Sunday, July 3, 2022

How To Trade Cryptocurrency For Cash

Day Trading Cryptocurrency How To Make $500/day With Consistency

Selling Your Cryptocurrency For CASH – 4 Methods

by TradingStrategyGuides | Last updated Jul 9, 2021 | Advanced Training, Cryptocurrency Strategies, Indicator Strategies, Indicators |

Would you like to learn day trading cryptocurrency and make a consistent $500 per day? We often hear about all the money you can make by day trading stocks. But what about crypto day trading? In todays lesson, youll learn how to day trade cryptocurrency using our favorite crypto analysis tools.

Our team at Trading Strategy Guides is lucky to have over 50 years of combined day trading experience. Were going to share with you what it takes to day trade for a living, and hopefully, by the end of this trading guide, youll know if you have what it takes to succeed in this business.

First and foremost, when day trading, its essential to have a structured approach and a rule-based strategy. The same as swing trading or positional trading you are not going to trade every day, and youre not going to make money every day. So, you need a day trading cryptocurrency strategy to protect your balance.

The high volatility nature of Bitcoin and other cryptocurrencies has made the crypto market like a roller-coaster. This is the perfect environment for day trading because during the day youll have enough up and down swings to make a decent profit.

Moving forward, were going to teach you what you need to learn how to day trade cryptocurrency and were going to share some out-of-the-box rule-based day trading strategies.

Pros Of Hardware Wallets

  • Since its a cold wallet your private key will be safe and secure. The keys are stored in the protected area of a microcontroller and cannot be transferred out of the device
  • They are designed to be sleek and can be carried around easily.
  • Transactions are extremely easy. All that you have to do is to plug in the wallet and then follow the instructions given to make your transactions. The UI interface of the wallets is very user-friendly.
  • Extremely safe and secure. As of writing, there have been no instances of a hardware wallet hack.
  • Has the capability to store multiple addresses for you to send your funds over.
  • The wallet is pincode protected, so even if it falls on wrong hands, they wont be able to access your funds. Entering the wrong pin code 3 times will shut down the wallet. In the event of a shutdown, you can still recover your funds by following the restoration details.

Where To Trade Cryptocurrency

So, now that you know how to get started, lets see where all you can trade cryptocurrency:

  • Coinbase: Coinbase is one of the most popular exchanges in the world. It is extremely beginner-friendly and allows you to buy your crypto with USD.
  • Binance: Led by the enigmatic Changpeng CZ Zhao, the Malta-based crypto exchange offers more than 200 crypto trading pairs. As explained above, Binance is the most popular crypto exchange in the world.
  • Coinjar: Established in 2013, CoinJar is the easiest way to buy, sell, store, and spend cryptocurrency. CoinJars iOS and Android apps allow users to trade cryptocurrencies on the go, while CoinJar Exchange and CoinJar OTC Trading Desk cater to professional traders, as well as individuals and institutions looking to make larger transactions.
  • Bittrex: The US-based exchange has been active since 2013. Providing top-grade security, Bittrex is a good starting platform if you want to venture into crypto-to-crypto trading.
  • BitMEX: If you are an advanced and experienced trader, then BitMEX may be the place for you. Run by professional algo-traders, developers, and economists, it is one of the busiest exchanges you will find in the space.
  • Blockgeeks: If you want an easy, no-hassle space where you can buy Bitcoin,

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Tips How To Buy And Sell Cryptocurrency

Even though the whole idea of Blockchain is independency, security and decentralization, it does not mean all risks are demolished. Yes, your funds of bitcoins and altcoins are better protected than in typical banking system. But many fraudulent schemes have already entered the blockchain environment.

Thus, tip #1: use more than one exchange. Lower fees, user-friendly interface, the variety of payment methods, advanced account protection are main factors, you should consider.

Tip #2 is do not rush to exchange coins into the fiat currency and then withdraw to your bank account. More and more stores and companies accept bitcoins and some other altcoins.

