How to Trade Bitcoins to Make Money Online – In this era, you can make money online and also work from home. One of the choices that you can take is bitcoins. Bitcoin is a digital currency which is not backed by the government or any country’s central bank. Bitcoins can be used to trade goods or services with vendors who accept Bitcoins as payment.
There are two ways to deal bitcoin, buy bitcoins itself in the hope of selling it on at a profit or speculate on its value without ever owning the token. In the United States, bitcoins are controversial because they can be used to unidentified transfer illicit funds from the Internal Revenue Service. Now, bitcoin policy requires transactions that involve traditional, government-backed currencies to be attached to an identity.
Bitcoin trading can give extremely profitable for professionals or beginners. Although the market is new, they have highly fragmented with huge spreads. Margin trading and arbitrage are available. Therefore, people can make money online from bitcoins. Before you start to trade bitcoins, you must learn about how to buy and sell bitcoins.
1.How to buy bitcoins
We can buy bitcoins from a smartphone. It is easy to buy bitcoins. We can spend bitcoin online or in any retail store, but for the most part, you are still better off paying with cash or a credit and debit card. Here is how to get started to buy bitcoins.
– Download the application “Coinbase”. It is available for Android and iPhone
– Create a coinbase account. In this step, you will need to agree to terms and enter the state you live in.
– You are logged in and look at that daily volatility. It is a speculative investment. The price of bitcoin tends to show a pretty volatile, increasing one day and collapsing another.
– Add a payment account. Tap the “buy” button to add a payment account. Debit and credit cards allow instant to buy but only let you purchase $150 in bitcoin per week. You have higher buying limits and linking a bank account can take 4 to 5 days for trading.
– You also can buy Ethereum. This is another cryptocurrency like bitcoin. You are limited to how much you can buy per week.
– Prepare for the fraud prevention call
Around 5 minutes, the bank will call to verify your attempt to buy bitcoin. You just approve the purchase and you should be good to go.
2.How to sell bitcoins
There are now three ways to sell bitcoin online. The first way in through a direct trade with another person. The second way involves an online exchange. The third is peer to peer trading marketplaces.
1. Direct trades
Coinbase, LocalBitcoins, BitBargain, and Bittylicious are websites which offer this type of selling structure. There are steps for selling bitcoins through direct trades.
– Open these sites, you will have to register as a seller.
– After registered, you can post an offer
– Make signaling that you want to sell
– When a buyer wants to trade with you, the website will alert you
– Make interaction with the buyer
– Use the website to complete your trade
The process of selling can be quite involved and requires some patience.
Register with an online exchange is the other way to sell bitcoins. In this case, you will not have to do as much work when it comes to organizing the sale, but you will still have to verify your identity.
Exchanges act as an intermediary who holds the funds. You place a sell order, stating the volume, and type of currency. Then, you wish to sell, and the price per unit you wish to sell for. When someone places a matching buy order, the exchange will complete the transaction. After that, the currency will be credited to your account.
If you are selling bitcoin for fiat currencies, you need to withdraw those funds to your bank. You can take an ordinate amount of time to receive your fund if the exchange is facing liquidity problems. You should take responsibility for your own funds. Store any unneeded amounts on your devices, rather than trusting an exchange which might one day be hacked.
3. Peer to peer trading marketplace
The advent of sites is a new development in the bitcoin space. The site is like Brawker and Purse, which set out to bring together two groups with complementary needs.
The first group is individuals. This group wants to use bitcoin to buy goods from sites which don”t accept digital currencies directly. The second is another group who want to buy bitcoin with a debit or credit card. Individuals with matching requirements are brought by the marketplace to effectively sell bitcoin to one and provide discounted goods for the other.
As an intermediary, the marketplace offers users the platform, bitcoin wallet and escrow for transactions.
3. Bitcoin Trading Platforms
There are many bitcoin trading platforms in the world, such as Coin base, Bitfinex, Kraken, Poloniex, and Bittrex. Every bitcoin trading platform has pros and cons.
– Pros: Most popular, easy to buy and sell, trusted site, and available on Android & iPhone
– Cons: Limited country, only ethereum, bitcoin and litecoin supported, trading pairs-9
– Pros: Advanced charts and indicators, low fees, most transaction volume, margin trading -3.3x
– Cons: Bitfinex was hacked in 2016. It has trading pairs -36
– Pros: The largest bitcoin exchange in Euro volume, bitcoins and euros, US Dollars, British Pounds, Japanese Yen, and Canadian Dollars supported, margin trading -5x
– Cons: Weak support for mobile platforms, lack of user-friendly.
– Pros: Fast account creation, high volume, good customer support, BTC lending, trading pairs -90, and margin trading -2.5x.
– Cons: Only for traders, very slow, and less secure.
– Pros: User-friendly, better support, charts, trading pairs -256.
– Cons: High fees and no margin trading
Before you start to trade bitcoin to make money online, you should remember that trade only what you can afford to lose. Keep your coins in the paper wallet. Don’t keep your profit on the exchange.
After you learn more about bitcoin, you can trade and work from home.