You’ve read all about it in the news. Perhaps you’ve even heard about it in your favorite movies and TV shows.
Bitcoin is blowing up in a bigway and now you’re thinking about investing. So, where do you start?
Below, we’ll cover everything you NEED to know before buying into this exciting cryptocurrency. But first, for those who aren’t crypto-savvy, let’s define what Bitcoin is.
Cryptocurrencies are digital assets developed to serve as a medium of exchange that utilizes cryptography to secure transactions, maintain the proliferation of additional units and confirm the transfer of assets.
When it comes to cryptocurrency, Bitcoin is the godfather, the true original. Today, there are other cryptocurrencies being purchased and traded. Ethereum, LiteCoin, Zcash and Tezos, to name just a few.
Yet, despite the newer “alt” coins, Bitcoin is still the gold standard. The granddaddy of all cryptocurrencies.
One of the reasons why Bitcoin is number one with investors is its versatility. Not only can Bitcoin be used for to pay for goods and services, it can also represent any number of pieces of data. Bitcoin harnesses blockchain technology which could be used to store other sensitive documents like a digital passport or marriage license.
Because of the blockchain, each unit of Bitcoin could represent anything from a share in company stock to a kilowatt hour of energy.
This is something that is slowly being acknowledged in established industries, like banking, which means Bitcoin’s will be more a part of daily life as time goes by.
In this guide, we’ll outline all of the following and more:
- The fundamentals of Bitcoin investing
- Why Bitcoin is gaining momentum
- How to purchase Bitcoins
- How to protect & secure your bitcoins
- Why Bitcoin is changing our financial infrastructure
- How to mine for Bitcoin
- What people are saying about the future of bitcoins
Note: If you don’t need any further information and just want to start buying, Etoro is the best social trading and investment network for buying and trading Bitcoin.
Why Bitcoin is Gaining Momentum
Bitcoin has been embraced by a core group of people who share the philosophy of Bitcoin. These individuals understand that Bitcoin represents a bold move in the direction of monetary autonomy or financial sovereignty.
For the first time in modern history, a grandchild living in the US can send money to her grandmother in China without the Chinese government blocking her from doing so.
When Bitcoin creator Satoshi Nakamota encoded the first Genesis Block in 2009, he included the following text in the coinbase parameter’s data: “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks.”
The text is a reference to the headline of The Times newspaper, and suggests that Nakamoto was using it as both a proof of the date of conception and an example of the instability that results from fractional-reserve banking.
Satoshi is not alone in his derision for banking institutions. As people have flocked to credit unions and taken to using PayPal cards, it’s become clear that the public is hungry for alternatives to traditional banking.
Bitcoin has caught on and continues to grow because now we have access to a currency that is backed by mathematical proof as opposed to the dollar which is backed by absolutely nothing.
As the world grows more dependent on the Internet, it only makes sense to possess a secure global currency. If you’re a traveling businessman or entrepreneur, it pays to have a digital currency that doesn’t have to be converted at some bank.
Since Bitcoin is accessible to one and all, anyone and everyone can use it anywhere in the world and at any time. This is why it is fast becoming a first class asset.
Bitcoin is trading at more than $9,000 in some markets, experiencing a sustained upward trajectory thanks to the multitude of major milestones it has hit in the eight years that it has been in existence.
While it may seem a bit scary to invest in bitcoin for the first time, trust and patience will invariably pay off.
At the time of this writing, a single bitcoin is estimated to be worth roughly $10,000 (give or take $5,000!). This is expected to rise by a total percentage of 625% by the end of 2018.
Experts like Wall Street strategist Tom Lee are under the impression that Bitcoin will reach $55,000 in value in the next five years, while others see it doing as much as 20X or more. With the value set to surge, there is no time like the present to get in low and watch those figures climb.
How To Invest in Bitcoin - Step By Step
When you’re looking for the best Bitcoin exchange, you want to find a trustworthy outfit with a track record of offering transparent data of coins in cold storage (more on this later). A trusted exchange should have a reputation among their customers for keeping their investors satisfied.
The biggest and best bitcoin exchanges have a variety of options to accommodate everything from USD, Euro and fiat trading.