Image source: Kryptomoney.com

Tip #3, as a beginner, trust the market flow. Choose the most popular exchanges, trading platforms and coins. What is good for the majority, will not hurt your interests. Later, with some experience gained, you will be competent enough to make relevant decisions depending on your selling/buying plans.

And finally, tip #4 never forget to make a backup of your private/public keys.

Are You Looking To Grow Your Crypto Trading Account Or Do You Seek Regular Income From Your Digital Assets Trading

How To Trade Cryptocurrency And Make Money ...

There are multiple cryptocurrencies available to trade. For a novice trader, it can be tricky to know where to start. Crypto is a decentralized market and, in many cases, highly volatile. At the time of writing, Bitcoin has surpassed previous highs and is a classic example of cryptocurrency volatility.

Bitcoin Example 2021

14th April the price hit a new high of $64,900

23rd April the price was at $47,308

26th April the price is $53,543

In just over one week, a $14.5k drop and then a rise of $6k.

Had you been on the wrong side of that drop, you’d have lost a lot of money.

Okay, so Bitcoin is an extreme scenario. At the current price, few people can afford to trade Bitcoin.

But how about all the other cryptocurrencies? How much money do you need to trade a cryptocurrency?

Before thinking about how much money you need to trade Cryptocurrencies, there are other things to be considered. You first need to open an account with a Cryptocurrencies Broker or exchange.

When Bitcoin first hit the high of $20k a few years back, many new brokers and exchanges crawled out of the woodwork and not all with good intentions. Many novice traders imagined new cryptocurrencies hitting the kind of life-changing highs of Bitcoin. With cash stuffed in their hands, they dived into the cryptocurrency market, aided and abetted by unscrupulous brokers.

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Best Overall: Coinbase And Coinbase Pro

Coinbase

  • No. Currencies Available for Trade: 123
  • Transaction Fees: 0.04% to 0.50% 0% to 0.50%
  • Wallet Included: Yes

We picked Coinbase because it makes buying and selling cryptocurrencies very easy with strong security. Additionally, Coinbase offers Coinbase Pro with the same fee structure but significantly more features in terms of charts and indicators.

  • Solid variety of altcoin choices

  • Extremely simple user interface

  • User does not control wallet keys

Get $10 of BTC by signing up with promo code: INVESTO10

While the cryptocurrency industry has been fraught with fraudulent coins and shady exchanges, Coinbase has largely avoided any controversy. Coinbase offers an extremely easy-to-use exchange, greatly lowering the barrier to entry for cryptocurrency investment, which is typically seen as confusing and convoluted.

Coinbase also offers insured custodial wallets for investors and traders to store their investments. They carry insurance against data breaches and hacking, and your cash is stored in Federal Deposit Insurance Corporation -insured bank accounts, which is important since users have reported accounts being hacked and funds being drained. The Coinbase custodial accounts are very convenient for newer users just getting their feet wet, but Coinbase owns the private keys to the coins, not the investor.

Read the full Coinbase review.

Keeping Books And Records

If you acquire or dispose of cryptocurrency, you have to keep records of your cryptocurrency transactions. This also applies to businesses that accept cryptocurrency as payment for goods and services.

Cryptocurrency exchanges have different standards for the kinds of records they keep and how long they keep them. If you use cryptocurrency exchanges, we suggest that you export information from these exchanges periodically to avoid losing the information necessary to report your transactions. You are responsible for keeping all required records and supporting documents for at least six years from the end of the last tax year they relate to.

You should maintain the following records on your cryptocurrency transactions:

  • the date of the transactions
  • the receipts of purchase or transfer of cryptocurrency
  • the value of the cryptocurrency in Canadian dollars at the time of the transaction
  • the digital wallet records and cryptocurrency addresses
  • a description of the transaction and the other party
  • the exchange records
  • the software costs related to managing your tax affairs.

