A survey carried out by deVere group, an independent financial advisory firm shows that 73% of millionaires will invest in cryptocurrencies, such as bitcoin before the end of 2022, or are already investing in them. According to the CEO;
“the impressive performance of Bitcoin is drawing the attention of wealthy investors who increasingly understand that digital currencies are the future of money and they don’t want to be left in the past.”
Day in day out, many people have grown enthusiastic about exploring the financial possibilities around the Bitcoin digital currency, and like these investors, they too do not want to be left in the past. Don’t worry, it’s not too late for you. Here are 5 Practical ways you can make money with Bitcoin so you can turn 2021 into a Bitcoin-filled year.
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HODL STRATEGY
HODL is a popular slang often used in the cryptocurrency community to describe an investment strategy. This term is easily picked up by new investors especially because of its full meaning — Hold On for Dear Life.
This is how the strategy works. The investor buys bitcoin, and builds up the determination not to sell it even when there is a downward trend in the market. The investor has to build this determination despite negative sentiments that may arise amidst the downward trend, with the hope of an extremely bullish outcome to come later in the market.
For example, if Mr. A decides to implement the strategy and buys Bitcoin by December, 2019 (Bitcoin was worth about $7,000). Mr. A would have experienced a bullish trend by February 11 2020 when Bitcoin was worth $10,270. Mr. A could decide to sell his Bitcoin at that time, thereby making a profit of 43%.
Mr. A could have also decided to keep his Bitcoin, anticipating an extremely bullish trend. But by March, the price of Bitcoin started to drop such that by the 18th of March, Bitcoin was now $5,413. The HODL strategy now requires Mr. A to Hold on to his Bitcoin for his dear life — that means to not sell it or transfer it or anything, until another bullish trend arises to the satisfaction of Mr. A. If Mr. A had stuck to this strategy, then by now, he should have made a profit of over 100%.
Difficulty: Easy
Duration: Long term/Slow
Risk: Low
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TRADING
Buying and selling. This option is like the HODL strategy, but it is short term and relatively fast paced, depending on the strategy being adopted. When you trade Bitcoin, you take advantage of its volatile nature to make your profit short term.
There are different strategies employed in this sort of trading, for example;
Day trading means you trade during the day, without holding any positions at night.
Swing trading means you trade during the day, and you can hold positions at night. In any case, you buy when the price is low, and wait long enough to sell high. (not as long as when using the HODL strategy)
This money-making option requires lots of research, and a bulk load of practice for you to get better at it, and to manage risk efficiently. Most times, it is easier to engage a broker to manage the risk for you.
Difficulty: Medium
Duration: Short term/fast
Risk: High
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AFFILIATE MARKETING
This is an easy way to make money with Bitcoin. It is as easy as making money even while you are asleep. Many companies encourage the practice of affiliate marketing by rewarding marketers called affiliates who bring in new customers to their company through referrals, for example. The good news is that anyone can be an affiliate marketer.
We have our very own affiliate marketing program here at Cordial Exchange. It is one of the best on the market because it makes use of the easiest approach to earn as an affiliate marketer, while giving users the best opportunity to make money with Bitcoin. Check it out!
Difficulty: Easy
Duration: Short term/fast
Risk: Low
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BITCOIN MINING
If you are a math guru, then this option is for you. Bitcoin Mining is a technical process of acquiring new Bitcoins by solving complex math problems with a powerful computer. When the code is cracked, miners are rewarded with new Bitcoins.
Back in the day, mining wasn’t as complicated. As time goes by, with the Bitcoin halving, stiff competition and the slower process of mining integrated in the blockchain after every halving, the process of mining has become pretty complicated.
A total of 21 million BTC are in supply, no more no less. Once the total supply has been exceeded, there would be no more Bitcoin left to mine. As at the time of writing this article, 18,517,712 BTC have been mined in total. So, if you opt for this option, you have a chance to mine over 2,400,000 BTC remaining.
One has to carry out a handful of research to dive deep into this course. You may also join a Bitcoin mining pool or Bitcoin mining cloud — a collaborative group of miners that share computing power, and minds to solve complex math problems faster.
Difficulty: Hard
Duration: Long term/ Slow
Risk: Low
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LENDING BITCOIN
If you have plenty bitcoin in your wallet, then you should consider giving loans to people at an interest rate. This is practical because Bitcoin has been adopted as a payment option in many E-commerce platforms. Not just that, but the public approval of Bitcoin currency use is growing massively day by day.
Consider loaning Bitcoin to people who are unable to purchase it, and at the same time, do not want to miss out on the benefit of having Bitcoins in their wallet. Just be sure you do not loan Bitcoin to an unserious and unfaithful person, or someone with a shady background. Some websites you can use to help with your lending services are Unchained Capital, Bitbond, and BTCpop
Difficulty: Easy
Duration: Depends on duration set by lender
Risk: Medium
Practical ways to turn the year 2021 into a Bitcoin filled year.
