Congratulations!!! You are awesome
You have made it this far.
Now, let’s talk about how to earn an honest living by buying and selling Cryptocurrencies.
Before you start earning with cryptocurrencies, you must understand the word “SPREAD”.
What is a spread?
A spread is the difference between the buy and sell price. For example, if you buy 1 Bitcoin for $16,000 and sell it for $16,500 your spread will be the difference between your sell and buy price. Which in this case is $16,500 – $16,000 = $600
The Spread there is $600. You can basically say your spread is the same thing as your profit. All brokers (exchanges) have different buying and selling price, the Selling price is always bigger than the buying price – to ensure profit.
Here is an example from remitano.
From the picture above, you can clearly see that Remitano is willing to buy Bitcoin at N8,459,550 and sell at N8,587,365.57 leaving their spread at N127,815.57, meaning that for every Bitcoin they buy at N8,459,550 they will sell at N8,587,365.57 with a profit of N127,815.57
You too can become a Cryptocurrency broker (Exchange) in your community, buying from exchanges with low prices and selling at a higher price for profits.
At every point in time, the prices of Cryptocurrencies may vary between exchanges. The price of Bitcoin on Binance may be $17,345 whereas someone on Remitano may be selling his/hers for $17,123, a difference of $222
If a trader spots that difference in Prices between both exchanges, he/she can quickly take advantage, buy from Remitano and immediately sell on Binance for a profit of $222. This is called “Arbitrage” trading.
However, not everybody has enough finances to buy a whole Bitcoin to make that amount of profit. Although this kind of trading is good, it is not practicable for people looking to grow small amounts of money into big amounts. We will talk about a more befitting strategy for trading small amounts as we progress in this Cryptocurrency course.
Buying And Holding Cryptocurrencies To Sell When They Rise in Value -- HODLING.
This is a popular trend carried out by mostly newbies who wish to earn profits from Cryptocurrencies. They simply choose currencies and invest in them hoping to sell for profit when their values increase; this has worked for many but has been the downfall of a multitude.
The values of Cryptocurrencies are Volatile, meaning they can be high today and drop low between the twinkle of an eye, you can blindly buy a cryptocurrency for $17,000 today and tomorrow its value drops to $1200, leaving you with a $16,800 loss.
On the other hand, you can buy a Cryptocurrency for $10 today and by the end of the year its value rises 20000%, meaning your $10 will be valued at $20,000. Giving you a profit of $19,900.
However, the chances of you turning $10 to $2,000 within a couple of months by just buying and holding cryptocurrencies is the same as the chances of you being hit by lightning on your left eye, or winning a lottery while visiting a brothel.
What Strategy Guarantees Profit?
This brings us to the main point of our course.
Before we proceed, it is important that we understand the meaning of trading volumes, so we can easily spot the trading market that best suites the amount we wish to trade with.
Volumes – What Is A Trading Volume?
Look at the following pictures
In picture A, you can see a market with a low trading volume – commodities in the market are few, likewise the amount of people.
Picture B represents a market with a high trading volume – commodities in the market are in abundance, likewise the amount of people.
The higher the amount of people in a market, the higher the amount of money in that market.
If you take a truck of sugar worth $100,000 to the first market, it is very clear that you won’t be able to sell as much as 10% of your sugar because they are not many people to buy your sugar.
However, if you take the same truck of sugar to the second market, you are most likely to sell off your entire sugar load, because of the amount of people and money in the market.
A higher volume, means more money in the market and a lower volume means, less money in the market.
If you take a lot of Sugar to a small market, you will get low patronage and will end up deciding to sell at a cheaper price to attract people to buy from you. This is because you control the market and will have no choice but to sell at a loss or go home with your sugar.
On the big market, people will struggle to buy your sugar giving you an opportunity to increase your price and make more profit.
This same principle applies to Cryptocurrency trading, before trading any Crypto it is important that you check its trading volume. The volume tells you how much money people all over the world are putting into that crypto.
Cryptocurrrencies with low volumes are mostly new and will have a higher chance at growing rapidly as more people move in, they can change from $1 value to $30 within short period of time, meaning that if you bought 100 coins of that cryptocurrency for $1 (N462 Naira) each and sold them for $30 each, your profit will be $3,000 (N1,200,000 Naira)
Furthermore, While a market like that is suitable for a trader willing to trade with $100, it won’t be suitable for a trader willing to trade with $5,000. If you unfortunately trade a huge amount on a low volume Cryptocurrency, you will end up controlling the market.
However, to trade for consistent profits with any amount at your disposal, you will need a fail proof strategy. A strategy that tells you what to buy, when to buy, the volumes to look out for and when to sell to make consistent weekly profits.
I shall guide you through this fail proof strategy that has generated crazy profits for investors over the years. Let’s proceed.
NEXT: WE WILL BE GOING THROUGH THE GUARANTEED 100% FAIL PROOF CRYPTOCURRENCY STRATEGY THAT WILL MAKE YOU MONEY.