You can make money by selling bitcoin in different ways: trading on the stock exchange or simply storing the cryptocurrency in your wallet until the cryptocurrency exchange rate increases. Each method has its own characteristics and risks, which also affect the potential profit. Today we will talk about ways to make money by buying and selling bitcoin.
Holding (the simplest way)
The easiest way is to just buy Bitcoin and wait for the best moment when the cryptocurrency exchange rate will grow significantly. However, this method is not the fastest one. In addition, there are certain risks: the cryptocurrency may not grow in price for a long time or even become cheaper. For example, in 2018, after the cryptocurrency boom, the price of Bitcoin has been correcting for 1.5 years until the spring of 2019.
The best time to buy comes after a strong crash, such as in March 2020, when Bitcoin fell even below $4,000, after which by the summer its price rose to $12,000 – almost three times increase in a few months.
Pros:
- Simplicity;
- Security. Cryptocurrency is stored in your wallet;
- Passivity. You just need to wait for the Bitcoin exchange rate to grow;
- Does not require knowledge and skills;
- No need for large investments;
- High potential return.
Cons:
- The risks of price fall;
- Long time required to get profit;
- Additional risks. You may lose your private key and seed phrase, and then you will not be able to restore access to funds.
Can you speed the process up?
You don’t have to wait for the Bitcoin exchange rate to start rising. You can use your bitcoins, for example, to earn interest by lending the cryptocurrency to crypto exchanges or other users. Many platforms support deposits in cryptocurrencies and pay users interest. You can find deposits at 4% – 8% interest per annum.
Here is a list of exchanges and services that support Bitcoin deposits:
- Binance;
- Crypto.com;
- Gate.io;
- Nexo.io.
You can also earn interest on liquidity mining. DeFi has gained high popularity over the past year, but most platforms are based on the Ethereum blockchain. The WBTC platform allows you to earn on Bitcoins by adding coins to liquidity pools and receiving rewards.
Another way
Crypto loans and deposits are not the only ways to make money from investing in Bitcoin. There is another method that is not only the easiest but also the fastest among the others.
There are Bitcoin exchangers that offer a high exchange rate compared to other platforms, including exchanges. How is this possible? Such platforms have access to platforms that ordinary users or traders from certain regions cannot trade on, but the rates on these crypto exchanges are higher than the market average.
One of these services is HiRiBi (https://hiribi.com/). You can use it to sell Bitcoin and receive dollars to your PayPal wallet after three network confirmations. The sale rate may be 5% or even 10% higher than the exchange rate, depending on the current exchange rates. HiRiBi monitors the rates on 20 major cryptocurrency exchanges to find the best selling price.
In addition, the service has a profitable affiliate program that allows partners to receive 2% of the exchange amount of users invited by them. HiRiBi (https://hiribi.com/) – this is the easiest and fastest way to earn money by buying and selling Bitcoin.
Trading
Crypto trading is one of the most profitable ways to earn money on Bitcoin exchange. Unlike conventional investments in Bitcoin, trading allows you to use leverage, which can bring more income, but significantly increases the risks.
Trading at first glance seems quick and easy, but not all experienced crypto traders manage to get a stable income. Cryptotrading requires a lot of experience and discipline. There are many trading strategies, each of which has its own individual characteristics. Main types of trading:
- Scalping;
- Day trading;
- Swing trading;
- Margin trading and others;
Pros:
- High potential income;
- It is a quick way to make money on Bitcoin exchange;
- Simplicity of the operations.
Cons:
- It requires extensive experience and ability to analyze markets;
- It is associated with high risks of losing funds;
- You need to spend a lot of time conducting and analyzing transactions;
- There is no passive income.
P2P exchange
In many ways, P2P trading is similar to classic crypto trading, with one exception: all requests to buy and sell cryptocurrencies are executed manually by users, and not by the exchange’s algorithms. The platforms themselves only guarantee the security of funds.
This approach allows you to use a variety of exchange methods: BTC to PayPal USD, AdvCash, and other payment systems, as well as credit cards. This method is more complex and slower than trading on crypto exchanges, but operational risks are reduced due to the fact that users immediately fix the profit from the sale. For one transaction, the seller and buyer on average receive from 1% to 2% of the profit.
Pros:
- High potential income;
- Lower risks compared to trading;
- It can be combined with work in the office or at home.
Cons:
- Low exchange speed. You can search for a buyer/seller for a long time. In addition, you need to earn a high reputation to get a steady stream of customers;
- Verification is required, which is a privacy risk;
- The risks associated with high volatility of cryptocurrencies, although lower, still remain at a fairly high level;
- Inconvenience: all operations are performed manually. In addition there are risks of fraud;
- You need to constantly monitor applications and do not lose sight of your smartphone or PC.
Crypto arbitrage
Another way to make money by buying and selling Bitcoin is crypto arbitrage. You can buy Bitcoin on one exchange and sell on another. Crypto-arbitrage can be not only inter-exchange, but also intra-exchange. In this case, you need to find an additional intermediate pair. This approach is faster, but more complex than inter-exchange arbitrage.
By the way, the HiRiBi service is based on this approach (https://hiribi.com/). Therefore, the exchange offers users a high rate for Bitcoin sale for PayPal dollars.
Pros:
- High potential yield;
- It is faster than a simple investment;
- It doesn’t require a lot of experience.
Cons:
- During a period of high volatility in the crypto market, rates can change quickly.
- The method requires preparation;
- The exchange can take a long time, especially if the bitcoin network is heavily loaded. In addition, the crypto exchange may delay the withdrawal of funds;
- High operational risks.
Conclusion
The choice of method depends on the individual needs of the user, their goals and capabilities. If you are well versed in fundamental analysis, you can make good money on investing in Bitcoin and crypto trading. But if you are a beginner, you will most likely prefer simpler ways to get acquainted, for example, long-term investments or exchange BTC to PayPal using the HiRiBi service (https://hiribi.com/), which will help you quickly sell Bitcoin directly from your wallet.
Always weigh the risks and use funds that you are not afraid to lose. In other words, do not forget to follow the rules of risk management, which will help prevent or reduce the amount of possible losses.
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