Jan 27, · It is totally possible to make money trading Bitcoin. In fact, fortunes are made every day by Bitcoin traders that truly know their game. The insane volatility in Bitcoin markets is a trader’s paradise, and with the recent rise of platforms like Bitmex, traders can now also make money betting on Bitcoin’s price going down (not just up). Bitcoin trading can be extremely profitable for professionals or beginners. The market is new, highly fragmented with huge spreads. Arbitrage and margin trading are widely available. Therefore, many people can make money trading bitcoins. Aug 13, · When it comes to Bitcoin trading, to make profitable returns, you have to be an excellent short-term trader. If you want to make profitable trades, you’re going to need to study up on technical analysis which is the study of price patterns. To profit off trading Bitcoin, you need to implement a plan.
Can i make money trading bitcoinsMake Money With Bitcoin in (17 Simple Methods)
During these times, a person who lacks market experience and knowledge will likely lose money and not be able to generate a return. Professional traders, however, will. Additionally, while a day trader can buy low and sell high in a bull market, during a bear market, those patterns usually result in a succession of lower peaks and bigger dips.
This makes it impossible for the average trader who is not properly trained to make money and they may actually lose more than if they had simply held through the fall. The second part to this is what you are planning to keep as a reserve currency?
If you are attempting to grow your USD value, for example, then in a bull market it is very possible as the value of BTC continues to increase against the dollar. In a bear market, it would be a tall order to accomplish, as the value is decreasing against the dollar. That being said, if you were simply trying to increase the amount of Bitcoin you have during these downtrends, that would be a lot easier. This is because, though they both are dropping in value against the USD, they will not drop at the exact same rate on the way down.
So, during a downtrend, Ethereum would be converted to BTC, and during an uptrend, it would be converted back to Ethereum. This is by no means a guarantee and I have seen the market do the opposite as well. In both cases, however, you will have less USD in coin value.
When the market turns bullish, you will have a lot more of either currency and will profit immensely. The final part is how much time can you devote to trading?
If you can only spend a few hours a day trading, many times you will find the opportunities going back and forth between currencies will be missed. Additionally, not being around during flash crashes or panic sells, or not taking profits when markets reach resistance levels, will mean you may make nothing.
Professional traders also spend countless hours working on these strategies and doing market research to identify opportunities. You will also need to identify what your overall strategy is. Are you going to try and make profits in fiat? I also strongly suggest educating yourself on financial. Another key — and a huge part of deciding your strategy — is to keep up-to-date on rules, regulations, sector news, and whatever else may affect the markets and increase volatility.
CoinBeat is a great place to get that information, as we aim to deliver those details directly to our readers and put them ahead of the informational curve. If you can put those things into play, you can make a decent return and live trading cryptocurrencies like Bitcoin. For example, though it is possible for anyone to cook a meal, it is not possible for everyone to devote the time and energy required to run a successful restaurant.
Hence why we have professional cooks. If the swings in a single day are more, they make more. In the above chart, for example, if a trader had cashed out at every peak and bought back in at every dip, they would have made a very tidy profit even in a falling market.
That, however, would have taken a strong understanding of market signals, intuition that can only be gained by actively trading, and a knowledge of where resistance and support levels within the market were. While not everyone has the ability, skills, time, or resources to devote to trading at that level, professionals do exist that can help guide you in the right direction.
CoinBeat, for example, is a publication that connects investors with professional traders, analysts, researchers, and industry insiders. Using CoinBeat as a primary informational resource, an investor can copy or mimic positions of professional traders, tapping into their knowledge base and skill set. Using it, you may find that you can make more and learn from professional traders as to how they position their trades and maximize profits while minimizing risks.
To join these professionals and tap into their knowledge and expertise, make sure to subscribe and join the CoinBeat community. This can create arbitrage opportunities, but most of the time exchanges stay within the same general price range. Bitcoin is known for its rapid and frequent price movements. As mentioned earlier, there is no official Bitcoin exchange. Users have many choices and should consider the following factors when deciding on an exchange:.
Could the exchange run away with customer funds? Location — If you must deposit fiat currency, and exchange that accepts payments from your country is required.
Liquidity — Large traders will need a Bitcoin exchange with high liquidity and good market depth. Customers can trade with no verification if cryptocurrency is used as the deposit method. Global Bitcoin trading data shows that a very large percent of the global price trading volume comes from China. The main reason China dominates Bitcoin trading is because financial regulations in China are less strict than in other countries.
Additionally, Chinese exchanges charge no fees so bots are free to trade back and forth to create volume. Kraken will be used as an example for this guide. The process and basic principles remain the same across all exchanges. Below you can find the first three verification levels:. You should see something similar to the screenshot below. Select your funding method from the left side:. Deposits made using the traditional banking system will take anywhere from one to three days.
Bitcoin deposits require six confirmations, which is about one hour. Using the black bar at the top of the page, you can switch trading pairs. One may submit an order lower than the current price if one expects the price of Bitcoin to fall. A market order in this case would submit a buy order for XBT at the price of the lowest available sell order. Using the orderbook above, a market order for 0. Customers from all over the world were happy to wire money to Mt.
Many users forgot one of the most important features of Bitcoin—controlling your own money—and left more than , bitcoins in Gox accounts. In February , Gox halted withdrawals and customers were unable to withdrawal their funds.
Customers still have not received any of their funds from Gox accounts.