If you are a miner, also keep the following records:

  • receipts for the purchase of cryptocurrency mining hardware
  • receipts to support your expenses and other records associated with the mining operation
  • the mining pool details and records

For more information, please review our link on keeping records.

Recommended Reading: How To Buy Verge Crypto

Earning Cryptocurrencies Through Mining

Cryptocurrencies are commonly acquired in two ways:

  • bought through a cryptocurrency exchange
  • earned through mining

Mining involves using specialized computers to solve complicated mathematical problems which confirm cryptocurrency transactions. Miners will include cryptocurrency transactions into blocks, and try to guess a number that will create a valid block. A valid block is accepted by the corresponding cryptocurrencys network and becomes part of a public ledger, known as a blockchain. When a miner successfully creates a valid block, they will receive two payments in a single payment amount. One payment represents the creation of new cryptocurrency on the network and the other payment represents the fees from transactions included in the newly validated block. Those who perform the mining processes are paid in the cryptocurrency that they are validating.

The income tax treatment for cryptocurrency miners is different depending on whether their mining activities are a personal activity or a business activity. This is decided case by case. A hobby is generally undertaken for pleasure, entertainment or enjoyment, rather than for business reasons. But if a hobby is pursued in a sufficiently commercial and businesslike way, it can be considered a business activity and will be taxed as such.

How Do I Buy Cryptocurrency

How to Trade Your Cryptocurrency (Bitcoin, Ethereum etc.) For Cash!

While some cryptocurrencies, including bitcoin, are available for purchase with U.S. dollars, others require that you pay with bitcoins or another cryptocurrency.

To buy cryptocurrencies, youll need a wallet, an online app that can hold your currency. Generally, you create an account on an exchange, and then you can transfer real money to buy cryptocurrencies such as bitcoin or Ethereum. Here’s more on how to invest in bitcoin.

Coinbase is one popular cryptocurrency trading exchange where you can create both a wallet and buy and sell bitcoin and other cryptocurrencies. Also, a growing number of online brokers offer cryptocurrencies, such as eToro, Tradestation and Sofi Active Investing. Robinhood offers free cryptocurrency trades .

Also Check: What Is The Price Of Bitcoin Gold

How To Trade Cryptocurrency: Relative Strength Index

Relative Strength Index or RSI measures the strength and speed of a markets price movement by comparing the current price of a cryptocurrency to its past performance. It works by comparing the magnitude of recent gains to recent losses to determine whether crypto has been overbought or oversold.

The formula looks like this:

RSI = 100 )

In the equation above, RS is the ratio between the average of the days the coin was up to the average of the days the coin was down.

Now, thankfully you dont need to bother about calculating anything, because the exchange will do it for you.

So, lets take a look into how the RSI graph looks like. We will check the BTC/USDT chart from binance.

We will choose RSI from the Indicators menu.

When you do so, the blue graph will appear below the candlestick chart.

Keep in mind, we are checking the daily RSI.

Ok, so there are a few things to keep in mind when we are checking the RSI graph.

  • The RSI ranges from 0 to 100
  • When the RSI for a particular coin approaches 70 or even crosses 70, then it is considered to be overbought aka the crypto in question is getting overvalued, so it may go down.
  • On the other hand, if RSI approaches 30, then the crypto is undervalued and will probably go up in value soon.

So, lets look into our RSI graph, especially in this section:

Along with RSI, you should also look into moving average and Bollinger bands. You can learn more here.

Signing Up To Coinsmart

To get started, all youve got to do is sign up for an account with an active email address. It doesnt matter what provider you use for the email address, but I personally used a Gmail account as long as you can receive the verification email, youre good to go.

Step 1. Sign up to the CoinSmart cryptocurrency exchange using a valid email and password

Step 2. Check the email you used to sign up for a verification link

Step 4. Click on the verification link you receive

Step 3. Enter your mobile number for text verification

Step 4. Go through the identity verification process which well cover

Step 5. Thats it youre verified and ready to start trading!

