How to Trade Bitcoin for Profit with QuadrigaCX & Paxful
- QuadrigaCX is Canada’s largest and most well-established cryptocurrency exchange
- Trading with QuadrigaCX is just as risky as with other trading platforms. However, there are ways to leverage trades for guaranteed profits
- Before starting trading, new traders need to draw up a bullet-proof trading strategy and be ready to exercise cast iron self-discipline
How to Trade Cryptocurrency for Profit Using QuadrigaCX
Cryptocurrency trading is not for the faint-hearted. At present, it is estimated that 80% of new-to-market traders lose everything in their first 90-days of trading. Did you know, though, that it is possible to trade coins like Bitcoin for profit, even during market downturns?
The Definitive Crypto Trading Cheat Sheet
Before reading this guide, it is important to note that all trading carries significant risk. New cryptocurrency traders should, therefore, never invest more capital upfront than they can afford to lose. Much more importantly, traders need to have cast iron self-discipline.
Step 1. Buy Bitcoin on QuadrigaCX
The first step when trading cryptocurrency is to buy Bitcoin. Bitcoin is the reserve currency of the cryptocurrency market. Much more importantly, to maximize future trading profits, it is essential to buy Bitcoin for the lowest price possible.
For Canadian traders, QuadrigaCX fees are capped at 0.5% for Bitcoin purchases. (Compared to Coinbase fees of 1.49%.) As a bonus, QuadrigaCX also allows Canadian users to exchange Bitcoins to CAD and have cash deposited directly into most Canadian bank accounts.
Step 2. Sell Bitcoin Immediately at Paxful
After buying Bitcoin, most pro-traders exchange coins for promising altcoins. Did you know, though, that Bitcoin can be sold immediately, for up to 30% more than its current market value?
Peer to peer exchanges Paxful, cater for the ‘underbanked.’ Namely, those who cannot buy coins at regular exchanges like QuadrigaCX. Instead, aspirant investors buy coins directly from people who can.
Why do Local Bitcoins & Paxful Command Such High Premiums?
In theory, buying Bitcoin on QuadrigaCX, before selling coins on Paxful is easy. However, selling coins on exchanges like PaxFul is also phenomenally high-risk.
- People using PaxFul to buy Bitcoin, often don’t have access to regular bank accounts, credit cards, or debit cards
- Preferred payment methods will often include PayPal, Western Union, and different pre-paid credit cards
- PayPal and pre-paid credit card payments can be easily reversed after being settled
Because of the high-risk of fraud involved with peer to peer exchanges, sellers can sell coins for a much higher markup.
How to Sell Bitcoin on Paxful with Relative Safety
As a rule, selling Bitcoin on Paxful can never be undertaken 100% safely. However, traders can mitigate many risks.
- Individuals selling coins should only ever accept secure payment methods like Western Union, MoneyGram, and direct bank deposits
- Coin buying requests should only ever be accepted from verified Paxful users who are willing to share personal ID and verified payment details
- Selling Bitcoin on Paxful involves placing coin amounts into an escrow account. Without exception, sellers should only ever release coins when buyer payments have fully cleared
Could You Buy Bitcoin on QuadrigaCX & Sell Coins on Paxful?
Many fiat cash payment methods supported by Paxful are reversible. However, Paxful facilitates over 20,000 BTC transactions per day. (Most of which settle without any problems.) This being the case, buying Bitcoin on QuadrigaCX before selling coins on Paxful can prove lucrative. All that aspirant traders need to do, is thoroughly familiarize themselves with what risks are involved.