As promised on my post yesterday I will now share to you the ideas I come up with, I’ve used, and I have done on how to earn in using bitcoin. The basic requirement is only for you to have access to bitcoin by having a bitcoin wallet. And that requirement has already been discussed in my previous post that you can find by clicking here.
Method 1: Buy bitcoin and just leave it in your wallet.
Yes, you just need to convert your peso currency, or whatever currency you have in your country, to bitcoin and just leave it in your bitcoin wallet. This requires patience since you are looking for several months or a couple of years. So, why and how can you earn by doing this?
Well, try to visit CoinDesk website in their bitcoin price section and search for the price history of bitcoin for the past year. Earlier this year, 1 BTC is only $997. And right now it is already at $7350. It keeps on breaking the record and speculators are seeing up to $10000 value of 1 BTC by 2018. It means that if you have 1 BTC right now which is valued at $7350 and just leave it for when the value becomes $10000, you will earn $2650 or %36 of your $7350.
Method 2: Buy low and sell high.
This method is not recommended for emotional buyers or sellers which is the common enemy of traders. This method also entails that you go into active bitcoin conversion from your currency to bitcoin and back the other way around. I believe you can say that this may be a safe game.
So what you will do is to buy bitcoin when the price is low and sell it when the price is high. What’s hard with this method is you need to speculate when will be the right time to buy and when will be the right time to sell. I’ve done this method and earn a little profit from it. The only drawback is, when you are seeing the trend as going down, you will be tempted to sell your bitcoin to be safe on your side. And thus, eliminating the factor that you might have earn a bigger profit if you just kept your bitcoin in your wallet.
One way to do this method is by charting. If you take and study several charts for several days, weeks, or months of the bitcoin price, you will notice that there are identical trends that you can consider as your points of interest for your decision making whether to buy bitcoin or convert to your currency.
Method 3: Buy bitcoin and trade it to another cryptocurrency.
Bitcoin is not the only cryptocurrency out there. There are a lot of cryptocurrency that is available for the public to have. But before being able to get a hold of another cryptocurrency, the easiest way is to actually have bitcoin first and later trade it with a cryptocurrency that you are eyeing. You can see the top cryptocurrency in CoinMarketCap.
For this example, let us take Ethereum as our targeted cryptocurrency. The idea of this method is to speculate when will the price of bitcoin rise compared to that of ethereum so that you will have more ethereum when you buy it. And later on, speculate again that the price of bitcoin is going down when ethereum is going up to have more bitcoin.
Another thing you can do is when you convert from bitcoin to ethereum, you just wait until ethereum price rises again and convert it immediately to your own country’s currency ($).
In doing this method, you need an exchange medium where you can trade one cryptocurrency to another. The well-known ones are Shapeshift, HitBTC, and Poloniex. Just make sure to do further reading regarding the topic since you also need knowledge on when to trade to make profit from it.
Method 4: Do bitcoin mining.
You may have heard of the term mining before and thought that you need a GPU hardware to do this. Well, in fact, there are cloud mining services out there that allows you to rent their hardware and take the proceeds of mining to your own – less the maintenance fees. Each cloud mining provider also sets different terms of contract and have different fees for maintenance. The biggest is Genesis-mining but, they always run out of hashpower in a snap when they are announcing for availability since existing customers are quick to register.
What I used in doing bitcoin mining is HashFlare. Before, their SHA-256 contract (bitcoin mining) is set to unlimited but right now they limit their term of contract to only 1 year. You can buy 10GH/s for $1.5. It means that when you buy 10GH/s of hashpower for $1.5, you will be able to enjoy its rewards less the fees for the period of 1 year. You can also calculate how much you will be able to earn with your planned amount of hashpower on a daily, weekly, monthly, and yearly basis by checking their FAQs and profit calculator.
Personally, it seems that you will have your investment amount in breakeven in between 3 – 5 months if you just maintain your current hashpower. One trick in mining is compounding. You have the ability to reinvest your earnings from mining and buy additional hashpower. Remember, the higher your hashpower is, the higher your profit will be from mining.
If you are planning to register in HashFlare and do mining, please use my referral link to register which is: https://hashflare.io/r/9AEF9602
To conlude, all these methods actually have the same identical risk which is the volatility of the price of bitcoin. As you may already understand now, if you buy 1 BTC for $100 at the time and then later on its value falls down to $43, you lose $57 already. And as what I’ve been saying always to others whom I have the chance to talk to, cryptocurrency is likely to be the future of currencies but it is still with a very very very high risk which you need to be wary of. But on the positive note, it goes also to high risk is to high reward.