How to make money on bitcoin exchange: How does it work?
In just 10 years, cryptocurrency, being an abstract economic and technological phenomenon, has become a full-fledged part of macroeconomic trends. It can be paid for on many electronic platforms, and cryptocurrency enthusiasts from business regularly make attempts to introduce digital coins into everyday life. The last steps have not yet been called very successful but we can't declare the insolvency of the idea itself. And we will definitely not be able to deny the fact that millions of citizens have already managed to make money on exchanging bitcoins, and many will still do it. The cryptocurrency era is just beginning.
The first and main cryptocurrency, bitcoin, is also the most volatile so far. The reason for the sharp jumps in value is the lack of material support. The cost of digital coins depends on demand, which is provided by attention, media mentions and hype. Online cryptocurrency exchanger CryptoExchanger has experienced many such moments, for example, in 2021, Bitcoin was recognized as the official currency of Ecuador. The emergence of an entire state, which is ready at any moment to buy semi-legal and imperceptible coins, provoked a sharp jump in demand and a rise in prices. Such price jumps can be expected in the future, given that the legalization processes will obviously move on. This means that the chances of making money on the bitcoin exchange will still be presented to us.
Therefore, storing cryptocurrency in Bitcoins looks the most promising. It is unlikely that other cryptocurrencies will receive the same attention in the foreseeable future, even if we are talking about Ethereum, which is confidently holding the second position. But Bitcoin is difficult to mine because it is no longer possible to do it using a consumer PC, even with the most powerful video card. But we can exchange Ethereum for Bitcoin, that is, mine the first currency but store it in the second currency.
Passive profit on cryptocurrency
The gradual rise in the value of the cryptocurrency itself can be called passive profit. But there are other features of working with this modern asset. Periodically, the blockchain chains are divided, that is, SegWit (protocol update) leads to the formation of two branches, and the holder of one currency receives the second currency for free. Even if we are talking about coins of modest value, it makes sense to participate and buy the desired asset before the division. Even if exchanging Bitcoin for Tether (USDT) brings 2-3% of the value, it will be your income. At the same time, no one forbids you not to wait for the division itself. You can catch the peak in value and reverse the transaction with a good profit.
Cryptocurrency exchange as an active business
When we talk about active trading, online exchange should be based on technical and fundamental analysis. The currency holder must anticipate jumps in advance (stock market noise, release of economic news, natural exchange rate pendulums). Site selection is also important for such transactions. Requirements for the exchanger:
- Fast processing of applications;
- Timely and adequate market update of the exchange rate;
- Low commissions and favorable exchange rates.
CryptoExchanger is chosen for these features and functionality.