Finance

How to earn profits from trading bitcoins

3 Mins read

For almost every bitcoin enthusiast, the number one goal when it comes to trading is profit. People buy bitcoin in hopes that it will soon increase in value, thus earning them a little extra for their smart investment. For around 10 years now, that has been the goal.

Image result for bitcoins

Recently, peer-to-peer marketplaces have seen growth in popularity. This could be for many reasons. It could be because most people are starting to get the appeal of the more personalized experience. It could be because of bitcoin’s new and creative real-life uses, such as making payments, remittances, and wealth preservation. Did you stop and think for a minute that it might be because people have the chance to earn more on a peer-to-peer marketplace?

It could be true, but how? How is it possible that people can earn more on a peer-to-peer marketplace rather than on a traditional bitcoin exchange? First of all, peer-to-peer marketplaces are easy to use. Although some may say that it has a bit of a learning curve, it’ll be smooth sailing once you get the hang of it. The best peer-to-peer platforms are easy to learn and easy to use, especially when it comes to accounting creation and verification. Second of all, peer-to-peer marketplaces are much more affordable as well as secure. Fees are usually much higher on traditional bitcoin exchanges compared to those of peer-to-peer marketplaces. In fact, most of them are free to use, and they sometimes give you a free wallet upon registration. Most peer-to-peer platforms also offer security measures such as escrow services to ensure users that they are in a safe environment. Last but not least, people can earn more on peer-to-peer marketplaces because there is simply an abundance of platforms. One of the leading peer-to-peer marketplaces is Paxful, and they allow people to buy, sell, and trade bitcoins instantly.

How to earn a profit

Now that you know why peer-to-peer marketplaces can earn you more, you probably want to know how to do so. There are a bunch of ways to earn a profit from peer-to-peer trading, but these, by far, are the best 3 ways to do so:

Take advantage of arbitrage.

Arbitrage, in a sense, is buying cryptocurrency from one place for a lower price and then selling it at a higher price somewhere else. These opportunities occur when price varies per exchange due to liquidity, volatility, or even regional price difference. Bitcoin is sometimes just more expensive in some parts of the world, and that can be due to several different reasons such as laws, regulations, and public perception. Peer-to-peer tradings take advantage of this method a lot to make money in the bitcoin market. It’s easy to learn, but it requires a lot of time and attention. You have to observe all markets at once and quickly find opportunities wherein you can make even the smallest of profits.

Profiting from popular payment methods

As said earlier, peer-to-peer marketplaces add a personalized touch to the trading experience. Because it’s more personal compared to a traditional bitcoin exchange, people have the opportunity to form long-lasting business relationships. This means that new forms of payment are sprouting up, adding to the hundreds that are already available on good peer-to-peer marketplaces. Paxful, the peer-to-peer marketplace mentioned earlier, has over 300 payment methods, and that number continues to grow.

The way to make money with this is by providing people with less popular payment methods. For example, you can buy bitcoin on a peer-to-peer platform using a popular payment method. Popular payment methods usually have their prices closer to the market price. After buying, you can then sell the same bitcoins using another less popular payment method. People would usually pay extra for convenience.

Affiliate programs

By taking full advantage of the great affiliate programs out there, you can end up learning a lot of passive income. Let’s take Paxful’s affiliate program as an example. Once you sign up for the affiliate program, you will be given a unique link that only applies to you. By sharing this link with your friends and family, you can earn a lot of money if they sign up and trade. On Paxful’s system, for every trade made by people that used your affiliate link directly, you’ll be able to earn 50% from Paxful’s escrow free off each trade. That’s the first tier. The second-tier affiliates sign up using your tier 1’s affiliate link. From all trades completed by your tier 2 affiliate, you will get 10% off each trade’s escrow fee.

The peer-to-peer revolution

Obviously, those are just a few of the many ways people can make money by bitcoin trading. There are other options like e-commerce and creating your own local business.

Peer-to-peer finance is really starting to make a name for itself, and people are starting to see the real benefits. Not only does it allow us to circumvent capital control, but it also gives us more control over our own finances.

Originally posted 2019-04-19 05:09:36.

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Introvert. Incurable tv guru. Internet lover. Twitter trailblazer. Infuriatingly humble communicator. Spent a weekend creating marketing channels for cod in New York, NY. Spent the 80's writing about fried chicken in Pensacola, FL. In 2009 I was investing in sock monkeys in the government sector. Spent high school summers exporting cannibalism in Deltona, FL. A real dynamo when it comes to donating Roombas in Miami, FL. Spent 2001-2005 supervising the production of acne for no pay.
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