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If you invested in Bitcoin at the earliest know price, your return on investment would be greater than 7, 539% today. With massive companies like J.P Morgan and IBM investing in blockchain, it appears Bitcoin will be able to offer increased returns over time.
Satoshi Nakamoto created Bitcoin in the year 2009. Bitcoin’s purpose is to make transactions faster, secure, and frictionless compared to cash transfers; using a noncentralized system called the blockchain.
This article will focus on explaining in simple terms what Bitcoin is and should you invest? And other points that are surrounding Bitcoin.
Bitcoin is similar to the regular cash used in our day-to-day transactions. The only difference is that it is virtual; it can’t be held or seen and is being used for more real word transactions regularly.
When learning about Bitcoin, you get to hear terms like blockchain, cryptography, distributed ledgers, and Bitcoin miners; it can be a bit much at first.
We created a helpful crypto glossary if you need help with terminology. It goes through all significant terms A-Z to help you maneuver through the market. These terms are essential to understand as you decide whether you should invest in Bitcoin or not.
Bitcoin is the world’s most widely used alternative digital currency with a total market cap of $200 billion-plus at the time of this writing.
With Bitcoin, you can transfer digital currency to anyone around the world without your name, with anonymous transactions, with the only details visible to the public being the volume of coin and the time.
Let’s take a step back to think about the stress you go through to transfer money to a relative or friend in another country.
The number of verifications, the number of entities that now know everything about you and the transaction; results in a complete lack of privacy. Bitcoin eliminates all these formalities.
Interest in Bitcoin has increased rapidly over the past few years. However, there is an unanswered question that has varying opinions, “Should I Invest in Bitcoin?”.
This question is subjective but based on the trajectory of Bitcoin in recent years; it’s worth considering. Take note that Bitcoin is a very volatile digital currency, but the ease and security it provides during transactions cannot be overlooked.
It has also increased considerably in price over the years. It had an average price of $60 in 2013 and has had a significant increase since then, though it is hugely volatile. Do in-depth, detailed research about Bitcoin and understand all the risks before creating an investment strategy based on your overall goals.
Nine years ago, a programmer named Laszlo Hanyecz decided to spend the bitcoin he had to get food. He purchased two big Papa John’s pizza for 10,000 worth of Bitcoin whose price was just a fraction of cent at that at the time.
He posted the offer on a forum for bitcoin users called “bitcointalk.” Another user responded, and he sent the 10,000 Bitcoin over for two large pizzas.
Bitcoin has increased significantly since then, and it is increasingly being accepted in many Organizations and stores.
The amount Hanyecz sent over then, is now worth over $105million as of 2018 peak in price.
Bitcoin has plenty of potentials to be worth your time and money. A lot of entrepreneurs and organizations have already invested in this coin, and you can make money if you invest at the right time.
Your investment will not only receive a healthy ROI on your investment, and you also receive a frictionless method to exchange value anywhere or at any time.
There are a lot of reasons why you need Bitcoin, such as:
The question of the legality of this digital currency depends on your intention, location, and regulations of your country. For instance, trading of bitcoin is legal within the United States, but you could be charged with tax law violation if you refuse to declare the sale or trade of every Bitcoin transaction you make.
Use platforms that track or effectively export your bitcoin trades regularly.
The government can require you to turn over documents verifying every transaction made.
When it comes to safety, investors of Bitcoin have lost a significant part of their investment due to human error, poor investment choices, hacking, and scams. For any investment, there are risks, and you need to understand what you are going into before you invest.
Also, misplacing or forgetting the password of your virtual wallet, which means you are unable to prove the ownership of the Bitcoin. This will result in losing your investment.
If you have the intention to invest in Bitcoin, contact a bitcoin law firm and learn about current regulations to ensure you understand all obligations required in your jurisdiction.
There are mainly three ways to earn Bitcoin, and these are ways recommended by top investors:
The first way to earn is to earn from a product or service you provide. This is the most popular and probably the easiest way to make money from Bitcoin online. If you have a website, add Bitcoin as a means of payment.
This method is for the investors who have money to spare without the need to touch it for a while. This way, you purchase bitcoin, equivalent to your cash used for investment, and keep it in your wallet. When you receive a significant or satisfactory increase in price, you can sell the coin. Many investors have made mind-blowing success through this method. This is the opportunity long-term investment of bitcoin provides.
When you are planning to make a long-term investment of Bitcoin, the aim is to accumulate as many coins as possible at low cost. The sole objective of selling is only when there is a significant boost in the price of the coin, resulting in profits. Now, there are a lot of scam websites out there only out to take your investment money.
