How Much Profit Can You Really Make With Bitcoin Trading
The first and probably most important is whether or not you have trading experience in other markets, like the equity or Forex markets. Secondly, what you are planning to hold as your base currency, BTC, ETH or USD, etc? Also, what kind of time can you devote to trading on a daily or weekly basis?
All these factors will affect the outcome and answer to this question.
Experience Vs. Luck
As a general answer, let me start by saying that most pundits who have made relatively good returns off Bitcoin trading have done so in what is referred to as a bull market. That means the market, for a prolonged length of time, has been trending upwards. During these periods, nearly anyone can make money trading Bitcoin or any asset class. If the price, tomorrow, will be more than the price today, the average investor can make money with little to no market understanding.
For the 100s of YouTubers who claim to have made small fortunes trading Bitcoin, this was the case, as the overall markets enjoyed an upward trend for the majority of 2017.
Since mid-December, however, this trend has been turning the other way. We are currently in what is called a bear market, referring to the current down-trend of the overall sector. Taking a look at the graph below, you can clearly see this downward trajectory over the last 180-day period.
Choosing a Base Currency
The Time it Takes to Actually Trade and Makes a Profit
Defining Your Strategy
Where to Get Help
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What Are The Steps Involved In Bitcoin Trading
1. Analyze the factors affecting Bitcoins Price
The most important factor is to gauge the factors that have an impact on Bitcoins price, which may include:
a) Supply- Bitcoins supply is capped at 21 million. Speculating its demand since its launch in 2009, its expected to get exhausted within a few years. If the supply of Bitcoin becomes limited, then the price of Bitcoin could increase in the future.
b) Integration The demand for Bitcoins may increase if Bitcoins public profile is integrated with robust banking frameworks and the latest payment systems.
c) Other events- In case of security breaches, government interventions, regulatory changes, and macroeconomic bitcoin announcements may affect the prices immensely, either positively or negatively.
d) External Market Factors- It may include any breaking news related to Bitcoins security that may have a negative or positive impact on its overall market price.
2. Choose a way you want to get exposure
It is imperative to know what way will help you get the maximum exposure to Bitcoins. Listed below are those 3 ways:
a) Buying Bitcoins through an exchange: This method is pre-dominantly opted by individuals using the HODL strategy. These people take direct ownership of Bitcoins and sell them when the price of Bitcoins rises in the future.
However, there are some factors to keep in mind while buying bitcoin through an exchange, including:
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3. Know your Limits
What Can You Buy With Cryptocurrency
At this point, most people still see cryptocurrencies as an investment. But cryptocurrency is quickly gaining speed and becoming more widely accepted as currency. And that could become even more popular as these cryptocurrencies keep gaining trust.
Some major retailers, like Whole Foods, Nordstrom, Etsy, Expedia;and PayPal;are now letting people pay using crypto. And of course, any two people who value the tokens can exchange them for goods or services with each other. And lets not forget the whole cryptocurrency digital art craze called NFTs where you buy digital art with digital moneybut thats a different story for another day.
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How Much Would I Have If I Invested $1000 In Bitcoin
This means the $1,000 invested in 2015 would be worth about $76,363.71, giving a whopping 7636% returns for those who divested at the time. Today, the same $1,000 spent to purchase 3.801 BTC in June 2015 is worth $34,936.89 not as absurd as the December 2017 height, but still a considerable gain of 3493%.
Should You Invest In Bitcoin
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Digital currencies might be making all the headlines right now, but should you invest your money in them?
Regulators around the world are cracking down on cryptocurrencies and some crypto exchanges. But that hasnt put off the big technology companies like Amazon.
In this article we explain:
Find out: Is a bitcoin crash coming?
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Way#7 Work For Cryptocurrency Companies
This is a common way of earning from the sector. Anyone can work for a cryptocurrency company at any capacity; you can be a digital marketer, content creator, web designer, among other things. All you have to do is to identify their needs and show them how your skills can help solve a problem.
The best thing about working for crypto platforms is that youre likely to work remotely, allowing you to benefit from the flexibility of working from your own space.
Other than that, most crypto firms offer very competitive packages, and if you happen to come by a chance to work with any legit ones, dont hesitate to take up the opportunity.
Below are a few examples of platforms that pay in digital assets for services rendered:
These companies offer their compensation in terms of cryptos; this, therefore, means that the value of your earnings can more than double in value within days if not hours.
