How to Profit and Invest in Electronic Currencies Like Bitcoin
Money such the famous bitcoin are called cryptocurrency. It is a little similar real money(which will call fiat currency) as they both have value.
There are a wide variety of cryptocurrencies currently in existence, with bitcoin been the most popular. Other types of cryptocurrencies are Litecoin, Dash, Ethereum, Bitcoin Cash and Zcash. These not so popular coins/currencies are called altcoins, short for alternative coins.
Cryptocurrencies have been associated with big money making since 2016. But how can you get your hands on this currency and become a billionaire off your profit from the internet money?
The word billionaire in cryptocurrency isn't to far fetch as the value of cryptocurrencies has been known to sore to great heights in short time frames.
Our primary focus is not on the history and science behind cryptocurrencies. Meaning we will not discuss much on that. Instead, we will be looking at the ways of making money from cryptocurrencies such as bitcoin.
There are many techniques to make money from cryptocurrencies. But for now, we will look at 4 main methods.
4 ways can you make a profit from the internet by cryptocurrencies like Bitcoin?
1) Investing in bitcoin
Investing in bitcoins is a great way of making money from the internet. Many people have become millionaires just by doing this.
Investing in bitcoins is very simple all you need to do is buy bitcoins using fiat currency e.g. dollars. After you have bought the cryptocurrency you wait for its value to grow. When this happens you can now sell the bitcoins you bought at a higher price.
Unlike ordinary stocks that take years to gain a 14% increase in value, bitcoin can increase in value by 30% in as low as a month.
What do you need to start investing in bitcoin? All you need is a bitcoin wallet to store the bitcoins(private keys) you will buy. You can get a bitcoin wallet from many places and there is a wide variety to choose from. A simple search in your search engine will prove this to you.
People can also directly send you bitcoins to your wallet using your wallet's address. But remember to never give away your private keys. These are the actual coins!
After you have picked a bitcoin wallet you need to find a place where you can buy yourself bitcoins. There are many sites where you can change your many into bitcoins. These websites are called exchangers. A good example is CoinMama.
2) Investing in Altcoins
Altcoins are a good place to invest your money and make a great profit from the internet. This is because these coins are newer than bitcoin, meaning they have been improved based on bitcoins flaws. Making them possible substitutes for bitcoin.
This means that they are probably going to pass bitcoin in value and are growing at faster rates in value. Some very promising altcoins that you should look into are Litecoin, Zcash, Ethereum and Bitcoin Cash.
Investment in these currencies is similar to the investing in bitcoin. Just remember to get wallets for these currencies.
You can also buy altcoins with bitcoins and vice-versa via exchanges.
3) Investing in ICO projects
A smaller branch of altcoins belongs to ICO's. ICO stands for Initial Coin Offerings, which is when a cryptocurrency still under development sells their coins to investors.
Taking part in initial coin offerings is very risking but has great results. Because if the functions of the coin are amazing a lot of people will want these coins making their value increase exponentially. Some cryptocurrencies grow by over 1500% in value a month after the coin began to function.
But remember ICO's are very risky as there have been a lot of soon to be crypto-coins that were mere scams.
4) Mining Bitcoin and other Cryptocurrencies
Mining in cryptocurrencies is a term used to refer to the verification of transactions. The verified transactions then form part of a public ledger called the blockchain.
Miners get paid in cryptocurrencies such as Bitcoin for verifying transactions.
Mining of cryptocurrencies requires special computers called ASICS. So mining using your laptop isn't possible. This is because mining requires a lot of processing power and electricity.
However, you can rent an ASIC or join a cloud mining. When you join a mining cloud you offer you computers processing power to a group of miners that use it to mine. When the miners are successful you share the bitcoins amongst each other.
