How to make money online and open your own bitcoin business and money transfer service.
How to make money online and open your own bitcoin business and money transfer service.
The job of a P2P trader is a very interesting alternative to typical jobs nowadays. Like any other job, it requires certain knowledge, but your reward for investing time in learning will be work freedom, meeting interesting people, and other benefits. Your career growth can be practically unlimited; I know P2P traders who earn $1,000 per month, as well as those who make $300k per month after deducting costs, achieving this level after a year and a half of work. In this article, we will cover the basics of how and where to add your offers, how much money you need to invest, what to watch out for, and so on.
What you need:
To start working as a P2P trader, you will need the following:
1. The amount of money you will use for trading is a tool for P2P traders, just like a car for a taxi driver or a computer for a programmer. The sufficient capital to start depends on the location and service you want to offer, whether it's just buying and selling cryptocurrencies or remittances as well. Personally, I started with $1,000, but the more money you have, the more you can earn.
2. Create ads using various P2P exchanges such as Acechange.io or BISQ, or other options available. The more ads you create and the more payment methods you offer, the more customers you will gain. We also recommend creating social media groups targeting your location, such as "Money transfer Berlin" or "Buy crypto in Berlin," and so on.
3. Bank accounts - it will be necessary for you to create as many accounts as possible, the more accounts you have, the better and cheaper you can process customer orders. We also recommend opening accounts at every bank within your reach, if possible.
4. Company registration - we recommend opening a company in your own locality, which will increase your limits in banks and other services for receiving and sending money, and also provide you with certain legal protection.
5. Corporate accounts and tools - we strongly recommend using a different mobile phone, phone number, email, and computer than your personal ones for P2P trading, mainly for your protection and partly for anonymity.
6. Crypto exchanges - you will also need a crypto exchange where you can buy the cryptocurrencies you will be trading with. To ensure sufficient amounts of cryptocurrencies, it is necessary to consider the high fees charged by banks and whether they have a payment method that allows you to buy cryptocurrencies. It is also good to check the options for OTC (over-the-counter) trading, where you can save a significant amount of money because the exchange rate and fees differ significantly. The only limitation is that OTC transactions usually require a higher amount of money. Currently, Kraken and Bitstamp exchanges have low fees and high limits if you have a business account.
How much money will I earn?
This is the most important question for which you have opened this article. It depends on your skill and how much effort and time you are willing to invest. Success will definitely come, and currently, which is a huge advantage for you, there are not many P2P traders, meaning you do not have much competition. As I wrote above, I know P2P traders who earn $1,000 per month, and I also know those who earn $300k per month. What is interesting is that the person who earns $300k per month did not have any of his own money at the beginning, but knew someone who was willing to provide him with the necessary funds for trading, and they subsequently split the profit. And that is the skill I was talking about. However, to achieve such profits, you need at least $200k USD and ideally in a ratio of 30% cash and 70% in CRYPTOCURRENCY, preferably USDT or USDC, due to the volatility of Bitcoin, to avoid losses due to exchange rate fluctuations.
Let's imagine a model situation, your daily trading volume is $5,000 and your fee is 2%, so you will earn $100 per day. You do not actually need $5,000 for a trading volume of $5,000, but you need only $1,000, for example, which you exchange five times a day. The advantage of this type of trading is that even with a smaller amount, you can have a larger trading volume. Another advantage is that as a P2P trader, you always have cash flow available. It should be noted that the remittance market was worth $49 billion in 2022, while today, for example, the daily trading volume of cryptocurrencies is $71.61 billion.
Cryptocurrencies and remittances are a huge market with few players, and it is almost certain that over time, you will find your regular clientele in your area, simply because no centralized exchange can provide the service that a P2P trader can. You will read more about this below.
Why should a customer choose me over a standard exchange?
As a P2P trader, I have direct contact with the customer, which allows me to provide immediate advice and process cash transactions, something that no online exchange can do. I can offer advice to customers and protect them from online scams, help them choose the right cryptocurrency wallet, and make the entire transaction process smoother, even in the case of online money transfers, because the money will not be sent to a foreign bank. This means that accounts will not be scrutinized as strictly, greatly reducing the likelihood of account blocking by the bank. Most large exchanges or online money transfer services operate in such a way that when a customer's funds are blocked and a quick response is required from the exchange or online bank to unblock the account, almost no action is taken. This means the customer loses their money, but when trading with a P2P trader, these situations never happen. Yes, the fee is slightly higher than, for example, on BINANCE, but the customer has the assurance that they will not lose their money, and a good P2P trader will provide consultation and help the customer get started.
This is added value that no large cryptocurrency exchange can ever provide.
What fee should I charge?
This mainly depends on the location. For example, in Turkey, the fee can be as high as 10%. However, in Europe, the fee starts from 1% up to 5%, depending on the payment method chosen by the customer, as well as the size of the transaction or service requested by the customer - whether they want to buy or sell cryptocurrencies or remit money. The fee is determined by these factors. We recommend conducting market research on the common fee rates in your location before starting to trade.
