Bitcoin (BTC) is a digital currency that can be used to buy or sell product and services all over the world. It’s popularity has been increased during the last years and now is accepted on major stores and retailers. Today it’s very easy to buy Bitcoin with your credit or debit card, even with physical money in selected ATMS.
Difference between Bitcoin and “Normal” Money
Bitcoin is a de-centralized coin, which means that its value depends on the market, not on Government or Bank policies. Its digital form makes it easy to send and receive Bitcoins everywhere. It’s a sustainable asset, since it’s production depends on computer power and the electricity to sustain this coin can be made with natural forms of energy like eolic and solar.
Unlike other assets like Gold, Diamonds, Oil and Gas, Bitcoin doesn’t require large machines suctioning the Earth’s resources. Experienced Investors are moving away from investing in fossil fuel companies to keep the World from draining out.
First Uses of Bitcoin
The first time Bitcoin was used to buy was in 2010 when a guy ordered Pizza and paid 10,000 Bitcoins for a value of 30$ USD in that time. 10 months later Bitcoin price went up to 1$ making that Bitcoins worth 10,000$ USD. Bitcoin highest price in 2017 was 17,000$ USD, if you sold 10,000 bitcoins at that time you would get $170,000,000 USD.
How Bitcoin Works – About Mining
Bitcoin transactions are stored in an online book called «Blockchain» which secures, validates, and conforms the Bitcoin Network. This process is done thanks to the popular «miners» who are the computer intermediaries that make this process happen. Miners are rewarded with Bitcoin according to their computer power to decrypth the Bitcoin transactions. If you want to earn money mining Bitcoins you will need a powerful computer, equipment and software knowledge.
Investing in Bitcoin
As every Investment, Bitcoin investing requires knowledge and experience which you can get by investing small amounts first, earning some cash and then raising it up as you get comfortable.
The First and most important lesson about Investing is never invest more than you afford to lose, as a recommendation never invest more than 10% of your total patrimony. this will keep the risk in a low situation and start increasing your total assets by 10% or 20%.
How to Buy Bitcoin.
To Buy Bitcoin you only need a Digital Wallet. Open a free Wallet in Binance here. A Digital Wallet stores your bitcoin safely and can be accessed in many devices with your password. With your free Digital Wallet in Binance you will be able also to trade your Bitcoin for other crypto coins to get more profits.
To Start you can buy as little as 1$, 5$ or 10$ USD (or your local currency) which will be converted to Bitcoin (for example, you will have .00065440 BTC)
How to earn money with Bitcoin
There are many different ways to make money with Bitcoin. We have talked about «Mining» which will be discussed on a later blog, now we will talk about «Trading»
Earning Money Trading Bitcoin for USD
Trading is one of the most popular ways to earn money with Bitcoin. You will need professional advice, know how the market works and start working with graphics and trends to make the most of it.
Once you have bought Bitcoin, you will be able to trade it in a exchange, which is a site where people buy and sell cryptos and FIATS (Local currencies). Binance is one of the biggest exchanges currently and that is great to sell or buy quickly Bitcoins.
To earn profits trading Bitcoin you can:
Buy Bitcoin at a low price in certain time, and sell it another day / Time at a higher price.
Sell Bitcoin at current market price and then buy it when the price goes down.
Both of these actions will make you profit depending on the amount invested and market price change. You will need to study the price changes with different tools like news checking, charts and formulas to calculate when the price is going up or down to make the most profit.
Example of a Bitcoin Trade.
Let’s say the Bitcoin price is at 5,000 and you know it can get to $5,500 later because the Trend is going up (It can be a high demand on Bitcoin). You invest 500$ in Bitcoin (.1 BTC) and sell it next day at 5,500$, that will return you 50$ profit (10%) for a total of 550$ in just one transaction. If you invest $5,000 and you sell it next day in $5,500 you will have 500$ USD in Profit.
As you can see it’s very important that you can predict correctly price movements to earn the most profits.
Trade Bitcoin for other crypto / currencies
You can also trade Bitcoin for other Currencies and Crypto Coins. There are many different cryptos you can buy with Bitcoin, Cryptos like Monero, Ether, Matic, Link or Bnb are some examples of coins you can buy and potentially profit.
About Fees / Comissions in Trading
There are exchanges which doesn’t charge fees but most of them charge as little as .1% per transaction:
In the same example, let’s say you buy 500$ in BTC that will be .5$ USD in fees and later you sell it for 550$ that will be .55$ USD in fees resulting in a total balance for you 548.95$ USD (1.05 USD in Comission)
¡Now go to Binance and start trading Crypto Coins, Thanks for reading!
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