Can Cryptocurrency like Bitcoin, make you rich? If yes, how do you actually go about it? Believe it or not, Millenials have literally gone berserk minting money by trading Bitcoins and similar types of virtual currency. Crypto transactions have become so popular that you can easily find a Bitcoin ATM in Arizona. All you need to do is launch an online search looking for a “bitcoin ATM near me”. You will be surprised at the number of options churned out! So how do you actually make money using Bitcoins? Start with a basic understanding of how Bitcoins work.
Getting to the Basics
The real concept of crypto is easy. It is nothing but a computer file stored inside a digital wallet application. The wallet can be used for sending and receiving bitcoins from one person to another. Bitcoins are not physical assets. Do not focus on images presented on websites because they are hypothetical representations. All transactions in BTCs are recorded on the Blockchain, which is a public list. It is a technology that facilitates, manages, and records transactions on this list.
Crypto payments use Blockchain Technology. Primarily, BTC or other cryptocurrencies are used in exchange for online goods as well as services. They are not controlled by a single government body or an organization but by nodes. Digital currencies are secured by cryptography and this makes it disappointing for those trying to hack for counterfeiting. The smallest unit of a BTC is known as Satoshi and is 0.00000001 in value.
Transactions for Profit Yielding
Mining: The best way to mint money using virtual currency is by mining. A lot of money can be made by deciphering BTC puzzles and adding new blocks to the blockchain network. Mining is basically 2 types.
- Personal Mining: This is when mining is done individually. It is important to understand however that since BTC has managed a great deal of mainstream success, it is one of the most difficult currencies to mine. Supply is linked to demand. Therefore, making a profit using BTC personal mining may not be all that easy. Recurring charges have to be factored in.
- Cloud Mining: Cloud mining is considered a more viable alternative since charges like electricity bills and maintenance need not be considered. It also does not require the purchase of hardware or software. Your earnings depend on the plan you have chosen at the facility where the cloud mining service is located. All you need is proficiency in crypto mining and comprehensive knowledge regarding the same. Make sure you are equipped before pouring money into any mining company. Always check on the credibility of the mining company before investing hard-earned money.
- Buy and Hold: This is the age-old method of utilizing reserves for gaining profits. Crypto is no different. Invest in BTCs when you think the pricing is competitive. Sell them in the future when there is a price surge, and reap clean profits. Do not consider them to be short-term investments and never possess fancy expectations. Know how to sell your BTCs for a profit, at the right time, and at the desired price point, for reaping cool returns.