Want to buy bitcoin but have no idea where to start? How much money do you need for this? What is this verification process? And how can you even buy that darn thing?
Don’t worry, we’ll get to the bottom of it and give you a step-by-step guide from verification to your first successful bitcoin purchase.
The best part? There are only three steps!
- Sign up to Bitpanda
Create a Bitpanda account and confirm your email address.
- Verify and deposit funds
Confirm your identity with one of our trusted verification partners and deposit funds.
- Start buying Bitcoin
You’re all set! Start buying Bitcoin and over 2,000 other digital assets.
With Bitpanda, you can buy Bitcoin easily, quickly and securely.
How to make money on the bitcoin exchange rate?
The question “How to make money on the bitcoin” is becoming more and more relevant every day.
Usually, we are talking about the purchase/sale of cryptocurrency (directly, on the exchange).
But this is not the only way to make a profit. You can get what you want by doing work with payment in bitcoin or selling goods in Bitcoin.
The goal is always the same – to fill your own wallet with as many digital coins as possible.
Ways to make money with bitcoin
Almost any cryptocurrency earnings are designed to maintain the uptrend of BTC. Then the desire to increase the amount of savings in bitcoins is justified.
If their price starts to fall, it will be more profitable to trade on the Cryptocurrency exchange, making a profit both on the rise and on the fall of the exchange rate.
Common ways to get Bitcoin are:
- Selling goods/services for cryptocurrency through a payment system connected to the site or by direct transfer to the seller’s wallet;
- Mining on your own equipment by connecting to a pool of miners or renting a remote server;
- Exchange trading with trading on the BTCUSD pair (similar to working with currency pairs like EURUSD);
- Inter-exchange trading with the purchase of bitcoins on one exchange and sale on another, where they offer a more favorable rate;
- Buying crypto through exchanges.
There are also quite unusual options. For example, gambling. They allow you to receive digital money “just like that.”
Compared to them, making money on the cryptocurrency exchange is a big and difficult job.
Methods of making a profit can be combined in any combination, depending on the amount of free cash.
How to make money trading bitcoin?
If you have chosen CFD trading, start your work by installing platforms like MT4 or its equivalent.
Before making a deposit, it is worth learning on a demo account.
You can test various indicators, automatic expert advisers, manual trading strategies on it. And once you start making profits, switch to real money.
Basic rules for trading on the CFD exchange:
- Choose a reliable company like Bitpanda – you can focus on the presence of reviews on the Internet, on the equipment of the site (is there a thematic forum, the functionality of your personal account, etc.);
- Pick a currency pair – the most common BTCUSD option, some exchanges like Bitpanda offers many exotic pairs like BTCETH (bitcoin / ethereum);
- Study the current market – Technical analysis of the chart in MetaTrader 4 or in its online version will help you (you can select news websites that publish information about the cryptocurrency market, events in the world regarding bitcoins).
Typical work on the cryptocurrency exchange is to regularly monitor the chart and identify the trend.
“Jumping into a departing train” should not be the option, and it is more profitable to wait for a correction or continued growth / fall in the exchange rate. Then trading becomes profitable.
To diversify risks, you can create accounts on several exchanges.
This will eliminate the possibility of losing the deposit due to the dishonesty of any company (non-trading risks).
Saving in cryptocurrency
If exchange trading is difficult or there is no time for it, you can limit yourself to the usual purchase of bitcoins.
How much you can earn on cryptocurrency in this way is found out through many news.
The owners of modest accounts were able to become rich people in a few days in the Cryptocurrency market. And nothing was done for this, except for the acquisition of coins.
You can store savings in bitcoins, and earn profits from trading real currency and precious metals/shares for them.
Sometimes exchange trading is combined with the subsequent exchange of profit for digital coins.
Then it is not so important for an investor where to earn cryptocurrency because the amount on the wallet is replenished from several sources.
Short and long term strategies
The history of the change in the bitcoin rate suggests that investing in this type of cryptocurrency for the long term can be profitable.
On the one hand, it cannot be reliably said that the price of bitcoin will rise significantly.
Any cryptocurrency is classified as a high-risk asset. And their value can drop sharply just as it can rise.
On the other hand, the bitcoin mining system causes a formal rise in the price of each new coin created.
The less they become in the future, the higher the competition in the market, which spurs buyers and maintains an upward trend in the exchange rate.
If a newcomer to the cryptocurrency exchange often chooses intraday trading, trying to take profit “here and now”, an experienced trader includes long-term strategies in the investment package.
Typical trading strategies for BTC are divided into the following categories:
- Scalping – allows you to get big profits in a short period of time, but with the condition of increased risks;
- Trend strategies – usually refer to medium-term and long-term, when the transaction remains open from several days to a month or more;
- Level breakout strategies – they take into account the high volatility of bitcoin, which is why almost any breakout of support / resistance is accompanied by a price movement with a “sweep” that allows you to make good money.
Of the advantages of the long-term strategies, they note the small loss of time for the trade itself.
A trader does not need to sit at a computer every day, it is enough to look at the rate once or twice a day, correct transactions (open additional orders, partially close them, move stop orders, etc.).
Arbitrage method for profiting from bitcoins
If a trader likes active work more, an arbitrage method will suit him. It is based on the difference in exchange rates.
From time to time, situations may arise when it is more profitable not to trade within one company, but to engage in buying/selling very quickly, while the bitcoin rate is at a favorable level.
This procedure is often automated, then you don’t really have to figure out how to make money on the cryptocurrency exchange. It is enough to start the robot and wait for the opportunity.
Robots allow you to be in the market around the clock, and you are not requireed any skills in currency trading to run robots.
They only need a stable internet connection. For this purpose, it is possible to rent a server on a remote location and run the software there.
If everything is set up correctly, it remains only to periodically withdraw profits.
Selling goods for Bitcoin
If there is a desire to expand the investment portfolio, many people think about where to earn cryptocurrency, except for exchanges.
The last possible way is to create an website for the sale of goods or services, equipping it with a module that accepts payment in BTC.
When choosing this method, it is recommended to take into account the high cost of bitcoin, so the products sold must be priced appropriately.
Typical goods that can now be bought for bitcoin today include:
- Hotel stay;
- Airplane ticket;
- VPN services;
Indeed, for the development of the site, investments will be needed both at the time of creation and afterwards (advertising, technical support, etc).
You can also buy goods for sale by paying the supplier with bitcoins (having earned the first Cryptocurrency tokens).
Cryptocurrency allows you to rise with little or no initial investment. The only condition is that a person must have time, patience and a desire to earn.