Naturally, it can be tough to do the research when it comes to deciding where to buy bitcoin, but we’ve taken the headache out of it for you here by breaking down how you can invest in Bitcoin with Etoro, a reputable network for buying and trading cryptocurrencies. Another reputable platform for trading cryptocurrencies is Bitcoin revolution. The results of the Bitcoin Revolution test show that the Bitcoin Revolution betrug news circulating on the internet is false, and that this bot is a registered and legitimate crypto trading brand.
The steps you’ll need to take to get started are easier than you might think.
Step 1: Go to Etoro.com and click the Sign up button on the bottom left of the screen.
Enter your information (Name, Email, and Phone) and hit Confirm.
Right away, you’ll see the price of BTC fluctuating at the top of the page and an option to trade. You’ll also be able to read other investors’ comments and explore their News Feed.
Step 2: Click on Deposit Funds, then fill out the survey.
After filling out your information, you will be redirected to the same screen. Click the blue Deposit Funds button in the lower left, and then fill out a short survey.
(The purpose of the survey is to make sure you have a basic understanding of the risks involved in trading.)
The survey is fairly easy, and if you’re unsure about any particular answer or trading term, just Google it to find the answer.
A quick search shows this Definition of ‘Gapping’: “In general, a trading strategy in which the participant borrows short and lends long… Also in technical analysis, gapping can refer to the use of a gap strategy which looks at stocks that display price gaps from previous closes.”
Therefore, the correct answer is clearly A.
If you get hung up on the survey, please comment below and I will reply with the solutions.
Step 3: Fund your account
Next, you’ll be taking to the funding screen, which looks like this:
Conveniently, Etoro allows you to make deposits with any major credit card. Now, add your desired investment amount, fill in your information, and click the Submit button at the bottom.
You’ll see that Etoro stresses that your funds are kept safe at reputable banks and that they are dedicated to preserving your privacy. This is what you want from a bitcoin exchange.
Note: the minimum investment is $200.
Step 4: Start trading
Now that you’ve successfully funded your account, go to the Bitcoin trading portal here: https://www.etoro.com/markets/btc
If you ever forget the URL, you can get back there by clicking ‘TradeMarkets’ in the left side menu, then ‘Crypto’, then ‘BTC / Bitcoin’.
Now, simply enter your trade parameters and click Open Trade.
Note: I’m not a financial advisor, so I cannot advocate a particular trading strategy. Etoro has a lot of helpful guides to executing trades in their Learning Academy, which is worth a read.
For first-time traders, some of the terms may be confusing, but after making your first trade, it gets a lot clearer. I started investing in Bitcoin with zero previous experience, and now comfortable using the platform.
Step 5: Copy others’ trading strategies
Trying to make money trading Bitcoin (or any other cryptocurrency) can be a bit daunting. I was able to save a lot of time and wasted money by simply following others’ trading strategies.
Etoro makes this easy to do. Click the ‘Copy People’ option in the left menu, and you’ll see a list of other traders on the platform, their investments, and their returns.
Important note: make sure you select ‘Crypto’ in the Markets dropdown, and look at traders in the last 6 months. In crypto, 6 months is a lifetime, so you’re looking for guys and gals who have a long track record of good returns.
There are a number of features and advantages to trading Bitcoin with eToro. For starters, you don’t actually have to have equity in bitcoins, rather you trade CFD (Contract for difference). By virtue of the fact that you aren’t holding tangible bitcoin assets, you’re able to trade bitcoin via fiat currency like Euro or USD.
The best part is the dedicated staff of regulated brokers. Unlike other bitcoin exchanges that remain unregulated, eToro’s brokers are committed to a level of encryption to thwart would-be hackers. They understand the need for the cold storage we’re going to talk more about down below.
With eToro, you get the leverage that enables you to control a larger position with a smaller amount of capital. While this can put the investor at a larger prospective risk, it is also appealing to many shrewd traders who know how to use it to their advantage.
Their user-friendly interface is another feature that has kept their 3 million plus customers satisfied over the years. And the fact that they trade seven days a week is attractive to many investors who don’t have time to focus on their investments until the work week is done.
