Trade Your Bitcoins. Three Main Ways to Make Money with Bitcoin
Bitcoin economy has gone through a boom in activity the last few years. It does not seem like a geek’s toy anymore and even fat cats with piles of money are paying attention to this digital currency. Of course, most investors still consider it a very risky and volatile asset. However, there are more and more professional investors and traders changing their opinion and trying to learn about this new way of payments, savings and trading. If you’re one of them or just want to start trading Bitcoins, we have a good article right here for you. Carry on reading for more information.
First, we should take some time to explain what it is. You can skip this paragraph if you’re already aware of this information but some of you may still not know the nature of the cryptocurrency. Here is that information.
Bitcoin is a digital currency, which does not have any administration or institution so it’s completely decentralized and trades are not regulated. It was invented by Satoshi Nakamoto in 2008 and since that time it has been growing significantly. There were a lot of failings but it continues to grow and tends to be less volatile these days.
Thousands of miners are doing very well in mining pools. They solve blocks to prove transactions and receive a reward for the work. Businessmen invest their money into data centers and mining rigs, doing the same job but on a commercial scale. All they mine is Bitcoins, which maintains the whole system. There will only be 21 million Bitcoins therefore the currency isn’t susceptible to inflation like the US dollar or the Euro. That’s what Bitcoin is, in short. Now, let’s try to understand how we can make money with it.
Mining. Trading. Participation.
There are a few main methods to earn money in Bitcoins and they are obvious. We’ll discuss all of them here. First, is mining itself. In other words, if you want to get these coins you may produce them using you PC or equipment’s capacity. We’ll describe this in more detail a bit later but let’s just say this is not the best way to make a fortune. Second, is trading on particular exchanges. These exchanges have to accept cryptocurrency as an available currency for transaction. In this case, you cannot only acquire as many Bitcoins as you need but also make a profit using its volatility and price changing over time. Another way to earn money with digital currency is using Bitcoins in your daily work or business. If you want to earn digital coins, you need to start accepting them for your services! It’s simple. There is not many different approaches to making money in Bitcoin. So, let’s discuss it in more detail. We hope you’ll find something useful for you.
Try Your Mine
Do you want to try mining for yourself? Before we start, we’d like to warm you not to be too unsophisticated about this type of business. The difficulty of the process is growing too fast and even small companies, without quick delivery of the latest products of ASIC plants and low costs for energy, are unable to compete in this gold rush. Anyway, if you want to try, go ahead.
First you need to acquire good equipment for your work. It’s going to be a fast and efficient ASIC, one, two or even more. Keep in mind the delivery factor because it’s very important. If the delivery of your mining rig is a month or even more, by the end of the shipping, the ASICs can be simply outdated. Then you have to choose a good mining pool. There are many of them on the Internet and we’ve discussed previously. I hope that you have found it. Now you’re almost ready. Having chose a reliable website for mining, you need to create an account on their website. Register there and create a ‘worker’. Now the process can be started and you may begin you work. Keep in mind that pools usually take their fees from your profit in a mining team.
Like a Forex
Now we’re talking about Bitcoin trading. If you have enough capital to invest in them and you think that Bitcoin is a very promising asset, then exchanges, which accept cryptocurrency, may be right for you.
When we are talking about trading, it must be trading with other currencies. This seems to be similar to Forex. The scheme is quite simple. There is a particular pair of currencies, let say, US dollar and Euro, which is EU/US usually. If you have a deposit of $100 and the ratio is 1/1.09 you can buy € 91.49. Then the price of the Euro raises up to 1/1.15, you sell your euros and gain a profit of 5.2%. The investing in Bitcoin is similar but there are three steps, not two. For example, you have a deposit of $10,000 and want to invest them in trading in this cryptocurrency. The current price is about $450 per BTC. So, you buy them and get about 22.2222 BTC. After a period, the price of BTC raises up to, let’s say, $470 per BTC and you finally sell them for this price. In this scenario, your profit is around $444. Not bad if you are sure that BTC will rise in price. It’s trading.
Onto the last but not the least way of making Bitcoins. You may want to pay a bit more attention to this option. You may accept Bitcoins for your services or goods in many cases. If you are a freelancer, web developer, copywriter, designer, or any other specialist who works on the Internet, start accepting them for your service. If you use them, you do not need to pay any transaction fees to the banks or payment systems. You do not have to prove the legal status of your transaction to a bank manager. You are able to accept payments from counties around the globe without any problems of borders and charges. You can save more, lower your costs and afterwards your prices and then make more profit in the end.
If you are a businessman and have, for instance, a website with some services or goods, our advice to you is the same. Do you have an internet trading shop? Then why not to start trade your goods and products for digital coins? If you think that cryptocurrencies have a bright future, you can simply give a discount to your clients if they use them on your website for trading. You will get digital coins, which tend to grow in price, while your customers get goods with a discount. Keep in mind that cryptocurrency trading transactions can’t be delayed. Therefore make sure your clients believe you. Try to be open and transparent with your customers to help eliminate any fears about your honesty.
If you have a trading shop on eBay, you can accept Bitcoins too. This is a real trading option. This is very important because eBay is one of the largest online shopping malls therefore it’s good for your business not only to be involved in this huge market but also to offer eBayers the option to buy your goods for digital currency. There is a problem with eBay because of these trade transactions. eBay and PayPal accept Bitcoins with BitPay, CoinBase and GoCoin but the transaction fee charged by eBay to a merchant is quite high. At least, you can attract some of your potential eBayers on this website. eBay is very popular and is another good market for you and a good source for your Bitcoins.
We have now discussed three good ways to make good money with cryptocurrency. What are you thoughts on these approaches? Find out the best one suited to you and be a part of the new world of digital cryptocurrency.
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