So can you make money from Bitcoin and other Cryptocurrencies?
In short.of course. Why not?
Bitcoin and crypto can be regarded as a:
- Medium of value: You can hold it indefinitely as the value may appreciate over time
- Medium of exchange: You can buy goods or services
- Medium of speculation: You can trade it with other currencies for profit
Day trading cryptocurrency (medium of speculation)
Day trading is done using a crypto exchange, e.g. Binance, Bittrex, and a wide range of others.
You can also trade Bitcoin-Fiat, or you can trade Bitcoin-Altcoins. If you’re a beginners, here is.
You should be able to make money whether the market is going up or whether the market is going down. That is the ‘benefit’ of day trading. Because Bitcoin and other cryptos are so volatile at the moment. There have been several examples of this in the recent bear market.
Some risks to note:
- It is extremely volatile
- The cryptocurrency environment is uncertain as is the future
- The markets are heavily manipulated
- It’s the wild-wild west out there folks
Long Term Hold (medium of value)
Your other option is obviously just buying and holding rather than continuously trying to buy/sell for short term profit. Obviously best time to buy is when the price is low.
It is easy to get caught up in the hype when a coin is being talked about on social media and being, meaning that you end up buying at a high price rather than at a dipped or lower price.
This could be okay in the long run as eventually the price may continue to increase. However you’d still have made higher profits or you could buy more units if you had instead bought at a lower price.
I suggest you do some due diligence on when to buy though to make sure you don’t end up holding long term for a loss.
Finally, getting started:
It’s quite easy to buy buy bitcoin and other crypto for the first time:and other – but it does depend on where you are based. To
- Create an account with local online exchange
- Transfer fiat money into the account
- Exchange fiat for available cryptocurrencies on the exchange
- Once you have your first crypto you can use it to buy coins on other exchanges
Here’s a comprehensive guide if you’re interested that shows.
Word of warning, Keep in mind the following:
- Tax may apply to your trades- this depends where you reside for taxation purposes- each jurisdiction will have its own rules. However most countries currently view cryptocurrencies as property and not currency. So your profits may be subject to taxes such as capital gains or income tax
- The future of crypto is highly uncertain. This is not to scare you off. I really believe in the tech behind cryptocurrencies and strongly feel that they will pave the way for a lot of future successful projects. However, no one can say for sure how it will pan out, and how long it will take
- is confusing and inconvenient. You need to be extra careful if storing it on your own (recommended but with a strong warning). Otherwise you need to find trustworthy exchanges or online wallets to store your crypto (not recommended). Unfortunately this is a case of ‘you’re damned if you do, or you’re damned if you don’t‘. However we are in the early days of crypto and such is the case. With emerging tech though, hopefully security and convenience will go hand in hand when it comes to .
- Remember that once you send funds anywhere you cannot get them back. There is no middleman or intermediary to resolve disputes between vendors and purchasers. You do not have the convenience that PayPal, or the banks offer. So make sure you send crypto to the correct addresses.
- There have been several cases where users lose their coins
- Do not rely on single sources for truth. For example don’t just rely on posts in a Reddit social group to make decisions. People on social media are happy to coins for their personal gain.