Friday, August 19, 2022
UncategorizedEarning Money Through Cryptocurrency Arbitrage

Earning Money Through Cryptocurrency Arbitrage

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Cryptocurrency is a virtual/digital currency that does not exist in physical form. It is entirely based on online database transactions. The main feature of cryptocurrency is that it is ‘decentralized’, i.e., no bank or any Central regulatory body can forcefully control it. Based on complex blockchain technology, cryptocurrency is the token of the future. As the first and most widely accepted cryptocurrency, Bitcoin has opened a gateway for these futuristic transaction tokens.

Photo by André François McKenzie on Unspl
Photo by André François McKenzie on Unspl

Understandably, you may have questions regarding the crypto market, so you refrain from investing in it. Survey says that most people have heard about crypto but seldom invest to avoid complications. We will try to answer some FAQs and doubts lingering at the back of your mind through this blog.

What is Bitcoin (BTC)?

  • The concept of cryptocurrency came into effect with the invention of Bitcoin in 2009.
  • It is known as “digital gold” because of its similarities with physical gold.
  • The maximum number of minable BTC is 21 million.
  • They are present as complex puzzles which need to be solved. When you solve one such difficult puzzle, you receive a block of bitcoins.
  • This process of solving is called ‘Bitcoin mining.’
  • Till now, more than 18 million BTC have been ‘mined’.
  • It is expected that mining the rest may extend up to the years 2135-2140.

Is Cryptocurrency Legal?

  • Rumours say that a cryptocurrency is an illegal form of currency. But this is not true at all.
  • While very few countries have issued official statements regarding the acceptance or banning of crypto, most countries are yet to decide on it.
  • El Salvador has accepted cryptocurrency as a legal form of currency.
  • Hundreds of investors worldwide have stated that cryptocurrency is the future and cannot be stopped from scaling up. Countries that have banned cryptocurrency:
  1. China
  2. Bangladesh
  3. Egypt
  4. Turkey
  5. Bolivia

How to earn through crypto arbitrage?

  • You, an ordinary man, can utilize this crypto market to gain wealth as the substantial shark investors do. Hundreds of cryptocurrencies or coins exist and are traded every day.
  • The cryptocurrency market cap is 2.14 trillion dollars. So you can imagine the wealth investors have acquired from this market in a short period.
  • To store cryptocurrency, you need to have e-wallets, where your digital gold is encrypted and protected safely
  • you can invest through websites and applications, which have user-friendly interfaces.

Some such platforms are:

  • Binance
  • Kraken
  • com
  • KuCoin
  • WazirX
  • Coinswitch
  • CoindcxGO
  • Gemini

 

  • You buy when the price of a coin is low and sell when its price goes up. It is as simple as that.
  • With experience, you will learn when to buy and sell and how a coin behaves over a while.
  • Each coin stands for something and is much more than just a trading token. They may belong to any browser, can be the building blocks of a platform, etc.
  • To mark the movement of a coin, you can trace back to how its generating platform is performing in the present world. For further details, you can check out https://bitcoin-pro.live/.

Positive and Negative Aspects of digital currency?

Pros

  • High return on investment:

you can multiply your money by many folds in a short span of months.

  • Decentralized:

no single country for capitalists can control the currency.

  • Pseudonymous transactions:

You can receive money from anyone anonymously without any hassle.

  • Low-cost international transfers
  • Secure

Cons

  • Not eco-friendly: Bitcoin mining requires Hitech computers which consume loads of electricity.
  • Complex: Blockchain technology is not easy to understand for everyone
  • Volatile market: The market is not stable like the share market or stock exchange. A 1000 million fluctuation is a matter of a few minutes.
  • Illegal usage: Because of its feature of anonymity, it facilitates a huge chunk of black market and dark web transactions.

Conclusion:

As icons like Elon musk have started investing in cryptocurrency the market has seen a dynamic rise. However, luring it may sound, the crypto market is a highly volatile and fluctuating market. You can multiply your wealth here, or lose everything that you put at stake. We would suggest you invest only that amount of money, losing which won’t cause any harm to your life. Investing your entire savings is never a good option. We’d recommend you thoroughly research before risking your hard-earned money. We can conclude that crypto is one rare hyped-up trend that is here to stay!

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