How to make money from Bitcoin trading: a short instruction

The popularity of cryptocurrencies grows more and more every day. They have made such a fuss that even governments discussed cryptocurrency-related topics.

The most famous coin is Bitcoin. As it has the highest price on the market, it is the best option for trading and earning money. The volatility only stimulates the interest of traders from around the globe. We shall have a brief discussion about how to make money from Bitcoin trading.

Small earnings

People that are not experts in trading but do consider it as their hobby stick to the “day trading” strategy. Although it won’t bring you millions, you will have the chance to earn a couple of dollars a day.

The idea is simple. You wait for the price to fall to a lower degree, buy Bitcoin, wait for the value to grow and sell the coin at the first profitable position. This strategy requires all trades to be conducted in one day. If you are lucky enough, you can even close multiple deals in under 10 minutes. It all depends on market trends. This is what most online-traders do.

To be able to trade anywhere at any time, we recommend you install our mobile app, “Dowmarkets.” It has all the functions as the desktop version of the platform. You can trade while going to work in public transport, as an example.

Trading bots

Here you can create your bot or buy someone’s creation to use for yourself. Trading bots usually require you to look after them (you can let them work for some time but should check if everything is OK once in a while), but some versions are capable of operating entirely on their own after being appropriately tuned.

Trading bots are not very profitable, but they still are capable of bringing you a couple of dollars a day. Keep in mind that they should be able to earn back all the money you spend on buying them. Set a proper stop-loss and take-profit not to lose too much once the price falls and to earn enough money when it grows.

We have already discussed the subject of bots. Make sure to check it out in the “Education” section!

Buy and hold

This is a long term investment. Here Bitcoin trading is done when the price grows significantly. The only thing is that you should continuously monitor the market. If you miss the opportunity, you will either lose potential profits or even lose your investment. At the moment, this earning money on Bitcoin is not recommended.

Why, Bitcoin?

We have already discussed this topic previously. Bitcoin is the most expensive cryptocurrency available. The price of Bitcoin has reached almost $20,000 and changes like a swing. So, as you can understand, it is the most volatile. This allows traders to earn money for a living.

The system is prevalent and is regularly discussed almost everywhere. The more people talk about it, the longer Bitcoin will be a trend.

What do I need to start?

To start trading Bitcoin, one must have at least some understanding of how the system works. It is not necessary to be an expert. Even if this is treated as a hobby, make sure you read some information about the topic. If you do not have a strategy when you trade, then this is not making money – it is gambling.

Take a look at all the available materials about Bitcoin trading and watch some tutorials on YouTube. After you do that, come up with a strategy. Make an aim. Check your skills in a Bitcoin trading simulator.

After you are ready to work with real money, create your brokerage account on Dowmarkets. Confirm your identity and make a minimum deposit. Try using your strategy with small sums. If you cannot come to any ideas, contact your analyst and ask for assistance.

Conclusion

So, let us sum up the ideas in short. There are three ways to make money on Bitcoin trading:

  1. Day Trading.
  2. Using Bots.
  3. Buy and Hold.

These options are available to everyone.

To start successful trading, you need to:

  • Get acquainted with all available materials online to have an understanding of the system;
  • Decide which strategy would you like to use;
  • Test it in a trading simulator;
  • Test it in a real account with real money.

We hope this article was useful to you. If you have any other questions, please contact your analyst for more details.

Posted: 2.07.2020 | Ludmiła Gorodnichenko
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