When this site first launched, there was no such thing as Cryptocurrency! But since its inception in 2009, Bitcoin has gone on to be the main king of Cryptocurrency, and spawned at current estimates over 6,000 alt coin services, many of which have already bit the dust. It’s a fast moving world, with Cryptocurrency go up and down as much as the traditional stock market – making and breaking investors the world over. This volatility makes it the ideal candidate for playing trading games.
We won’t go into what Cryptocurrency is in any depth here, as it’s beyond the scope of what we need to get you introduced to the trading of it and the ways and means of trading it. Let’s just say its typically an open-source alternative digital currency free of the supervision of any one governing body. It’s worth comes from the market value users ascribe to it. It is not held in one bank, but across computers and drives around the world. All in all its been a revolution for financial traders, with many having made vast sums from trading Cryptocurrency.
So lets dive in, really, there are two ways to make money from trading Cryptocurrency. We’ll focus mainly on Bitcoin for now, as it’s the big guy, but this equally applies to other popular Cryptocurrencies such as Ethereum or XRP.
Buy It Direct
This is the simplest way to trade Cryptocurrency, and can be lucrative. If you’d have spent a few thousand dollars buying bitcoin back in 2010, you’d be sitting on a fortune now. Ok, so this method requires you learning how to buy Bitcoin and relies on its worth going up in time so you can then cash-in, but it is easy to do once you’ve spent a bit of time studying the ups and down of the currency.
For instance: 1 Bitcoin was worth around £3,000 in January 2019. Currently it’s worth around £9,000 (August 2020). So, if you cashed in now, you’d have turned £3000 into £9000, a healthy profit of 300%.
This method means having to sink capital into your bitcoin purchase, and it potentially sitting around for long periods, and if the market crashes, it may never get back to the level you entered on. This method is fraught with issues and pitfalls, and requires an amount of technical knowledge that not everyone is willing to invest time and practice in. You’ll be pleased to know that the second method is a lot simpler, and involves none of the issues of holding your own Bitcoin, as mentioned above.
Trade It Like Forex Via An Online Broker
Yup, many of the brokers out there now offer the chance to trade Cryptocurrency movements alongside the more traditional FX markets. Cryptocurrency is also available in many of the Fixed Odds Financial Betting providers also. If you’re betting on short term movements of the currency or its value against other assets, then you don’t have to hold it yourself. You cut out the need to wait long time for the price of your bitcoin to increase into profit, you can bet on Cryptocurrency over days, hours and in some cases minutes.
This doesn’t require any of the learning required to handle the Bitcoin or other Cryptocurrencies yourself, no need to learn about wallets, exchanges or mining. You need to understand the platform that you’re trading on, whether it be at a Fixed Odds site or an FX Trading platform, and what it is you’re trading against, but that’s it. Nice and easy.
Whichever method you chose, there are several things you need to remember and keep reminding yourself. It’s easier to lose money than it is to make it. You could invest in owning a lot of bitcoin then have the market crash and it become worthless. You could choose the wrong Fixed Odds choices and lose your stake. Only ever play the trading game with money you can afford to lose, and don’t jump in blind. Manage your bankroll, set your stop loses and keep your fingers crossed.