside.
The breakout on the lower trend line confirmed entry. Price covered 15,000 pips after the break.
With a standard lot, you would make much more than $15,000 profit.
This simply means, when you do your analysis very well, the rewards are enormous!
While trading Bitcoin, never forget that bitcoin is very volatile. So anything can happen and your account get wiped off.
Trade with risk management always and risk only that you can afford to lose.
How procrastination can affect your trading success?
Procrastination to trade is when your trading set up confirms and you hesitate to take trade. Or your trade show all failing signals and you hesitate to close trade to cut losses. Also, in cases, where you sometimes hesitate to take profit because you want to...
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