Bitcoin Profit Secrets Ebook
A 5-Minute Guide To The Cryptocurrency
Gold Rush
It's exciting to read so many stories of people becoming
fabulously wealthy overnight. We see it on the news every
single day. There seems to be no end in sight for the
popularity of bitcoins and other cryptocurrencies. It seems
that a new batch of millionaires is created every single day.
And it's not over yet.
Bitcoin prices have been on the rise the past few months,
those who held steady and kept their bitcoins by their side,
have been justly rewarded. Those who sold way too early
are left shaking their head, counting their losses and
thinking of what could have been, if only they held their
bitcoins. Alas, hindsight is always 20/20, and it's easier for
us to say after the fact that they shouldn't have sold their
coins.
Because of the wide attention these successful
cryptocurrency investors are getting, regular Joe's and
Jane's are eager to get into the game as well. Everyone
wants to see for themselves if they can also reap huge
profits from trading or investing in cryptocurrencies. People
who have never even heard of cryptocurrency and the
blockchain are suddenly reading up on everything
cryptocurrency-related they can get their hands on. They
devour books, videos, articles, forums, etc. in the hopes of
someday earning a tidy profit on their investment.
Due to this cryptocurrency 'gold rush,' many cryptocurrency
exchange platforms are experiencing huge spikes in traffic.
Approval of new accounts, which used to take a few hours,
are now getting delayed to a few days or even weeks!
Impatient crypto-fledglings are upset with these delays
because they simply must buy their crypto now. Their
excitement is at fever pitch, and they simply must buy their
crypto now. Not tomorrow, but right now.
Today's Best Deal
Joining The Bandwagon
If you're thinking of joining the crypto bandwagon, you need
to keep several things in mind. Cryptocurrency maybe all
the hype now, but if you don't know what you’re getting into,
then you could get into a lot of trouble later on. Investing in
cryptocurrency, or any other potential income-generating
asset, needs a lot of planning. Even if you have the cash to
spare, you don't want to spend it all on something you don’t
entirely understand.
A smart investor will always study the market, and while the
hype is true that people are becoming paper millionaires
overnight, it doesn’t mean that you should just throw all
caution to the wind and hope for the best. That's not a very
smart move, and you could end up costing yourself, and
your family, a lot of grief.
Cryptocurrencies are extremely volatile
All cryptocurrencies are highly volatile, meaning the price
can jump up and down in a matter of minutes. I'm sure
everyone can handle huge positive jumps in the price – we'd
all love that. But what about when the price dips? Can you
handle the pressure?
Playing in a high-stakes game like cryptocurrency trading is
not for everyone. If you've used your life savings, or money
that's intended for your retirement, or your child’s college
tuition, then you'd be literally kicking and hating yourself.
You've worked hard for your money, and losing it in a matter
of minutes can bring you physical pain like no other,
especially if that money was intended for something else.
It's important to point out right now that there's no central
body governing cryptocurrencies and prices can vary from
one trading platform to the next. This means no FDIC
(Federal Deposit Insurance Corporation) or equivalent
government organization will step in if you lose your cryptocoins. There might be in the future; we don't really know.
There has been plenty of speculation that with the
increasing popularity of cryptocurrencies, the government
may soon be stepping in to regulate things. But for now,
you're solely responsible for keeping your virtual money safe.
Keeping your cryptocurrency safe
Whatever cryptocurrency you choose to invest in, you can't
just leave it anywhere. It is of utmost importance that you
educate yourself on the best ways of keeping your digital
treasure trove safe. Hackers and thieves are always looking
for their next victim; you certainly don't want to be in their
line of vision. In fact, it's probably safer to just stay
unassuming and keep your investment a secret. Well,
perhaps you can let your closest family and friends in on the
secret just in case something happens to you.
The easiest way for you to lose your coins is if you just keep
them on an unsecured and unsafe digital wallet. This
includes leaving your crypto on your exchange wallets.
There have been many instances of trading platforms
getting hacked. The most famous example is the Japanbased Mt Gox bitcoin exchange which was hacked in 2014.
At the time, Mt Gox was the world's leading bitcoin
exchange. Approximately 850,000 bitcoins were declared
missing, and these totaled almost $450 million in 2014
dollars which, quite obviously, was already a significant
amount. In today's dollars, 850,000 bitcoins would be worth
billions. Many people lost their fortunes in an instant, simply
because they trusted the platform and didn’t move their
bitcoins to more secure storage. After the Mt Gox fiasco,
bitcoin owners started being more careful with their
cryptocurrencies, and paper wallets, and hardware wallets
rose in popularity.
