Are you trying to make a million dollars with bitcoin? You’re not alone.
Ever since the introduction of cryptocurrency, many an investor has sought to make their fortune with it. Simply put, the introduction of bitcoin into the global market has been one of the most impactful things to happen to the world economy in a long while. The currency has gone from a price of pennies per coin to a market cap exceeding $100 billion.
The idea behind cryptocurrency is an exciting one. Not only is the market extremely volatile, leading people to question how to get rich with Bitcoin, but it’s also not government-regulated. That means that the cryptocurrency regulates itself, which has many implications for the financial markets.
Gone are the days when bitcoin could only be purchased by elite vendors or people with access to significant amounts of capital. Nowadays, you can buy a piece of bitcoin for as little as a couple of dollars.
If you’re considering investing in bitcoin, you’re in the right place.
In this article, we’ll give you a quick guide on how to invest in bitcoin. We’ll teach you how to ensure that you stand a good chance of making a solid return on your investment.
4 Ways To Get Rich With Bitcoin
1# Find the Right Bitcoin Vendor
The first thing to do in this process is to choose the right bitcoin vendor.
There are a hundred and one different bitcoin vendor platforms that have been popping up in recent years. Ever since the first one that consumers could widely access was built, there have been many a webmaster trying to get in on the action by charging exorbitant fees for folks to convert their dollars into bitcoin.
Now it’s important for you to shop around before choosing any one specific bitcoin vendor. The vendor that you choose may also be location-dependent, as some vendors only have the authorization to operate in specific countries.
2# Find a Bitcoin Storage Solution
If you go with a traditional cryptocurrency exchange solution, then that particular platform may not come with a bitcoin storage option. In other words, you’ll need access to a bitcoin wallet where you can store your bitcoin.
There are several such wallets available on the market for the low, low price of free to use. They monetize in other ways and don’t require a fee from your precious bitcoin stores. One of these is definitely the way to go.
Alternatively, you could elect to use a platform that combines the purchasing process and storage solutions all into one solid platform.
This is a very safe bet for many a bitcoin investor who doesn’t want to deal with a lot of different systems and wants constant access to his or her money.
3# Consider Purchasing Bitcoin Futures & Options
When you invest in bitcoin, keep in mind that there are many ways to do so.
For one, you could simply convert a set amount of cash into bitcoin. Then, the value of your investment will track the market exchange rate between your original currency and bitcoin.
Bitcoin has fluctuated from a few hundred dollars per bitcoin to over ten thousand dollars per bitcoin in the past couple years, so there’s a very real chance that you could quadruple your investment, or even better
On the other hand, remember that when you invest in this fashion your growth is limited to the growth of bitcoin on the market. If you only have the opportunity to invest small amounts, then you may not be able to have the opportunity to realize the kind of overall gains that you’re hoping for.
That’s where options and trading in bitcoin futures come in.
Bitcoin futures operate the same way that other commodities futures do. You as the investor can speculate on the price and value of bitcoin without actually having to purchase the commodity. A future is a contract wherein a buyer can purchase a set amount of the commodity at a predetermined price.
So if you buy Bitcoin futures where the seller has to sell the asset at a hundred dollars per bitcoin for ten bitcoins, then you can realize tremendous gains if the price of bitcoin skies up above a hundred dollars per bitcoin.
On the other hand, if the price dips down below a hundred dollars a bitcoin, then you’re still obligated to fulfill that contract and will thus lose money on your purchase.
However, if you’re savvy about the way you purchase futures and use the right options trading platform, then there’s a good chance that you can make a good bit of money with bitcoin.
4# Understand the Market
At the end of the day, making money with any kind of investing is all about understanding the market. You can’t hope to reliably do well as an investor by being unknowledgeable about your market and making decisions without basing them on real market data.
Instead, you should strive to have a deep understanding of the inner workings of the market. The same is nowhere truer than in cryptocurrency. Because cryptocurrency is not regulated, it is extremely sensitive to any ongoing world events.
For instance, if a country bans cryptocurrency purchases (as many have in the past), then there’s a chance that the cryptocurrency value could bottom out. In order for you to catch this trend, you need to be knowledgeable about general government sentiments to cryptocurrency.
Your knowledge also can’t just be limited to bitcoin.
There are many different cryptocurrencies out there, such as lite coin and ripple. Spikes in demand for those cryptocurrencies can adversely affect bitcoin value and vice versa. If your risk appetite is lower, you might want to invest in META stablecoin, which is backed by gold and therefore isn’t extremely volatile.
So, when you’re trying to understand the market, be sure to take the time to understand the entire industry and not just the one slice that you’re invested in. All of these markets are intertwined.
Your Start on Knowing How to Get Rich with Bitcoin
With this investing knowledge under your belt, you at least have a start in knowing how to get rich with bitcoin.
As with any investment, there is an element of risk. But by choosing the right platform and working hard to understand the market, you can vastly improve the odds of you making a positive return.
Resources:
- 5 Reasons to Invest in Bitcoin
- 5 Major Risks in Bitcoin Market
- 3 Top Tips For Businesses Trading Forex
For more investing advice, be sure to check out the rest of the website!
Author: Cathy Carter
