Do you want to start a bitcoin mining business online? If YES, here is a complete guide on how to buy and sell bitcoins anonymously for profit with NO money/experience. Being able to predict the future rise in the value of a currency is the most important factor in trading any currency. The value of bitcoins varies every day which makes it very good as a trading option.
The easiest and most efficient way to make money off bitcoins is to buy it, and then sell it when there has been a reasonable increase in its value. Although bitcoins can provide a lot of profit, it is important to know that it comes with a lot of risks. This is because of the difficulty in making accurate predictions about the rise or fall of the currency.
Bitcoin is referred to as a digital currency and the amount that will be available in circulation is fixed. This amount has not been reached and bitcoin mining is the method through which the bitcoin is put into circulation. It involves finding solutions to complex blocks which are used to confirm every bitcoin transaction.
A single block can produce up to 50 bitcoins once it is solved. The time taken to solve a block is based on the skill of the miner and the processing power of the CPU used in mining. This method is very difficult which makes bitcoin trading a better, simpler alternative.
There are ways by which you can trade bitcoins without much risk and we will take a look at some of these ways.
How to Buy and Sell Bitcoins Anonymously for Profit
There are different ways by which you can trade bitcoin to make profit. The same way shares are purchased at low prices and sold when there has been a tangible increase in price, is also applicable in trading bitcoins. For you to start trading, you will need open a bitcoin wallet where you can store any bitcoin you purchase. You can then open an account with an exchange site and fund the account.
You can also convert your local currencies directly to bitcoin if you prefer. After opening an account, it is time to observe the market for any good trade opening you can take advantage of. This is what determines if you are going to make profit or a loss while trading.
Based on the amount you put on a trade, the exchange company will require that you pay a certain percentage to them. You must be knowledgeable in trading the currency to ensure that you don’t end up throwing away all your money.
Another way to make money from bitcoins is by changing it to other crypto currencies. Some online exchange sites provide you with over 30 alternative crypto currencies which you can convert your bitcoins into. This can be used to amass substantial profit in the long run.
You can also enlist the services of a trade broker to trade on your behalf. This is advisable when you are not very knowledgeable about the market. The broker will be in charge of making trades by monitoring the market and will also be responsible for managing your bitcoins.
Some of the basic trading steps include;
- Opening an account on an exchange site and then funding the account. These funds are used when you need to purchase bitcoins.
- For safety reasons, you should open accounts on other sites. This is to prevent you from any excessive loss you may incur if you depend solely on a single site in case the site fails.
- Adopt a suitable trading strategy. Just as in forex trading, there are also many different methods of trading bitcoins. You may choose to be a swing trader or a day trader. You may select based on what method is better suited to your activities or preferences.
- After deciding on these factors, you then move on to the market. You should be on the lookout for any good trade opening.
When going into bitcoin trading, it is always recommended that you make use of spare money which you can afford to lose. This is because of uncertainties surrounding the economy of the bitcoin as it is an online economy and can also crash. This also helps you to avoid selling your bitcoins at low prices when you are in desperate need of money.
4 Sure Profit Making Bitcoin Trading Strategies
A clearly outlined strategy is the foundation of any successful bitcoin trader. This helps you decide when to enter a trade, your profit margin and your loss margin. This also helps you decide how much loss you are willing to risk before closing a trade.
Some popular trading strategies in common application which you can adopt include;
1. Observing Trends
A trend is the most notable direction in which a price is moving. The long-term trend is the most identifiable trend as it is observed over long periods from months to years. A trend does not mean that the price will only move up or move down but means that while moving up and down respectively, the price will either move while creating an upward pattern or downward pattern.
2. Fundamental analysis
Fundamental analysis is a popular trading strategy among investors and forex traders. It can also be applied to bitcoin trading. Here, you consider the factors which are usually responsible for the changes in the price of bitcoins.
These factors include the amount of transactions in a day, the number of active wallets, etc. after gathering all these data, you then analyse it to predict a price at which you think the value of bitcoin will fall or rise to at a particular time. You can then decide if you wish to buy or sell the bitcoin based on this analysis.
3. Trading based on News
Another way to make profit trading bitcoins is to trade on events which are announced on the news. Price movement is often determined by announcements made on the news such as any new government policy on bitcoin, any news on a crash of an exchange site or its hacking. This strategy is incorporated as a supporting strategy since it is not easy to get information on the news as soon as they are announced.
4. Swing Trading
This is a short-term trading strategy in which a trade is open for more than a day and lasts for a week or two weeks. It provides an advantage over day trading since you don’t have to predict price changes over a short while and it is better than long-term trading strategies which need months or years to realize profits which may also end up as losses.
Bitcoin Derivatives and Trading Platforms
- Margin Trading
Most sites usually borrow traders a certain amount of money which they can use in a trade and this amount is known as a leverage and this is how Margin trading works. It helps to provide an increase in your profits but can also increase your loss.
Most exchange sites will usually include an automatic sell option to prevent you from losing all the bitcoin available in your account if the market is not favourable to your trade. Sites which offer leverages for margin trading include;
Plus500 is another exchange site and they provide an alternative way to use margin trading through ETFs or Exchange Traded Funds. The ETF price is used in tracking that of bitcoin. It is usually only provided for day traders and generally offers a cheaper means of trading instead of using leverages.
If done appropriately, trading in bitcoins can bring you a lot of revenue and can even be a full time job.