As I mentioned earlier, one of the smartest allocation distribution strategies is to expand your portfolio to include other cryptocurrencies such as Ethereum, Litecoin, etc. eToro allows you to do just that alongside more traditional assets.
Congratulations! You’re now a Bitcoin investor. 😉
But there’s a lot more to making money with Bitcoin than a few trades. Below, I’ll look at a few popular trading strategies in further detail, as well as explain how to buy and store Bitcoin in 2018.
For those who reside in the US or do business there, Bittrex is a Las Vegas-based cryptocurrency exchange with a wealth of features including 2-factor authentication, cold storage, useful one-minute charts and worldwide accessibility.
Sign up and verification is super-fast and their customer support is virtually unbeatable. With Bittrex, you get above average security and an excellent platform for doing arbitrage.
On the downside, there is a 0.25% trading fee without reductions and a certain lack of full transparency. There is also a growing concern about Bittrex’s use of “Tether”, a tightly controlled cryptocurrency pegged to the U.S. Dollar. Other than that, it’s a pretty solid exchange with an easy-to-use interface and a dedicated support staff.
Other top Bitcoin exchanges include the New Zealand-based Cryptopia and the Prague-based Changelly. Keep in mind, however, that not all of these exchanges are as beginner-friendly as eToro and Bittrex.
Things to Consider Before Investing in Bitcoin
One important thing to familiarize yourself with is the lingo. Those who deal in bitcoin have a unique language all their own. Perhaps you’ve heard the term “hodling” and wondered what it referred to.
Essentially, hodling means to “hold” or, more specifically, to buy the crytocurrency and hold onto it in hopes that it will appreciate in value in the long haul. The term has its origins on a Bitcoin forum where a member reveling in Bitcoin’s surge drunkenly misspelled the word “hold” during the forum users’ collective revelry.
Hodling makes for a sound investment, particularly for those who remain unruffled during periods of temporary depreciation.
There are several solid tips for investing in Bitcoin, but the number one thing to consider when investing is responsibility and frugality. Never invest in more than you are willing or able to lose. As with all or, at least, most investments, Bitcoin investing is a gamble.
The risk should always be weighed against the reward. Most Bitcoin success stories revolve around a smart investor who had already had some measure of monetary success in their life. If you have an adequate nest egg and money to burn, the risk may equate to quite the rush.
There is no denying the excitement of investing in digital currency. It’s an exciting time for cryptocurrency and it’s obvious that this is a high growth investment. But always play it close to the chest if possible.
Once you’ve purchased bitcoins, be sure to move them into your own personal wallet (a Bitcoin wallet is an absolute must) and never leave them at a bitcoin exchange. Personally, I recommend investors use a hardware wallet, but we’ll talk more about that in a minute.
Never purchase bitcoins from an untested source. In other words, do your homework so that you are positively certain of the exchange’s reputation.
It is highly advisable to invest in Bitcoins via DCA (Dollar-cost averaging). This will enable you to average the price over the course of the entire year.
Consider investing in mining equipment. Bitcoin mining can be extremely profitable at large scales. However, the caveat emptor here is that your electric bill will go up by quite a bit.
Avoid “cloud mining” at all costs as sites that allow you to mine bitcoin through them are typically scam artists who steal your money and don’t actually use funds to mine bitcoin or amount to poor investments with diminutive returns.
If you’re one of those people who doesn’t have the guts to persevere during down times and you’re thinking about dumping your bitcoins, you can actually profit from a fall in the price by selling the contract.
A bitcoin futures market is extremely easy to unload. As a matter of fact, bitcoin futures started off so hot when they were first traded that trading had to be halted not once but twice.
How To Invest in Bitcoin for the Average Joe and Jane
As we’ve seen eToro is an excellent social network for Bitcoin trading, but for the beginner who is investing for the first time, Coinbase is one of the simplest solutions for buying BTC. For US residents, they sell bitcoin to their customers at a mark-up of around one percent over the current market price.
You can even link your bank account to your Coinbase wallet, eliminating any hassle when it comes to future payment transfers. With auto-buy, you can set how many coins you want to invest in on a scheduled monthly or weekly date.
When in doubt, turn to the pros. There are plenty of free webinars that provide detailed advice to potential investors. Eventbrite offers information on Free Bitcoin Educational Workshops by Wealth Advocates Mortgage & Finance.
