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How to earn from bitcoin exchange rates?

Bitcoin is one of the most volatile trading instruments, and so is currently very popular. There are several ways of earning money from fluctuations in bitcoin prices.

  • Long-term ownership of bitcoins. In 2009, when bitcoin had just arrived on the scene, you could get between 700 and 1,600 bitcoins for just one US dollar. In May 2010, the bitcoin was first used as a means of payment. Back then, 10,000 bitcoins would have bought you 2 pizzas. By August in the same year, those same 10,000 bitcoins would have got you 600 USD. The people who bought or mined (created) the first bitcoins can receive a very impressive sum for them today.
  • Trading on exchanges. This is the same as ordinary trading; you buy a trading instrument when the price is cheaper, and sell for a profit when the price goes up.
  • Earning from discrepancies in bitcoin prices between different exchanges. There can often be some significant differences in the price of a cryptocurrency between different exchanges. There is no "most expensive" or "cheapest" exchange, and the situation changes every day. This allows users to buy bitcoins on an exchange with a low price, and to sell on platforms with a higher price.

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