As of this moment, bitcoin is still the leading cryptocurrency in the crypto market. The currency has risen in both amount and popularity since its inception in 2009. As a result, a lot of people have wanted to get into the game and start making money from it. Even though the price has greatly reduced within the past six months, a lot of people are still asking the same question, “How do I make money from Bitcoin Trading?” Search no further because we are going to be answering that question in this post. Before then, we will first take through you a brief history of bitcoin. This is highly essential because it will open your eyes to things you should be expecting once you start trading.
What is Bitcoin?
Bitcoin, the world first digital currency was introduced to the public as an open source software in January 2009. Nobody really paid attention to it since it was first of its kind. Bitcoin was around .06cent in its first year of establishment. On the 15th of July 2010, Bitcoin went up 800% from 1cent to 9cent per each coin. As a result of the sudden increase, people started paying attention to it. However, it fell back to 1 cent after a while. It eventually reached 1000$ in 2013 and further increased to 17500$ in 2017. A lot of people have started investing in Bitcoin since then, with some people making millions from it.
Set an exchange market
If you are not thinking of mining your own bitcoin, the first thing that is required of you is to set up an exchange market. There are different types of exchange market out there so you have the option of selecting the one you feel is best for you. Examples of exchange market include Coinbase, Binance, etc. Once you select an exchange market, register and do necessary verification to get your account working.
Establish A Trading Strategy
It is wise to have a trading strategy before you start trading. The basic thing about trading with bitcoin is you buy and sell the coin at appropriate times. The most amazing thing about trading with cryptocurrency is that you don’t need to buy a whole coin. You are allowed to buy and sell a portion of the coin. Let`s assume you bought the coin or a part of the coin as at when the price was 10000$. All you have to do is wait patiently for the price to increase beyond buying price. Selling at a price below the buying price will lead to a loss. Generally, most people believe in the basic strategy of just buying low and selling high. If you are planning on getting the full reward of bitcoin, you have to do your analysis.
There are two types of analysis
- Fundamental analysis
- Technical analysis
The above-mentioned analysis may be complex for some people but it really helps. Consequently, you can decide to pay people for performing the above analysis for you if you don’t have the time.
light sleeper, heavy dreamer.