Can You Become Rich with Bitcoins?

You probably think of stocks and bonds when you think of trading or investing. You might also include commodities, currencies, and other financial instruments. However, if you walk into a mutual fund manager’s office and discuss Bitcoins, you’re likely to get a strange look, assuming he or she isn’t a regular reader of TechCrunch.

Bitcoin was introduced in 2009 and is traded through its payment network. It is a cryptocurrency to be stored in a virtual wallet and is defined as a decentralized, peer-to-peer currency that uses cryptography to facilitate currency generation and transactions. For running a proof-of-work scheme, computers known as “miners” collect transaction fees and free Bitcoins in return for preventing double-spending. For more information, you can visit here

Can You Become Rich with Bitcoins

Price History of Bitcoins

Let’s start with a look at the price history. According to Bitstamp, the market capitalization of Bitcoin is currently over $12 billion, with over 12 million Bitcoins in circulation. Until 2013, Bitcoins could be had for less than $10 or a little more. Bitcoins seemed to keep increasing in value from the beginning of the year until April 9, when they peaked at well over $200. Bitcoins had lost nearly half their value by April 16th.

Bitcoins have made an incredible comeback since April. According to Bitstamp, Bitcoin’s price did not hit its previous high until November of this year. Bitcoins, on the other hand, soared to well over $1,000 per coin in the same month.

Bitcoin’s price has surpassed $18,000 as of December 2017; several people have made millions or billions of dollars by investing in Bitcoin. There have also been hard forks (or splits) into items like Bitcoin Cash, which have increased people’s incomes.

How to Earn in Millions with Bitcoins

There are two choices available to you: mine or exchange. You can essentially make money for nothing by mining for Bitcoins as long as the markets are open. However, mining is now such a difficult task that it is worth it. Making your machine a miner will most likely be loud and hot. Most likely, it would take a longer time to mine a single Bitcoin. However, if you have access to a lot of computing resources and don’t have any bills to pay, you might make some quick cash here.

Trading Bitcoins on the most well-known exchanges, such as Coinbase, is a more practical way of making a million dollars. You could have purchased Bitcoins for $10 in 2011. You would have netted $990 per bitcoin by selling them today for $1,000. Essentially, you should buy 1,000 bitcoins when they were still cheap. This would have cost you about $10,000 in 2011, so you would now be a millionaire.

How to Earn in Millions with Bitcoins

Making a million dollars with Bitcoins is still possible today, but you’ll need some cash. Bitcoins will fluctuate by hundreds of percent every day (on May 22, 2017, the price jumped up 10 percent). It’s risky to day trade Bitcoins, but where there’s uncertainty, there’s potential. Otherwise, you’ll have to decide whether or not you think Bitcoin will be good over the long term.

If you believe that foreign exchange brokers, market makers, and banks will trade Bitcoin in the future, you should consider going long. Buying now will be extremely risky; the price chart screams “bubble,” but the timing of your entry is entirely up to you. However, don’t wait to see more of the same rapid development in the near future.

On the other hand, if you are convinced that Bitcoin will crash, you should short the cryptocurrency in any way you can. Even though this would be a highly risky venture if the Bitcoin market is doomed to crash, why not profit when the bubble bursts? You’ll either have to be creative or enter an exchange that helps you to short Bitcoin.

Other Ways to Invest in Bitcoin

It’s crucial to keep in mind that Bitcoin is a currency, not a portfolio or a bond. As a result, “investing” in it is similar to investing in a currency. You’re simply hoping that the value of Bitcoin rises in relation to your home currency.

Getting a Bitcoin wallet and purchasing Bitcoins is the simplest way to invest in Bitcoin with a website.

Check out the GBTC at Stockpile if you want to invest in an ETF through your broker. You can invest in fractional shares of this ETF, which tracks Bitcoin. Get $5 for free when you sign up for Stockpile. Begin here.

Keep in mind that you might also invest in Litecoin or Ethereum.