Everyone is talking Bitcoin. Ever since the beginning of 2017, Bitcoin has, despite its volatility, risen from the ashes, soared to dizzying heights and woken up everyone’s interest.
Despite its notorious reputation in the past, Bitcoin has been earning brownie points even with government regulatory bodies. Speculators are looking at the currency as a vehicle of investment and are betting heavily.
There is no question that Bitcoin’s future looks bright. Notwithstanding the fact that in the past there have been many speculations that the end of Bitcoin is near, the world first decentralized cryptocurrency is here to stay.
In this post today, I will not only tell you how I made $10,000 with Bitcoin in just 30 days, but I will also give you tips on how to get started with Bitcoin and make money with this currency.
How to Start Buying Bitcoin and How Best to Store Bitcoin
Before you can earn money with Bitcoin, you will need to purchase Bitcoin or parts of Bitcoin. Bitcoin’s valuation at the time of writing this article, is valued around $2400.
Therefore, this investment in just one coin, may be hefty for some. Bitcoin can be bought in fractions, and these are called Satoshis. The name of the fractional Bitcoin is given after Satoshi Nakamoto. Satoshi Nakamoto is the name assumed by the inventor of Bitcoin, allegedly a Japanese mathematician who created the coin based on the blockchain database.
Before you can buy Bitcoin or Satoshi you are going to need a Bitcoin wallet. A wallet is pretty much like the purse you hold with your regular FIAT currencies from which you will be able to buy, sell, transfer or even purchase goods with your Bitcoin. Your digital wallet will allow you to transact your Bitcoin.
A Bitcoin digital wallet can be obtained from any online exchange such as Coinbase or even Blockchain.info. There are plenty of other Exchanges but these are among the more popular ones because they even come with a mobile online version.
In order to be able to make transactions with your Bitcoin, you do need to have an online wallet, however, having said that, the safest way to hold Bitcoin is offline in what is known as “cold storage” system. Basically you can use tools like Trezor whereby you transfer your coins into a digital tool and take them offline when not in use, and have them online only when you need to make a transaction.
Trading Bitcoin – Taking Advantage of Volatility
My interest in Bitcoin started at the beginning of this year. At the time Bitcoin hit it’s first high by going over the threshold of $1000. I was very much tempted to invest then, however, I felt that I probably did not know enough about Bitcoin to invest heavily at the time.
By March 2017 I was doing daily technical analysis, but I knew that one important event could alter the course of the rising Bitcoin.
This was related to the application by the Winklevoss Twins, with the SEC (Securities Exchange Commission) to transact Bitcoin as an ETF (Exchange Traded Fund). This would technically mean that Bitcoin could really become transacted like Gold or any other tangible asset.
On March 10, the SEC REJECTED the Winklevoss ETF proposal on the basis that it wanted to look into security issues of transacting Bitcoin. However, the SEC did not rule out that a Bitcoin ETF would be re-considered in a safer trading environment.
Naturally the price nose-dived to below $1000 again, since there had been much speculation on the prior days leading to the decision. However, in just a few days, Bitcoin recovered and bounced back to over the $1,000 threshold.
This was the moment that I bought my first ten coins. Since the amount was a substantial one at a $10k investment, I decided to opt for the “cold storage” system and kept my coins offline.
By May 20th Bitcoin went over a new threshold when it hit a new all-time high of $2000. It was at this point, where I simply placed my coins back online in my digital wallet and sold! A very tidy 10k profit. 100% return in just a matter of two months.
Bitcoin Day Trading and How You Can Profit
The sheer price volatility of Bitcoin offers an opportunity and a playground for profits. Bitcoin can be traded just like any other currency, however, the fact that price swings are high means that it offers better opportunities.
The basic understanding of charts and price dynamics remains the same for Bitcoin as it does with any other trading of financial assets. The speculation strategy is also the same.
The only difference is that you only need to follow the Bitcoin news instead of following all the world news. Bitcoin trading can be made by regular leveraging even with a small capital investment. Some exchanges will allow you to trade Bitcoin using leverages.
Bitcoin and the Future
There is no question that Bitcoin is here to stay. One of the reasons by which I made $10k with Bitcoin, was that the price soared on the 12th of April when Japan legalized Bitcoin as a method of payment. At around the same time, Russia declared that it is also looking at ways to legitimize the currency as a means of payment.
Governments all over the world are now acknowledging the value of Bitcoin and other cryptocurrencies and are wising up. Despite the fact that the currency is decentralized and its price movements are impervious of central politics – governments understand that unless they adopt Bitcoin in their system legitimately, they will never be able to collect taxes! The advantages for the governments are obvious, however, the advantages for Bitcoin holders are also evident. There is safety in protection.
Will Bitcoin continue to Rise?
Of course there is much speculation about how high Bitcoin will rise. Some say that the price may hit $100,000 in the next five years. Other informed investors expect Bitcoin to rise above the $4000 threshold before the end of the year.
There is no doubt that it is only a question of time before the price will see some spectacular movements in the right direction again. The present market cap for Bitcoin is $40 Billion. Bitcoin is in limited supply. The total mining of Bitcoin so far is at 17 million out of a total of 21 million ever to be mined. It is anticipated the last bitcoin will be mined in the year 2140!
This is how difficult it is today to mine bitcoin and why the current supply will continue to have more and more value.
If you are looking at making money with Bitcoin you can look short term with day trading, or long term with proper invest and forget. Either way, the opportunities are there and despite the fact that this may look like a new market, it is the market of the future.
In my signals group we recently started offering Forex and binary options signals for Bitcoin and other cryptocurrencies, so if you’re into day trading, you should definitely join the group!