Dec 07, · Bitcoin is money. People usually do not give away money for free, so you should be very skeptical of anyone promising to give you Bitcoins for free. However, you can sometimes get small amounts of Bitcoin for free when various exchanges and Bitcoin interest accounts offer you Bitcoin to open an account on their platform. If you want to earn money by day trading, you need to learn a few things to put yourself on the right path. This guide will give you a proper introduction into day trading Bitcoin – the technical and psychological aspects, what you should know in advance and how to maintain a stable income. Apr 02, · When people think of buying into Bitcoin, they imagine the huge windfall they make when selling their coins for dollars as the price peaks. This strategy is known as buying and holding. It’s a popular method used by gold investors, and it operates within an investment portfolio as a .
Bitcoin money strategiesTop 5 Bitcoin Trading Strategies: Start Making Money With Bitcoin
The price of Bitcoin can even remain within the set levels for a prolonged set period of time and it can still be profitable for the purposes of swing trading. This type of trader will usually consider a wide range of factors and they place a lot of importance on technical indicators that can reveal oversold and overbought conditions that are seen on the market. These conditions will indicate market sentiment and are usually dictated by intuition and common sense.
They can also indicate momentum which is something prone to imbalance and would require correction. Once the price of Bitcoin reaches a certain level, the traders will then place a wager on a reversal of price. When the indicators are based on a change or direction, and the price continues instead of reversing back then this is a good time to exit.
Swing trading is also particularly effective when it comes to trading with CFDs. When there is a good time frame match that coincides with a bigger price move, and the prices continue past a projected reversal point the there is often a small loss. If, however, they operate as predicted, there is a lot of profit to be made. This type of trading requires a lot more knowledge and it is much harder to navigate than other types of trading techniques. Traders of this type tend to use longer or more prolonged patterns of trading with the ultimate goal of capitalising on it until the end of the trend.
Unlike swing trading, trend traders usually have no particular target or end game in mind and this is particularly pertinent when we consider the highs that Bitcoin enjoyed this year. The secret to effective trend trading is to consider it as a sort of art form where the formation of the trend is subtle. You need to be able to identify the trend at an early stage before everyone else jumps on it and realizes its potential. With trend trading, you will find you are able to hit a bigger high with an emerging trend that moves at a consistent pace, as well as continually growing prices, and declining prices as well.
It can be pretty tough to get the hang of trend trading and it generally takes some time to break through to a profit-making level so be prepared to stick with it and suffer a few losses along the way. Be aware that trends tend to increase as people start to notice them and want to get involved. They gain momentum quickly and when they are strong, non-Bitcoin investors pick up on them, as well as the media.
Eventually, when prices go up they will reach what is known as a parabolic state before they start to rapidly extend. Savvy traders get in quickly, make their money and then exit before the inevitable crash that hits all of the other traders hard. Trying to win by picking out the tops is a pretty foolish way of trend trading as it is usually much smarter to just hang in there and wait for the assurance that a particular trend is growing.
These traders will typically operate a twelve to sixteen-hour shift as a minimum, although sometimes these shifts can be much longer. When it comes to day trading, it has a level of intensity that is comparable to that of the stock market and you can often hear day traders complaining about their minimal sleep or the fact that they look like a zombie.
The truth is, that these are a special kind of trader and it takes a certain kind of person and mindset to make a successful one. As we discussed in the section about the dollar as money, it takes participation and belief from the public to give money any value. However, that does not mean that you have to follow a buy and hold strategy to provide any validity to the Bitcoin market. However, the mistake many of these people make is that Bitcoin is not yet what we would consider a store of value, whereas gold has a 2,year history as sound money.
You would be looking at a serious financial loss. Still, If you do stick to the strategy and HODL for the long-term, then you should still see a return. Those Bitcoiners still hodling their coins from are smiling all the way to the bank. Coinbase is the easiest exchange to purchase Bitcoin using bank account, debit or credit card.
Read our full review to find out more. If you want to make serious money with Bitcoin, then Day-trading the cryptocurrency markets are bar far the superior option. The cryptocurrency market operates almost in the same manner as the forex and stock markets. Buyers and sellers meet on a platform, also known as an exchange, and trade cryptocurrency with each other in the hope of making a profit from the arbitrage.
The difference between the crypto and forex is that forex is a regulated market. Government entities, such as the SEC, regulate traders and companies for operational compliance within the law. Binance is the best exchange for trading Bitcoin and other cryptocurrencies, read our full review. As a result, there are stories of exchanges violating withdrawal policies, and stories about mass-manipulation of the markets by some corrupt exchanges.
