How to profit from Bitcoin? How to mine bitcoin?

Unless you’ve been living in the woods under a rock, you probably heard numerous stories about bitcoin and other cryptocurrencies alike, and today I would like to explore this topic and answer a few questions like:

What is bitcoin, ethereum, litecoin? What is cryptocurrency? How to make money by investing in cryptos? What is mining and how to mine coins? Is it too late to invest in bitcoin? I will try to explain this in plain language without getting too much technical for now.

So let’s get started by exploring a bit what is bitcoin?

Just like Europe has the euro, the US has the dollar, China has a yuan, and so on.. and now the Internet has its own currency - the Bitcoin crypto currency. Some of you may say - Well, is bitcoin and other cryptocurrencies alike currencies? Is this money? It depends on which way you put it… but for now, It doesn’t pass the classic book definition of money just yet. I look at it as an asset for now. But this is my very own opinion. If you have other thoughts on this topic, please feel free to type in the comments bellow!

So, how do you profit from all this crypto revolution?

If you have been following the exponential growth of bitcoin, you probably know that bitcoin increased by %%%% in the last few years. If you were smart enough to invest $100 back in 2011 when bitcoin was 30 cents per coin, you would be sitting on 3,8 million dollars now (at the time I am recording this video 1 bitcoin goes for 11,646.28 (it was trading at $19,000 a couple of months ago). Again, we are talking about huge gain… let me repeat myself if you’ve invested $100 back in year 2011 you would have roughly over 300 bitcoins by now – and that is 3.8 million in US dollars today. Oh, boy who knew back then!

So, Is it too late to invest in bitcoin? Well, the idea of investing is that you buy something of value with the expectation of a future return, and then you sell this investment and pocket the difference while you get your money back. In other words- buy low sell high. If we assume that bitcoin will keep going up in value, then it is not too late to get in the market- or as the saying goes buy high sell higher.. Obviously there are risks associated with investments

So, let’s explore various ways to profit from Bitcoin and other cryptocurrencies:

1.    The most  popular way to invest in cryptos is trading. There are various exchanges where you can buy and sell cryptos. If you are just starting, you might want to be careful. You can invest as little as $20, $50, $100 or whatever you can afford. You don’t have to buy the entire bitcoin at once. You can buy a part of it, which is called Satoshi. You will need a digital wallet to keep your cryptos. You can get a wallet and trade currency with platforms such as Coinbase or Blockchain

2.    If you believe in cryptos and want to gain in the long run, you might want to buy and hold your cryptos. Just keep in mind that you should be safeguarding the digital wallet accordingly.

3.    Another way to profit from the Bitcoin Rush is by mining it. What is bitcoin mining? To put it in simple terms- mining is a process of solving mathematical algorithms in exchange for cryptos. There are various ways to mine bitcoins

-       You can buy equipment – it is a bit pricy, so consider the cost of equipment and all the expenses associated with it (electricity, fans, etc). As the mining becomes more and more popular, the equipment gets more and more expensive. I’ve looked up some equipment on Amazon and some of it was about $6,000 per piece (Antminer S9 )

- You can mine in the cloud (If someone from the Gold Rush era heard me saying this, they might be thinking I am going nuts, how can you mine in the cloud right?)

O.k. I’ll say it a bit differently – you can engage in virtual mining without buying and owning any hardware: Here are 3 different option available at the moment:

¨      Mining Hosting
You can Lease a mining machine that is hosted by the provider.

v  Hosting Virtual mining
You can Create a virtual private server and install your own mining software.

v  Leasing hashing power
You can Lease an amount of hashing power, without having a dedicated physical or virtual computer. (This is, by far, the most popular method of cloud mining.)

-       Another traditional way to monetize from cryptocurrencies is to invest in stocks related to blockchain technology, etc.

Another way to make money with bitcoins is to accept bitcoins as a form of payment for your services or products (if you own a business)

In any case, whatever you do always consider the risks and rewards related to investments as well as engaging in the business of crypto mining.

Also, I want to mention that all the information presented is entirely educational and is not endorsement of any of the products or services mentioned. Please do your own research before considering investing or mining cryptocurrencies.