Bitcoin continues to be one of those mysteries that many people seem to have heard about but don’t understand. Bitcoin is a form of digital currency, created and held electronically. Unlike US Dollars or Euros which are printed, Bitcoins are mined electronically with computers.
Recently we all have been seeing in the news that how few people have become multi-millionaire just by investing a few bucks in the early days of Bitcoin. You too can make so much money by investing in Bitcoin. Before you start investing, it is vital for you to educate yourself about what Bitcoin is and several ways of making money from it.
What is Bitcoin?
Bitcoin is the first decentralized digital cryptocurrency. It can be saved, spent, invested, traded and even stolen. It is open source peer to peer digital currency launched in 2009 by Satoshi Nakamoto. Bitcoins are like a virtual digital coin that you can send using the internet. No middle man or transaction fee is involved while dealing in Bitcoin or any other cryptocurrencies.
However, bitcoin is one of the most expensive currencies. As of October 2018, you need to spend $6,221 to purchase 1 BTC. If we talk in term of Naira you need to ₦2,259,588.92 to purchase 1 Bitcoin. Bitcoin is not a physical coin. It is a paperless, transparent and electronic form of money.
How to invest and make money from Bitcoin?
1. Bitcoin Trading.
Bitcoin Trading is simply the buying and selling of bitcoin. Bitcoin trading can be extremely profitable for professionals or beginners. The market is new, highly fragmented with huge spreads. Arbitrage and margin trading are widely available. Therefore, many people can make money trading bitcoins.
You can make a lot of money by buying and selling bitcoin online. Bitcoin trading is like the stock market. It is a high risk, high reward affair. The perfect strategy for making good money from Bitcoin is to purchase Bitcoin at a lower value and sell it at a higher value to earn a profit. To get the best of Bitcoin investment, start by observing the Bitcoin Market trend.
2. Bitcoin Mining.
Bitcoin mining is the process by which transactions are verified and added to the public ledger, known as the blockchain, and also the means through which new bitcoins are released. Anyone with access to the internet and suitable hardware can participate in mining.
The mining process involves compiling recent transactions into blocks and trying to solve a computationally difficult puzzle. The participant who first solves the puzzle gets to place the next block on the blockchain and claim the rewards. The rewards, which incentivize mining, are both the transaction fees associated with the transactions compiled in the block as well as newly released bitcoin. Click here to learn more about bitcoin mining.
3. Bitcoin Exchange.
A Bitcoin exchange is a website that handles the trading of bitcoin to other cryptocurrencies such as Ethereum, Litecoin, Dash etc. A bitcoin exchange serves as a digital marketplace where traders can buy and sell bitcoins using different currencies or altcoins.
A bitcoin currency exchange is an online platform that acts as an intermediary between buyers and sellers of the cryptocurrency. People can send bitcoins to each other using mobile apps or their computers. It’s similar to sending cash digitally.
4. Affiliate Programs.
Finally, you can make money from Bitcoin even not spending a cent. Some Bitcoin services are offering affiliate programs, within which you can be rewarded with some bitcoins for referring users to their services.
The sites are paying for digital marketing for your referrals and you make money by sending customers to them. It is a win-win for everyone. Not only does referrals drive traffic to their site but also provides earnings to grow their company and brand. Once your referrals go to the websites to register or invest, you will earn money.
How to purchase Bitcoin?
Bitcoin can be purchased from different bitcoin currency exchange networks. These networks allow users to buy Bitcoin from their chosen form of currency including the Nigerian Naira, US Dollars, British Pounds and Euros. In a previous post, we talked about websites to buy and sell bitcoins in Nigeria.
For you to purchase bitcoins, you need to have a “Bitcoin Wallet” which allows you to store and transact with Bitcoin. A “wallet” is equivalent to a bank account. It allows you to receive, store and send bitcoins and other digital currencies.
It is time to see things the right way and follow the paradigm shift of wealth creation through cryptocurrency. Even though investing in Bitcoin comes with a very high risk due to its volatility, it can also be a sure, steady and simple way to make huge profits.