The Most Popular Bitcoin Investing Strategies
There are several strategies for allocating Bitcoin within your portfolio. Choosing the right strategy is largely dependent upon what your portfolio looks like.
For the best results, it is usually best to avoid the traditional investment paradigm and, instead, opt for a long-term approach. But this all boils down to your personal preference. Many investors prefer concentrated investments to gradual investments, but there are many tactics one can take to turn their Bitcoin investment into a success story.
For instance, one might buy in small, sharp movements to reduce the average price they are paying. Of course, this may not be your cup of tea which is why we’ll go into the most popular and profitable strategies for Bitcoin investing.
But before we dive in, a word of caution. Betting big can be a bold move, but you won’t necessarily find yourself livin’ large in the aftermath.
In October, Business Insider reported on a 39-year old man who had sold everything he had to make a sizable investment in Bitcoin. Instead of striking it rich, he wound up losing everything and his family now lives on a campsite, facing an uncertain future.
For those who want to make a sound investment in Bitcoin, dollar-cost averaging is the smartest way to go.
Those of us who invest commonly depend on breaking news, statistics and expert predictions to determine the right time to buy and sell. But none of this is an exact science and, all too often, buying low and selling high ends up being anything but fail safe.
What many people don’t realize is that there is a far simpler method that can be implemented, one that invariably pays off over time. Dollar-cost averaging (DCA) is a strategy by which you make frequent fixed investments to amass wealth in the long term.
If there’s one thing you should know up front about Bitcoin it’s that volatility is inevitable. Periods of dramatic depreciation are almost guaranteed, but so, too, is rapid appreciation. Those who invest gradually over an extended period of time will be rewarded for their patience more than the sap who sinks his life savings into it and loses his mind when it plummets.
One need look not look farther than Wall Street to find antsy investors who bought in during 2013’s record high and made losses the following year. That’s because they put their money on the short term instead of looking for exponential gains over a pronounced period.
Those who tuck their bitcoins away often forget they even bought them. One such example is the Norwegian man who bought them in 2009 and discovered them anew in 2013. Assuming he held on to them to this day—and didn’t forget about them again—they should be valued at $5.75 million.
This illustrates the potential of the long-term approach. Of course, it’s natural for investors to get the urge to sell when the market fluctuates. Anyone who has ever lived on a shoestring budget and scraped together enough money to make a sizable investment in a stock, only to see it drop substantially overnight, knows that sinking feeling you get in your stomach.
The next thing you know, you’re on the phone with your broker, begging him to get you out. But this isn’t always the wise move. If there’s one thing that any high roller will tell you, it’s that patience is the best strategy of all.
One of the simplest examples of how DCA works is this: If you commit to spending $100 per week on Bitcoin and the cryptocurrency begins to slouch, your hundred bucks will just afford you more bitcoin. And when the price rises, your investment will buy you less bitcoin. This is how you average out the cost in the long run.
It’s a smart risk management tactic that protects you against losses and keeps you flush when the market is down. In this way, any declines will not seriously effect you and you’ll have a better chance of bouncing back when Bitcoin is on top.
By purchasing bitcoins on a regular basis with small sums of money, you won’t have to waste time studying the market to ascertain when to buy and sell. This is great because you don’t have to stare at the computer all day, biting your nails and hoping for the best.
Let’s face it, some of us are investing for fun—just to see where it might go—and others are investing because they expect to make a windfall. But either way, investing in Bitcoin should not be anxiety-inducing. DCA vanquishes that anxiety and let’s you sleep at night as you accumulate more bitcoins or increase your bitcoin’s value.
But don’t just take it from us, even the rich and famous have embraced this technique. Legendary investor Warren Buffet has espoused this buy-and-hold strategy, suggesting that people shouldn’t watch their investments too closely.
Fractional Investments vs. Concentrated Investments
If you make in excess of 100,000 per year and you’d like to turn that into 500,000 or more,
Bitcoin may be an excellent investment for you.
Because even teenagers who save up their lunch money have seen success with Bitcoin investing. Eighteen-year old Idaho native Erik Finman is one of several teens who have gotten in on the action and really cleaned up.