In terms of convenience, digital wallets are far more superior
to paper or hardware wallets. All you need is an Internet
connection, and you’d have access to your crypto. You
could log in to any web browser or your mobile wallet, and
you can easily make purchases anytime you want. While
storing small amounts of crypto in online wallets is perfectly
fine, it's best if you move the bulk of your crypto-wealth to
offline storage.
Yes, offline or cold storage is less convenient, but it's
definitely safer for you and your cryptocurrencies. This is
why hardware wallets are selling like hotcakes right now. It's
the best of both worlds basically. You're storing your crypto
offline, but if you need to make a transaction, say, you want
to transfer a few coins to your online wallet, you can do so
quickly just by plugging it into your computer. Hardware
wallets are very secure, and so far, we haven't read any
reports of hardware wallets getting hacked. You do need to
shell out some cash though, but when you consider what you’re electronically protecting, you can easily look beyond
the price.
Acquiring Bitcoins And Other
Cryptocurrencies
Now that you know the basics of cryptocurrency and how to
keep it safe, it's time to actually get your hands on those
virtual coins. There are quite a few methods to acquire them
- some are easy, while some are relatively hard. After
reading through this section, you'd have to decide which
method is best for you.
Probably the easiest way to get yourself some bitcoins and
other cryptocurrencies is by getting paid with them. If you
offer a product or service, or if you own a business, consider
accepting crypto payments. Of course, Bitcoin is the most
popular cryptocurrency right now so you should start with
accepting bitcoin payments. All you need to get started is
just sign up for a free wallet at a reputable site like
Coinbase. You'd then have your bitcoin address which you
can direct your clients or customers to use so they can pay
you.
You don't even have to be concerned with Bitcoin's volatility.
You can protect yourself by signing up for a service like
BitPay which automatically converts bitcoin payments to
dollars or whatever your local currency is. This means if
you're expecting to get paid $100, then you're going to get
exactly that amount.
Another method is by simply buying or exchanging your fiat
money for cryptocurrency. There are many reputable
exchange platforms such as Coinbase, Kraken, Gemini,
LocalBitcoins, and more. Just be careful though as many
fake platforms are popping up on the web with their juicy
offers of hugely discounted crypto prices that are
significantly lower than the rates on established platforms. If
the prices sound too good to be true, do a quick search on
Google and read reviews of that website to find out if you
can trust them with your money.
There are also 'faucet' sites which give away free Satoshis
(1 Satoshi is equal to 0.00000001 bitcoin) in exchange for
you doing small tasks on their site. But we don't really
recommend this method as we believe your time is better
spent on more productive activities. It's a good way though
to get your feet wet with bitcoins and be the proud owner of
a few Satoshis.
The most difficult method of acquiring bitcoins would have to
be mining them yourselves. You see, miners are the
lifeblood of the Bitcoin network. They're the ones who
validate all bitcoin transactions and add them to blocks
which then gets added to the blockchain. Everytime they
find a new block, they get rewarded 12.5 bitcoins. Sounds
easy, right? On paper, yes. But in reality, it's a lot of hard
work. The hardware you'd need to purchase alone will cost
you a lot of money, not to mention the electricity costs.
These days, miners don't mine alone. They join mining
groups or mining pools. As a group, they can pool resources
to solve the complex hash functions much faster than if they
worked alone. Doing this means they’d have to divide the
12.5 bitcoins among themselves. But at least, they get
bitcoins, right? If you think this is what you want to do, then
you'd have to do plenty of research to build a proper mining
rig.
Should You Trade Or Invest In
Cryptocurrencies?
At this point, you already know a lot of things about bitcoins
and cryptocurrencies, how to acquire them and how to keep
them safe. The million dollar question is should you trade or
invest in them? Before we proceed any further, we’d like to
point out that trading and investing are two different ways of
making a profit.
Trading is generally a short-term practice which means you
capitalize on the volatility of cryptocurrency prices by buying
at low prices and selling when the price is high enough. You
might make more money this way especially if you time the
market just right. However, at the same time, you could also
suffer some heavy losses if you’re not careful.
Investing, on the other hand, is a long-term activity. You buy
your favorite cryptocurrency either at a lump sum or at
regular intervals to spread the risk. You don't bother reading
the daily, weekly or even monthly charts. It's just going to
make your head spin. Rather, you look at the annual or biannual charts and check if the general trend is going up or
down. Generally, however, investing means holding on to
your assets for many years, at least 10-15 years, financial
experts say.
Whether you decide to trade or invest in cryptocurrencies,
you need to have a solid plan in place. Planning ahead is
always useful especially since you're dealing with something
very valuable. You need to have a timeline in place, and you
need to know the specifics of how you're going to achieve
your cryptocurrency goals.
Today's Best Deal
Post a Comment