How To Profit From Bitcoin [Updated]
By Kade Sims on ALTCOIN MAGAZINE
In the modern world, Bitcoin is discernibly becoming one of the most popular ways to make money fast. But there is a range of different ways to successfully generate profits using digital assets. So, let’s take a look at the most effective ways and popular ways of how to profit from Bitcoin.
Buy Low, Sell High
This is the classic model used not only by cryptocurrency traders but traders of all financial assets.
The process is simple: purchase an amount of Bitcoin at a time that you expect that the future price will be higher, and then sell, yielding a profit, once that higher value is available.
This simple trading strategy can be done on almost any cryptocurrency exchange, however, be sure to choose a safe and reliable trading platform.
Profit from Bitcoin by ‘HODLING’
‘Hodling’ is a term that has emerged from the cryptocurrency community which essentially boils down to buying a digital asset like Bitcoin, and holding it for a long period of time before selling.
Early adopters are famed for making ridiculous profits using this basic strategy and it is a favorite of many traders still. This is due to the crypto community’s continued faith in Bitcoin and its expected future growth.
Buying and holding Bitcoin is possible via a number of mechanisms and places, including exchanges, trading platforms, LocalBitcoins, online brokers, and even over-the-counter (OTC) brokers, etc. Just be sure to keep it in a secure cold storage wallet.
Margin Trading with Leverage
If you want to know how to earn Bitcoins fast, margin trading with leverage is an advanced method that can be very lucrative.
Trading with leverage is the process of staking an amount of an asset (the “margin”) whilst being able to create a position of much greater value with it.
For example, if you opened a Bitcoin position using $1,000 and 100x leverage, the value of your position would be the equivalent of opening a $100,000 position — thus the profits from a successful trade are relative to the increased position.
Although the risk of margin trading is greater, traders only need to invest a much smaller amount of their personal funds for the opportunity to see significantly increased returns.
Currently, the best Bitcoin exchange to margin trade is PrimeXBT — which offers up to 100x leverage on all available assets whilst simultaneously offering the lowest fees.
How to Profit from Bitcoin: Different Strategies for Different Situations
Depending on your goals and the situation, any one of these strategies may be optimal. By understanding the options, analyzing the markets carefully, and implementing effective risk management strategies, it becomes clear how to profit from Bitcoin.