Finman has dropped out of school and says he doesn’t have to go to college because he’s already a Bitcoin millionaire with at least 403 bitcoins to his name.
Most of the big dogs who have made good with Bitcoin are people who were already successful and know a sound investment when they see one. But you don’t have to blow your whole wad right out of the gate to achieve success with the digital currency.
One thing to bear in mind when considering an investment in Bitcoin is fractions. The fact of the matter is, you don’t have to buy an entire bitcoin. Many people choose to purchase a piece of one instead of sinking one lump sum into a bulk investment package.
Since it’s a digital currency, you can actually purchase a hundred millionth of one bitcoin. This “Satoshi,” so named for its creator (Satoshi Nakamoto), is a miniscule unit that has been adopted by the entire industry. In fact, all bitcoin amounts in the block chain are denominated in satoshi before conversion.
The value of buying a Satoshi is also based on a paradigm of patience. At the moment, a Satoshi is worth less than a penny, but many have predicted that it will one day be worth as much as $1 which is why small investments in Satoshis today could pay off down the road.
Analysts believe that the logarithmic growth curves of Bitcoin, and the ceiling Nakamoto placed on the currency, could lead to a single bitcoin being worth more than $100,000,000 USD, potentially outgrowing all other currencies.
This re-enforces how smart the DCA technique is as an investment strategy, though it doesn’t exactly explain why large, concentrated investments aren’t the best idea. The problem with large investments is the risk.
With the rise of other cryptocurrencies like Ethereum, a massive, long-lasting downturn is destined to occur at some point, possibly even in the near-future. For this reason, it’s not only advisable to make gradual investments or fractional investments but, also, to expand your portfolio to include so-called “altcoins.”
The smartest allocation distribution strategy is to balance your portfolio to encompass a number of blockchain technologies. By creating a basket of altcoins, your portfolio can be instrumental in three alternate strategies—as a hedge in a speculative portfolio, as an insurance policy of sorts and as a calculated bet for early retirement.
Safely Storing Your BTC: The Best Bitcoin Wallets
Okay, so I’ve mentioned cold storage and Bitcoin wallets several times now. Maybe you’ve figured out what I’m talking about based on the context of the conversation, but for those who are still in the dark, a Bitcoin wallet is a software program in which bitcoins are stored.
In much the same way that a Virtual Private Network protects your online security, a Bitcoin wallet connects to your computer to protect your virtual assets.
There is a “private key” (secret number) for each Bitcoin address that is saved in the wallet of the individual who owns the balance. In your wallet file, a list of accounts are stored that only you can control.
There are tons of Bitcoin wallets available, but some are safer and more secure than others. Here are my top five and why I consider them to be the best on the market.
- Trezor—Hardware Wallet
- Coinbase “Hot” Wallet
- KeepKey—Hardware Wallet
- Blockchain.info—Hardware Wallet
- Ledger Nano S—Hardware Wallet
- Electrum—Software Wallet
Trezor’s Hardware Wallet is awesome for a number of reasons, not least of which is its affordability. You can pick up a Trezor wallet online for under $100 USD. It’s a bulletproof bitcoin wallet that doubles as a security device for storing passwords, emails, history and accounts.
The manifold features include ERC-20 tokens, 2-factor authentication, secure administrator SSH access, Ethereum integration and Password Manager. There’s even a feature that allows you to set up secret words that you can use to gain access in the event that you lose your keys.
Coinbase’s Hot Wallet differs from the others on this list because hot wallets need to be connected to the Internet. You can access it from a laptop, a tablet or a Smartphone.
Many people don’t like hot wallets because they aren’t believed to be 100% secure as a result of their connection to the Internet, but personally, I don’t mind because I always have a VPN (Virtual Private Network) running when I’m online. This extra level of encryption ensures that no one will gain purchase to my bitcoin wallet.
KeepKey’s wallet has been called “the simple bitcoin hardware wallet.” Instead of reeling in customers with a lot of bells and whistles, KeepKey goes back to the basics and focuses on the most important feature—security. It works with the wallet software installed on your PC to manage private key generation, private key storage and transaction signing.
