How to make money by buying and selling Bitcoin

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.

How to make money by buying and selling Bitcoin

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.

Why Bitcoin will be at the center of the world of cashless payments

The financial market is managed by currencies. And so it goes on for many years. But this is only because fiat currencies are the best means of payment. In fact, until the end of the 2000s, we did not have a competitive alternative, but now it has appeared, and this has shaken the centralized economy to the ground.

Switching to non-cash payment can not only cause some discomfort but also pose a real threat. Of course, we are less likely to use cash, but we are still reassured by the fact that we can withdraw cash from an ATM to buy what we need. But cashless money, although more convenient and safer to use, limits our freedom: it completely eliminates anonymity, and the Bank can block funds at any time and, thus, hinder the achievement of the goal. To sum up: we have gained speed and convenience, but we have to pay a high price for it – privacy.

The transition from paper money to cashless was accelerated by the spread of the COVID-19 virus. Money has become a potential means of transmitting the virus from person to person. More and more, the world is moving to remote interaction, in which cashless money plays a crucial role. But how long will it last?

Cryptocurrencies – the future of money

In support of this thesis, there are many arguments, many of which were presented by famous personalities. Twitter founder Jack Dorsey believes that the Internet needs its own digital currency. At the Oslo Freedom Forum 2020 online conference, he said:

“Blockchain and Bitcoin will define the future – a world where content exists forever. The whole point of Bitcoin is to create a trusted system in an untrusted environment, which is the Internet.”

For the first time, the CEO of Twitter announced his plans to create his own digital standard for a decentralized economy back in 2019. The team from Blue Sky has already started implementing a blockchain platform with an open protocol for the Twitter social network. Also, according to Dorsey, the best implementation of the digital currency is Bitcoin. Dorsey also noted that a large social network has enough resources to promote this concept to the masses and make it accessible to people.

Alex Gladstein, chief strategist at the Human Rights Foundation, shares a similar view. He believes that Bitcoin will become the most important alternative in the future of global finance.

Why currencies are not the future of the digital world

Although fiat money still reigns in the financial world, it has no place in the future of cashless payments. Paper money was digitized and made more modern, but its basis remained the same. Fiat is an outdated financial instrument, the disadvantages of which we have been feeling for several hundred years. What are the main disadvantages of fiat money and why does it belong on the back of history? Let’s look a bit closer at the question.

Currencies are strongly linked to the economy

Fiat money depends on the economic performance of a particular country or group of countries. External economic and political countries play an equally important role. When one country’s economy collapses, it becomes more vulnerable economically and dependent on states with stable economies. When the local currency collapses, imports become too expensive, which only worsens the crisis. Here we can only draw one conclusion: fiat is unstable to economic crises.

The only way to make a currency stable is to make it international, that is, universal, not tied to the economy of a particular country. But how can states agree on who can issue cryptocurrencies and how much? If the number of digital currencies is made finite, like Bitcoin, then the exchange rate will not be stable: there will be a deficit that cannot be compensated in any way.

However, it is not necessary to limit the issue of digital currencies. There are other ways to go. There are at least two possible ways to implement this:

  • With the help of a DAO – a Decentralized Autonomous organization. This will allow states to jointly decide when and how much of a new cryptocurrency to issue. Each country will have an equal influence on the blockchain process, and consensus will be achieved in a decentralized way by voting participants. However, this approach will ignore the interests of the individual country.
  • The second option is not to limit the issue, but to make a PoS mechanism that will provide a natural annual increase in the currency. Moreover, the percentage of growth would be controlled by an algorithm and could be regulated by the same DAO.

Blockchain accelerates the economy and makes it more accessible

Even central banks and governments have begun to realize the value of blockchain and cryptocurrencies. This is the first step on the way to utopian conservatism to real progress. They realized that blockchain technology is the foundation of the new digital economy, which will make financial transactions more efficient. The process has been launched, and many institutions that previously disavowed cryptocurrencies have joined it. For example, the famous fast food restaurant Burger King has already started accepting payments in Bitcoin.

New rules and a futuristic economy can not only shake the landscape on which the current financial world was built, but also completely destroy it. Major crypto exchanges conducted surveys and found out that buying cryptocurrencies is becoming mainstream, and this will remain forever. Now we are sure that cryptocurrencies are not a temporary bubble, but a promising technology of the future that is already available to us.

