(Part 1) Trading on Bitsofa: Basic Principles

How to trade cryptocurrency on Bitsofa? In this article, we will describe the basic principles of earning.

First of all, it's important to understand that we're not talking about trading on an exchange. You don't need to have technical analysis skills, predict the future price of cryptocurrency, or fear losing everything in a single "wonderful" moment.

Cryptocurrency trading on Bitsofa is primarily a peer-to-peer (between real people) exchange of Bitcoin for fiat money (rubles if we're talking about Russia).

Let's not beat around the bush and describe a typical trading algorithm.

You've decided to become a market maker on the Bitsofa platform, which means creating ads to sell and buy Bitcoin at your own exchange rate.

Let's assume your initial capital to start trading is 0.01 Bitcoin (approximately 6,300 rubles).

The exchange rate for 1 Bitcoin at the time of writing this article is 630,000 rubles.

You create an ad to sell Bitcoin at your rate (it should naturally be higher than the market rate), for example, 705,000 rubles. You wait until someone wants to buy it from you. Someone buys 0.01 Bitcoin at your rate of 705,000 rubles, so you receive 7,050 rubles.

Next, you need to buy back these 0.01 Bitcoins to continue trading. You create an ad to buy Bitcoin at your rate, for example, 640,000 rubles. You wait until someone wants to sell it to you. You buy 0.01 Bitcoin for 640,000 rubles, which means you pay 6,400 rubles.

As a result, after this cycle of buying and selling Bitcoin, you have your initial 0.01 Bitcoin on your balance and your net profit is 7,050 - 6,400 = 650 rubles*.

*Profit may be less, taking into account the fees of payment systems and the Bitsofa service (which is 1% per transaction).

Your final profit will depend on the number of such buying and selling cycles of Bitcoin, the exchange rate you set, your initial capital, the fees of payment systems, and other factors.

We will tell you about all of this in the next parts of this article. Here, we have covered only the basic principle of trading.

The next part will focus on what you need to do and know to become a market maker and start trading, as well as the pros and cons.