KeepKey’s hardware wallet is a bit more money than Trezor’s, but it’s well worth the price considering the privacy and security you’ll obtain.
Blockchain.info boasts the most popular Bitcoin wallet around. With 20 million plus wallets and 100 million plus transactions, they are a well-established operation with a commitment to fair trade and transparency. They even offer a free wallet to their users.
Ledger Nano S is the go-to budget wallet for the person who wants to spend less on hardware and more on bitcoins. Their wallets come with a range of safety features including an OLED display that automatically double-checks and confirms every transaction with the tap of its side buttons.
Established in 2011, Electrum is one of the first and best bitcoin wallet. It protects against malware and other malicious attacks. It also features various interfaces for all of your Smart devices. They also offer a hardware wallet. This is one of the greatest cold storage options around.
Caveat: All hardware wallets can be used on a computer that is infected with malware. To avoid this, it is always a good idea to scan your computer before using your digital wallet and/or use it in conjunction with a VPN (Virtual Private Network).
Why Should Investors Buy Bitcoin?
As a Bitcoin investor, you’ll be in some pretty good company. Among those who have invested in the popular cryptocurrency are venture capital giants Reid Hoffman and Fred Wilson, PayPal co-founder Peter Thiel, eBay billionaire Jeffrey Skoll and banking titans like Citigroup’s Vikram Pandit and JPMorgan Chase’s Blythe Masters.
The fat cats can see what’s on the horizon and they recognize what Bitcoin represents. As the fastest growing industry in global startup investments, it’s one of the most formidable options for fast gains and potential long-term appreciation.
It is also something that is fast becoming useful to the general public with large companies like Amazon, Victoria’s Secret, Subway, Fiverr, Sears, Expedia and Kmart accepting it as a form of payment. Bitcoin is also eliminating the need for traditional banking transaction fees.
To better understand how Bitcoin can compete with the established land-based financial realm, let’s look at its current figures:
- $2 trillion USD annual electronic payments market
- $1 trillion USD annual ecommerce market
- $2.3 trillion USD hedge fund market
- $7 trillion USD gold market
- $16.7 trillion USD offshore deposit market
- $4.5 trillion USD short-term market
- $514 billion USD annual remittance market
That’s a lot of bank, to be sure, and it’s only growing day by day. But before you sink a fortune into buying bitcoins, it’s important to have a solid strategy going in.
Bitcoin is the New Gold
In August, it was reported that VanEck International Investors Gold Fund, a company with $30 billion in assets under management, began investing in bitcoin futures. From there, gold investors started converting their gold into bitcoin.
It’s clear on this evidence alone that Bitcoin is the way of tomorrow, a form of currency that just may replace traditional currency entirely one fine day.
Now that we’ve gone over how Bitcoin investing works and where you can buy Bitcoin, let’s look to the horizon to see where Bitcoin could take us in the year ahead.
A Word of Warning: Bitcoin Exchanges to Avoid
For some shady reason that probably has to do with affiliate programs, services such as iq option often turn up on Top Bitcoin Exchange lists, but they are not to be trusted.
Malwarebytes blocks iq option because they believe it to be a malicious website and it’s not just anti-malware software that recognizes them as a threat. Binary Options That Suck have flagged them as a risk to investors’ capital.
This comes as no surprise since iq option is one of those sites that offers a “free” demo. As someone who has worked in cyber analysis for a number of years, I can tell you that “free” services are really anything but.
On the contrary, these sites sell your personal information to third parties. That is why they are able to afford to provide free access to their services. So unless you want your vital data being harvested for the purpose of selling you out to strangers, it’s best to avoid these companies like the plague.
Other bitcoin exchanges to avoid include the US-based Paxful, Israel-based Coin Mama and Bittrex, the latter being shrouded in a veil of secrecy due to its questionable business practices.
While many have argued that the latter is a legitimate platform for buying and trading Bitcoin, many in the Bitcoin community have urged investors to stay away, claiming that the good comments are just a frame up to get people to trade with them.
Bitcoin traders have called out Paxful for being run by scammers and accepting stolen Amazon cards for bitcoin. Paxful has a reputation for allowing users to create multiple accounts and sell to these dummy accounts to increase their positive rating.
