The first few months of 2021 made it look like it was going to be a great year for Bitcoin and perhaps even for cryptocurrency in general. Bitcoin’s price even surged to a new high of sixty thousand dollars at one point. By the time we get to December, it might turn out that it’s been a great year for crypto after all, but there have been a couple of unexpected bumps on the road during the past few months.

The first came when Elon Musk appeared on the American entertainment show “Saturday Night Live” and jokingly referred to Dogecoin – a comparatively small cryptocurrency that he’s been a champion of on social media – as “a hustle.” While it was obvious to most viewers that Musk was joking, the crypto markets didn’t take the joke well. Within a few hours of his appearance, the coin lost almost a third of its value, and the market as a whole was down. That triggered an ongoing price drop that eventually saw Bitcoin fall all the way to thirty thousand dollars per coin – still a huge figure, but half of where it was just a few weeks ago.

Like the other big cryptos, Bitcoin has been staging a slow but steady recovery during the past few weeks, but now another heavyweight commentator has weighed in. During an interview with Fox Business, the former president launched a furious tirade against Bitcoin during which he called it a scam and said he wants it to fail because it “competes against the US dollar.” Not content with that, he also voiced his opinion that regulators in the USA should take action against the cryptocurrency to prevent it from becoming any more popular. An hour after the interview ended, the price of Bitcoin dropped by 1.3% from $36,472 to $35,973. It’s not a huge wobble, but it’s a wobble nonetheless – and precisely the sort of wobble that shouldn’t be happening at this point in Bitcoin’s existence.

We’ve been here before with Trump and Bitcoin, and Bitcoin investors should be relieved that his voice isn’t as influential as it once was. When he spoke out against the coin in 2019, he almost single-handedly shaved ten thousand dollars off its value. At the time, former National Security Advisor John Bolton was believed to be pressuring his Treasury colleague Steve Mnuchin to outlaw all forms of cryptocurrency in their entirety. That hasn’t happened and isn’t likely to happen now the Democrats are in power, but their views are representative of an older, conservative core of people who either don’t trust or don’t understand cryptocurrency.

The fact that Trump doesn’t understand the principles of cryptocurrency isn’t all that surprising. Firstly, he’s admitted that he wants the US dollar to be the most dominant currency in the world, so his views are framed by American nationalism. Secondly, this is a man who once said that global warming was necessary because it was snowing in New York. Understanding complicated things isn’t exactly his forte. The problem in this instance isn’t so much what Trump said as the effect it had on the price of Bitcoin. When Musk talks about Bitcoin or cryptocurrency, we can almost understand why the price would move because Musk is a respected authority on the topic. Trump’s understanding of cryptocurrency is non-existent, and he’s no longer in a position to make political changes. What he says or does shouldn’t matter, and yet the market still appears to be sensitive.

As many of you will already know, Bitcoin isn’t a “true” competitor to the US dollar at all. By many definitions, it isn’t even a currency. It doesn’t have a unit of account. It’s not universally accepted as a means of payment and doesn’t provide a good store of value. It’s an alternative to conventional currencies, not a rival to any one of them specifically. This is the argument that’s increasingly being lost or missed in the press, and it’s part of the reason that so many people still lack a fundamental understanding of what Bitcoin and currencies like it really are. Unfortunately, that applies to many of the people who invest in it.

With so little understanding and so much nervousness, it’s inevitable that the price of Bitcoin will always be jittery. Bet on it at the right moment, and you could end up rich, but bet on it at the wrong moment, and you could make enormous losses. That’s around the same level of security that someone has when they play online slots, and it’s not a sound basis for making investments. The comparison isn’t an unfair one to make. In many ways, the complicated mathematical formulas that drive the production of Bitcoin are similar to the mathematics that underpin the online slots at Rose Slots Canada. These days you’ll even find that Bitcoin and Ethereum are accepted as valid forms of payment at a few online slots websites. You still wouldn’t go into such a game with the expectation of winning money, though, and that’s what’s supposed to differentiate them from investments. When you get that same sense of uncertainty from investing in Bitcoin, something’s seriously wrong.

It’s taken years to get the words “Bitcoin” and “cryptocurrency” into the consciousness of the general public. We’ve finally arrived at the point where the majority of people know what they are, even if they don’t understand how they work. Explaining how they work is the next step along the road and also the most difficult. Learning how cryptocurrencies work takes time and effort, and not everybody wants to commit that level of time and effort even when they’re willing to commit their money to invest in crypto. For as long as that remains the case, prices will drop whenever negative press coverage happens because investors who lack understanding will panic and dump their holdings. For those who are serious about turning Bitcoin into a stable, dependable currency, this situation cannot be allowed to persist for much longer. We’ve found a way to make Bitcoin popular. Now, we have to find a way to make it immune to the thoughts and words of the Donald Trumps of the world.

