How to Make Money 101 Part 1 (Day Trading)
Day Trading is where you buy Bitcoin or Ethereum and trade it for other coins. Those two are the two main cryptocurrencies. They have their own blockchain, or network. You can then use your Bitcoin or Ethereum to buy other lesser known coins, known as altcoins. You can’t buy altcoins with U.S. dollars which is why there is an extra step. But altcoins are where you can make some real money. They’re worth very little in comparison so the probability of them increasing in value is very high.
1. Everything works using mainly Bitcoin and Ethereum. You have to purchase either one of these two (preferably Bitcoin since more exchanges work on the Bitcoin blockchain). You need to go to an exchange website that allows you to purchase Bitcoin with U.S. dollars. My two preferred options are Coinbase and GDAX. Coinbase has higher fees but is very user friendly and available as an app. Make sure to buy at a reasonable price and not when the market is at a high point!
2. You can make money by simply leaving your investment on Coinbase/Gdax and watch it grow over time, and it will grow, or you can be proactive and take a risk on some altcoins. Altcoins are basically new coins that can be purchased by trading in your Bitcoin. These are volatile because you never when these will crash but as long as you follow the market you can make some BIG money. You have to deposit your Bitcoin from Coinbase or GDAX to another trading exchange such as Poloniex (my favorite), Bittrex, or Bitfinex, etc. There is a deposit button where you copy/paste your deposit address to Coinbase and that sends your coins over to the new exchange website.
- The reason we do this is because Coinbase and GDAX do not offer altcoins. So, once you're in and have your coins on the new altcoin exchanges, you're ready to make some money! Remember, do your research on charts and how to predict patterns. Buy low, sell high. Don't spread yourself too thin into many coins but also don't put all your money into one coin. Be smart, be wise, but most of all BE PATIENT. Sometimes you make savings overnight, sometimes it takes a month. But you need to be smarter than the market, and with a little research and effort, you WILL be!
- Once you make profit and you want CASH, you can send the Bitcoin back to Coinbase or GDAX using the deposit address option for Coinbase/ GDAX and then cash out to your bank using U.S. DOLLARS!
****The whole deposit thing confuses some people. Since this is decentralized currency you can’t just hit “transfer funds”. Each website you use gives you a deposit address and withdrawal address. If you are trying to deposit Bitcoin to Poloniex to trade for altcoins and you’re sending it from Coinbase then you would use Poloniex’s Bitcoin deposit address (which is easily found under the transfer balances section) and copy/paste that address into your Coinbase account. So you’re sending from Coinbase to Poloniex using your Poloniex’s deposit address.
Websites mentioned:
https://www.coinbase.com/join/5936d583eb342e09c30b55bf
Gdax.com
Poloniex.com
Bitfinix.com
Bittrex.com
Thanks for your time to teach your method I am going to follow you.
Just followed back! Thank you!
Great post, you gave good tips. The one I think is the most important but hard to do, is to not spread yourself so thin. With so many opportunities out there how do you take your decision? which are the main factors? and lastly how to you inform yourself about altcoins? *upvoted *followed
Followed back! So I usually try to see when a coin is at all time low. So each exchange website shows you a "+x.xx" or "-x.xx". X being the numbers the coin value has increased or decreased within the last period. I love when I see an all time low. That's the thing. The market ALWAYS bounces back. So you don't wanna invest in a coin that's in the top half range of the value it's held for the past few days. You wanna invest when it's near the lowest point. Altcoins are just lesser known coins in my eyes. There's hundreds of definitions but to me they're just the coins that are trying to make it. The reason they're so popular is because theyre worth sooooo little. The probablity of 50 cents turning into a dollar is a lot higher than a 100 turning into 200 dollars. That's the philosophy behind trading altcoins. You jump in with 1000$, they double from half a penny to a penny but the percentage margin increase is 50% so you just made 500$ of this half penny turning into a penny!
@stegradice thank you one more time for the insights. I definitely think similar to you, I really think there is out there a ton of opportunities to make money with altcoin. Right now I am just invested in the top 20 because I really trust in the projects for the long run, Alt coins are really speculative and I am learning and informing myself to find undervalued projects or great projects in an early phase, I think this a really great skill to develop.
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