Recommended Reading: Why Is Crypto So Low

How To Sell Bitcoin: 5 Ways To Cash Out’ Your Btc Holdings

How do you sell Bitcoin? is one of the first questions that arise when people become interested in buying cryptocurrencies, since getting your money out is just as important as investing.

Selling Bitcoin can be similar to buying Bitcoin, except in a somewhat reversed process. To sell BTC, you must first have BTC on hand in your wallet.

Buying Bitcoin is possible via a number of routes. When you are ready to sell some or all of your Bitcoin, you can do so through a variety of avenues, including an online cryptocurrency exchange, direct peer-to-peer transactions online or on-site, and through a Bitcoin ATM.

Is Cryptocurrency A Good Investment

How Do You Make Money Trading Cryptocurrency?

Here at The Motley Fool we think investing in cryptocurrency can potentially present a world of opportunity. But its not without its risks. If investors treat crypto as a get-rich-quick strategy, they are likely not only to be disappointed when it doesnt pay out but can also lose a lot of money.

When investors consider the risks involved and accept them, crypto can be a vital asset in a well-diversified investment portfolio, that is, an investment portfolio made of stocks, bonds, real estate, commodities, and, yes, currencies. As long as investors allocate the right proportion to currency based on their risk tolerance they could potentially profit highly from investing in crypto. At the very least, by diversifying in other assets, investors make it less likely that they will lose all of their money if the crypto market tanks.

Finally, for new investors to crypto, we generally recommend starting small. Seek to understand how crypto works, then invest a little over time.

Likewise, for those new to investing, we always recommend investors educate themselves on investing strategies first before jumping into a highly complicated investment such as cryptocurrency.

Investments in more established categories such as the stocks of companies you understand or in ETFs or mutual funds may offer more transparency, historical investment performance and disclosures of risk, unlike investments in cryptocurrencies.

Read Also: Why Crypto Market Is Down Now

Trade Your Bitcoin For Fiat And Withdraw Them From Your Account

Over the past few months, weve launched support for the storage of fiat currencies like Euro , Brazilian reais , Australian dollar , British pound , and the Turkish lira on your Binance account. If you need to sell your Bitcoin into any of the following supported fiat currencies, all you need to do is to sell Bitcoin in the corresponding trading pair, then withdraw the fiat currency you earned from that transaction.

Buying Bitcoin Through An Exchange

Buying bitcoin through an exchange is mainly for those who use a buy-and-hold bitcoin strategy. This is because buying through an exchange means that youre taking direct ownership of bitcoin with the expectation that its price will rise.

That said, there are some problems with buying bitcoin through an exchange:

  • Bitcoin exchanges often lack proper regulation and the infrastructure needed to respond quickly to support requests
  • The matching engines and servers on bitcoin exchanges are often unreliable, which can result in the suspension of markets or reduced execution accuracy
  • Bitcoin exchanges often impose fees and restrictions on funding and withdrawing from your exchange account, while accounts themselves can take days to open

Read Also: Do I Have To File Bitcoin On My Taxes

Important: Before You Start Trading Cryptocurrencies

To make your crypto experience even more convenient, we have prepared an extremely detailed guide where we take a deep dive into the industrys best cryptocurrency news aggregators, data websites, tools, and portfolio trackers that every crypto trader should be aware of. Therefore, we highly recommend you read our Master Bitcoin in 2021 guide and know more about what unique tools the industry offers. This guide was prepared by a professional crypto data analyst and investor.

Heres the short breakdown of the information youll find in our aforementioned guide:

Is Bitcoin Cash A Good Investment

How To Sell Cryptocurrency On Robinhood for Cash – & Make $46,000 ððð

Definitely BCH is one of the best cryptocurrencies if you want to diversify your portfolio. By eliminating the technical shortcomings of BTC, BCH has gained wide popularity and is among the top cryptocurrencies by market capitalization. The forecast for BCH is positive, for example, according to Digitalcoin, by the end of 2022, the coin may reach a value of $944.

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