Becoming a Bitcoin Broker

Some people are so marinated in the Bitcoin world that they want a career change to become full-time Bitcoin brokers. The good thing about being a Bitcoin broker is that you don’t need any startup capital. However, if you have some spare time after your 9-5 job or any other income generating activity, you can start learning the ropes slowly and build up your skills.

1.       Being a broker comes with certain risks

Being a Bitcoin broker comes with three main risks; being scammed, going against the set laws (which could lead to prosecution) and the possibilities of losing money because of shifts in the price of Bitcoin.

Scammers don’t only target Bitcoin investors. They also target brokers. Therefore, you must seriously consider this possibility. As a broker, you will be dealing with cash transactions that can be canceled or reversed. You will also be dealing with Bitcoin transactions that can’t be reversed. You’ll be facing these risks every day. A customer might try to reverse payments in a bid to get free Bitcoins. Criminals could also pay you with hacked accounts, prompting the payment processor to reverse the money. So, keep an eye out for cons.

When it comes to licensing, inquire from the authorities if you need a license to begin your career. Some countries or states require that you have a permit to operate as a Bitcoin broker.

You can mitigate losing money while trading Bitcoins by diversifying your portfolio. In other words, you can invest in other cryptocurrencies too. You can also mitigate by reducing your volume of Bitcoin trading or avoiding trading during periods of volatility.

2.       Use Bitcoin exchanges

 It’s easier to start out as a Bitcoin broker by taking advantage of Bitcoin exchanges. These exchanges allow just about anyone to register and start trading Bitcoins. They integrate multiple payment options and let you choose one that you prefer.

3.       Over the counter Bitcoin sales

You can get in touch with Bitcoin buyers and sellers directly, instead of going through Bitcoin exchanges. The upside to this method is that you dodge the fees charged by Bitcoin exchanges and this increases your profit margin.

4.       Set up your Bitcoin exchange

If you are a smart Bitcoin broker, you can go big by setting up your Bitcoin exchange. However, this route requires high upfront capital outlay and lots of hard work to succeed in it. But if you succeed in creating your Bitcoin exchange, profits can be substantial.