The good news is that there is still a lot of opportunities to invest in cryptocurrencies and achieve these kinds of gains yourself. Let’s look at some of the ways that you will be able to make money with Bitcoin.
Types of Bitcoin
The first thing that you need to consider is the type of currency that you are going to invest in. The most prominent cryptocurrency is Bitcoin. Because it’s the most well-known currency, it tends to attract a lot of investors. This makes the price more volatile. Put simply; the more volatile something is, the more quickly the price can move. This means that there will be a lot more opportunities available to make money.
However, there is a range of other cryptocurrencies available for you to explore. Generally, these will work in the same way as Bitcoin, though they might make minor changes to the way that they operate. For this reason, they are referred to as altcoins. Some investors feel that these might provide better opportunities to make money. In some cases, investors can also add these to their portfolio to diversify themselves, so they can be partly shielded from any drops in Bitcoin. Because these altcoins aren’t as well-documented as Bitcoin, you should make sure to do your research to make sure that you’re investing in a secure coin.
Generally, though, when you start out investing in the world of cryptocurrencies, it’s best to stick to established coins, like Bitcoin. These will be safer, as they have better long-term prospects. For example, it’s estimated that Bitcoin controls around 40% of the market. This gives them a big advantage over many of the smaller altcoins.
How Is Bitcoin Profitable?
Now that we know a little more about the world of Bitcoin, let’s look at how buying Bitcoin can make you money. For most people, this is as simple as buying Bitcoin, holding until the price rises, and cashing out. Let’s take a closer look at how this process works.
The amount that a Bitcoin is worth is dependent on the exchange rate. This fluctuates over time. There are several reasons why this price might change. For example, some investors might be nervous about global events, causing them to buy Bitcoin. This causes the price to rise. As the uncertainty ends, they will sell their coins, causing the price to fall again. By monitoring these fluctuations, you’ll be able to find the right time to pull out your money, for a profit.
To give an example, let’s say that you bought a bitcoin in 2010 for $13. Over the years, you held the coin, watching as the market rose and your investment grew in value. If you sold it today, that same bitcoin would be worth around $6,200. You would then have the choice to cash it out, and take the money, or leave it your wallet and see whether it will increase in value even more.
How Do I Get Bitcoin?
Now that we’ve seen the most common way to make money through Bitcoin, we might be wondering how to get your hands on some. There are a few ways you can do this.
First, you might want to go through a cryptocurrency exchange. This will let you trade traditional currency and purchase bitcoin.
Another potential option to explore is setting up a business and getting paid in Bitcoin. This can take a lot of effort. But, if the price keeps rising, it could pay out in the long term.
A third way to get Bitcoin is by mining it. This is where your computer solves equations, and you receive small bitcoin fragments.
Once you have the bitcoin, you can start monitoring the price, to find the right time to sell, making money.
As we’ve seen, there are a few ways that you can make money by investing in Bitcoin. This will allow you to capitalize on the price rises, as your wallet becomes more valuable. If you are interested in finding out more, and trying these techniques for yourself, don’t hesitate to get in contact with our friendly team.