How to make money with bitcoin
How do you make money with bitcoin? Because it is not enough to know that you are not too late to buy bitcoin; you also need to know how to use it to your advantage.
Bitcoin is more than just a global currency used as a means of exchange. Because of its increasing value and worth, it is also traded in pairs with both fiat currencies and other cryptocurrencies. Beyond that, some bitcoin users choose to hodl bitcoin as a means to make more profit over time because they believe that they can make more money with bitcoin that way.
And if you are in South Africa, it is as easy for you to earn with bitcoin as it is for you anywhere else in the world.
In this post, we will consider 2 common ways you can make money with bitcoin in South Africa.
Ways to make money with bitcoin
There are two popular ways to make money with bitcoin. The first is by trading and the other is by investing.
1. How to trade bitcoin in South Africa
To trade means to buy and sell an asset - in this case, bitcoin - over a short period with the aim of making a profit. There are different strategies often employed here including day trading, scalping and position trading. What is common with these strategies is that they involve a short duration of time, sometimes hours or few days.
These strategies often work because of the volatility of bitcoin. This means the price of bitcoin experiences high fluctuation within very short periods. The price of bitcoin could be $57,000 now and in just 5 hours, it could drop as low as $48,000. These fluctuations allow traders to enter and exit the market quickly and not wait for long periods before they can make money.
There are several strategies and analysis that traders often employ to help them make good decisions. As a beginner, though, position trading is usually a good strategy to use because it allows you to hold your bitcoin until it reaches a particular position before selling.
2. How to invest in bitcoin in South Africa
Investing in bitcoin is similar to trading bitcoin in that the purpose of both is to make a profit. However, with investing, a longer duration is usually involved. In crypto lingo, this is called “hodling” and it means holding your bitcoin despite occasional spikes and dips in the price for the long term. Because you believe the value of bitcoin will keep increasing.
Interestingly, to be an investor in bitcoin does not require that you have the kind of money that institutional investors have been putting into bitcoin. Because you believe that you are more likely to make more money by hodling, it gives you the freedom to buy in small quantities over time and make impressive returns when you’re ready to sell.
Now, regardless of the method you choose to use, there is one important thing you should ask next: where is the safest place to buy bitcoin?
Where to buy bitcoin in South Africa
Due to the fact that bitcoin has gained a lot of attention over the last couple of months, it is quite common to see ads and random messages online about investing in bitcoin and making outrageous returns. And these claims sound convincing when you see headlines of bitcoin hitting new all-time highs. But, unfortunately, many of these claims are false and usually lead to loss of money to scammers. This is why it is important to only buy bitcoin from a safe platform like Yellow Card.
Yellow Card is a cryptocurrency exchange that allows you to buy and sell bitcoin safely at the best rates. In addition, you can also store bitcoin in your bitcoin wallet if, for instance, you decide to hodl.
To buy bitcoin on Yellow Card requires that you simply open an account which you can then fund with rand and buy as low as R100 bitcoin instantly
Using Yellow Card gives you the freedom to buy, sell bitcoin as well as send your bitcoin to other Yellow Card users at any time. Only you have access to your account and can do as you please with it, including withdrawing whenever you want. Storing your bitcoin also means you can save your bitcoin on a safe platform for as long as you want and easily convert it to rand whenever you feel like it.