Cryptocurrency investments can potentially give you huge profits, but they are also highly volatile, which makes them risky. In bitcoin trading, it is possible to gain significant amounts of money in a relatively short period. That also serves to make bitcoin trading highly exciting. However, a word of caution you stand to lose your inner peace if you are under particularly heavy bitcoin trading pressure.
Some beginner traders find it hard to come out on the winning side of bitcoin trades, making them wonder if they should invest in cryptocurrencies at all. No need to worry the following five trading ideas will help you make the most of your bitcoin trading investment:
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Robot Trading Apps
There are several auto trading robots that are free but have great functionality. Some of these apps rely on trading signals that can fetch you returns of up to 88%. Considering the risks associated with bitcoin trading, you should start with an investment of no more than $250. With robot trading apps, the investor himself need not do any trading or even need to set trading indicators. The software places the trades in under minutes, and the transactions are usually pretty accurate. If you are looking for particular apps, you need to take a closer look at bitcoin trader first. Amongst its competitors like Bitcoin Code or Cryptosoft, this is the one app that rarely does unprofitable trades.
Remember to do adequate research for the best trades; human investors will have to put into several hours of thorough analysis to develop a profitable transaction. With robot trading apps, you can complete this research in minutes without any human intervention. However, the volatility of cryptocurrencies is high. So much so that, despite the robot trader’s best efforts, market changes might make particular investments go wrong. It is rare, but it does happen, so you need to be aware of it!
Long Term Investing
Long terms investments are perhaps the easiest way to start bitcoin trading. Instead of trading, you are stocking up on a particular number of cryptocurrency coins. You are saving them in your wallets for the long haul until you can reap handsome profits on them as per the coins’ then market price.
However, this method makes it necessary for you to do adequate research and invest in coins that your analysis predicts will have more market share with time. You can find many coins in the marketplace, but to be on the safe side, you should stick to common digital coins like LTC, BTC, and XRP. You may choose to invest in new crypto coins. Remember, in addition to the fact that they are cheap, it is also likely that they won’t be around for any significant amount of time in the market. Bitcoin is a great earner for many long-term cryptocurrency investors out there.
Day Trading
If you need faster returns from your bitcoin trading investments, you might want to try out the day trading technique. In this crypto-trading mode, you buy and sell cryptocurrencies several times a day for different prices. As Bitcoin and other cryptocurrencies have high volatility, the process can be akin to a roller coaster ride. These ups and downs in the prices make digital coins perfect for getting handsome profits from day trading.
During day trading, you are trying to buy coins at lesser costs and sell them when the prices are higher. In the short term, the income from this may not be much, but it can rake in a lot of moolah, so to speak, in more extensive periods! Bitcoin day trading is a skill that you will have to acquire. It would help if you devoted adequate time to studying and understanding the work. Following that, bitcoin day trading can be a full-time career opportunity for you. Remember that you can never gain in all trades, but your goal is to stay on the green side most of the time.
Bitcoin Mining
Crypto-currency mining is indeed a relatively tricky way to earn from bitcoins. But if you mine successfully, the profitability of the exercise increases drastically. You can mine bitcoins from just a computer. However, it would help equip this computer with the essential software, specialized hardware, electric power, and even crypto wallets. For most people trying to make money from bitcoins, it needs specialization, and it is not well suited for most individual investors. Keeping in mind that most mining for bitcoin is carried out in large warehouses where there is an abundant supply of cheap electricity.
Additionally, the specialized hardware necessary to mine bitcoins was also on the expensive side. When there is a bull market, these hardware costs rise to a significant extent. In the initial days of bitcoin mining, miners were able to earn coins with relative ease and swiftness. But by the previous year, the process became more complicated. Professional miners have come up with colossal mining arrays, making it difficult for small miners to mine bitcoins. One option still open to small miners is to join mining pools to be more effective at what they do. Some apps claim to mine bitcoins too, but you should not rely on such apps to earn significant income for you.
Arbitrage
Another method for making money from cryptocurrencies is through arbitrage. In this process, you buy digital coins from one crypto exchange and sell it on others. But this practice is rare and not that rewarding. You have little chance of making enough money to get rich fast through arbitrage buying and selling on crypto exchanges.
Final Thoughts
After the discussion of these ways for you can make money from bitcoin trading. But a word of warning is relevant for most newbies. Most bitcoin investors rarely persist after the initial period as they don’t make much money out of their trading activities. You, of course, can beat this general trend, but that will require you to invest adequate amounts of money and devoted the time needed to acquire the necessary skills. If you can do this, your bitcoin trading venture is far more likely to succeed.