Be sure to see all our battle-tested tools for crypto as well to remain safe and secure with your bitcoin.
There is also an opportunity for traders to earn from bitcoin. Traders are popularly known to feed on the volatility of the market, which is why they can earn from bitcoin. Traders bet on the movement of the market; if Bitcoin price will go up or down. This prediction can be on a short-term or long-term analysis. There are so many tools used to analyze and predict the movement of the market as the familiar trader’s saying goes “There is no new trend in the market, it must have happened at some point in the past.”
There are three ways traders earn from Bitcoin:
This technique involves the trader identifying if Bitcoin is going to follow the upward trend or downward trend. In other words, will Bitcoin experience a price boost or reduction within a particular period.
The market generally moves in range, and there is a predictable point where the market will fall and another point where there will be a hike in price. Range traders predict this range for Bitcoin, therefore, buy at the lower range level and sell at the upper range level to take profit.
This kind of traders predicts that the price of Bitcoin will either rise or fall and they trade base on that prediction. This trader commonly uses the volume of Bitcoin to predict; if the volume of Bitcoin increases, the price will rise and vice-versa.
For a more in depth list of ways you can earn Bitcoin we created an article called, “How To Earn Bitcoin | Little to No Investment Needed.” If you want to earn bitcoin that is where you should start.
The best time to invest in Bitcoin is dependant on your goals. There is no proper time to invest as the market is volatile and sometimes unpredictable, which is the case of every business. “Journey of a thousand steps starts with a step,” trust the process, except the challenges, don’t panic when there is a dip in price and sell your coin. If you think deeply about this, the smallest of a successful business has had its challenges and overcoming challenges makes an Enterprise grow.
This doesn’t mean you should invest without a strategy to make a profit, learn one of the ways to earn money from bitcoin as discussed above. Be sure to understand and have a market plan so you won’t be swayed away when there is a slight dip. Above all, have a positive mind; digital currency is like any other currency; it is the future of business transactions.
The price of this digital currency is not constant; you can keep up with the price, charts, news, and in-depth analysis of this coin by checking on Coinbase and Changelly. In mid-2019, the price of bitcoin was $10,895.93. This price can vary with time; therefore, there is a need to continually check the price or subscribe to newsletters from these sites to get the latest price changes updates from them.
There are a lot of ways to earn and buy Bitcoin. I will discuss some ideas in this section.
Company’s put out the survey online with a bit of bitcoin reward attached to them. This is a means of collecting information needed by the company. It’s not likely anyone would complete this survey if there weren’t a reward attached to them. There are a lot of websites to earn from, but I can only recommend the Coinbase platform. You can earn for tasks like watching two-minute videos and have crypto deposited immediately into your account. Now, this is not for all crypto, but they are adding new coins to the earning program.
Companies pay affiliates to promote their products and services. Payment for this service is offered in Bitcoin. If you have an existing affiliate website or you enjoy market and sales, then this is for you.
This is one of the most popular ways of getting Bitcoin. Big mining firms earn hundreds of millions every year through this method. This method is cost and power-intensive, the cost involves the mining hardware cost and the electricity cost. Also, for this process, you need to gather a group to increase profits.
Freelancers can also collect payment through bitcoin instead of regular cash. There is virtually no sector of an organization that doesn’t need freelancers to perform some duties ranging from writing, graphics designing, programming, and digital marketing. If you have any marketable skills, you can sign up on any trustworthy freelancing platform and earn today.
There are mainly two ways to buy bitcoin currently:
You can buy directly from friends who want to sell their coin due to many reasons. All you need for this process is your public wallet address. The process can be dangerous, especially if you don’t know the seller, as many people receive the crypto and fail to transfer cash afterward. So extra care is needed during this process and only goes through this process if you trust the seller.
There are so many sites that serve as middlemen during Bitcoin transactions. These sites include; Paxful, Coinbase and Changelly. Register on these platforms, create an account, and you can buy and sell Bitcoin on the platforms. There are several precautions to take when trading on these platforms:
The potential of Bitcoin can’t be ignored. All the millionaire’s bitcoin created in the cycle of 2018 can happen again. Unfortunately, we don’t know when or how much is needed to become one of the bitcoin millionaires in the next cycle. If you believe in bitcoin and that the growth of bitcoin will continue, then investing what you can afford to lose may be an option for you.
Just be sure to do your research, understand all of the risks, and use only trusted tools to keep your identity as well as your bitcoin safe.