Do you have your first bit of money stored in your fully checked wallet, and are you wondering how to further evaluate them? The long-term rise in the price of the digital currency is in itself an element of a profitable investment, but like any good speculator, you may be sorry for the bitcoons just to lie down. You have decided to multiply and invest them further. What are the possibilities to earn on bitcoins?
Bitcoin as an investment with another yield
If your biggest financial investment effort has so far been to put part of savings into traditionally "safe" mutual funds, stocks or bonds, then you may be amazed at what the world is offering bitcoin. Getting on with this offer will require x times more time than one visit to your financial adviser who will massage your head with their "best" product on the market.
At this point, however, it should be noted that when bitcoin itself is a risky investment, products based on it are at risk for the other. Therefore, you should invest only the amount that you would not have to be so sorry for if you came to it. This article does not contain all products, there are a lot of them, and just like other digital market spheres, these are changing and evolving every day. Therefore, we have a mandatory warning, let's take a look at how to make money on the bitcoin and evaluate the investment in the kryptocoin.
Bitcoin P2P Loan - Loan Without Banks
One big category is P2P loans. In essence, it is the way in which it is possible to provide or obtain a loan without having to visit a bank. No long negotiations with officials. But the main advantage of this kind of lending is that if you are on the side of the lender, you get significantly more than in the bank. Actually, just by putting money into the bank, you can lose more money than you can get. Of course, you need to know that what you want for P2P is more interest, the more you risk.
The market leader in bitcoin P2P lending is BTCJam. It is one of the longest-running services with the highest reputation. But she is often accused of attracting the greatest number of fraudsters, and every offer needs to be thoroughly scrutinized. You can borrow applicants for various activities, from financing speculative trading or investing to long-term business with a specific business plan. Borrowed funds do not have the problem of evaluating the order of up to tens of percent per year.
Of course, you need to be extremely cautious and stick to the basic principles, such as investing as much as possible in a project that is almost 100% or as much as possible. Divide the total amount into multiple projects. Check the applicant and the project he / she wants to borrow - check the previous paid-up investments, their degree of verification and credibility, get feedback (especially negative) from other creditors, check the registration period at BTCJam. It is also possible to use the auto investment service, where the division into individual projects will be arranged by someone for you. At least then you have someone to complain about ...
Similar services include BTCpop, where, in addition to the most widely used P2P loans, it is possible to invest, for example, into cloud mining shares (profitability is more than questionable here), IPO bidding, or trading in bitcoin stocks. A-E investment pools allow providers to invest in different loans or securities with varying degrees of risk. What is specific about BTCpop is that some loans are collateralised, so in the case of default, the investor should not lose his money. Some loans are even insured against the default. According to the volume of credits provided, BTCpop ranks third in the Loanbase (former Bitlending club) and BTCJam.
In this category we can also mention Bitbond, focusing on bitcoin loans for smaller online entrepreneurs. The advantage is that the investor would not just have feedback from other creditors but, for example, eBay vendors can immediately verify their credibility with feedback from direct customers. The duration of the loan ranges from 6 weeks to 5 years, with an average appreciation of 13% pa. (As shown on the site). A peculiarity to the previously mentioned P2P services is the overall low loan volume, which seems to be related to only 40 percent acceptance - each loan applicant is relatively thoroughly assessed and scrutinized.
Bitcoin mining and its funding
One of the few products working on the principle of interest-bearing wallet is HaoBTC. It is a Chinese company of bitcoin miners who creates interest through their mining activities. The user has two options to load bitcoons. The first is a wallet with a 3% interest, which is credited every hour, and bitcoins should be able to choose at any time. However, the Bitcoin Mining Operator charged every selection with a BTC of 0.001. The second option is to provide finance with an interesting interest rate of 12 to 15.58% per annum, but it does not start at the earliest after a month, and the minimum deposit is 10 BTC, making the longer you borrow money, the more interest you raise. However, these yields are set to fall by May 2016, in connection with a half-bit reduction in mining. Pawn interest rates are reduced to 2% pa, Finance will start at 6.8%.
Swap, or lending to speculators on the stock exchange
Another way to rate your bitcoins is to borrow speculators on the stock market for trading - you can borrow both bitcoins and dollars. Perhaps the most used service is the Exchange and the Bitfinex Exchange. Gone are the pioneering times when your deposit could more than double over the year, but it's still an interesting appreciation, especially when compared to interest in the bank. Of course, the risk that your loans are not insured or secured against possible stock market problems must be emphasized.
Currently, interest on dollar loans is at a rate of 0.025% per day, which is 0.84% per month, a little over 10% per year. However, this figure may fluctuate over the course of days, depending on how the dollars are bought for the purchase of bitcoins. You can always read about these loans or "swapech" at the end of a regular technical analysis for trading that Ondřej Novak writes at this blog at the end of each week.
This lending sphere also includes Magnr, formerly btc.sx. Here you also borrow bitcoons for leveraged trading speculators who try to sell them as they speculate on a drop in the rate and buy them back when they are cheaper. The service currently provides a fixed interest rate of 2.35% pa. Until June 2016, when it is to change to floating interest. Just as Bitfinex does not even have your money insured, it's a question of whether the interest on offer is worth the risk of borrowing bitcoins right here.
Other ways to make money on bitcoin, where to invest and how to speculate successfully will be discussed thoroughly in the sequel that you will find here soon.
To be continued…
Web link: http://btctip.cz/jak-zhodnotit-investice-a-vydelat-na-bitcoinu-1-cast/