Before you even think of how to make money with Bitcoin you need to signup with an exchange so that you can start buying bitcoins.
Once you’ve bought some, or a fraction of a bitcoin (you don’t have to buy complete bitcoins), you can start think about making money with Bitcoin.
So once you’ve studied how Bitcoin works & you’ve funded your wallet you’re ready to buy some bitcoins.
2 Effective Ways To Make Money With Bitcoin
Before we get into how to make money with Bitcoin, you need to get a feel for the past, current & future prediction of the price of Bitcoin so that you don’t buy at an unnecessarily high rate.
If you’ve signed up for a Luno Account you’ll always be able to see the current Bitcoin price at the top of the page and your current Bitcoin value in your currency a little lower.
As the price is constantly going up & down, it would be prudent to keep an eye on the current trend and try and buy at a low.
1. Buy & Sell Bitcoin For the Long Term
This is probably the safer method of the two and involves playing the long game.
What this essentially means is that once you’ve bought your stash of bitcoins and have them securely stored in your wallet you just sit & wait for the price to rise.
If you’re one of the investors who are bullish and feel certain that Bitcoin has significant growth potential and that its price trajectory will be upwards for the foreseeable future, then this method is perfect for you.
It’s price is currently at around $2,760 (8 June 2017), after having been over $2,800 last week, but is predicted by some to reach $4,000 by the end of this year (2017) and even hit the $100,000 mark in 10 years.
So as you can imagine this has grabbed the attention of many people who are excited at the prospect of investing now and standing the chance of making big money with Bitcoin in a few years down the road.
In fact, there are some lucky individuals who bought in years ago and have made millions from their Bitcoin investments.
Just as an example, if you had bought just $5 worth of bitcoins in 2010, your investment would be worth about $4.5 million today – that’s the power of this Bitcoin cryptocurrency.
Another factor that will create the scarcity factor is that the Bitcoin production has been capped at 21 million bitcoins.
This means that as the production availability becomes less and less, the value of Bitcoin could shoot through the roof but on the other hand some unforeseen event could occur that causes the price to plummet.
I somehow think it’ll be the former though as it’s becoming more widely accepted as a legitimate currency that is gaining trust throughout the world.
2. Buy & Sell Bitcoins For Short Term Profits
This would involve keeping a close eye on the price fluctuations and buying & selling bitcoins daily or weekly.
The idea here would be to always sell high and buy low.
I’ve done this myself and it’s a good way to grow the number of bitcoins you have.
Some weeks the price of Bitcoin fluctuates more than others so it’s not always easy to know how long to hang on for before buying or selling.
With the massive rise in price a few weeks ago I sold before the price reached it’s highest level, as I didn’t think it would carry on going up, and then bought more bitcoins with the proceeds that I received from selling them earlier.
The result was that I had more bitcoin in my wallet than I had started with which meant that my Bitcoin value was now higher than it had been.
So if you’re astute, and set yourself price targets for buying & selling, you stand to make money with Bitcoin.
For instance, in the example of my transactions above, I could’ve kept the profit I’d made by selling my bitcoins (instead of reinvesting when the price dropped) and just left my original value in my wallet to grow.
Then I could’ve waited until it had grown to an acceptably high level (price) and sold off the excess bitcoins and kept the profit.
By doing this you’ll be making money from your bitcoins but your bitcoin amount will be decreasing so you won’t have the potential to make as much as you could’ve, by reinvesting & accumulating more bitcoins, if the price does reach the levels it’s predicted to.
Lastly, since the total market cap of Bitcoin is still relatively small, I expect the fluctuations to continue until governments and large corporations start giving it wide scale support (which is happening) or until it begins to reach its production cap.
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