So unless you’ve been hiding under a rock for the last few years, you’ve probably heard the word “bitcoin” from the news headlines, social media, or maybe even your grandma. Bitcoin is one of many online cryptocurrencies that can be sent or received around the globe in a matter of seconds. It’s a very big deal, but how do you make money from it?
Investing in bitcoin is actually quite simple now. Bitcoin has its own market where it can be bought and sold online, basically like trading stocks on the stock market. Trading Bitcoin or any other cryptocurrency, has both positive and negatives to them vs. trading on the stock market. There’s a big difference between trading bitcoin and bitcoin mining, so make sure you learn how to invest in bitcoin before you begin.
The positives of trading cryptos vs. stocks:
-You can trade 24 hrs a day, meaning there is no set time period for when you can trade, nor is there an open or close like there is with the stock market.
-The value is constantly rising (and falling) so if you play your cards right and get in at the right time, there’s a lot of money to be made.
This volatility is both good and bad, so my opinion is that trading crypto is better suited toward active traders vs. passive/long investors
-You don’t have to purchase a full bitcoin (which currently sits at around $8,000 for 1 bitcoin at the time of this writing) You are able to purchase a fractional piece of one.
-Many cryptocurrencies start off at a very low initial price and can explode and soar in price overnight.
The Negatives are tough, but to reap rewards you must take risks. And the potential gains are what makes it, in our opinion, worth while.
-There is extremely high levels of volatility (meaning price goes from really high to really low very quickly) when trading cryptocurrencies.
-It is not backed by the government or FDIC, so you can lose every bit of money with no hopes of ever seeing it again. So you must be willing to lose 100% of your stake.
-If companies and stores don’t adopt or incorporate cryptos as a form of payment, the majority of everyday consumers won’t see the need and the price will fall. However, Right now it’s still fairly new in the eyes of consumers, and it does seem to be catching on with some online retailers.
So if you’re still interested in investing in this once in a lifetime chance, after reading the positives and negatives of cryptos, here’s how to do it.
-Download the app called “Coinbase”
-Link it to your bank account (it is 100% safe)
-Figure out a good price target, wait for it to go down, then buy the amount you’re willing to spend (and possibly lose)
-Wait for the price to rise then sell,sell,sell!
Another way to make money from bitcoin is a process called mining.
Bitcoin Mining is a costly, but very effective way to obtain bitcoin and other crypto currencies. It uses a powerful piece of computing hardware, called a miner. These devices are specifically designed to efficiently mine bitcoin and other cryptocurrencies, it does this by solving very large and extremely difficult algorithms. Once the algorithms are solved, the miner (you) and everyone in your chosen mining pool (community of miners that work together to reduce workload) will split a reward. Nowadays, your regular laptop or desktop are not capable or suitable for mining which is why a designated miner is a must.
With bitcoin mining, the only investment you have to make is 1. Purchasing the machine and 2. Paying your electric bill. So it provides you with a steady income stream after you purchase the miner.
Right now amazon has a great deal going on for one of the best miners on the market! Check it out below!
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