There are many ways to make money with Bitcoin today. In fact, the cryptocurrency craze has created new ways to invest in Bitcoin. Thus, to make money with Bitcoin, it is now possible to trade on a dedicated platform, use derivatives, invest in new companies by getting tokens, etc. During ICO.
Yes, in the opinion of many institutional investors, Bitcoin is not made of the same metal as many of the most authoritative and best known financial investments. However, new investor profiles are emerging. These utilize platforms to get Bitcoins after a strong price fix and resell them with a comfortable added value. In fact, it’s not uncommon for Bitcoin price to fluctuate by hundreds of dollars a day.
More and more users see Bitcoin as a means of investing or as a store of value, not as a simple transfer tool. Like precious metals like gold and silver. This is logical because the high volatility of Bitcoin is both a risk and an opportunity.
Bitcoin or derivative transactions
Another possibility to make money with Bitcoin is, but it requires technical training to arbitrate Bitcoin prices between two trading platforms. Another way is by using the bitcoin software. A speculative technique developed by a currency trader, which is technically called a currency trader. They make money by buying Bitcoin on one platform and selling it on the other.
Low purchase, high sale
The most understandable method to make cash with cryptocurrencies is by investing in it. Buy cheaply and then sell high. For example, short-term trading based on technical analysis adds nothing to the project in question (which is written without moral judgment about practice). Long-term investment requires more participation in the project.
The idea is to find a cryptocurrency whose value in the currency market will increase significantly in the future, which requires further investigation. This research requires time and understanding of the technical and economic principles of such projects. These investors provide the market with skills by raising the prices of the most relevant projects. Even if this doesn’t help the project directly, the price increase will benefit stakeholders from the beginning.
To gain the trust of potential users, developers need to publish the source code of the project. The code may not have been released initially and may then be placed under a license that does not allow modifications to give the author protection.
- Take advantage of the bitcoin software
- Selling support in the best position to know the project in detail,
- Sales of services such as development of specific functions,
- Receive donations and scholarships
These approaches are still valid, but in the case of cryptocurrencies, they are complemented by other approaches, as the “coins” generated by the system are valuable in finding the buyer.
Buy coins from the beginning
Of course, if the value of your work is low, it’s a great way for creators to believe in a project. Therefore, they can leverage it and accumulate it to increase the value of their past and future work. This applies not only to developers, but to all stakeholders who can carry on projects.
This accumulation can be done especially by mining. In so-called Proof-of-Work systems, mining is always easier at first and then the higher the overall computing power assigned to this task, the higher the difficulty. I will explain the installation when a large number of coins are generated from the beginning and assigned to project members. If this distribution is unbalanced, it will undermine the balance of future money in the market as anyone with a significant portion of the token can manipulate the price.
If it’s difficult to load the software after the source code is published, you can infer that it’s the last minute. The practice of generating before a certain amount of coins to sell for a period of time first coin, as well as the stock market for the more common stock.
This approach continues to be debated, but is much more well accepted these days. This has the advantage that the project can be capitalized in order to fund a team that is large enough and qualified to start before a competitor with a similar concept.