Are you among those thinking of how you can make money with bitcoin? While this is my answer to that question.
I will explain bitcoin and the opportunities in assumption that you don't understand bitcoin at all.
First off bitcoin is a digital or cryptocurrency that uses decentralized technology to move funds from one person to another without bank or government interference. If the world is a global village, then bitcoin is the global currency.
Bitcoin is the first of cryptocurrency but right now we have over 1500 others.... I will focus this discussion on how to invest and earn.
You can earn money through bitcoin in a number of ways:
1) Holding the coin (HODL)
2) TRADING THE COIN JUST LIKE FOREX
3) MINING THE COIN
Let me explain this ways shortly.
HOLDING THE COIN (HODL)
You can make money just by buying the coin and holding it in your wallet. Since the usage of bitcoin in 2009. The price has been increasing in value of time. So buying the coin and holding it for a number of years could increase the value of your coin. Let me give my personal experience with this; I first bought 1btc in 2016 and held half of it for a year. I bought 1 Btc in December 2016 for #550,000 and by December 2017 that same 1 Btc was #7Million in value. Though
Right now 1 Btc is about #3.5 Million due to the crash early this year.
So for beginners in the world of Bitcoin, I advice them to just buy the coin and hold.
TRADING THE COIN
This is a more complex way of making money with the coin and even increasing the number of your coin. This way you could turn 1btc to 2btc or more... They are different ways of trading the coin,
you could buy cheap and sell high in the same day. The coin price is always fluctuating daily. Understanding the trend makes traders profit.
Arbitrage... One could buy low from one exchange and sell high at another exchange at the same time.
One could trade the coin with other coins and capitalize on the fluctuations of these cryptocurrencies to profit.
Good traders that understand their game could make as much as 5 to 10 percent on a daily basis.
MINING THE COIN.
This is the art where more Bitcoins are released to miners. Total Bitcoins that can be in existence is 21million bitcoin out of which 17million have already been mined and is in circulation. Mining is a complex system done by computers to confirm bitcoin bitcoin transaction and store it in open source legers. Mining involves lots of money and is usually not a one more show since equipment and Lot of electricity is used for the process.
So most people just hold the coin and learn to trade or give their money to trading companies to trade for them. While for the mining, people hand over their money to mining companies for mining contract which sometimes last up to 3years.
Handing out money to companies is very risky since these company don't give any form of security. We have companies run away, closed down or restart business while people's funds are trapped with them.
So right now I am learning to be a professional trader while holding some coins. But in the mean time, I have handed my money to a company for trading that guarantees 2.2% daily. This is risky since I know my money is not guaranteed but it is a risk I am willing to take. My sole reason of taking that risk is because it is new. It launched April this year in Brazil. From my experience if they are fraudulent they will last for 6months plus and if they are sincere, I have hit a jackpot. I will drop the group link where I explain this new opportunity everyday.