The reality is that some of this is true, and some exchanges are pout to take all of your money. As a result, you can only withdraw from offshore exchanges in cryptocurrency. If you register with an exchange like Coinbase , they have offices in the United States. Avoid an audit, and make sure you file for tax, speak to your accountant for advice.
Otherwise, trading the crypto markets is very profitable if you know what you are doing. The issue with trading crypto is the volatility in the price action.
If you are trading crypto, you can make use of trading bots like 3Commas and Cryptohopper which will automatically trade for you — you just need to signup and connect them to your exchange account and pick a certain set of parameters to execute your trades. When Bitcoin first started, it was possible to mine the blockchain for Bitcoins using your desktop computer. However, as people got wind of the price increases with the cryptocurrency, more people started buying better computers for mining.
With a mining rig, you could mine different coins faster, producing better returns. However, technology kept improving, and miners kept getting smarter. Soon, mining companies started forming in Asia, backing by subsidized energy costs, enhancing mining profitability. However, there is a way to make money mining Bitcoin without moving to China to set up a mining farm. As a result, you can find second-hand mining rigs, with plenty of service life, for auction prices on sites like eBay.
Purchasing one or two of these professional rigs and set them up in your garage and you can mine some less-popular coins and then trade these for BTC on an exchange. People that get involved with Bitcoin find themselves learning a lot about cryptocurrency in a short period. Others find the blockchain and hot and cold wallets fascinating, soaking up all the technicalities around the industry.
Some people will pay you to learn what you know. You could put together information courses on how to trade, buy, and sell, crypto, and then promote it through social media. Selling a virtual product means you keep no physical inventory, reducing your overhead costs of doing business. Bitcoin consultants are in high demand, even in a falling market. At the height of the Bitcoin bubble, there were plenty of network marketing schemes promising bitcoin for noting.
These network marketing scams typically offered people an investment shareholding in a bitcoin mining farm. As more investors came into the system, the farm buys more equipment, and the hash rate of the farm improves. However, many of these farms were a scam. Since most of the farms registered as businesses in China, the investors lose everything overnight. However, in the wake of the bubble and the economic destruction of network marketing scams, new businesses developed to fill in the gaps.
Now there are legitimate network marketing opportunities in cloud mining. If you do your research and find a reputable Bitcoin network marketing company, it offers you a foothold into the industry.
One of the biggest benefits of Bitcoin and a feature that makes it valuable to people using it online is its decentralized nature. Bitcoin is not under the control of any government or central bank. However, Bitcoin gets its integrity from the blockchain technology, supporting every transaction that goes through the network. People manage blockchain, not banks or governments. Lenders in the fiat currency market of US Dollars need to adhere to financial legislation and register as a financial services provider to engage in transactions with investors and the public.
As a result, nothing is stopping you from setting up an exchange if you wish. Both of these markets offer unique opportunities for people to make money in the next evolution of Bitcoin. There are already lending platforms available at offshore exchanges. When you choose the automated trading platform by 3commas, you get a robust platform, with no downtime and technical hiccups.
And considering you can share and learn strategies, indicators, and settings with other traders in the community, your trading improves even further. All trading charts show data points for the past and current price movements. A Bitcoin day chart focuses on its price action for a specific day. You can also view changes within a specific timeframe, which helps traders make more informed decisions. Whilst there is no shortage of line and bar charts, one of the most valuable types is the candlestick chart.
It offers plenty of valuable information in a concise form. Here is what the chart can tell you:. There is a lot more information to extract, which will hold significance in your trading.
Trends show the momentum of Bitcoin price changes in a particular direction. You can identify these patterns on a chart and make decisions based on that data. Peaks in an uptrend and throughs in a downtrend form a trend channel, which is a commonly used concept in the technical price analysis.
The channels show where Bitcoin is trading at a particular time and compares it to the overall direction. Price changes are not linear. That is why technical chart analysis utilizes levels of support and resistance — they showcase short-term trends within the overall trend. Resistance shows where an upward trend is expected to pause or rebound.
That means that there are many buyers concentrated at that time. Resistance can be used as an exit point for a transaction. A level of support can be used to predict where a downward trend can pause or rebound. This can be used as an entry point.
Market orders are the fastest way to enter or exit a trade at the best price available at the time. However, instant execution means that the price becomes secondary.
When you place a limit order, it will only be triggered once Bitcoin reaches the price you set. Thus, you may get a better price if you are patient enough. Bear in mind that the price should be profitable for you but still realistic. The limit order will not be executed until there is a seller or sellers willing to accept the price that matches yours.
If the market price is lower, it simply will not execute your order. Here are the benefits of limit orders:.