Surprise, surprise! Bitcoin is still around. You didn’t think it would last this long, did you? Well, it has, and now is as good a time as any to jump on board. Here is a guide on how to make money with Bitcoin.
More than just a digital lottery ticket, bitcoin is proving a formidable, but still risky, investment option.
You might’ve heard of young bitcoin investors who became Bitcoin millionaires. Knowing how to make money with bitcoin isn’t simple, but we’ll guide you through.
HOW TO MAKE MONEY WITH BITCOIN
If you’ve heard of Bitcoin, you have likely heard the infamous story of the Bitcoin pizzas. If not, it goes like this:
A Florida computer programmer paid 10,000 Bitcoin for two pizzas, translating to just under ten dollars (U.S.). The current price of bitcoin is $10,000 per coin. You can do the sad math.
That amount of bitcoin would be worth over one hundred million U.S. dollars today. This story may be crazy, but it has become a parable in popular culture. The moral of the story? Bitcoin, as speculative as it is, contains explosive potential.
And that potential doesn’t seem to be going away any time soon. The legendary bitcoin spike of 2017 saw the price per coin skyrocketing to $20,000. Even after a price decline, 2020 shows Bitcoin holding firm at well over $10,000 per coin.
And if Bitcoin can survive in 2020, it’s something that deserves attention.
If you’ve been on the fence about investing in this kind of speculative currencies, you may be wondering if you can still learn how to get rich with Bitcoin.
The answer is yes. Even though the days of cheap bitcoin are long gone, you can still reap the benefits of bitcoin’s upward trend.
HOW TO MAKE MONEY WITH BITCOIN: MINING
There are two fundamental ways to get rich with Bitcoin. The first is very impractical but important to understand.
Discussing the details of bitcoin mining is beyond the scope of this article. However, it is worth noting that this method is energy-intensive and time-consuming.
The kicker is that, despite its resource intensiveness, Bitcoin mining doesn’t guarantee a payout. Verifying the requisite 1 MB of transactions only ensures the miner the chance to receive a bitcoin.
The amount of energy it takes to mine bitcoin makes it hardly worth the effort–you would end up using more money in electricity than the bitcoin is worth. But for those up to the challenge, Bitcoin mining is literally like minting currency.
Before you start dreaming of spinning gold from data like a cyber-Rumplestilsken, consider the more realistic way to get rich from Bitcoin: TRADING.
HOW TO MAKE MONEY WITH BITCOIN: INVESTING
Bitcoin investing is by far the most likely way you’ll earn money on the Bitcoin craze. And with over five hundred bitcoin exchanges in existence today, investing options are ample.
From national exchanges like Australia’s ACX to index funds like the Grayscale Bitcoin Trust, you can find the level of investment and risk that suits you best.
Keep in mind that bitcoin is a type of currency, and currency values vary by country. So a Bitcoin’s price in Australia will be different from its price in Europe or Canada.
That said, here is the simple three-step process of investing in Bitcoin and, with time, becoming a Bitcoin millionaire.
BECOME A BITCOIN MILLIONAIRE IN 3 EASY STEPS
Unfortunately, you can’t go back in time to 2011. Investing just $10,000 on 100 Bitcoin back then, when it was at $10 per coin, would have yielded seven figures by now.
The next best time to invest? Right now.
The good thing about being a decade out from Bitcoin’s inception? As a new investor, you learn from those who came before you. Even though Bitcoin is still considered speculative, it’s far less so now than it was way back when.
So everyday investors can learn from this brief but spectacular track record. And you don’t have to be a techie to get involved, which was not the case when Bitcoin first emerged.
So you want to become a Bitcoin millionaire? Here are 3 steps you can take to make money with Bitcoin.
STEP 1: SET ASIDE MONEY TO INVEST
One of the benefits of there being so many ways to invest is that you can start small. The majority of platforms allow you to invest the amount that works best for you, from as little as $20 a week.
With the price for each bitcoin soaring above $10,000 the days are over when investors even consider buying entire coins. But you can invest in fractions of a coin. Set aside $50 every week, and you will likely see six figures before you know it.
STEP 2: CHOOSE THE RIGHT EXCHANGE
The legion of exchanges is mindboggling, and it can be difficult to choose which one to go with. For this reason, it’s essential to do your research.
Consider the fee for each transaction, as well as the percentage fee per holding.
You also want to consider the safety of your Bitcoin holdings. Across the board, hardware, or “cold” wallets tend to be the most secure. Hot wallets, while more accessible, remain vulnerable to hacking because they exist entirely online.
Some exchanges require you to have a wallet. Some just require you to deposit money every month.
STEP 3: GIVE IT TIME
Most investors will tell you that time is on your side when it comes to the most significant returns. Famed investor Warren Buffet’s value investing method relies on waiting years for a stock’s value to increase.
The same goes for Bitcoin. Once you have decided on a comfortable, regular amount to invest, as well as a platform, it’s time to invest–for the long term.
If you dive into Bitcoin investing expecting returns in just a year or two, you may be sorely disappointed. Invest in the long-term commitment of at least five to ten years in mind. You will be well on your way to investment wealth.