How to Make Money on BTC: 10 Proven Ways

Many people believe there's only one way to make money with cryptocurrency: buy low and sell high. But the market is much deeper and more diverse than that. Some prefer quietly accumulating assets over years, others chase minute-by-minute price fluctuations, and some put complex algorithms and bots to work.

Forget the boring rankings of "best strategies." Trading isn't a competition; it's about choosing the weapon that suits your fighting style and the amount of free time you have. In this article, we've gathered 10 working approaches to trading Bitcoin—from the simplest methods accessible to everyone, to advanced techniques requiring a degree in cybernetics. Find the one that's right for you.

The "Lazy" Level: Passive Income

For those who want their money to work while they sleep.

1. Copy Trading: Simply copy the trades of experienced traders.

• Pros: No thinking required.
• Cons: You are completely dependent on someone else. They might go on a bender or tilt. The risk is falling for a scammer or a fake guru.

2. Smart HODL (Position Trading): Buy and hold, but not like a hamster—with an understanding of market cycles.

• Pros: Minimal time commitment.
• Cons: Requires nerves of steel not to sell everything at the first dip.

The "Thoughtful" Level: Active Trading

For those willing to spend a couple of hours a day on analysis.

3. Swing Trading: Catch the wave and ride it for a few days or weeks.

• How it works: Find a strong trend on the daily chart, wait for a pullback, and enter the trade.
• Weapons: The best indicators for crypto trading here are EMA, RSI, and Volume. This is the foundation of how to analyze crypto charts.

4. News and Rumor Trading: React quickly to major events (Fed announcements, exchange hacks, Elon Musk tweets).

• Pros: You can catch very sharp moves.
• Cons: High risk of falling for fake news. Requires nerves of steel and lightning-fast reactions.

5. Stop Hunting (Liquidity Trading): Think like a big player (market maker). Don't follow the crowd; wait for the crowd to get "shaved" and trade against them.

• How it works: Look for levels on the chart where a lot of stop-losses have accumulated, and wait for the price to "sweep" them.
• Weapons: Order book analysis, liquidity heatmaps. This is advanced crypto analytics.

The "Pro" Level: Algorithmic Trading

For those who are friends with code and math. Humans can't keep up here—robots do the work.

6. Arbitrage: Your bot finds price differences for Bitcoin across various exchanges and executes trades instantly: buying cheaper on one and selling higher on another.

• Pros: Almost risk-free profit.
• Cons: Requires software, fast internet, and significant capital for tangible income.

7. Scalping: Your bot executes hundreds or thousands of small trades a day, earning on micro-fluctuations in price.

• Pros: Stable income with the right setup.
• Cons: Requires very low fees and a direct connection to the exchange. Not for beginners.

8. Market Making: You don't try to guess where the price will go. You become the market—placing buy and sell orders simultaneously, earning on the spread.

• Pros: Constant, predictable income.
• Cons: Risk of loss during sharp price spikes. Requires specialized knowledge and software.

The "DeFi Mage" Level: For Smart Contract Wizards

9. Hedged Yield Farming: You deposit your BTC and stablecoins into a liquidity pool on a DEX, earning fees from swaps. At the same time, you hedge (insure) against potential losses from price changes using futures.

• Pros: High passive income.
• Cons: Complex, requires understanding of DeFi and impermanent loss risks.

10. Funding Arbitrage: You earn on the funding rate in futures markets. For example, if everyone is shorting and the funding rate is positive, you open a long on futures and simultaneously short on spot, earning almost risk-free profit.

• Pros: You can earn even in a stagnant market.
• Cons: Requires a deep understanding of futures mechanics and constant monitoring.

The Bottom Line

Bitcoin trading isn't one single path; it's a dozen different ones. Don't try to master everything at once.

• Beginner? Start with HODL and swing trading. Learn the basics: how to analyze crypto charts and which best indicators for crypto trading to use.
• Experienced? Look into stop hunting and arbitrage.
• Geek? Market making and DeFi are your battleground.

The main thing is to choose a weapon that fits you and don't bring a knife to a tank fight.

FAQ for Those in a Hurry

Q: Which strategy is the most profitable?
A: The one you understand and can execute without errors. For some, it's scalping; for others, it's HODL.

Q: Which indicators are the most useful?
A: Don't clutter your chart with junk. Volume, EMA, and RSI—this trinity is enough for 90% of situations.

Q: Do I need to know how to code?
A: For the first 5 strategies—no. For the others—it's highly desirable.

This content is provided for informational purposes only. Please evaluate the risks independently before investing.

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