Earn money with Bitcoins: Is it still possible?
Bitcoins are currently experiencing a massive boom: no matter where you look, cryptocurrency is the talk of the town. Within just a few years, the price has gone from a few cents per Bitcoin to more than €10,000 per coin! Bitcoin has helped many people to achieve great wealth. For example this 18-year-old boy from the USA. But should you still invest now? And is it even possible to earn money with Bitcoins these days? This article contains the Bitcoin analysis!
Earn money with Bitcoins: Opportunities for Austrians:
To earn money with bitcoins, you have the following 3 possibilities available:
- Crypto Trading,
- trade CFDs on the Internet currency and
- Bitcoin Mining
Among the best ways to work with Bitcoin to make money, belonged in the past to the Kon the Bitcoin in the sense of "buy-and-hold".
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What is "Bitcoin" actually?
Bitcoin is a digital cryptocurrency. This means that everything takes place virtually. For example, there are no Bitcoin coins or other real values. However, you can buy things with Bitcoin, such as pizzas at Lieferservice.at or travel at Expedia.
Recommended explanatory video from the YouTube channel Financial flow:
It is precisely because of this characteristic that many people are big fans of Bitcoin: the money is only transferred from one user to the next once all PCs connected to the Bitcoin network have approved a transaction. This means that there is no possibility of falsifying transactions.
Due to the lack of monitoring / centralization, Bitcoin is unfortunately also used for illegal online transactions, e.g. for the online purchase of drugs.
How can I make money with Bitcoins?
1. mining
Is mining still worthwhile? No.
The Mining is an essential factor in the Bitcoin game. Every computer connected to the Bitcoin network that authorizes transactions for other users participates in mining.
In mining, users get bitcoins as a reward for sharing their PC's processing power with the network. Here you will find an overview of various mining programs for Windows.
However, as the difficulty of the "computing tasks" increases daily, it is unfortunately no longer worthwhile for the average Joe to start out as a miner. In order to make large profits, you would have to have many computers mining at the same time. In addition, the costs for the power consumption of your own PC are significantly higher than the yield when mining Bitcoin.
2. act
Can you make money trading Bitcoins? Maybe.
In 2011, one Bitcoin cost around €1. If you had bought ten bitcoins for €10 that year, you would have €100,000 today.
For many Bitcoin fans, this calculation worked out. Some of those who believed in Bitcoin's success right from the start and invested heavily are now millionaires who will probably not have to work for the rest of their lives.
However, as a Bitcoin is now worth more than €20,000, trading is only worthwhile for people with a large enough budget. Smaller investors will have to look for another form of investment.
3. trading with other cryptocurrencies
Can you make money trading other coins? Most likely.
Of course, Bitcoin is not the only cryptocurrency on the Internet. Meanwhile, there are a number of other coins that you can also invest in, for example Ethereum, IOTA or Litecoin. Many of them promise to do a lot better than Bitcoin.
Therefore, people also invest in other coins where they still see potential.
Many of these currencies have only recently entered the market and are therefore only in their infancy.
- A recommended alternative to bitcoin is IOTA. IOTA is built on a slightly improved blockchain network, the so-called Tangle. The advantage of this is that there are no transaction fees (as with bitcoin) and transactions happen in near real time.
- However, probably the best known alternative is Ethereum. The system was launched on the market in 2013 and is currently ranked second among cryptocurrencies (in terms of market capitalization). Incidentally, Ethereum was invented by the then 19-year-old Vitalik Buterin.
How do I trade cryptocurrencies?
To be able to trade cryptocurrencies, you first have to register with an online exchange.
Current Recommendation: Plus500- Plus500 is the largest trading platform for CFD trading with cryptocurrencies, shares, etc. The company from Israel is one of the leading CFD platforms worldwide. With the demo function, it is also possible to learn how to trade with virtual money.
Risk Warning: 72% of retail investor accounts lose money trading CFDs with this provider (Plus500). - Plus500UK Ltd authorized and regulated by the FCA (#509909).
The best-known crypto exchanges also include:
- Coinbase
- Cex.io
- Binance
- Bitfinex
- Bitcoin.com
When registering, you usually have to confirm your identity. This is usually done with a passport or driver's license. You can then start trading.
You can get more info in an online course.
Where can I get up-to-date information on making money with Bitcoins?
In order to stay up to date and buy or sell at the right moment, you need confidential and up-to-date sources of information.
We recommend the reddit online community for this. There you will find special sub-forums for all cryptocurrencies (e.g. IOTA). In addition to current price estimates and tips, you can also meet new people there who are also interested in cryptocurrencies.
Despite the current hype, we would like to draw your attention to the fact that you can lose your invested money when trading cryptocurrencies. Therefore, only invest money that you do not need.
Your capital is subject to risk.