Cryptocurrency trading is increasingly becoming popular worldwide as people look for alternative ways to make passive money. First, you should consider these questions before making a move into the crypto industry. For example, can you obtain cash trading cryptocurrencies? How can you generate cash from crypto investments? To address these questions, let’s explore further.

Just like any other investment, cryptocurrency investments come with their own sets of risks, and earning cash in the sector is not a walk in the park.

Investors who took a risk earlier, have generated significant returns. However, there are other factors such as experience, better tactics, and wide-ranging research that one needs to secure and achieve success in the sector.

Therefore, this article prepared by experts from the Bitcoin Code platform will help anyone interested in trading cryptocurrencies to understand various strategies and methods of earning profits from cryptocurrencies.

Trade cryptocurrency CFDs

Contract For Difference (CFD) will enable any investor to trade fluctuating crypto prices. In essence, CFD is considered a margin trading method because you can trade a bigger portion using a lesser amount. For instance, an investor can trade a minimum of 0.1 BTC using a little amount as the prime margin.

CFD comes with many benefits. One is that you can either go short or long irrespective of the market trends and you’re likely to generate yields when the crypto price fluctuates. Also, it’s convenient to trade Bitcoin CFD on a daily or weekly basis.

Identify the right trading platform

To buy and sell a cryptocurrency, you need to identify a suitable trading platform for you. Many trading platforms exist in the sector, while new ones hit the market each year. Although it’s difficult to identify the best platform, you can begin by considering factors such as:

1. Active users using the platform.
2. The number of years the platform has been in the industry.
3. Reliable testimonials of traders who have benefited from the platform.

After identifying the suitable platform for you, you need to visit the official site to fill an online form. You’re only required to provide minimal info such as name, email address, contact number and password to get registered. After successful account activation, which takes a few minutes, your preferred platform will connect you to the underlying broker.

The next step will involve making a capital investment through the underlying broker. The minimum amount invested is considered affordable based on the returns you can make from trading various cryptocurrencies.

The last part is live trading. You have to employ the right strategies, including the stop loss as you trade various cryptocurrencies. However, start with a smaller percentage of your invested capital, and increase the trading amount from the profits you generate.

Learn Day Trading

In case you’re wondering how to generate cash from trading a cryptocurrency, day trading allows you that option. Here, crypto traders employ different tactics to place several crypto trading orders within a day.

Since cryptocurrencies, including Bitcoin, are highly volatile, day trading appears ideal because any crypto investor will have adequate peaks and troughs within the day to generate a substantial return.

In general, you identify and purchase low-trading crypto and later sell it off when its market price surges. Despite the little amount you will make, you are likely to amass lots of cash on a long-term basis.

Many analysts consider day trading as a skill you have to harness each day. Thus, when you dedicate quality time to learning the process, it can turn out as a successful endeavor. 

Although you may not succeed on each trade, the primary target for day trading is to ensure your triumph on several occasions.

Venture in long-term trading

Another way of trading a cryptocurrency is taking a long-term approach. Several investors may decline to trade a digital coin, but rather prefer to purchase a crypto, hold it within their digital wallet, and sell it on a later date when its price surges to earn a significant return.

The underlying concept of a long-term trade is ensuring you carry out an in-depth analysis to ascertain that your preferred crypto investment will pick a price momentum over the coming days or months.

The crypto market has several cryptocurrencies with distinct features such as Bitcoin, Ethereum including other Altcoins. These cryptocurrencies hit the industry several years ago and are well-known for facilitating international payment. When investing in novel cryptos, some can appear affordable, only later to record a price uptrend, while others can tend to have risk factors such as fraudulent schemes.

So far, several traders who joined the crypto race a couple of years ago have amassed lots of cash from trading Bitcoin since time and again it has recorded new all-time highs.

Cryptocurrency faucet

One more effective method of trading a digital coin is through a cryptocurrency faucet. The method is considered convenient to several traders as it allows them to obtain extra returns from buying and selling a little portion of a cryptocurrency.

In short, a cryptocurrency faucet works more like a website where smaller portions of a digital coin, for instance, Ethereum or Bitcoin, are issued after a couple of minutes. However, you will have to carry out several functions as per the underlying site.

Also, a crypto faucet has many advantages such as user-friendly features as well as its quite simple to earn a digital coin on the site.

Initial coin offering

Although Initial Coin Offerings (ICO) appears like crowdfunding, it’s relatively distinct in a number of ways. For the most part, ICO enables crypto investors to mobilize finances by trading a cryptocurrency without risking their capital investment.

Also, there is a high opportunity to earn a viable return from the initial investment amount bearing the risk factors within the industry. However, ICO has shortcomings such as cyber threats, including fraudulent schemes. Thus, it’s a wise move to carry out due diligence before determining the suitable ICO for your course.

Closing remarks

Cryptocurrency trading comes with ups and downs. Many traders have succeeded and amassed lots of cash from buying and selling cryptocurrencies when their prices fluctuate. Also, others that did not employ the right strategies left the financial market having recorded huge losses.