Buying And Holding Is Not The Only Way To Profit From Bitcoin, There Are Other Ways

By the time you are reading this article, you might have heard about the cryptocurrency called bitcoin. You might also have heard about it meteoric rise in value in the whole 2017 (over 1000%) and the drastic fall close to Christmas.

If you are not yet aware, those who bought into bitcoin much earlier have profited immensely from their investment and it is the opinion of this writer that even those who would dare to buy into it today, or somehow acquire even fractions of it, would profit greatly in the years to come when the price rises into the six digits.

Buying and holding bitcoin to sell when prices rise is not the only way of making money from this crytocurrency, there are other ways. The purpose of this article is to show readers one of those ways of profiting from bitcoin investment. That is, to trade in alternative cryptocurrencies. It brings in profits even up to over 9999% in some cases within one year. Yes 9999%.

HOW TO START
Get an exchange or a trading platform

The first thing to do is to identify an exchange where people trade in different kinds of cryptocurrencies. A search on the internet should give you one. However, I suggest you try www.yobit.net or zapit.nu/trading, this is because its KYC policy is not cumbersome. All you need to do, at this stage, is to register an account.

Fetch a bitcoin address on the exchange

You need to transfer money to the exchange before you can start trading. You can transfer in dollars or any other cryptocurrency. For the purpose of this tutorial, we choose bitcoin. First you must get your bitcoin address on the exchange. On the exchange, click wallet(s) in the top menu and the list of all the coins available would appear. Click on the deposit button of bitcoin and your bitcoin address would pop up. Copy this address and keep handy. To copy any other address of any coin, you go through the same procedure.

Funding your account
There are many ways by which you can fund your account. One is to transfer dollars from your bank account or any other source to your account.

Another is to buy an amount of bitcoin to the bitcoin address you copied from the exchange. In Ghana, you can buy bitcoins with mobile money. There are many places to buy bitcoins. For example, cofred.com, ecurrency4u.com. payplux.com.

You can also get bitcoins from the faucets. This is free but takes more days to accomplish. You might want to pick pieces of litecoin from zapit.nu/litosh and once you hit 200000litoshi, you can transfer to your litecoin address on the exchange, convert to bitcoin, ethereum, waves or dogecoin to start buying and selling of cryptocurrencies.

How to start trading – buying a coin

Now that your account is funded, you can start trading, but which coin should you invest in? There are over 1000 different coins, depending on which platform you have chosen. If you chose yobit.net, here are a few steps to follow to help you decide which of the many coins to buy, hold for a while and sell.

It is suggested that you buy coins that are between 15 satoshi and 200 satoshi. Look carefully to see if the coin you chose has a daily volume of trade equivalent to 0.1BTC that is 10million satoshi. Also check if the coin supply is 50million or below. You may want to extend to coin supply of 100million in the future. To check coin supply, click “coinsinfo” on the top menu of yobit. Finally, check the market capitalization of the coin. For this one, go to coinmarketcap.com. You also Google the coin and read what others are saying about it.

Now that you have checked all the information needed about the coin, make a list of them and start buying and selling. As a beginner, if your resources are limited, you might want to spread your trade. Invest at least 20000 satoshi or more on each coin.

How to buy a coin
Click on the coin you want to buy, they are lined on the left of your screen. You will see a BUY and a SELL button. To buy, type in the amount you want to buy at the current price and click the BUY button. You may want to buy at a lower price than is being offered. In that case, change the price to your desired price and click the BUY button. This will remain pending till someone sells to you.

How to sell a coin
Now you have bought your coin and may want to offer it for sale. Go to the sells section and put up your price. Divide your coins into four and sale the first quarter at 50% of the price you bought it. Sell the next quarter at 100% of the purchase price then 150% and 200%. On a good day, all can go through. Wait for the price to appreciate for the bid to go through.

How to cancel a buy order
You have opted to buy at a lower price but for many days it is not going through and you want to change the price and bid at a higher price. There are two ways of cancelling an order. At the edge of the buy order, you will see a multiplication sign in a blue background. Click on it and it is cancelled. If you do not see the sign, click on orders in the top menu. Then type the abbreviation of the coin in the search box. The coin will appear for you to cancel.

How to cancel a sell order
You have bought a coin and put it up for sale at 50% of the purchase price but the coin has appreciated to say 48% and you want to cancel at 50% and sell rather at 48%. Look for the multiplication sign at the tip of your sale order. Click and the order would be cancelled. Now set the price at 48% and sell. If you do not see the sign, click on orders in the top menu and search your coin. Now cancel and sell at the price you want.

How to withdraw bitcoins
After investing and making enough money, you might want to withdraw some of your gains. Click on wallets in the top menu. If you have your profits in say bitcoin, move your cursor along the bitcoin slot till you get to the “minus” sign at the extreme end. Click and a dialogue box will appear. Type the amount you want to withdraw and paste the address you want to withdraw to and click “withdrawal request” to complete the process. Once the transaction is confirmed in the blockchain, it should appear in new wallet. If you withdraw to some exchanges, your account is credited with the cash value of bitcoin at the prevailing price. You can use www.cofred.com , www.ecurrency4u.com , www.payplux.com where you exchange your bitcoin to cash.

What should you do with your sales profit?

One of the things to do is to withdraw, but as a beginner, you may have to grow your portfolio and spread even further into other cryptoes. On the exchange, observations have shown that one coin can rise from say, 15 satoshi to 75 satoshi in one day. But this same coin can drop in value to say 13 satoshi in a week. So what you do is to keep your bitcoin and wait for it to drop in price, then you buy again. You could profit from the same coin for about five times in a year. Another thing to do is to look for other coin, using the same criteria as indicated earlier. It is suggested that you spread to about 25% of the total number of coins on the exchange you have chosen. This can take a few months but it is one way you make more sales as the various coins appreciate in value.

My opinion
Do not withdraw for the first six months, just grow your portfolio and increase your established bitcoin. Est. BTC is the value of all the coins you have on the platform in bitcoin terms. You must hold some coins and not sell them. These coins will appreciate very well over time so you can finally sell. However, if there is a surge in value, do not wait, just sell because there would definitely be a correction at a point and the price would plummet again. Then you start to buy again.

Conclusion
It is the belief of this writer that if you follow this guide diligently for about a year, you will begin to profit immensely from your efforts. However, note that crytostock trading is a risky venture and therefore discretion is advised when investing.