Bitcoin

How To Make Money From Bitcoin

27th January 2021

What Is Bitcoin?

Before we dive into how you can make money from the world’s first cryptocurrency, let’s cover the basics in terms of what Bitcoin actually is. This digital currency was designed by an anonymous entity known only as Satoshi Nakamoto. It was initially introduced through a whitepaper that Nakamoto shared via a cryptography mailer list in 2008, and then launched in January 2009.

Nakamoto explained that the cryptocurrency was a response to the Global Financial Crisis that plagued markets from 2007 to 2009. They wanted to create a currency that was free from governments, banks and financial institutions and one that people could control. Using blockchain technology that they had reworked, the Bitcoin network launched as a decentralized peer to peer payment system that cut out the middleman. Since its launch, the cryptocurrency has grown wildly in value, marking its most recent all time high of $41,941.56 on 8 January, 2021.

This year also welcomed a new wave of institutional investors, with many big companies putting their reserves into BTC, from the unpredictable US dollar. With the pandemic still plaguing markets, cryptocurrency, or more specifically Bitcoin, became a safe haven asset where many moved their money into.

How To Make Money From Bitcoin

The key formula to making money from Bitcoin is buying low and selling high. Many people scorn crypto markets for their volatility, while in fact the volatility is exactly what you need to make money. By working the markets to their advantage, traders make huge amounts of money in their BTC trading attempts. And you can too (maybe not huge amounts but certainly a lot).

Here is a step by step guide on how to use the Tap app to your advantage when making money from trading BTC. Before we start, make sure you’ve downloaded the app from the Apple Store or Google Play Store.

Step 1: Buy BTC

You’re going to want to start with onboarding the currency. If you already have BTC in another wallet, you can simply send it to your Tap wallet through the “Receive” option. Alternatively, users can buy BTC by following these simple steps:

  • Complete your KYC

You can do this by selecting the Add Money icon and following the steps. You will be asked to submit information like what country you live in, proof of identity, proof of permanent address as well as a selfie to verify all this information (see steps below):

How to Buy Bitcoin UK
  • Add Money

Once you’ve received notification that your KYC has been approved, you will need to add money to your account. Select Add Money icon again and select the “Cash, Add via Bank Transfer” option (as below).

tap add money
  • Add Euros via Bank Transfer

With the banking details provided, transfer the amount of Euros you’d like in your Cash wallet (the more Euros the more Bitcoin you can buy). Upon transaction completion, you will again receive a notification, and will see your Cash wallet reflect the addition of Euros (under Assets on the home screen).

  • Buy Bitcoin

When your Cash Wallet reflects the Euros, again select the Add Money icon, and then the Buy Bitcoin option. Enter the Bitcoin amount you’d like to buy and see the Euro cost indicated below. When you are ready to buy, select Confirm Trade. The BTC will then appear in your Crypto wallet under Assets.

Step 2: Observe The Markets

While ideally you have already started this step, it is now time to observe the markets looking for a good exit point. There are many traders you can follow on Twitter, or even upgrade to more serious trading software like TradingView or InvestTech. Once you have identified when is a good time to sell, proceed to step 3.

Step 3: Sell Bitcoin

You’ve done your research, you’ve waited patiently, and now is the time to sell! Jump back into the Tap app, you’re going to use the smart trade technology to your advantage.

  • Access Trades

Locate the menu icon in the bottom right hand corner of the homescreen. Then from the Trades page, select Sell / Exchange and Bitcoin.

crypto trades
  • Sell Crypto

Enter the amount of BTC you’d like to sell and confirm you’re content with the amount of Euros (indicated below). Once you’ve confirmed the trade, you will need to verify your personal information so that the app is certain it is you.

crypto wallets
  • Receive Euros

Once the transaction is complete, the Euros will appear once again in your Cash wallet under Assets. You can either withdraw the funds to your bank account, or use them to buy more crypto / repeat the cycle.

Ready To Trade BTC Like A Pro?

After reading this hopefully you’ve realised that how to make money from Bitcoin is actually really simple. It takes research and patience, but hit the markets at the right time and you could be getting way more than you bargained for. Tap into the future with Tap Global and learn more about some of the other fantastic features available to you.

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