Compared to the traditional financial systems governed by central institutions, Bitcoin, the world’s first cryptocurrency offers a decentralized peer-to-peer alternative that is fast, cheap and secure.
Bitcoin has revolutionized the financial system ever since it was created in 2009. Throughout the years, trading Bitcoin and other digital coins have become a major investing option that has seen Bitcoin holders rising to millionaire status.
While investing in Bitcoin may seem complicated at first, there are many guides such as this Bitcoin investment guide to help you take the first step. That said, let’s discuss the daily profit you can get with Bitcoin investment.
The Important Things to Note about Bitcoin Price
Just like any asset in the market, Bitcoin is subject to volatility. Since it’s still relatively new compared to traditional stocks such as real estate or gold, it has a higher volatility rate, meaning its price can change from minute to minute.
Bitcoin’s price heavily depends on the number of Bitcoins out in the market, the volume of transactions, and the trust of its community. Its price can easily swoop when a user sells a large chunk of Bitcoin but it can also appreciate steadily with an increasing demand for supply. Since the crypto market is open 24/7, these dips and rises can occur any time.
How Much Can You Earn in a Day with Bitcoin?
The simple answer: USD$100 daily, and up yo USD$1,000 in 3 days
There’s no limit on how much you can profit in a day, as long as you’re dedicating time and effort to analyze the market and make informed decisions.
More often, earning daily profits with Bitcoin comes from day trading rather than investing for the long term. Day trading, also known as short trading, involves doing multiple trades in a day to take advantage of price increases. You may only get a small income from these trades, but if you do more than one trade in a day, you can earn as much as USD$100 daily.
You can make up to $1,000 in just 3 days of day trading, granted that you make smart decisions.
How Can You Make a Profit Through Day Trading of Bitcoins?
Due to Bitcoin’s high volatility, many crypto traders turn to day trading. They follow the movement of the crypto markets on a micro and daily basis to see which coins are performing well. Afterwards, they trade BTC so that the coins can gain a minimal profit. Doing this several times in a day can give you more or less USD$100.
A specific type of day-trading technique called ‘scalping’ focuses on picking up pennies in front of a steamroller. By collecting the profit from small price changes, you can collect a substantial amount of profit. Day traders usually make dozens or up to hundreds of trades in one day.
To begin day trading, you need to have Bitcoin in an exchange site, such as Bitrex, Binance or Coinbase, where you place your buy and sell orders. To check the prices and performances of all coins in the last 24 hours, use the Coin Market Cap site for reference, and Tradingview to see the charts from different perspectives.
By checking if a coin is overbought, we can assume that it will eventually increase in price due to the high demand in supply. This would be the perfect time to trade BTC to your chosen altcoin. Once the charts say it’s oversold, that’s when you’d want to sell your altcoin or trade it back to BTC. Overselling of a coin will eventually result in a downward trend.
With this technique, you can earn up to USD$100 in just one trade. If you do it more than once in a day, there’s pretty much no limit as to how much you can rack up. However, do take note this isn’t a sure way to gain money since the market performs differently every day.
How Can You Earn Money Through Long-Term Bitcoin Investment or HODL-ing?
Investing in Bitcoin for the long term means holding on to your coin until its price appreciates. In the crypto community, this method is more known as HODL, which means ‘hold on [to your coins] for dear life’. It’s a common practice in investing that does not take into account the market’s day to day performance. It looks at the bigger picture and yields bigger payouts over time.
The main principle in HODL-ing is to buy coins when their price is low and sell them when the price skyrockets. It may take a few months or years, but if the coin’s price rises to a thousand dollars, you’re sure to make a huge profit.
Reaping Bitcoin investment benefits this way doesn’t have to be quick. Once you see that your investment has paid off in the long run, you can sell your Bitcoin in exchange for altcoins, or quit trading altogether and sell it to fiat money.
What Factors Should You Consider when Investing and Trading Bitcoin?
You should always be mindful of the market’s volatility and how the prices fluctuate. A few hours can be the difference between profit and loss. Since the crypto market runs 24/7, drops and rises can happen any time.
It’s important to take note of your trading capital and have limits. Know how much you’re willing to lose. Graph a Bitcoin investment chart to see your progress, gains and losses.
Basic Trading & Investing Knowledge
Having a basic knowledge of trading and different market analyses are needed, so you know you’re making informed decisions. Protect yourself from huge losses and scams by researching and continuously learning about the industry.
It’s also important to invest in a secure and safe wallet. Leaving your money in exchange sites is not advisable since these sites can be vulnerable to cyber hacks. Store your coins in safe wallets such as apps or hardware storage devices.
Reaping Profits with Bitcoin
With multiple profitable day trades, you can earn more than USD$100 per day and even up to USD$1,000 in 3 days. But before you delve into the world of crypto trade and investments, you need to consider factors such as your trading capital, loss limit and security.
Investing and trading are no shortcuts to being millionaires. It requires dedicating time and effort before you can see substantial earnings. Placing your money in Bitcoin does not necessarily mean you’ll have a constant source of extra income.
When you’re investing, you’re often taking on a lot of risks. Do keep in mind that you should only invest money you are prepared to lose.
Most importantly, remember to make decisions guided by proper research and analyses. Keep learning and keep daring, and soon enough, you might be seeing great payoffs!