How to invest in bitcoin and make money with cryptocurrency.
Bitcoin has become increasingly popular amongst crypto investors. There is no denying the fact that momentum in bitcoin is gradually building up. It is one of the most widely used coins from cryptocurrencies.
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Bitcoins use a digital technology known as the blockchain. Blockchain in layman’s terms simply means storing your information across different platforms.
What you need to invest in bitcoin:
- Identification documents
- Bank account information
- An Internet connection that is secured.
Note: If you want to purchase through a stockbroker, you will not need to supply your information.
How to invest in bitcoin:
1. Join a bitcoin exchange:
There is no official Bitcoin exchange, as most investors tend you use a cryptocurrency exchange. Bitcoin is an open-source technology.
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Some of the most popular exchanges to purchase from are coinbase, Binance, Kraken, Gemini e.t.c.
2. Get a bitcoin wallet:
A wallet is where all your cryptocurrency is stored. The two types of wallets are hot and cold.
A hot is handled by your provider or cryptocurrency exchange. While a cold wallet is the safest storage method for your coin.
It is a piece of hardware that stores your coin e.g Trezor, ledger Nano. If you are buying a small amount of bitcoin then the hot wallet is suitable for it. But if it’s large, I will advise you to go for the cold wallet.
3. Connect your wallet to your bank:
Link your wallet to your bank account, as this will enable you to sell and purchase bitcoin.
4. Order your bitcoin:
Investing in Bitcoin is risky, it is important you determine the level of your risk tolerance before investing.
You can buy a fraction of a coin for as low as $25, as a whole coin costs thousands of dollars.
5. Manage your bitcoin:
After the purchase of your coin, you can proceed to manage it by making transactions online. Hold your coins till it appreciates then sell or you can do day trading also.
Not every one that trades cryptocurrency ends up making money from it. With the rise of scams happening in crypto trading, if you aren’t careful, you will end up getting scammed.
Other than the obvious way of making money on cryptocurrency like trading, there are still some other ways to make money.
Ways to make money with cryptocurrency
1. Buy and hold:
What this entails is that you buy currencies like bitcoin, ethereum, lite coins and wait until their value rises before selling.
This is the most common way you make money from cryptocurrency.
Furthermore, this strategy will require you to identify stable and volatile assets that rise in value quickly.
Note: Cryptocurrencies like ethereum and bitcoin maintain price fluctuations, they are safe investments.
2. Earn dividends on cryptocurrencies:
Some currencies pay you dividends for just holding. You don’t even have to stake them. For instance, coins like COSS, NEO, CEFF e.t.c. pay dividends to investors for buying and holding their digital assets.
All you have to do is analyze and purchase the ones that fit in with your investment objectives.
3. Run real-time activities of blockchain:
Running blockchain activities( master node) is one of the best ways to earn passive income.
The procedure is a tad complex and the master node requires a certain minimal number of coins under it.
Therefore, platforms prefer to give out this running of master node service to operators at a fee.
4. Stake cryptocurrencies:
Staking crypto will offer a double earning potential through price appreciation.
In addition, it offers a dividend payout for selected coins for staking their digital assets.
Staking crypto is holding coins in a live wallet. It will allow you to earn additional coins for holding the particular crypto network.
5. Help out with micro task:
You can engage in a task like app testing, watching videos, taking surveys, advert viewing and more, if you have got the free time.
Additionally, you can do some little tasks for the cryptocurrency platform or individuals and get paid for it.
6. Work for cryptocurrency Companies:
You can be a content creator, a digital marketer, e.t.c. all you have to do is identify a need and provide a solution for it.
Working for cryptocurrency companies will allow you to work remotely. I.e, you can work from anywhere in the world.
Note: they do offer competitive packages when you find one that is legit, go all in.
Example of cryptocurrency companies is criminality, Bitwage, jobs for bitcoin e.t.c.
Finally, how to invest in bitcoin and make money with cryptocurrency will require a lot of practice, take your time, go through the article, and put it to work