Right now, it’s practically impossible to go a few days without hearing about the latest cryptocurrency craze. We hear about how Bitcoin or Litecoin are hitting new highs (or lows) and you too must be thinking about how to cash in on the cryptocurrency buzz.
Let’s go over some of the most well-known and reliable ways of making money with bitcoin:
1. Investing In Cryptocurrencies
Your first option is to just buy coins or invest in coins. There are different exchanges that will allow you to buy coins to keep in your wallet. One of the most popular exchanges is Coinbase. Coinbase offers a super clean user interface and is one of the best ways to get started if you have no prior experience in cryptocurrencies. However, they do not accept everyone, and of course there’s a huge risk in owning a wallet if you don’t know how to secure it correctly.
Fortunately, you don’t have to buy and own Bitcoin in order to invest in it and profit from it. There are various websites that provide financial tools allowing you to invest in Bitcoin with CFDs & ETFs, so you don’t actually hold the bitcoin, but instead trade futures on its index price.
Basically you pay the market rate for the coin and then hold onto it until you’re ready to sell. The hope, of course, is that the price goes up, and since bitcoin is limited in supply and production is tightly regulated through the algorithms themselves, bitcoin has numerous anti-inflationary considerations built it. This means that over time bitcoin should gain in value.
However, like with any investment, you need to be careful. Cryptocurrency prices can fluctuate wildly!
Make sure you only trade with a reputable investment broker, or if you choose to buy from an exchange that you back up your digital wallet. Also pay attention to sell your coins when you feel like your profit has been reached.