Investing in Bitcoin used to be considered a risky move, but more and more people are investing in Bitcoins as an alternative type of investment. Earlier, people used to think that investing in Bitcoins was risky, but now more and more people see them as a good alternative kind of investment.
It may seem like just fun and games, but it takes work to build up your experience so you can understand how this market works. In this article, we will discuss the ways you can make money with bitcoin.
Let’s take a look at these ways.
1. Bitcoin Trading
Bitcoin trading is certainly a good way to make money. All you need to do is buy Bitcoins at a low price and sell them when the value goes up. This works similar to a stock market, where the shares are worth more or less depending on supply and demand.
Bitcoin Trading can be done in several ways, including online exchanges(similar to currency exchange), directly with someone who has Bitcoin, or just buying them from another person. If you’re looking for the top trading platform, you must consider Crypto Genius for great returns in the future.
2. Bitcoin Mining
Mining Bitcoin does not mean greater expenditure of processing power that brings great wealth accumulation along with it. It simply means solving mathematical equations using computer hardware to release coins into circulation. The earlier you start mining Bitcoin, the cheaper your costs will be as time progress. The mining difficulty can be adjusted according to your internet connection speed (higher costs) or the amount of Bitcoins released into circulation (lower costs).
The perfect time to mine Bitcoin was during its inception. That’s when the cost is very low and the possible benefits in return very high. But this early in, it’s really hard to get started without huge hardware and software solutions investments.
3. Bitcoin Lending
The most popular way to make money with Bitcoin is by lending the coins out. This can be done at various places, like BTCJam, for example. The general idea is that you give someone else your Bitcoins, and you get interest in them later. A good loan might give you around 1% interest per week (or ~7% per month). You can, of course, lend them out for a shorter period too, which will result in less income.
While it sounds nice, there are some things to consider. First off, you need Bitcoins to lend, most likely more than you want to spend buying coins outright. This means that if the price of BTC rises, your return on investment is smaller than what you expected. You could sell the coins immediately after lending them out, but this brings us to our second point: volatility.
4. Accepting bitcoin as payment
Companies can accept bitcoin in exchange for goods or services. With the fee structure of the blockchain, it is currently free to accept transactions of any size, at least for basic checking whether funds are being received without errors.
The Bottom Line
While it is a new piece of technology, there is already a huge market for Bitcoin. As the currency matures and becomes more established, growth into traditional investments channels mirrors that seen by other currencies and commodities. The growth rate and potential for large returns should make Bitcoin a staple in any serious investor’s portfolio.