And right now you can become a part of this world: Bitcoin (BTC) purchase is available to everyone. This can be easily done with the help of cryptocurrency exchanges.

Conclusion

Technology does not stand idle. The time is not far off when you can easily buy Bitcoin online with ApplePay or GooglePay in a couple of clicks. The time of doubts and prohibitions has passed, and the reality has changed over the past five years. We are on the threshold of a new digital world where digital currencies and blockchain will rule, not cashless money.

10 facts about Bitcoin that you might not know

Bitcoin is the most recognizable cryptocurrency. There probably isn’t a single user on the Internet right now who hasn’t heard of it. But do you know Bitcoin well? We are sure that there are things that even crypto enthusiasts who are familiar with the first cryptocurrency have not heard about. Here are 10 facts about bitcoin that you might not know

1. At least 60% of bitcoin addresses are “ghosts”

Bitcoin holders are responsible for their savings and securely store private keys that provide access to bitcoins. If you lose your private key, access to coins will be lost forever. But 5 years ago, only a few people thought about it, because the cryptocurrency cost only $450 at that time. Many people found out that their bitcoins were lost only in 2017, when a real hype began around the crypto market, and the cryptocurrency exchange rate reached almost $20,000.

2. Bitcoin capitalization exceeds the budget of Switzerland

Switzerland’s budget for 2019 was $198 billion. Bitcoin’s capitalization as of the end of September 2020 is $198.5 billion. Also, Bitcoin’s capitalization is superior to the budgets of Austria ($174 billion), Israel ($137 billion) and Finland ($131 billion).

3. Satoshi Nakamoto’s 980,000 bitcoins (BTC) 

It is no secret that the creator of Bitcoin is an anonymous user or a group of people under the pseudonym Satoshi Nakamoto. His identity is shrouded in mystery, and it has not been revealed. However, we know that the wallet of the Bitcoin creator contains 980,000 Bitcoin (BTC). This is approximately $10.5 billion according to the exchange rate at the time of writing, which makes Satoshi one of the richest people on the planet.

However, so far no bitcoins have been transferred from this bitcoin address. There have been many attempts to prove that this or that person is Satoshi Nakamoto. Among others, the famous Australian entrepreneur Craig Wright and one of the developers of Bitcoin ABC (now BCH) Amaury Sechet were suspected of being Satoshi. But so far, the attempts have not been convincing and we do not know what fate awaits Satoshi Nakamoto’s 980,000 BTC. This amount can bring down the bitcoin exchange rate by more than 50% in an instant. 

4. The first bitcoin exchange

Few people know, but the world’s first bitcoin exchange was Bitcoinmarket.com, which was launched in March 2010. The first mention of this domain was on BitcoinTalk.org – the most famous forum dedicated to cryptocurrencies. Yes, the first bitcoin exchange was not BTC-e or even Bitstamp, as many are sure. Back then, you could buy bitcoin for just $0.003, and for $1 you could buy 333 BTC (~3.5 million now).

When trying to open a domain Bitcoinmarket.com the browser sends to Andrew (Drew) Rosener’s Twitter. He is a domain broker and the  CEO of Media Options. Now the number of crypto exchanges has exceeded 30,500. And these are only those that were included in the list of the well-known CoinMarketCap resource.

5. Liberland – the country of Bitcoin

In 2015, a new micronation – Liberland – was founded. It is a virtual state on the west bank of the Danube river between Serbia and Croatia, and its official currency is Bitcoin.  

6. Bitcoin miners are more powerful than a supercomputer

Summit is a famous supercomputer with a computing power of 122.3 PFLOPS. At the same time, Bitcoin miners can generate as much as 80,704,209 PFLOPS-almost 600,000 times more.

However, the Summit supercomputer requires about 15 MW of electricity, which is equivalent to the consumption of about 8,000 average homes in the United States. And the energy consumption for Bitcoin mining is higher than the consumption of Ireland. More of that later. In addition, Summit performs various tasks, while Bitcoin can only add new blocks to the blockchain.

7. Bitcoin mining consumes more electricity than Ireland

Ireland is a european country with an area of about 85,000 square kilometers. But, despite the impressive area, it consumes less electricity than all mining farms combined. Ireland consumes about 5,000 kWh while Bitcoin consumes more than 6,000 KWh. Mining farms also consume more than 20% of the total energy consumed in Ukraine.

