We first penned this “How To Make Money With Cryptocurrency” way back in April 2014, over 3 years ago, and what a ride it has been since then.
(scroll down the page to find the original article)
May 2017 Update
It’s now May 2017 and fortunes have been made (and continue to be made) in this burgeoning industry.
Much has changed, and much has stayed the same.
For starters… there hasn’t been any sort of big “hack” of any cryptocurrency exchange for quite some time.
In 2014 and 2105 there were a few, and we lost a fair amount of “coins” in the Cryptsy implosion, but being fairly nimble and tuned in to the markets daily we managed to avoid a total loss of our funds.
Others weren’t so lucky.
Thinking About Buying And Selling Cryptocurrencies To Make Money?
If you’ve recently heard of the incredible amount of money being made in the Bitcoin, Ethereum, Litecoin, and other cryptocurrency markets you are not alone.
Keep in mind that Bitcoin has been around for several years now – the price recently reached a high point of around $2,700. Ethereum has breached $200 recently. Both of these “coins” traded well below $1 USD in the past.
Are We Just Getting Started?
Even though 2017 has been a banner year with lots of positive press drawing more and more people in to these growing markets there is much to learn, and even though many millionaires have been minted already, it doesn’t mean there won’t be many, many more in the years to come.
In order for anyone to start buying cryptocurrency they first have to “get some cryptocurrency”, usually starting with some Bitcoin, Litecoin, or Ethereum. Other people (like ourselves) got started with Dogecoin, (we bought some from a guy on Ebay – not sure if you can still do that) but you’ll need to find a reliable person or place to first exchange your dollars for them.
Where To Buy Bitcoin – Ethereum – Litecoin
If you live in the United States and don’t live in one of the (backward) States (like New York or Hawaii – and a couple of others) we suggest you get started by making an account at Coinbase.com.
You can link your bank account (just like you do with Paypal) to your Coinbase account and buy any amount of the above mentioned cryptocurrency from there.
You can buy and sell any one of the 3 cryptos for any other one right on Coinbase. Many people just do the basic thing which is to trade their dollars for their chosen crypto and let it sit there in their new account.
If the price goes up and they want to take their gains they just sell some back to Coinbase and then have the extra dollars they’ve made deposited back into their regular bank account.
Caution Is In Order
What many people fail to comprehend is that they can lose most if not ALL of their money trading in these markets.
While Coinbase is a well established exchange (and on the right side of the USA law and limited regulations that currently exist) and takes many precautions to protect your account, the past has shown us that there are hackers everywhere, so just know going in that whether you use Coinbase (or any other exchange) there is the possibility that you could lose ALL of your money.
What To Do Once You’ve Obtained Some Bitcoin
As noted above, many people just buy some Bitcoin and let it sit waiting for an eventual price rise.
Other folks (like ourselves) like to use that Bitcoin to buy other types of cryptocurrency (there are hundreds – check out the list and prices at CoinMarketCap.com )
Coinmarket cap is NOT an exchange. You’ll only be able to see prices on there, but there are links to every exchange there where you can buy and sell your chosen “coin(s)”.
Where Can I Buy Cryptocurrencies Other Than Bitcoin?
We personally like to trade at Bittrex, and to a lesser extent at Cryptopia, Bleutrade, and occasionally Poloniex.
There are plenty of other exchanges that are popular in other countries too – such as BTC38, OKCoin, Huobi, etc. Here’s a link to all of the places people are buying and selling Litecoin.
You sign up/make an account with your chosen exchange just like you’d make an account on any other membership site such as Facebook, Twitter, etc. Make a username and password (and it’s highly recommend you set up 2FA – 2 factor authentication to further protect your account as well), and then deposit some Bitcoin.
You can then start buying and selling any of the cryptocurrencies that are listed on that particular exchange.
We’ll add to this article as time permits. We’ve done some basic tutorials on buying and selling cryptocurrency that you can find right on this site, so take a look around, pick out a promising looking crypto and get involved in these exciting new markets.
Article from April 2014 – Below…
Most everyone has heard about Bitcoin by now (April 2014) and to a lesser extent, Litecoin, but not many people know that there are over 200 other “cryptos” or “alt coins” out there. See The List.
For the (few million) people who are “into crypto” such as the Dogecoin afficianados – see here – and the ever growing Blackcoin community – it is perplexing trying to get their friends to understand the excitement.
What’s The Big Deal With Crypto Currency?
For those who have not heard… there are many people who have already made millions of dollars because of Crytpo Currencies such as Bitcoin – See Here.
There’s also a cryptocurrency called Litecoin that went up by 13,000 percent in 2013 to 2014. Check out the 400% gain in one week. There’s also others that are providing gains of 100% + per day and more.
Buy and Hold
You need to know going in that you are probably and it’s likely and it’s a fair probability that you are going to lose most if not all of your money.
It’s a good mindset to have. Did you see the news about Mt. Gox?
Or the another cryptocurrency exchange Cryptorush? It seems Cryptorush is going to (do their best) to get all of their customer’s money/crypto back to them after they got hacked and someone stole a bunch of Bitcoin – Blackcoin and others. Mt. Gox is another story. Hackers everywhere.
Don’t Do It?
That doesn’t mean that one shouldn’t dip a toe in the water. Bleutrade is becoming a popular exchange to use. Fortunes are being made after all.
It’s only natural that the first movers in something such as crypto currency would be looking to make a quick buck, and what better way to make a quick buck than to make a bet on something. After all… crypto is much like chips in a casino – it’s not “real” money after all… is it?
Caution Is In Order
When it comes to online casinos the internet doesn’t have a stellar history – especially in the USA. Government crackdowns – hackers – less than honest site operators stealing client’s money. One needs to know that none of this has changed.
One also should know that just because there has been theft, fraud, and government intervention in the past, that doesn’t mean there isn’t money to be made gambling online with crypto currencies. Check out the Cryptolix Report Here.
Trading Crypto Currency Online
Sometimes (many times) I’m up 20% in a day and that seems like a small gain. You get used to 100% + days real quick, but it’s important to keep the perspective.
If you haven’t acquired any cryptocurrency to get started, see our article about the best way to buy Bitcoin – Click Here.
A recent visit to the MSM (main stream media) on television showed them crowing about a couple of stocks that increased 5% in one day. With the huge swings available in the cryptocurrency markets that seems pretty tame.
Buying Bitcoin Is Safer and Easier
With the advent of honest online operators that you can trust such as Coinbase.com who make it easy to exchange your dollars for Bitcoin – and then easily send it to an online cryptocurrency trading exchange such as Cryptsy.com -(NOTE: Cryptsy is no longer around – we now recommend Bittrex.com) where then you can invest your “dollars” (now Bitcoins) into any number of different “cryptocurrencies” and back out into Bitcoins (after you have turned a profit) and then back out to Coinbase and then back into your own “regular” bank account (now dollars) it has become easy to take part in the new phenomenon of making money with Crypto Currency.
Check out some of our thoughts regarding “Daytrading Cryptocurrency” Click HERE.