How To Make Money With Bitcoin
In 2013, many people put their money in Bitcoin, a peer-to-peer decentralized cryptocurrency. Like in any stock, users who invested their money early took home huge profits. The value of the virtual currency rose from $60 to more than $1000 in a span of a few months.
The days when Bitcoin was a volatile currency are now over but with the right strategy, anyone can still make money with it. Although the risks are high, the payoffs can be high as well so many people only invest what they can afford to lose. If you have extra cash sitting on your bank account, you can make money with Bitcoin through buying and holding, short selling, and investing in arbitrage funds.
Buying and Holding
In conventional stock markets, long term investors buy stocks and wait for the stocks to reach the target price. The process can take a few months to a few years but the method almost always works. If you want to play the cryptocurrency exchange with the least amount of risk, following this strategy may be right for you.
The previous year, bitcoin holders made a lot of money by simply waiting for the virtual currency’s value to reach the target price. For example, if users bought bitcoins for $10, the task is to wait until the value surges to a profitable price. Those who sold their bitcoins for $100 per coin made 10 times their original investment. Users who were able to sell at the peak, $1100, made 110 times their initial investment.
Nowadays, the chances of seeing the digital currency’s value making extreme waves are slim to none. However, the situation can be to your advantage because lesser volatility means lesser odds of waking up one day to the shock of the currency’s crash.
Besides all this, you can also try some of the credible online crypto casinos that can help you in getting really great profits from your investment. With 7BitCasino review you can learn all about the best tricks that can help you in making money through these online casinos.
In the stock market, most people invest in the hope that the price of a particular stock will rise. Short selling, however, is betting that a particular stock’s price will tumble over a period of time. Therefore, if you are one of those gloom and doom investors who think that the possibility of a crash is looming, then you can short sell bitcoins. Plus500 is one of the many conventional trading platforms that offer this option.
Investing in Arbitrage Fund
Before you go through this channel, it is important that you understand how the system works. Arbitrage is the purchase of a certain stock or commodity only to sell it immediately for a profit on a different market. It is a promising way of making money with bitcoins.
If you shop around different exchanges, you will notice that the bitcoin’s value in one market may be higher or lower on another market. As an example, Mtgox is a very popular exchange where a cryptocurrency’s price maybe 10 percent higher than on smaller exchanges.
To take advantage of the price disparity, you can invest your coins in arbitrage funds. Usually, these funds will release their results and credit your account with profits daily. Bitcoin Trader is an arbitrage fund where you can leave your bitcoins for profit. The fund requires a 120-day investment period before investors can pull out their initial investment.