The internet has created a vast opportunity for everyone who is interested in making money both expert and newbie alike. You can as well take advantage of that opportunity to accumulate wealth if you know how to play your cards right. You can adopt various online money making methods of your chosen be it trading Bitcoin or forex, blogging, freelancing etc. what baffles me most times is how people gather to discuss negatively about online money making methods and remain broke even though they have been shown proves. There are many methods of making money online. However, for this article, we are sticking to making money through trading Bitcoin.
What is Bitcoin?
Bitcoin is a decentralised digital currency which means it is not controlled by any government. Bitcoin as a digital currency has gained a lot of popularity over the years and have been accepted as a mode of payment by many. I have personally used bitcoins to purchase things online, and all I can say is this “Bitcoin technology is awesome.”
How do I acquire bitcoins?
There are two major ways you can acquire bitcoins which are
- By mining
- By purchasing it
Acquiring bitcoins through mining is one of the most popular methods of getting the coin, it involves the use of a device called Bitcoin miner to mine or confirm transactions on the blockchain network. We are not going deep into it in this lesson.
Secondly, you can acquire bitcoins through purchasing it. There are various places online you can buy from, it only involves exchanging your fiat for bitcoins, and that’s all. Such avenues of buying bitcoins are called exchanges. Examples are luno.com, Remitano.com etc.
How do I make money trading bitcoins?
Trading is as old as man. It involves two parties buying and selling goods or services. Trading in our context here entails buying and selling of bitcoins. Where do we meet to do the transactions? Simple, we meet online on what we call an exchange.
What does bitcoins trading entail? The prevalent mode of trading involves buying goods when their prices are low and selling them when the costs appreciate, the same applies to bitcoins, you buy when the price is low and sell when the price appreciates, the difference is your profit. There are things you need to have in place before you can effectively trade bitcoins which are
- A bitcoin wallet
- A trusted exchange
- A phone or laptop with subscription
Knowledge: In whatever you do, knowledge is vital. Trading bitcoins involves acquiring a lot of knowledge; this knowledge is essential for effective trading and money making. Don’t expect to make money with bitcoins with an empty head (ignorance). When I started trading bitcoins at first, I thought it was so simple until when life taught me a very terrible lesson. However, you don’t have to experience what I experienced if you will sit down and acquire knowledge. Before any other thing is knowledge, and remember, acquiring knowledge never ends, it continues since market conditions also change with human behaviours and more. Remember the saying “knowledge is power.”
A Bitcoin wallet: As I have said earlier, Bitcoin is a digital currency with a different technology, so it requires a different mode of saving. It can only be kept in a wallet. So you need to get one from sites like blockchain.info, luno.com etc. remember, not all wallets online are safe, I only recommend the ones I have used.
A trusted exchange: An exchange is a platform where traders meet to transact. There are many of this exchanges around, so care should be taken in choosing one. The ones I have used and trusted are Luno.com, Remitano.com, binance.com, bitstamp.com and bittrex.com. In subsequent lessons, I will teach you how to keep your coins safe.
This is an introduction to Bitcoin trading. If you do have a question, you can drop in the comment section.