If you’re looking at how to make money with Bitcoin, the best way is to trade it. To that end, I’ve created this guide on the best ways to invest and trade Bitcoin.
What is Bitcoin?
Bitcoin is a cryptocurrency, which is a form of digital currency. The original Bitcoin was launched in 2009 by Satoshi Nakamoto, a pseudonym for an unknown individual or group of individuals. Here’s how the currency works, according to CoinMarketCap. When you buy Bitcoin, the equivalent of dollars are transferred from your bank account. When you spend, Bitcoin is purchased and sent to the buyer. In essence, you are exchanging dollars for digital money. The biggest thing to know about Bitcoin is the price fluctuates. The cryptocurrency started out as a viable currency, and the price rose from $0.10 to $1,000 in less than two years. However, the currency fell back to earth at $650 after the Chinese cracked down on cryptocurrency exchanges.
Bitcoin Trading and Investing
In the world of cryptocurrencies, there are two ways to participate and benefit: trading and investing. Trading is the act of buying and selling cryptocurrencies on exchanges, while investing refers to putting money into a cryptocurrency or crypto-related company in hopes that the company will grow and you will make money off of the increase in value.
Here are a few sites for trading Bitcoins Online:
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Most of the above sites allow you to trade using a variety of currencies (EUR, GBP, USD, USDT, etc.).
TIP: It’s best to be careful when you’re trading, as you don’t want to accidentally invest your hard-earned money into something that’s basically a scam.
The Best Way to Trade Bitcoin
Buy an ETP and then flip it if you’re looking at how to make money with Bitcoin. It’s important that you look at your risk and find a strategy that’s beneficial to you. The easiest way to do this is to look at the market you’re investing in and see what trades are out there. If you’re looking to make money off of Bitcoin, the best way is to invest in ETPs. Ethers are a good way to invest in ETPs. Ethereum’s price will be affected by Bitcoin. Bitcoin’s price will be affected by Ethereum. Once you have the two prices matched, the profit is yours. As a general rule of thumb, if both the price of Bitcoin and Ethereum are going up, Ether is going to follow in step with Bitcoin. If both the price of Bitcoin and Ether are going down, Ether will follow the price of Bitcoin.
Best Way to Invest in Bitcoin
One of the best ways to invest in Bitcoin is to buy it on an exchange, then spend it. This way you have more exposure to the crypto markets than buying the coins yourself. Usually I use a wallet that gives me an ATM-like key to spend bitcoins. And for the exchange purpose I use Coinbase. For an example I recently used Coinbase to purchase my new laptop, which I will use to later trade the coins.
Here are the steps you can follow to buy Bitcoin on Coinbase:
1. Download the Coinbase app on your mobile device
2. Open an account
3. Verify your identity
4. Deposit money into your account
5. Purchase Bitcoin (BTC)
6. Secure your Bitcoin
7. Buy and sell Bitcoin on Coinbase
8. Transfer your Bitcoin to a separate wallet with more security
Conclusion
The only way to make money with Bitcoin is to trade it. Luckily, we have the resources to trade it. There are not many things more rewarding than trading Bitcoin. If you have any questions about trading Bitcoin, feel free to leave them in the comments section below.