How to Make Money with Bitcoins and Other Cryptocurrencies
The cryptocurrency market has skyrocketed this year and you would hardly find any other market with such a massive growth. One of the possible ways how to make money on Bitcoin and other cryptocurrencies is speculation. You can either choose a short-term speculation so-called day trading or a long-term investing. There are numerous companies that offer both types of trading, you just have to choose.
How to buy Bitcoins through cryptocurrency exchanges
The first very common choice when it comes to crypto trading is using a cryptocurrency exchange. These exchanges allow trading with regular fiat currencies or with alternative cryptocurrencies. The biggest trading volume is realized with Chinese yuan and then in euro or dollar.
Currently is as the biggest cryptocurrency exchange considered Bitfinex. It offers a safe and secure environment for trading, allowing traders to speculate on cryptocurrency price movements with up to 1:3,3 leverage. Margin lending gives speculates a chance to make a good profit even when the exchange rates of cryptocurrencies change just slightly.
But because the cryptocurrency market is extremely volatile one can trade even without it. As a large exchange, Bitfinex can ask even only for small fees. They move around 0.1% to 0.2%. Depositing dollars directly to Bitfinex is possible only via wire transfer. For this option is charged a 0.1% fee, with a minimum fee of $20.
The interface of most cryptocurrency exchanges is fairly complex because they offer such a wide variety of options and setting that one can get very easily lost. I, therefore, recommend to fully get to know the trading platform before placing any order.
Trading cryptocurrencies with CFD providers
Another very popular way how to trade Bitcoin and other cryptocurrencies is by using services of CFD brokers. These companies provide an excellent solution for every trader who wants to specialize in day trading rather than in long-term investing.
The best cryptocurrency brokers have usually very low fees and real trading is often possible from a 100 dollar deposit. Trading platforms are easy to use and there are no fees when it comes to making a deposit. Crypto CFD brokers usually have a maximum leverage 1:5 and a free demo account is possible to use at any time.
One of the most popular CFD providers for crypto trading is Plus500. They are licensed by CySEC and they operate internationally which means they do not support only English, but also other 32 languages.
Risk associated with cryptocurrency trading
Each and every individual who desires to trade cryptocurrencies should be aware of the risks that are tight to investing. Bitcoin and all other less or more famous cryptocurrencies are super volatile and investors should invest only such funds that they can afford to lose.
You might find on the internet fabulous stories how people made a fortune on crypto trading and quit their day job. While this might be true, there are also stories, less popular, describing how people became addicted to cryptocurrency trading and lost everything.
Do not be such person and trade/invest only when you have the capital to do so.
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Category: BitCoin
