There are many different ways to do Bitcoin, and they can vary wildly in terms of risk, reward, and price. While there are many different ways to buy and sell Bitcoin, there are few, if any, that can be considered “high risk”low risk”. The one downside to trading in this environment is the fact that you will not have direct access to the Bitcoin exchange.
Here, we will discuss . These are not meant to be comprehensive or definitive, but they are a place to start when looking to trade in this volatile market.
Long Term Trading: One way to get involved is by long term trading, which can offer a means to try out the market before making a large investment. Some traders put in thousands of dollars on a single trade, while others only spend a couple hundred or less. If you can find someone who is willing to make an arbitrage trade for you for a few hundred or less, then that would be the best way to go. Arbitrage trading involves buying the opposite pair from the one you want to buy and selling it at a lower price, in hopes of earning a profit by selling the right side to the other person.
Currency Pairs: Another way to do Bitcoin is to simply buy a currency that you don’t care about and then try to sell it short term for as much as you can. Currency pairs such as the Japanese Yen and the US Dollar are some of the most popular.
There are other currencies that you could consider short term, but they are generally limited to one or two that you could invest in. There are currencies such as the EUR, the JPY, and the CAD available to buy and sell. While you can expect to earn less profit on these types of trades, if you are just starting out and don’t want to commit your entire portfolioto these types of trades, they may be for you.
Short Term Trading: Some traders will put in their money on a single trade for months at a time. While this is not recommended, it does allow you to experience the ups and downs of the market without risking much of your money.
Exchange Trades: As mentioned earlier, there are numerous ways to trade in the exchange market for Bitcoin. One of the most popular and widely traded currencies is the Euro, and some people have invested heavily in Euro based currency exchanges. The most popular one is obviously the LTC and the most popular exchange for trades is of course GDAX.
This concludes our look at the various ways to do Bitcoin. While there are many ways to trade, the most profitable is probably by making a simple short term trade. This should give you a good chance to experience the volatility of the market without having to put a lot of money at risk.