Not only did this cryptocurrency managed to hit the $20,000 mark but it exceeded the expectations after it recently cracked $30,000. As of mid-January, Bitcoin is valued at a little over $34,000 and now experts believe that the value can climb as high as $50,000.
The spike in value attracted many new miners to the network. People now are more than willing to invest their money/time in the cryptocurrency and do everything they can to become overnight millionaires. With that thought in mind, we wanted to dive in the process of earning Bitcoin and explain how to traders get their hands on this cryptocurrency. Let's begin.
Mining and Trading
The first way to earn Bitcoin is to mine it, which is the free, but the harder part. Mining is a process in which miners are given the task to record and verify every transaction made with Bitcoin. In doing so, they solve complex puzzles. Mining requires a lot of time, patience, and intelligence, which is why it is very hard. The reward for each transaction (or also known as a block) is Bitcoin. Speaking of transactions, the log that stores all transactions is called a blockchain.
After miners earn a certain number of Bitcoins, comes the second part – selling it and making a profit. This part is not as simple and as easy as many would think. Bitcoin has a very high volatility rate. That means that its price fluctuates quite often and it can have a different value from one day to another.
It is almost impossible for miners to predict when is the best time to sell their Bitcoins as they cannot foresee what the future price of it will be. But, some experts can. Trading sites possess advanced AI systems which collect all of the data on the market on Bitcoin and use it to make a very accurate prediction of what Bitcoin’s future price will be.
There are plenty of solid trade sites, but if you own Bitcoins and you are looking for a reputable and trustworthy site, we recommend you to read this Bitcoin Equaliser review. This site has tons of registered users from all around the world and the daily profitability rate here is extremely high.
Sites such as the one we just mentioned give miners the necessary information which will help them sell their Bitcoins at the right time and make the highest possible profit.
Buying and Reselling
The second way to make a profit with this cryptocurrency is labelled as easy, but expensive. Some people do not choose to mine Bitcoin for various reasons, so they opt to buy them at a certain price and wait for the perfect moment to re-sell them and make a profit.
This can pay off in some cases. For example, after Bitcoin reached its peak value in 2017, it plunged in a matter of 2 days and spent the whole of 2018 and most of 2019 trying to stabilize. During these times, the price for 1 Bitcoin dropped almost to $5,000. If any people bought Bitcoins at this value, they have the chance to make a huge profit if they re-sell them now.
The Advantages That Bitcoin Has
As far as the reasons as to why millions of people decide to use Bitcoin as a payment method, this cryptocurrency has tons of advantages over the FIAT currencies. It provides users with a certain level of anonymity, all transactions are instant, it gives people the chance to make a profit, and thanks to the fact that it is not controlled by banks and highly decentralized, users can escape hidden or added fees. General fees are also lower.
Bitcoin also has certain advantages over other cryptocurrencies, which is why it remains the number 1 choice. It is far more stable, its infrastructure is like no other cryptocurrency, it is very focused on protecting its users, but most importantly – its value is much bigger.