Can I Make Money Trading Digital Coins?
Let me start this article with a caveat (not the best way to start) and say that there would be some people that would be very good at this.
To define what I mean but trading digital coin, so as to be clear, is the buying of digital currency, such as Bitcoin, and then selling the digital currency to make a profit. This is generally done over a short period of time.
The idea is to buy at one price, then sell it at a higher price a few hours or days later to make a profit. Similar to what you would do if trading in shares.
So, now that I have defined what I am going to be talking about – let’s get into my thoughts on if this is a viable way to earn a living from home.
Start with the buying
Buying digital coin is fairly simple. There are a number of places you can purchase your coin; though I would say to spend some time researching who yo buy from. In this case, I chose Coinbase as they seemed to have a number of sites referring to them.
Just to note that to sign up to all of the sites I looked at, you needed to prove your identity. Expect any reputable site to ask you to do this. It also takes a little time for that verification to happen.
So, choose your site to trade through.
Next, you need to spend some time thinking on how you want to store your coins; a digital coin wallet. I decided to go the hardware way and purchased a USB digital wallet.
This means that I could store my coin offline and carry it around with me. There are wallets you could use online.
So, I have the site I wanted to purchase from. I had the method of storing it. Finally, I had to choose which digital currency to trade-in.
There are many out there at the moment and they all have up’s and down’s when it comes to the price of trading.
For this example, I decided to go for the most well known – Bitcoin. However, you could decide that one of the other currencies are for you.
So, once I had these 3 things in place – it was time to purchase my first coin.
One more caveat at this point – for this example I am only going to buy and sell small amounts as I wanted to start small and see how it worked. That way I could not lose anything substantial – or win substantial looking at the other side of that coin.
Buying the coin was quite simple through the site that I chose. Now, this is the reason I say to research who you trade through as some may be more difficult than others.
I purchased my Bitcoin first and left it in my Coinbase wallet as I wanted to examine its worth.
My initial thoughts
So, setting the scene. I’d bought some Bitcoin, not a vast amount but enough to notice fluctuations in price. I then left it in my Coinbase wallet initially so as to watch its worth.
With in the first hour, the amount of pounds that my Bitcoin was worth went down. Now, because I had a small initial amount it wasn’t a big amount. However, if I had had £1000 or more worth then it would have been notable.
This is just the initial drop though as this goes up and down – so I won’t judge it in the first hours.
The plus point was the excitement of viewing my wallet to see if it had gone up or down. Using a hardware wallet I can’t initially see this – I would need to check how many coins I had, how much they were worth and work it out compared with how much I had spent.
However, if you were jumping in at the deep end, say with £1000-2000 initial buy, then you would have lost around £27-52 in that first hour.
However, as I say, this will change to plus and minus over time. It’s more about holding your nerves.
By the end of the day
By the end of the day, the value of the Bitcoin had gone up and I was at a much smaller loss. I certainly can see that working with Crypto coin trading; that would have days of gain and days of loss.
This is something you would need to take into consideration and accept if you were to want to trade in electronic coin.
Is it a viable work from home opportunity?
So, the question at hand. Could you do something with Crypto as a work from home opportunity?
Yes, but with another caveat… However, to make it work you would need to trade in larger amounts of money and risk big dips and well as gains.
Personally, I think it would be a little too much work and risk for me as a work from home opportunity. You would need to monitor the price of the coins, trading at lows and highs. This could take up a larger percentage of your time that you would like.
So, risk and time needed mean’s that it’s a no for me. I can, however, see some people being quite good at this.
For me, I have another thing in mind. My evaluation is that I will purchase a smaller amount of Bitcoin every month, say £20 worth. I will then put this in my wallet and let the price run.
Some point in the future I will sell and I hope, at that point, that it will be worth more than paid. With the coins up and downs – I hope that after a number of years it will give me a payout for retirement funds.
So it’s a no for me
As I say, for me it’s a no to trading crypto coins. However, it is a new way for me to invest long term.
I do think some will be very good at the trading digital coin, but not me.