Peer-to-peer, or P2P, is a type of trading that’s becoming more popular among investors of the top coins. The demand for cryptocurrencies including Bitcoin, Ethereum, Litecoin and Tether is surging. With P2P trading, you have the option to passively make money and earn shares of coins without watching the market. Read on to learn how money can be made with Bitcoin P2P trading.
Get Started With P2P Bitcoin Trading
P2P trading builds on the decentralized nature of digital coins. You buy, sell or trade a cryptocurrency over a distributed network. When you engage in P2P Bitcoin trading, there’s no third party observer. This gives you more privacy and security.
Keep in mind that while P2P platforms can be distributed networks, not all of them are decentralized. People go to the platforms for faster trades, more options for payments, withdrawals and no key code requirements. With that said, some large exchanges also provide P2P trading with all the safety and security you would expect from these large institutions.
Begin Earning Money
To start earning money with P2P Bitcoin trading, choose an exchange that will keep your assets secure. It’s best to start on an exchange that allows you to be in charge of your wallet key and your coins. Make sure the exchange you choose doesn’t charge a large fee that will eat up most of your earnings.
The easiest way to earn money with Bitcoin on a passive basis is to buy shares from the cheapest P2P exchange and hold the coin for a while. If you had done this on January 1, 2020, you would now have a 240% increase in your initial investment as of mid-October.
Emerging markets have seen a sharp increase in cryptocurrency trading volume due to governmental de-regulation. That volume combined with investor confidence in the new government de-regulation of cryptocurrency has seen the Bitcoin price in India rise. Now P2P Bitcoin trading in India has seen growth even when the local economy continues to suffer amid COVID-19 shutdowns.
Create Your Own Buying and Selling Marketplace
On the cryptocurrency P2P exchanges, you can create buying and selling orders. You can set a low buying price and a higher selling price, creating a profit for yourself. If you want to do this, you’ll need to have more time on your hands. This process requires you to consider which cryptocurrencies are in demand. Bitcoin is a good option right now. Set up your account with your geographic location. Next, enter your payment methods and rates. If you choose a payment that’s scarce in your area and nobody else accepts it, this gives you an opportunity to create a market niche.
Arbitrage is when you buy a cryptocurrency at a low price on one exchange and sell it at a higher price somewhere else. It’s the most common way to make money with P2P Bitcoin trading. The opportunities arise through market volatility. The margins can be small, and the fees could take up a lot of the profit. You can also do arbitrage over different coins. If there’s a big spread between Bitcoin and Tether, you can buy one and exchange it with the other. The next step is selling the coin or holding it. You have to watch the market closely to turn a profit with arbitrage.
Be a Lender
You could lend Bitcoin on an exchange. You must first buy it on the exchange with any of their payment options. Lend it to others for a fee. The fee is your profit. You can also offer loans with Bitcoin as escrow.