How Do Traders Make Money Using Bitcoin?

Bitcoin is one of the most revolutionizing inventions of the modern era. It provided the users with a much safer online payment method as it increased their security by giving them a certain level of online anonymity. Thanks to the fact that this cryptocurrency is user-orientated, it was well-accepted by people from all around the world.

These days, millions of people use Bitcoin as a payment method and/or main source of income. As you may know, some traders sell their Bitcoins and use this profession as their main source of income. Considering the fact that Bitcoin continues to shatter the record in value and write history with each passing day, we do not doubt that the cryptocurrency has the potential to make people overnight millionaires.

Speaking of selling Bitcoins and making a profit, there are not a lot of us that know how traders actually make money. We do know that Bitcoin is the key, but many questions need to be answered. How do you earn Bitcoins? Where do you sell them? How do you know which time is the best time to sell them? We are going to try and answer all of these questions by diving into this process. Let's begin.

Trade Sites Is Where The Magic Happens

Trading sites is where the magic of selling Bitcoins and earning a profit takes place. At these sites, Bitcoin owners can get help from experts and figure out a plan as to when is the best time to sell their Bitcoins. Why is timing so important, though?

As you may know, Bitcoin has a very high volatility rate. Its volatility shows that the value of this cryptocurrency is a subject to frequent changes. Very often, Bitcoin’s price can go up or down daily. Figuring out the future price of Bitcoin is the key to making the highest possible profit.

Trading sites have advanced AI systems which take all the data concerning Bitcoin and make a prediction on its future fluctuations, thus helping you to figure out when you should sell them. These AI software systems have proven to be very helpful and effective in their work. As for which trade site you should choose, Bitcoin Prime is gaining a lot of traction due to its huge daily profitability rate and success. If you own Bitcoins and you are looking to sell them, Bitcoin Prime is worth a check.

In short, Bitcoin owners sell this cryptocurrency with the help of trading sites which provide them with enough intelligence to figure out when Bitcoin will rise in value. But how do you earn it?

Earning Bitcoin

There are essentially 2 ways to earn Bitcoin. The other one is hard and free, while the other one is easy but expensive. Let’s start with the first one. The free and hard way to earn Bitcoin is through mining. This is a process which requires miners to record every Bitcoin transaction by solving various complex puzzles. The reward for each recorded transaction is Bitcoins. It is also worth mentioning that each transaction is called a block, while the log that stores all the blocks is called a blockchain.

As for the easier part, it is very simple. All you have to do is register a brokerage account and buy Bitcoins. Of course, this way requires you to have a certain amount of money. Many people choose this way as well. After buying Bitcoins at a certain price, they hope that the value will increase and they will be able to make money.

Take 2020 as an example. At the beginning of the year, Bitcoin finally went back to its normal state and had a stable price of around $10,000. But after several indicators suggested that the cryptocurrency could spike in value, many traders decided to invest money and buy a certain amount of Bitcoins.

What happened next? Not only did Bitcoin spiked, but it shattered the 2017 record by a huge margin. Bitcoin topped $20,000 in mid-December for the first time in its history and today’s value is at a little over $36,000.

Thanks to that rise, traders that bought Bitcoin for around $10,000 can now triple their investment in profit. The risk in doing this is that there is also a chance to lose money is Bitcoin’s value drops. As we stated earlier, this is a highly volatile cryptocurrency and its price goes up and down quite often.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes