Saturday, October 23, 2010

How to Make Money Online with Digital Gold

money,currency,cashGold enjoys a positive reputation in the investment  community. Many people consider gold to be more valuable than currency because its relative value remains consistent even as the value of individual currencies rises and falls. Some of the positive association people have with gold is carried over to the electronic version, giving digital gold the perceived credibility that it needed to become a profitable investment. There are a number of ways to make money online using digital gold, without requiring any special training or degrees.

Materials:

  • Investment Funds

Step 1:

Learn and understand the basics of how digital gold works. Rather than making deposits and withdrawals directly from your digital gold account, the gold is bought or sold through an exchanger. An exchanger is a company or person who either has digital gold to sell or wants to buy gold. Professional exchangers provide both services to gold users. Becoming an exchanger is the shortest path to profits with digital gold.

Step 2:

Raise the investment capital  that you will need to start an online currency exchange. Those who can raise a significant amount of investment cash can start a larger-scale operation, but even raising an amount from $2,500 to $5,000 will allow you to start buying and selling digital gold for a profit. Personal savings, loans from friends and credit-card cash advances are popular ways to raise the money to start a digital gold business.

Step 3:

Conduct research to determine which digital gold platforms currently have the highest demand. These can change over time, so it is best to read gold investment forums to see what kind of digital gold people are buying and selling the most of. Identify and select the top five digital gold options on the market for your initial launch.


Step 4:

Open an account at each of the digital gold platforms you will be working with initially. Make a small deposit  into each account using a third-party exchanger. Keep your starting deposit small. You want to buy only enough gold to have some available when a customer wants to purchase digital gold from that platform. You do not want to make too large of an initial purchase, however, because it will add to the profits of an exchanger you will be competing with. Most of your deposits should come by way of customers who are looking for an exchanger to cash out their gold account.

Step 5:

Consider using a currency exchange software program to automate part of your business operation. Most currency exchanges are processed manually, but there are software programs available for those who want an automated system. These programs typically extend their functions beyond buying and selling gold, and also offer the ability to perform currency-to-currency trades and various other transactions.

Tips:

Embrace the profit potential of this business. Digital gold exchange services collect profits from both ends of the transaction. When a customer uses the exchanger to buy gold, he or she is charged a fee that is based on how much gold the person is buying. When the same customer cashes out his gold account, he pays fees associated with the withdrawal.

Warnings:

Spikes in the gold market could cause fluctuations in profits. Keep a buffer zone in your profits at all times to accommodate this possibility. Also, be wary of credit-card purchases. It is common for gold to be held for three days if the purchase is made via credit card, particularly for first-time customers.

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