Bitcoin has become one of the biggest money making platforms across the World’s economies. It is not tied to any financial regulator or modern banking institution, making it also difficult to understand. With the right knowledge, anyone with enough time and patience can turn buying and selling Bitcoin into the currency of their choice.
Where does it all start and how does it work?
There are many versions of the tools you need, just as there are many banks and investment firms. Bitcoin is a digital currency, so your Bitcoin needs a “bank”. In order for your currency to grow or multiply, you would need a suitable “investment firm”. Using these two tools you can begin trading Bitcoin.
The digital “bank” to stash your cash.
The correct term for this digital bank is Bitcoin “Wallet”. A “Wallet” is the same as a bank. All Bitcoin earnings are deposited and withdrawn here the same as you would a Paypal transaction. There are different Bitcoin Wallets out there so choose one that you feel comfortable with. Keep an eye out for Sites asking for payment to open register an account, and other details which may seem dodgy – if it sounds too good to be true, it probably is.
The “Investment Firm” to make cash.
In order for you to make money buying and selling Bitcoin, you need to find the right “trading” platform. The most common method of investment involves transferring your Bitcoin to a trading platform from your Bitcoin Wallet. Bitcoin, as a currency, has an exchange rate calculated similarly to how the Rand-Dollar, Dollar-Pound, and so on, are done so you would have to calculate the amount you would want to transfer from your Bitcoin Wallet. Certain Wallets do the conversion for you which is a bonus.
BTC to GBP/USD/EURO
There are two options to choose from: Pay to Use- and Free-to-Use platforms. Pay to Use platforms require a monthly member fee, usually in dollars, which unlocks certain benefits for members. This is great if you are looking for a more established and stable platform. Your Free to Use platforms are easier to get started with but come with bigger risk. Bitcoin trading comes with risk. Free-to-Use platforms require no monthly membership, but a lot more research needs to go into finding an established platform which gives you realistic returns on your investment. Most scams out there are fly-by-night platforms, offering out-of-this-world returns and don’t stay open for more than a few days.
By keeping an eye on the exchange rate between Bitcoin and your country’s currency using the various platforms, you can invest when the exchange rate is favorable, or costs you less per Bitcoin, and you can sell when the cost per Bitcoin is higher.
Of course, I have over simplified it. This process takes time, a lot of patience and your choice of disposable capital. The best thing you can do is get out there and do your research on the various platforms, wallets, and exchanges and find the one you feel fits your risk appetite. Above all be SAFE and Happy Trading!