How can you trade Bitcoin?
In 2020, cryptocurrencies have become the new trading trend. There are bigger opportunities. Should you join the game?
Trading bitcoin can multiply your income dramatically, even with a small amount. It’s a passive income stream based on strategy.
How can you make money with bitcoin? How long will it take? All comes down to a balance of risk and reward.
There is no right answer because we don’t know how important both variables are to you. Depending on your strategy, you could get decent returns from one to six months. Here are three ways you can choose to trade bitcoin.
#1 Buy And Hold
One of the broadly used tactics is to buy and sell bitcoin. Although it’s not the fastest way to make profits, it has low risk and is 100% passive.
Remember that cryptocurrencies are more volatile than average stocks. Because values change faster, there is more opportunity for new investors.
That’s why buy-and-hold works better with bitcoin. You could put $1000 today and get $1500 a month later. Of course, It requires you to do research and know the right timing.
If you learn when to buy and sell bitcoin, you can get unlimited upside with a reduced downside. Although there’s always a risk, you’d win more often than you lose.
#2 Lending Bitcoin
There’s a way to invest in companies using bitcoin and generate returns from day one. The process is simple: research the company you want to invest, send your bitcoins to that account, and the money will work for you.
It’s critical to understand your monthly returns. The more the company grows, the sooner you will pay off the initial amount.
Once you deposit an amount, it blocks for a number of months. Every day, you get a percentage based on your investment, depending on the average company growth. As a result, you get both the deposit and the earned interest.
Of course, you don’t need to wait that long. In most wallets, there is a feature called “compound interest.” It will reinvest your percentages to the first deposit. This will speed up the process and increase your income.
Here, the risk comes down to research. Do you trust the company? What are their track records? Can they get results consistently?
#3 Day Trading
In business, you can improve your skills to get better results and increase your income. Although it takes time and risk, it’s the fastest way to make good returns.
Day-traders know the ins-and-outs of their careers. They train skills such as pattern recognition, emotional intelligence, or mass psychology.
Due to the complexity of predictions, people have lost more money than what they’ve earned. However, this should stop beginner investors from learning more about day-trading.
Final Thoughts Of Bitcoin: How To Trade
There are dozens of ways to trade bitcoin, but these three are the basic strategies. The more you learn about your investments, the more money you can make.
When trading, remember to unattached from the process. Billionaires suggest acting as if you had already lost your money. The best way to reduce risk is to set an amount you don’t mind losing.
The most successful traders use to say: If you are not confused, you don’t know what’s going on.
No person or software can predict the future because it depends on variables we don’t control. Luckily, we control our decisions, skills, and knowledge. Those who stay for the long term always find a way to make it.