Basics of Increasing BTC (+USD)

When you sell your BTC and then use that USD to buy lower, you have increased your BTC holdings. If you sell 1 BTC at 50000 and then buy back at 45000 then you will have 1.11 BTC (neglecting fees).


However, it is also possible to increase your USD in the short-term whilst keeping the same amount of BTC long. This can be done by selling BTC at a higher price and then buying back the same amount of BTC at a lower price. An example of this would be selling 0.2 BTC at 45000 and then buying back exactly 0.2 BTC at 42000. This would make you 600 USD and you would still be long the same amount of BTC.


When you buy BTC and then sell it at a higher price, you have increased your USD holdings. If you buy 0.5 BTC at 40000 and sell at 46000, you would have made 3000 USD (neglecting fees).


The three methods above are some of the ways that you can make money from spot trading. The method that you choose depends on both your market outlook and on your goals in trading.


If you are very bullish on BTC in the long-term (as every HODLer should be), then you can increase the amount of BTC that you own by selling higher and then buying back lower. With good trades over time, your BTC stash will grow.


If you are HODLing BTC but also want to generate cash flow (USD), then focus on keeping your BTC amount consistent by selling the BTC amount that you would like to keep invested and then buy back that same amount at a lower price.


Now that the trading basics are covered for how to increase your capital, the next section will cover how to do so passively through lending. Then, we will cover the various strategies you can implement to stay ahead of the market.