In Closing Is Bitcoin The Future Of Money
As you can see, there are plenty of strategies for making money with Bitcoin. Which methods you decide to use is up to you, but you can be sure that youll start earning Bitcoin soon after starting your journey.
However, regardless of whether Bitcoin survives the next decade or not, its changed the financial system forever. Governments are now talking about implementing state-sponsored cryptocurrencies for payments. Private institutions are working on improvements to the blockchain, and new ideas for digital currencies.
Bitcoin has already changed the future of money. However, it remains unclear if it will be here in the future. Whether we see Bitcoin succeed in global adoption in the coming decade, or we see it slide away into obscurity, there is still value in it in todays market.
Use these strategies to make yourself a cryptocurrency portfolio and earn some money from Bitcoin.
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Are Cryptocurrencies A Good Investment
Cryptocurrencies may go up in value, but many investors see them as mere speculations, not real investments. The reason? Just like real currencies, cryptocurrencies generate no cash flow, so for you to profit, someone has to pay more for the currency than you did.
Thats whats called the greater fool theory of investment. Contrast that to a well-managed business, which increases its value over time by growing the profitability and cash flow of the operation.
For those who see cryptocurrencies such as bitcoin as the currency of the future, it should be noted that a currency needs stability.
Some notable voices in the investment community have advised would-be investors to steer clear of them. Of particular note, legendary investor Warren Buffett compared Bitcoin to paper checks: It’s a very effective way of transmitting money and you can do it anonymously and all that. A check is a way of transmitting money too. Are checks worth a whole lot of money? Just because they can transmit money?”
» Learn more:;Is Bitcoin safe?
This price volatility creates a conundrum. If bitcoins might be worth a lot more in the future, people are less likely to spend and circulate them today, making them less viable as a currency. Why spend a bitcoin when it could be worth three times the value next year?
Trading The Bitcoin Markets
If you want to make serious money with Bitcoin, then Day-trading the cryptocurrency markets are bar far the superior option. The cryptocurrency market operates almost in the same manner as the forex and stock markets.
Buyers and sellers meet on a platform, also known as an exchange, and trade cryptocurrency with each other in the hope of making a profit from the arbitrage. Cryptocurrency exchanges like Binance, Bittrex, and Bitfinex, offer the same services the crypto traders, as NASDAQ, NYSE, and FTSE to day traders of equities and currencies.
The difference between the crypto and forex is that forex is a regulated market. Government entities, such as the SEC, regulate traders and companies for operational compliance within the law. In the crypto market, its the wild west.
As a result, there are stories of exchanges violating withdrawal policies, and stories about mass-manipulation of the markets by some corrupt exchanges. The reality is that some of this is true, and some exchanges are pout to take all of your money.
Crypto exchanges operating outside of the US dont have to follow international KYC policies for acquiring new clients, as long as those clients dont withdraw in USD. As a result, you can only withdraw from offshore exchanges in cryptocurrency. Youll then have to send that crypto to a wallet at an exchange like Coinbase to redeem it into USD.
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Which Are The Three Biggest Cryptocurrencies
Bitcoin launched in 2009 and remains the market leader. Its market capitalisation effectively its total worth is $1.017bn, as at April 28 2021.
Ethereum and Binancecome in second and third, with respective market caps of $302bn and $85.5bn.
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Is Bitcoin Bad For The Environment
The digital currency uses as much power as the Netherlands every year, with just 30 countries using more energy, according to researchers from the University of Cambridge.
Computers that mine bitcoin use up to 1% of the worlds electricity supply.
While some of bitcoins consumption is renewable , fossil fuels are still being used to power the mining and servicing of the digital currency.
This is why electric car manufacturer Tesla has stopped accepting crypto payments, causing bitcoin to fall.
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What Is The Safest Bitcoin Investment Site
There are hundreds of websites from which you can use to invest in Bitcoin. All of them have their pros and cons, and ultimately, youll have to choose a few based on your preferences.
Most of all, I recommend you try Binance crypto exchange, as people have proved to have success with them, when it comes to crypto investment.
In any case, theres a unique platform known as CoinSwitch, which serves as an aggregator that brings all the prices of crypto-coins from different cryptocurrency exchanges together in one place.
Bitcoin Vs Traditional Finance
The fact that Bitcoin was born in 2009, after the 2008 financial crisis, precisely to create a currency that was not under the control of regulators, banks and financial institutions, has always created a very difficult relationship between digital currencies and the world of traditional finance.
