This guide is for everyone who wants to buy Bitcoin and take profits with trading.
I didn’t know anything about cryptocurrencies. I didn’t have plans to invest money and turn into a trader.
One day, over dinner, my brother and I were having a conversation about making money. In our dreams, we saw ourselves as coders and top managers in Google. We wanted to get a job at an IT-company and make big bucks.
Then we’ve changed the subject and discussed finances. My brother asked: «Did you know that the Bitcoin price is rising again? Its price is already $5 000!».
«5 000 dollars» — this thought flashed through my mind. Then I thought: «That’s a lot of money! This would be awesome to buy Bitcoin and make money with it».
«No, crypto is not for us. Only rich people and geniuses can make money with crypto. There is no way we can figure it out» — that is how I answered.
After this conversation, I went to sleep. But I couldn’t fall asleep. Two questions bothered me:
- How to take profits with Bitcoin?
- What do I need to do this?
I wanted to find the answers to these questions, that is why I read a lot to learn about cryptocurrency: what it is and how people make money with it.
Without realizing it, I have learned how to trade cryptocurrency.
How did I buy Bitcoin?
I didn’t know where to buy Bitcoin. I browsed Reddit to get the answers. The r/Bitcoin thread had over a million active users, they had all the answers that I needed:
I wanted to buy a whole Bitcoin. Not just the part like most traders do. The price on the exchange site was $5 000. I couldn’t afford it. That is why I started to read about brokers.
I found out that brokers are better than exchange platforms. I could buy 1 Bitcoin for $500 with the leverage.
What is the leverage?
A trader can get leverage from brokers to top up his account. A broker won’t ask to pay back this leverage. But the leveraged account is pumped full of air: like a balloon, it inflates and deflates very quickly.
The Bitcoin price is $5 000. I can top up my account by 500 bucks, get x10 leverage and “inflate” my account to $5 000. At that, I don’t need to repay $4 500 to my broker.
However, when I start crypto trading, the funds on my account will be in and out much faster.
Maybe an exchange service is better?
No, exchange services are worse than brokers on grounds of 3 reasons:
- exchange services don’t provide leverage;
- they offer very boffinated platforms for novices;
- exchange services do not allow trading in a bear market. If a cryptocurrency fall in price, you won’t be able to make money with it.
How did I choose the broker?
People write that they are seeking a broker for months. I managed to find a reliable company in a day, it wasn’t very challenging.
Check the comparison of brokers online and read the reviews. You will quickly understand which broker will be great for you.
My personal TOP of brokers:
Where did I get money for buying cryptocurrencies?
I borrowed. I didn’t go to a bank or ask relatives for money: I didn’t want my parents to know that I incurred a debt to buy crypto.
I borrowed online: got a peer-to-peer loan.
I wanted to borrow $500. With the leverage, I could afford to buy 1 Bitcoin. One of the p2p platforms offered me a $1,000 loan with an interest rate of 20% per annum. I agreed.
A loan is about getting a fast buck for trading. But I don’t advise to incur a debt to start trading. Any investment is risky, you can lose everything that you’ve invested.
I received money in a few days. I registered at the broker and bought 1 Bitcoin for $3500. I was not overthinking: checked the price and had a thought that I buy cheap.
I was just being logical.
How did I make the first real money?
One day I saw the post in my news feed:
I sold the cryptocurrency for $5 100 and made $450.
But my happiness didn’t last long: the Bitcoin price kept rising.
«Why did I sell? It keeps rising!» I couldn’t get away from the chart. The price was going up and greed was suffocating me. Once again I bought one Bitcoin for $6000.
The price got up to $8 000 and then I sold. I got lucky again and made $600 over a couple of days.
I developed a strategy:
To sell whenever the price rises by $2000.
That is what I did:
- I bought Bitcoin for $8 000 and sold it for $10 000.
- I bought it for $10 000 and then sold for $12 000.
I’ve risked even more and made another $2,500 with these trades.
Overall, I made $3 500 with Bitcoin.
I withdrew money and paid off the debts
When I sold Bitcoin for $12 000, I made a decision – the Bitcoin price won’t rise anymore – and then I withdrew my money.
The broker borrowed money without any problems. At first, the manager of my AMarkets broker wrote to me and asked to send copies of my documents. The broker needed my passport and a residence permit to make it legal and transparent for governmental organizations.
I send the required documents. They sent money in 2 days.
I paid off the debt on the p2p platform. I had $2000 left and I needed to decide what to do with these funds. I wanted to trade but was afraid of losing everything.
I divided this money: a half was invested in p2p loans, the other half – in Bitcoin.
How do I make money with peer-to-peer loans?
At first, I’ve been thinking about investing in the platform where I took a p2p loan. But it turned out they only accept the investments starting from $10 000.
That is why I have registered on another platform – they accepted the $1,000 investments.
How does a P2P platform work?
The website offers microloans to clients from your account – $25 per loan. If you agree, you get the interest rate of 5-10% per annum. This process is fully automatic.
When the loans work for you, it is much better than to be a debtor.
If I need money for trading once again, I will withdraw some funds from the website or get a small loan.
How do I trade right now?
I invest in р2р loans. I’ve picked that risky loans which can gain profits up to 12% per year.
I trade Bitcoin and other 2 popular cryptocurrencies: Ethereum и Ripple. I managed to earn good money from the recent drop in Ethereum price:
My advice to everyone who wants to buy Bitcoin: wait until its price goes up to $20 000. When Bitcoin falls in price to $8000 — you should buy. You can use my strategy and sell when the price rises by $2000.
My advice for novice traders: start simple. Find $1000 and invest in p2p loans.
Then invest $500 in Bitcoin with the help of a broker. Do not buy cryptocurrency with any exchange services.
Don’t listen to the others and don’t trade like the others. Learn how to take profits on falling as well as rising. Being flexible equals being a successful trader.
The article is published with the permission of AMarkets client