If you are recent in the Bitcoin world, you may have been quite confused by the methods and Terminologies associated with crypto-currencies.
If you have traded, want to trade Bitcoin, or want to buy Bitcoin, DO NOT make another trade until you read this!
I will show you the safe ways to trade and give you some great lessons on how to do it safely.
Read Also: What is Bitcoin
WHAT IS BITCOIN?
Basically cryptographic currencies are digital forms of money, which means that they are scarce, valuable, and transferable (primary characteristics of money) as well as effective but with the distinctive property that they are easy to transfer and are not controlled by anybody.
METHODS TO EARN/GROW PROFITS
Each of these investment options requires that you at least own a Bitcoin wallet and already bought some Bitcoin in your wallet. A little amount of capital (about $20) will easily get you started with any of them.
Services from where you can buy Bitcoin are: https://luno.com, https://remitano.com,https://neutwallet.com, localbitcoins.com, and coinbase.com
1. INVESTING (BUYING & HOLDING) – AKA “HODL”:
This one is actually pretty easy to understand and about as straightforward as it gets (though it can be really stressful and quite hard to force yourself to do at times — an internal battle ensues).
You buy bitcoin and hold it for an undetermined amount of time while waiting for the price to go up until you are ready to sell at a profit. Now that’s a very passive way to make money from bitcoins.
The obvious risk here is that the price tanks and never recovers, thus leaving you with a loss. The upside here is that the price continues to climb and you end up selling for a huge profit at some point in the future.
Now, you never know what is going to happen, so there’s always a risk with investing in anything.
Buy and hold can be a great strategy for making money long term with Bitcoin (assuming the price continues primarily rising over time).
However, a big issue with buying and holding is that, even though you are technically earning money, you can’t spend it.
As soon as you cash out, you no longer own it, so you have to buy more at a higher price if you want to continue investing.
But that won’t really matter if you have already made a huge profit and are content with the amount.
The simplest way for you to buy bitcoin right now — and the way most beginners get started investing — is through CoinBase or Luno.
Another popular option is LocalBitcoins where you can buy and sell bitcoins near you and often times get them at a better price than you can elsewhere.
Read Also: Who’s interested in bitcoin?
NeutWallet is a crypto wallet just like blockchain, luno, coinbase, etc. But in this case, it is Stateless, meaning that it can hold many different types of crypto-currencies in the same form and at the same point in time, including bitcoins, Ethereum, litecoin, etc.
Stateless wallets are different from static wallets because they are able to swap your cryptos to the most progressive format every point in time.
Your cryptos can only appreciate and can not depreciate because all the crypto-currencies do not depreciate or appreciate at the same rates. A fall in one triggers a rise in another. Hence by interswapping them correctly you can key into this volatility to make profits off them.
Mathematically, let’s say Bitcoin worth =$7000 and Ethereum worth=$200. If you have 1btc in possession, swapping it for Ethereum will give=(7000/200)=35ETH. now 35ETH will still be worth $(35*200)=$7000 so nothing is lost nor gained.
Now let’s say ethereum actually increases in worth such that 1ETH now worths $250 while bitcoin did not increase in worth or may have even depreciated at that particular instant or even appreciated at a lesser rate, then that means your 35ETH you got by swapping 1btc for 35eth now worths=$(35*250)=$8750.
That means you have converted you’re earlier $7000 to $8750 by intelligently swapping the right currency for the right currency at the right time. Of course, these instances are simplistic.
But NeutWallet does much more than that. NeutWallet automates this process by auto-swapping these currencies accurately with up to date and precise market statistics.
The idea is to store most of your bitcoins in a Stateless Wallet so that they are constantly inter-swapped hence appreciate in value; You get a unique address with which you use to send and receive bitcoins directly from and to your NEUTWALLET.
Stateless Wallets are used just like regular bitcoin wallets and can be used to receive and send bitcoins.
In practice you make profits in the range of 9% to 15% weekly and 1% to 2% daily depending on the market conditions. But it will always be a profit.
May I also indicate here that the actual profit from NeutWallet may vary as in my experience, it’s mostly at 10.7% , 15% is on good days.
One can get started with NeutWallet easily at
GET STARTED WITH NEUTWALLET
3. INVEST INTO ALT COINS/INITIAL COIN OFFERINGS(ICO’s):
Another great way to make money trading bitcoins is to buy altcoins or invest in ICO’s that seem to have a promising future. Then, once the coin takes off (assuming it does) you sell them for Bitcoin at a profit.
I was personally able to turn a $1,000 investment into nearly $5,000 recently – in less than one month – by doing exactly this!
This can actually be a great strategy on how to make money with cryptocurrency in general. However, once again, I do caution this if you don’t have much experience in digital currency overall, or at least have a good mentor to get advice from on which coins to buy, and even then it’s risky.
4. CRYPTO FOREX TRADING
Forex Trading is another good way to earn from crypto-currencies. However it is an advanced and very risky method to earn from crypto-currencies.
I won’t dwell so much on this method because it’s not an advisable option for newbies. This requires cutting edge experience at market predictions.
If you don’t know what you are doing, then you shouldn’t be doing this.
But basically, you use your experience to predict which currency will go up or fall and at what time. Then you know when to sell or buy. Several websites offer forex trading features such as:
https://bitseven.com, bitfinex.com, and coinsbit.io
So that’s it. I wish you all the best in this new and wonderful world of adventure.
If you appreciate my efforts in putting this piece together, please consider sending some tokens to my Bitcoin Wallet; maybe from one of your weekly turns. Thanks.