The worlds major central banks, like the big business banks, immediately warned of the dangers of investing in such a risky and unregulated asset.
Last week, China banned cryptocurrencies throughout the country, causing an immediate collapse in prices. The Fed has also been very cautious about such financial instruments.
The relationship between traditional finance and cryptocurrencies seems to be indirectly related to the enthusiasm it arouses in investors.
However, the climate seems to have changed over the last few years, at least as far as the big investment banks are concerned, which are still looking at cryptocurrencies as an investment asset that can provide significant returns.;
Three Bitcoin futures were listed on the CME in 2019, and about 20 ETFs have been submitted to the SEC for about a year now, still waiting for the green light from the regulators of the American stock exchange.
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Factor #: Risk Tolerance
The crypto market is very volatile.
So, when thinking about how much you should invest in Bitcoin, think of an amount that you feel comfortable losing entirely.
Think of how much you want to invest. Picture this amount, and imagine yourself in the future:
- Will you feel comfortable losing your full investment – say $12,000?
- Will you judge yourself severely because you decided to invest? Will you lose sleep or even consider suicide?
If the answer to any of these questions is even maybe yes, you need to lower the amount you had in mind and ask yourself the same questions again. If youre not sure of your answer, ask your friends and family.
Investors who invest too much money will also be tempted to panic sell at a loss. Selling at a loss can be the right decision sometimes, but only if the decision is rational – not emotional.
Keep the amount you invest at a level where it doesnt affect your judgment.
How To Make A Million With Bitcoins
You have two options: mine or trade. By mining for Bitcoins, as long as the markets remain active you can basically make money for nothing. But the problem is, mining is such a tough gig now that it is hardly worth it. Turning your computer into a miner will likely make it noisy and heat up. It would likely take you a long time to even mine a single Bitcoin, by which time you probably would have spent more on electricity. However, if you have access to some serious computing power and you dont have to pay the bills, you could make some easy money here.
The more realistic way of making a million with Bitcoins is going to be trading them through the most prominent exchanges, such as Coinbase. Back in 2011, you could have bought Bitcoins for $10. Selling them at $1,000 today would have delivered a profit of $990 per Bitcoin. Basically you should have bought about 1,000 Bitcoins back when they were cheap. This would have cost you around $10,000 in 2011, making you a millionaire today.
On the other hand, if you have a strong conviction in the downfall of the Bitcoin, you need to short the cryptocurrency in any way you can. This would be an extremely risky endeavor still, but if the Bitcoin market is truly destined for failure, why not get rich when the bubble pops? To short Bitcoin, you will either need to get creative or join an exchange which allows you to do so.
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More Companies Have To Adopt Bitcoin
Bitcoin’s current value is largely driven by speculation. Few companies currently allow customers to pay for products with Bitcoin or any other cryptocurrency, so its practical value is limited. That could change if cryptocurrency sees more widespread adoption over the coming years, but there’s no way to know if that will actually happen.
There are some legitimate concerns about widespread cryptocurrency adoption, including:
These are some significant hurdles to overcome, and if Bitcoin isn’t able to do it, all those coins people are currently buying for $39,000 a pop could become worthless. It’s not impossible that Bitcoin could someday be worth $100,000 or more, but it’s far from a sure bet.
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Join A Bitcoin Exchange
First, youll need to determine where you want to make a Bitcoin purchase. Most Bitcoin investors use cryptocurrency exchanges. Theres no official Bitcoin company because its an open-source technology, but there are several different exchanges that facilitate Bitcoin transactions. These exchanges are the middlemen of cryptocurrency investing, like a stock brokerage.
If you decide to purchase from an exchange, youll have to decide which exchange you want to buy from. Here are a few of the most popular options:
Coinbase: A very popular crypto exchange that insures losses in the event of a security breach or fraudulent transfers
Binance: Founded in 2017, Binance is a crypto exchange with a strong focus on altcoins
Kraken: This San Francisco-based exchange allows you to invest in Bitcoin using various currencies from around the world
Gemini: Launched in 2015 by Cameron and Tyler Winklevoss, Gemini offers services for casual and veteran Bitcoin investors with different user interfaces and fee structures for both
Bitfinex : The longest-running cryptocurrency exchange thats optimized for advanced traders and lenders
As you might have guessed, choosing a Bitcoin exchange is becoming more difficult for investors as more options begin to popularize. Find everything you need to know about Binance vs. Coinbase and start investing, today.