8. 9 years ago, Bitcoin was worth $1

In 2011, Bitcoin exchange rate exceeded 1 US dollar for the first time, and has not fallen below this level since. Imagine that 9 years ago for $100 you could buy as many as 100 bitcoins (BTC), which would now cost about $1,050,000. The same year, Bitcoin exchange rate rose to $30, and in 2013 it exceeded the $100 mark. Bitcoin exchange rate has been above $3,000 for more than 3 years.

9. “Bitcoin” is not equal to “bitcoin”

Did you know that there is a significant difference between the terms “Bitcoin” and “bitcoin”? Cryptocurrency is always written with a capital letter at a time as bitcoin is its blockchain. “What’s the difference?” you may ask. The difference is huge: Bitcoin is a digital currency. You can use it to send transactions, and bitcoin only stores transaction records in blocks. In other words, Bitcoin is money, and bitcoin is a bank.

10. $500 million crypto theft

The largest crypto theft occurred in 2018. Unknown hackers stole more than 500 million NEM (XEM) from the hot wallets of the Japanese crypto exchange Coincheck. It became known that hackers are residents of Russia. The cryptocurrency could not be returned, but the crypto exchange reimbursed users for losses in full.

Although Coincheck incident is the largest in terms of value at the time of theft, but in terms of the current rate, the theft of 850,000 BTC from the Mt. Gox crypto exchange is still the leader. At the time, this amount was equivalent to $470 million dollars, but now this amount would be more than $9 billion, and the incident with Mt. Gox would be the largest bitcoin theft in history.

How to save and multiply your fortune on Bitcoins: crypto lifehacks for beginners

Investing in Bitcoin is accompanied by high risks, especially if you are a beginner. Novice investors tend to follow instant impulses that cause them to buy a cryptocurrency at a time when its rate has grown sufficiently. Therefore, newcomers are often exposed to great risks and lose money when the rate goes down.

Looking at a prolonged drop, newcomers tend to lose patience and sell cryptocurrency at a low price, fixing losses. It often happens that after this, the rate starts to rise suddenly. This may continue for several cycles in a row, until the crypto investor either accepts the losses, or changes its tactics, waiting for the right moment to buy and sell bitcoin.

But even if you bought a cryptocurrency low, this does not guarantee that its rate will not correct even more, and you will save your funds. In today’s article, we will tell you about a few simple life hacks that will help you earn on bitcoin investments and save your money even if the price of the cryptocurrency starts to fall.

Get a crypto loan

Today, there are many services that allow you to take out a loan secured by cryptocurrency: Nexo, Compound, Aave, and many others. At first glance, this method may seem unprofitable, since the borrower will have to pay interest. But in fact, cryptocurrencies are different from traditional lending. And here’s why:

  • You don’t need to submit documents and get approval. The loan is issued automatically after you deposit the cryptocurrency as collateral;
  • Interest on cryptocurrencies is several times lower: in practice, they rarely exceed 8% per annum. And DeFi – lending platforms provide even cheaper loans, which are below 1% per year;
  • No one controls delinquencies and there is no need to make monthly payments during the entire loan term. And if at the end of the term you do not pay the loan, the collateral will simply be debited, and there will be no problems.

Now let’s see what benefits an investor can get from this. Everything is very simple: at the end of the loan term, you pay a fixed amount in the currency plus interest. Consider two different situations.

Case one: the price of cryptocurrency by the end of the term increased by 30%

Let’s say you took out a 1 BTC crypto loan (~$11,500 at the exchange rate at the time of writing) at 8% per annum. At the end of the term, you will need to return $11 500 + $920 = $12 420. But, since the price of bitcoin has increased by 30%, the cost of your collateral will be $14,950. Your profit will be $ 2,500. To cover the cost of interest, it is enough for Bitcoin to grow by more than 8% or $920.

Case two: the price of the cryptocurrency has decreased by 30 by the end of the term%

And this case is the most interesting one. If you just buy 1 BTC and store it in a crypto wallet, you will lose 30% of your investments, i.e. $3,450, and the value of your portfolio will decrease to $8,050. Agree, this scenario is unlikely to please you?

But if you take a fixed-amount crypto loan, the funds will be partially safe. In this case, you can simply not pay the loan: your collateral will “burn”, and you will only suffer losses by paying interest – 8% or $920. Then you will have $10,580 left on your hands – $2,530 more than if you kept Bitcoin just in your wallet.

