Jnews is about news!

How To Make Money with Bitcoin: A Beginner’s Guide

Bitcoin has invented in 2009 as a digital currency that introduced a different payment network than the traditional banking system. Initially, the currency doesn’t have a real-world valuation but as its popularity increased, it became the most valuable cryptocurrency in the world. Gradually, it became a great asset for high-value investment.

As of June 2022, more than 81 million financial investors have already chosen Bitcoin to invest in. Day after day, new bitcoin trading platform are being created to ease trading. However, there are main two types of bitcoin trading platforms such as direct or peer-to-peer trading platforms and centralized trading platforms. Let’s know the different processes to invest through these two types of exchange platforms.

How to use peer-to-peer trading platform:

A peer-to-peer trading platform is like a decentralized system of trading where each investor has access to directly connect to and trade bitcoins with another user. The detailed process to trade through this kind of platform is as follows.

  • First and foremost, you need to choose a reliable platform. There are lots of these kinds of platforms because they have huge demand. So, make sure that you see the reviews on different platforms and take a wise decision.
  • Next, what you need to register with your chosen platform. It takes a few steps to verification of IDs.
  • Now, you have to open a trading platform. The process is simple and needs a few further steps just after the verification is done.
  • Once you are done opening an account, you can then easily access the marketplace. Here you can offer a buying or selling price as you can see different traders have already done.
  • Users of the platform can see your offer price for bitcoin. The time a user is interested in the offer price he or she can contact you in the case when the user wants to buy your bitcoins. Or it can be done by your side too if you want to buy bitcoins from another user.
  • Whatever the case may be, buying or selling, you both can interact with each other and settle a deal.
  • Once both of you have agreed to share your bitcoin address and account details.
  • In case of buying, you will transfer the fund to the user and he or she will send bitcoins to your bitcoin address. And, in case of selling the exact opposite will be done.

How to use centralized trading platforms:

These are platforms that are operated by third-party companies. They work by matching buyers with sellers. All the buying and selling process is done by the platform and you just kind of instruct it to do so.

  • The first few things are almost the same as the direct trading platform. You need to find a good centralized platform that you can rely on.
  • After that, there is a simple verification process that needs some of your IDs to show.
  • Then a trading account will be opened from where all the trades will be processed.
  • Once all the formalities are done, you will be asked to link your preferred bank account.
  • Now, transfer some funds from the bank account to the trading account.
  • Once you get the fund you are ready to purchase bitcoins. Here, buying and selling of bitcoins are done in two different ways. Let’s know them.
  1. Market order: A market order is a trading process where buying and selling are done as per bitcoin’s current market bid price. When you think that this is the right moment to buy or sell analyzing the market you will have to place the order. Then the platform will execute the order.
  1. Limit order: There you are provided an option to select minimum and maximum limits to buy and sell bitcoins. It is done automatically by the platforms. When the price of bitcoin meets the limits, trade will take place.

Conclusion

These trading platforms and trading processes are the most used and easy. They are preferred by almost all the investors. You can also use Bitcoin ATMs to invest in Bitcoins. Besides, there is another option called Auto profit where investment is done like affiliate marketing. You can also go and visit the process.

Leave a Reply

Your email address will not be published. Required fields are marked *