A fake Etherdelta website has reportedly stolen people’s cryptocurrency within the last year while Coin Mama has been flagged by users for accepting payment and subsequently sending the cryptocurrency purchased to a random wallet address.
Investors should always remember to thoroughly research a bitcoin exchange before doing business with them. As with everything else online, there are plenty of shady hucksters out there who are keen on ripping the unsuspecting consumer off.
Become a Bitcoin Miner
The subject of bitcoin mining has been very polarizing with many swearing by it and others swearing about it. The cynics write it off as a waste of time, saying that it doesn’t pay off quick enough, but many savvy miners are of a very different opinion.
As a miner, you will be charged with solving a mathematical puzzle comprised of pending bitcoin transactions. Once you’ve solved the puzzle, you’ll be awarded 25 bitcoins for your efforts.
Getting set up for mining can be expensive, but it’s not at all as complicated as one might think. Here are the simple steps to follow in order to get started:
- Buy custom mining hardware (popular hardware cards from Butterfly Labs, Bitcoin Ultra, CoinTerra, etc.)
- Purchase a bitcoin wallet
- Secure your bitcoin wallet
- Decide whether you want to be part of a bitcoin mining pool or work solo
- Download a mining program (EasyMiner, BFGminer or Cgminer, for instance)
- Run your miner
- Pay attention to temperatures (Utilizing a program like SpeedFan, you can prevent your graphics cards from going above 80 degrees)
- Keep an eye on your profitability
To determine whether you are making a sufficient amount of money as a miner, compare what you’ve made to what you’ve spent on operating expenses.
Bitcoin Predictions for 2018 & Beyond
As we’ve seen, Bitcoin has had a tremendous year with record highs and a lot of buzz. But where do we go from here? If those in the know have anything to say about it, the future’s gonna be so bright we’ll have to wear shades…or blue light canceling glasses as the case may be.
Among the many prognosticators who see Bitcoin growing even more robust in the years ahead is CNBC TV personality Jim Cramer. Cramer sees Bitcoin reaching $1 million per coin. And he’s not the only one that believes the sky’s the limit for the cryptocurrency.
The infamous Winklevoss twins have predicted a multi-trillion dollar market cap for Bitcoin down the road, and Dutch multimillionaire/crypto entrepreneur Marc van der Chijs expects bitcoin’s price to reach $150,000 by 2021.
Of course, not everyone is so optimistic. Harvard University professor Kenneth Rogoff is among the naysayers who suggest that Bitcoin will tank in due time. Rogoff is of the mind that Bitcoin will “collapse” under the weight of governmental regulation.
Naturally, there is no shortage of outrageous predictions, such as Saxo Bank’s belief that Bitcoin willpeak at sixty grand and then crash, but most savvy brokers know that this is not the way it works. The very nature of the market defies that kind of logic.
Considering the scarcity of Bitcoin, it has nowhere to go but up as the minutes tick by. The folks at Edelman Financial understood that when they wrote that, “As a currency, [Bitcoin] can be used as a medium of exchange for the purchase of goods and services—just as you do with dollars.”
For this reason, they have posited that Bitcoin will replace the dollar.
One thing is unequivocal: With two prominent Las Vegas hotel-casinos, a handful of dating websites, a Vancouver-based ATM online retail giant Overstock.com accepting Bitcoin, among many other retailers, it’s obvious that the digital currency is being acknowledged the world over for its value.
With only 21 million bitcoin in circulation, this cryptocurrency is a hot commodity. Using tools like Bitcoin Wisdom and Cryptowatch to analyze charts and study Bitcoin’s price history, you can get a good idea of when the time is right to buy.
Always make sure you understand everything you need to know before investing your money in Bitcoin. Again, do your homework before you buy in.
As a currency that is still in a relative infancy, we are still struggling to figure out the impact that Bitcoin will have on the world.
Be sure to study this guide carefully and consider all factors before investing in Bitcoin. Be safe, be smart and always #hodl.
A word of caution: All trading involves risk. Only risk capital you’re prepared to lose. Past performance does not guarantee future results. This post is for educational purposes and should not be considered as investment advice. Cryptocurrencies can widely fluctuate in prices and are not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework. Your capital is at risk.