Earn money with Bitcoins: Is it still possible?
Bitcoins are currently experiencing a massive boom: no matter where you look - everywhere you look there is talk of the cryptocurrency. Within a few years, the price went from a few cents per Bitcoin to more than 10,000 ? per coin! Many people have thus helped the Bitcoin to great wealth. For example this 18-year-old boy from the USA. But should you still invest now? And is it even possible to make money with Bitcoins nowadays? In this post you will find the Bitcoin analysis!
Earn money with Bitcoins: Opportunities for Austrians:
To earn money with bitcoins, you have the following 3 options 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" anyway?
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 explainer video from YouTube channel Financial flow:
It is precisely because of this feature that many people are big fans of Bitcoin: only when all the PCs connected to the Bitcoin network have approved a transaction is the money transferred from one user to the next. Thus, there is no possibility of falsifying transactions.
Because of the lack of monitoring / centralization, Bitcoin is unfortunately also used for illegal online transactions, such as buying drugs online.
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 can find an overview of different mining programs for Windows.
However, as the difficulty of the "computational tasks" increases every day, it is unfortunately no longer worthwhile for Otto Normalverbraucher to start as a miner today. To make big profits, you would have to have many computers mining at the same time. In addition, the costs for the power consumption of one's own PC are significantly higher than the yield in Bitcoin mining.
2. act
Can you make money trading Bitcoins? Maybe.
In 2011, one Bitcoin cost about 1 ?. If you had bought ten Bitcoins for 10 ? in that year, you would have 100,000 ? today.
So for many Bitcoin fans, this calculation worked out. Some of those who believed in Bitcoin's success at the beginning and invested heavily are now millionaires who will probably not have to work for the rest of their lives.
However, since today one Bitcoin is worth more than 20,000 ?, trading is only worthwhile for people with enough budget. Smaller investors have to start looking 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 came onto the market in 2013 and is currently in second place (in terms of market capitalization) among cryptocurrencies. Incidentally, Ethereum was invented by the then 19-year-old Vitalik Buterin.
How do I trade cryptocurrencies?
In order to trade cryptocurrencies, you first need to register with an online exchange.
Current Recommendation: Plus500- Plus500 is the largest trading platform for CFD trading in cryptocurrencies, stocks, etc. The company from Israel is one of the leading CFD platforms in the world. 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 most popular crypto exchanges also include:
- Coinbase
- Cex.io
- Binance
- Bitfinex
- Bitcoin.com
When registering, you usually have to confirm your identity. This usually works with a passport or driver's license. After that, you can already 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.
For this, we recommend the online community of reddit. There you can find special sub-forums for all cryptocurrencies (e.g. IOTA). Besides 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.