Why should a customer choose me instead of a standard exchange?
A P2P trader has direct contact with the customer, which enables them to provide immediate advice and process cash transactions, something no online exchange can do. They can advise the customer, protecting them from online fraud, and help them choose the right crypto wallet, making the transaction process smoother, even for online money transfers, as the money won't be sent to a foreign bank. This means the accounts won't be scrutinized as closely, reducing the likelihood of the account being blocked by the bank. Most large exchanges or online money transfer services operate in such a way that when a customer's money is blocked, requiring a quick response from the exchange or online bank to unblock the account, they don't take much action. Thus, the customer loses their money. When trading with P2P, these situations never occur. Yes, the fee is slightly higher than at BINANCE, for example, but the customer has the assurance that they won't lose their money. At the same time, a good P2P trader will provide consultation and help the customer get started.
This is added value that no large crypto exchange can ever provide.
How much should I charge?
It depends mainly on the location. For example, in Turkey, a fee of up to 10% is common, while in Europe, the fee starts at 1% and goes up to 5%, depending on the payment method chosen by the customer, the transaction amount, and the service the customer requests from you, such as purchasing or selling cryptocurrencies or remittances. The fee depends on these factors. We recommend conducting your own market research on the common fees in your area before beginning to trade.
Important information (risks)!!!
Like any business, this one has its risks. Below are the basic security measures and rules that you should follow.
Smartphone and computer
We recommend that you have one private and one exclusively work computer and smartphone, as well as a phone number and email. These tools and services should be separate for your safety and clarity of your work. Of course, at the beginning, you can also use your personal services and computer or smartphone for work, it's up to you, we only recommend it.
Logins and networks
Never log in to public Wi-Fi, as it is easy for a hacker to log in to such a network and take your information and private keys. Such an attack is called man-in-the-middle. Instead, only log in to the internet via your mobile private network.
Choose the meeting place for every cash transaction yourself. It should be where there are many people and during the day. Never meet in a secluded area or after dark. Always bring someone with you or let someone know where you are going and with whom you are meeting. Never give the private keys to your crypto wallet to anyone.
We recommend getting a hardware wallet, such as Ledger or Trezor. If you don't want to make this investment at the beginning of your business, read our article about which wallets are verified and reliable. You can find the article here.
LAWS AND KYC/AML
Each state has different rules and laws for fighting money laundering or other KYC policies, so it is not possible to clearly define the rules. However, Acechange has one of the best systems in this segment and will handle a significant portion of it for you. Nevertheless, it is necessary for you to familiarize yourself with your local laws and regulations and abide by them.
Rules of money transfer providers and banks
Every payment service, such as PayPal or MoneyGram, must comply with its internal rules as well as regulations mandated by governments. The same applies to banks, which is why it is important to know their rules in order to avoid unnecessary delays or temporary blocking of your transaction. For example, if you want to receive payments through PayPal, we recommend opening a PayPal business account. Additionally, some banks require documentation of the origin of funds for higher deposits, which may result in your transaction being slowed down or temporarily suspended. Therefore, it is important to know the rules and regulations of the location where you want to offer your services.
Where to find customers
Focus on offering services in your local area or state, and try to have as many payment methods and banks in your portfolio as possible. Build profiles on websites like Acechange.io or localmonero, and others. It's also a good idea to create groups and pages on social networks, such as a Facebook group called "money transfer berlin." Share this group in various travel groups and pages, as well as in various community pages like "Spaniards in Australia" and others. It's a good idea to offer your remittance services and cryptocurrency buying and selling services here.
In addition, it doesn't hurt to create your own website. Nowadays, it's quite easy to do so, and you can even do it yourself to create your own simple online presence. To summarize, the first step is to build profiles on websites like Acechange.io and open as many payment methods and banks as possible. The next step is to target customers correctly. Don't forget that you have two types of customers: those who need money transfer services and those who want to buy and sell cryptocurrencies. Therefore, it's a good idea to separate these two services into two campaigns. For example, a campaign for money transfer services should target social media groups such as "Australians in Berlin," and vice versa, for buying and selling cryptocurrencies, you need to choose groups with names like "Bitcoin community in Berlin." It's also a good idea to register on websites like https://www.bestchange.com/ where customers will definitely contact you. Be creative and feel free to advertise in your local press or pay for a promotional banner.
The work of a P2P trader is interesting and can bring great profits. One advantage is that you will never lose your capital or have it depreciate, which is not possible in many types of businesses. Another advantage is that you can start on the side of your stable job and slowly build your customer base. Although it may take longer to get your business up and running in such a case, it is a compromise that allows you to stay within your comfort zone. If you decide to go all in and have a dream of building your own business with cryptocurrencies and other financial services, follow our blog where we will regularly bring news from the world of P2P trading.
We wish you all the best and lots of success