Do you want to invest in bitcoins and want to live your dream life bitcoin is the only way to become right if you apply this investing tips correctly then you will be a bitcoin millionaire.
Bitcoin is often touted as an electronic currency that will change the world, but it is also a highly volatile type of financial asset. In fact, many governments don’t recognize it as a currency at all. In spite of the many merchants now excepting bitcoin, a lot of the activity surrounding bitcoin comes from traders hoping to make money on fluctuations in its value. check the top 10 bitcoin wallets list to choose the best bitcoin wallet for u
1 Buy and Hold
Many people invest in bitcoin simply by buying and holding the cryptocurrency. These are the people that believe in bitcoin’s long-term prosperity, and see any volatility in the short term as little more than a blip on a long journey.
Some investors want a more immediate return, by buying bitcoin and selling it at the end of a price rally. There are several ways to do this, including relying on the cryptocurrency’s volatility for a high rate of return, should the market move in your favor. Several bitcoin trading sites also now exist that provide leveraged trading, in which the trading site effectively lends you money to hopefully increase your return. Magnr is one such example.
Especially during a bitcoin bubble, some people may want to bet on bitcoin’s value going down. Short selling an asset involves borrowing the asset at a certain price ($100, say)so that you can sell it to someone else at the same price.
Then, should the asset decrease in value (let’s say to $50), you can buy it back at the lower price in order to give it back to your lender. You make a profit on the difference between the original price when you borrow the asset, and the lower price when you purchased it to pay back the lender.
You can short bitcoin via trading platforms like Bitfinex, which finds lenders willing to give you bitcoins for a certain period. You can also use derivatives trading sites.
Of course, there’s always the danger that the market will move against you, and you may end up losing the money that you put up. Any trader should understand the concepts of leverage and margin calls before considering a shorting strategy.
2, Bitcoin Mining to double your bitcoins
Mining for Bitcoins In 2009 when the Bitcoin algorithm was created by Satoshi Nakamoto (pseudonym), a finite number of bitcoins that will ever exist was set: 21 million. As of today, more than 16 million are in circulation and that number is rising daily. This means there are plenty of bitcoins waiting to be discovered.
There are three ways to obtain bitcoins- buying them exchange, accepting them as payment, or mining new ones. Mining simply means the discovery of new bitcoins and the verification of bitcoin transactions.
I tried doing some mining a few months ago, but like you said “it’s so nerdy” and like Andrew said, “it’s so not worth it”. When bitcoins initially came out, the mining was easily done using spare clock cycles on your video card.
The difficulty of mining goes up by a factor of about 14% every 30 days. So more and more powerful and expensive equipment is required for it. That’s why the value of bitcoins has increased to what it is at.
Now they devices called ASICs (Application Specific Integrated Circuits) which are specifically designed to perform billions of hashes per second to mine new bitcoins. The most efficient ones cost about $6K each and you would need an array of several in order to mine a few bitcoins per month.”
“When you’re mining bitcoins, you aren’t technically creating new bitcoins. What you’re actually doing is processing bitcoin transactions that have taken place elsewhere on interwebs. The reward for processing these transactions is the release of a block of bitcoins (25 bitcoins in a block).
In order to be the first one to complete a task of processing (hashing) bitcoin transactions, you would really need to join a bitcoin mining pool so that you’re part of a team that mine’s to achieve a common goal first. Then you get a share of the block rewarded relative to the amount of processing your machine did.