Summary

Of course, if you get a crypto loan, then if Bitcoin grows, your profit will be lower. And if the Bitcoin exchange rate does not grow by more than 8% during the loan period, then you will not make a profit at all. However, crypto loan insures your assets in case the price will be significantly reduced.

Use arbitration

Crypto-arbitrage is the purchase of cryptocurrencies on one platform and the sale of them on another in order to make a profit. Such arbitration is also called inter-exchange arbitration. Thanks to this method, you can sell the cryptocurrency more expensive immediately after its purchase, without waiting for the moment when the Bitcoin exchange rate will rise.

On many platforms, the exchange rate of cryptocurrencies may differ by 5% or more, which allows you to earn on inter-exchange arbitration. However, it will be difficult for beginners to implement this method manually for a number of reasons:

  • It is necessary to constantly monitor dozens of sites and look for suitable arbitrage opportunities. Of course, it will not be difficult to find special screeners on the Internet that display the rates of various crypto exchanges on the same screen. But this will not save you from having to constantly sit in front of the monitor screen and monitor the courses.
  • You need to take fees into account. You need to calculate the profit taking into account the costs of exchange and withdrawal. Conditions may change due to various factors, and this will also have to be constantly monitored.
  • You will compete with bots. As soon as the arbitration window appears, bots will be the first to react. They will always be ahead of you, because they act automatically, and they take milliseconds to complete operations.

In addition, if you independently transfer cryptocurrency from exchange to exchange, it can take a long time, during which the price of the crypto asset can change significantly, leveling all the benefits, and even lead to losses. Exchange and withdrawal fees should also be taken into account.

What to do?

There are various services that, thanks to arbitrage, allow users to sell bitcoin at a higher rate than on many popular exchanges. Thus, the platforms do not bear the cost of fees when exchanging bitcoins through crypto-fiat gateways.

HiRiBi is one of such services (https://hiribi.com/). You can use it to exchange bitcoin for PayPal dollars and get a profit at the same time. For example, you bought 1 BTC at the rate of $11,500. On HiRiBi, you will sell Bitcoin for $12,315, and your profit will be $815 or 7% of the transaction amount.

Hiribi exchange monitors 20 major crypto exchanges, which allows users to earn money on arbitration, saving them from having to do all the work manually. The sale rate depends on exchange rates: the greater the difference between bitcoin prices, the more profit you can get by exchanging BTC for PayPal. Therefore, the profit from the sale of Bitcoin can reach even 10%!

PayPal is the only payment system supported by the service. This year, the payment system said it would target cryptocurrency users and even partnered with the Paxos platform to integrate crypto exchange solutions. Therefore, if you want to sell bitcoin more expensive and reduce losses in case its rate collapses, then use the HiRiBi exchanger (https://hiribi.com/).

Summary

The service will provide some insurance, so you don’t have to worry too much about your savings if you invest in Bitcoin. If the exchange rate drops by 5% – 10%, you can simply exchange Bitcoin using HiRiBi and break even. And if the price increases, your profit will grow even more.

Bonus: provide loans to other users

There are p2p lending platforms where holders provide cryptocurrencies to other users directly. At the same time, the platforms themselves act as guarantors of transaction security. Some crypto exchanges, such as Binance and Poloniex, also provide this feature. The main difference is that exchange-traded crypto loans can only be used by traders on the platforms themselves, but interest is accrued daily, which increases the yield due to a complex percentage.

Thanks to P2P lending, your coins will not be a dead weight in your wallet, but will begin to generate passive income. And you can also combine several methods that we wrote about in the article. Let’s calculate how much income you could get from lending, if the bitcoin exchange rate does not change in a year, and you sell it using the HiRiBi service (https://hiribi.com/).

Let’s say you provided 1 BTC on credit to other users at 5% per annum. Then your profit will be 0.05 BTC. Then you sell Bitcoin through HiRiBi at the rate of $12,315 and eventually get $12,930. $1,430 is your profit, which is about 12.4% of the initial investment. This way you will save money, even if the price of bitcoin falls by 12% over the year.

Here are some simple cryptolife hacks that will help you save money and increase profits in the event of a rise in the bitcoin exchange rate. Of course, these methods will not save you completely from losses, but they will significantly reduce the risks when investing in cryptocurrencies.