Bitcoin trading is very appreciated nowadays because it is an easy and fast way of making money. On the other hand, it’s a high-risk method, and you can also lose a small fortune withbitcoin trading.
What does Bitcoin Trading mean?
In short, Bitcoin is a digital currency, which is also called cryptocurrency, and it does not belong to any country. These transactions are made only online, as the currency itself is only a digital one, and you can buy goods or services from providers that accept this kind of transaction. The greatest thing about Bitcoin trading is that no purchaseis made through banks, which means no fees. Moreover, you are not even required to give your real name. In fact, the currency was created in 2008 by an unknown person, who also gave an alias, Satoshi Nakamoto.
Nowadays, more providers accept bitcoin trading, and you can use this currency for a large variety of goods and services, from pizza to webhosting services. You can also exchange bitcoins in your country’s currency.
An easy way to start: become an exchanger
If you join a peer-to-peer exchange marketplace, you can buy and sell coins. To obtain a profit, you should gain around 4% for every purchase you make; this means that you have to follow the goods that are 2% below the market price and then sell them at 2% above this price. It is not hard to have a profit this way, and people will offer you this extra sum of money if you provide quality services. For example, many people are prone to offer more for a product they buy if they have the chance of verifying it first or if they can meet with you in person for the trade.
Becoming a trader
Well, being a trader requires a lot more knowledge than being the person who exchanges, but the transition can be quite smooth. If you start off by exchanging bitcoins, you will get used to the market, and you will be able to analyze the tendencies for a period. This will contribute to your success as a bitcoin trader.
Such a trader will always buy and sell services, guided rather by its intuition that any other rule or aspect. The problem with bitcoin trading is that no one knows for sure how much will the currency rise or fall, and there is no one to stop any dramatic change that occurs.
While the exchanger is focused on offering quality services in order to gain trust and popularity, a trader will concentrate on making or taking offers, according to their intuitions regarding the market.
If the market is stable, both players will make a profit, even if the traders will have a higher rate. But if the market rises or falls very quickly, the exchanger can only lose or win a small amount of money, while for the trader there is more money involved.
Next step: focus on making offers
However, once you feel prepared, and you think you have enough skills to appreciate the changes that occur in this market and deal with them, you can take the next step in making a profit.You will go for a more centralized exchange, where you make offers, rather than taking them.