How do Bitcoins Make Money for Beginners

Bitcoin has been a hot topic, it make money for the beginners in the investment world for the past few years.

It has made many beginners rich, but it has also left quite a few beginners poorer. The reason? A lack of education about the investment they’ve made.

This blog post aims to provide a beginner’s guide to Bitcoin, so you’re well-informed before you choose to invest or not.

What is Bitcoin and What Makes It So Powerful?

Bitcoin is the largest form of cryptocurrency and the most well-known one. It’s also the one that’s been the most adopted. To understand cryptocurrency, you first need to understand what money is. Money is just an agreed-upon store of value accepted by everyone as a form of payment. Money in itself doesn’t actually hold any value. The only thing that makes money valuable is the fact that we’ve all agreed and accepted it as a form of payment.

The problem with money is that it’s centralized, controlled by governments and central banks. This means with the dollar or any other currency, you’re entirely at the whim of their choices. If they choose to constantly print money and devalue it, your hard-earned money in the bank gets eaten away by inflation and becomes worth less. Another problem is if you choose to send money overseas, you get hit with exchange fees and exchange rates. If you choose to make transactions, you’re often hit with more fees.

Bitcoin, a cryptocurrency, solves all of these problems. First, it is not centralized; it’s decentralized. You don’t just have to rely on one central bank’s ledger of keeping track of everyone’s money, which none of us can see. With Bitcoin, every computer that participates in the system keeps a copy of the ledger, making it almost impossible to take down the system because you’d have to take down thousands of computers that keep a copy of the ledger. So it’s safer, everyone can see it, it’s transparent, not one central authority has control over it, and arguably the most important, it’s protected against inflation. With Bitcoin, there are only 21 million total coins in the system, so you can’t print more and devalue it.

Will Bitcoin Be the Future Adopted Cryptocurrency?

One thing dominates the entire sector in business or currency, and that’s most likely what will happen with cryptocurrency. The question is, will Bitcoin be the cryptocurrency of the internet, the one that rises to the top? The answer is that it most likely will be, at least it’s leading the race. Jack Dorsey, the CEO of Twitter, said, “The internet is something that is consensus-driven and is built by everyone, and anyone can change the course of it. Bitcoin has the same patterns. It was built on the internet. I think the internet wants a native currency, and I think Bitcoin is probably the best manifestation of that so far.”

At the end of the day, money is just about mass adoption. It’s about everyone agreeing that it’s an exchange of value, and right now, Bitcoin is the closest to getting this done. Most people who haven’t heard of Litecoin, Dash, Monero, Ripple, but you ask people on the streets if they know Bitcoin, and it’s likely that they do.

How to Invest in Bitcoin

Investing in Bitcoin involves three steps. First, you need a wallet, just like with cash. You need a walletto put it in. It’s the same with Bitcoin, except Bitcoin’s a digital wallet. You use the wallet for sending, receiving, and storing Bitcoin. There are two types of wallets that you can get. One is the software wallet, which can be run on your computer or mobile device. A software wallet is better and easier with just small amounts of Bitcoin. The second is a hardware wallet, which is a device that connects to your computer and is considered the much safer option.

Once you have the wallet, you need to buy some Bitcoin, and you do this through an exchange. Some of the more well-known examples of these are Gemini and Coinbase. Finally, once you’ve bought the Bitcoin through an exchange, all you need to do is withdraw it from the exchange and send it to your wallet.

Is Bitcoin a Smart Investment?

Investing is about risk and reward. How much can you lose, but on the other hand, how much do you stand to gain, and what are the chances of each? With Bitcoin, there is a chance that you lose everything. Bitcoin is a currency that is 100% technology-based and reliant on people eventually adopting it and using it as a currency. As time goes on, more and more people are learning about it, using it, and adopting it, but this is no guarantee that in the future they will continue to do so. If everyone decides to sell it and not think about it anymore, your investment goes.

On the other hand, the potential reward for Bitcoin is huge. Its reward is way higher than the risk. If Bitcoin were to grow to the same market cap as gold, which a lot of experts think it could, we would see a 10, 20, 30 times return on our investment. That’s why the way I see Bitcoin as an investment is there’s a lot more potential to gain than you have to lose. But remember, the risk is that you could lose everything, so you only really want to invest what you can afford to lose.

Bitcoin is superior to the fiat money that we’re currently using and all of the problems that come with it. It’s just better overall, and if you look at the times that we’re in, they’re very abnormal. You’ve got the Fed printing trillions of dollars every year, devaluing the dollar by the second. You’ve got governments with more control than ever with the lockdowns, businesses being shut, crazy politics. Bitcoin doesn’t rely on any one institution, so it may not be the dumbest idea to have some investment in it. Your future self might thank you for it.

Making Money with Bitcoin

There are several ways to make money with Bitcoin, each with its own set of advantages and drawbacks, and not all methods are suitable for everyone. The world of cryptocurrency is vast and complex, and navigating it successfully requires a certain level of knowledge, risk tolerance, and commitment. It’s essential to understand that while Bitcoin offers significant opportunities for financial gain, it also comes with its own unique challenges and risks.

One of the most common methods of profiting from Bitcoin is day trading. This approach involves buying and selling Bitcoin within the same day based on small price fluctuations in the market. However, day trading is not for everyone. It’s a method that requires a deep understanding of the market, quick decision-making skills, and a high tolerance for risk. Only a small percentage of people have the mental fortitude and the technical knowledge necessary to be successful at day trading. It’s a high-stress activity that can take a significant toll on your mental health and personal relationships. The constant need to monitor market trends, make quick decisions, and the potential for substantial financial loss can lead to high levels of stress and anxiety.

Another way to make money with Bitcoin is through a strategy known as ‘buying and holding.’ This strategy involves purchasing Bitcoin at a low price and holding onto it for a long period, hoping that the price will significantly increase over time. This method has worked for some early adopters of Bitcoin, who bought the cryptocurrency when it was still new and relatively cheap, and then saw massive returns as the price of Bitcoin skyrocketed.

However, for most people, the opportunity for such extraordinary returns has already passed. The days of buying Bitcoin for pennies or even a few hundred dollars are long gone. Today, the price of Bitcoin is in the thousands of dollars, and while it may still increase, the potential for the kind of astronomical returns early investors saw is much less likely. Furthermore, this method requires a great deal of patience and a strong belief in the long-term value of Bitcoin. It could take years to see a significant return on your investment, and the volatile nature of the cryptocurrency market means that there are no guarantees.

Selling Digital Products

A more accessible way to make money with Bitcoin is by selling digital products. You can create content about concepts that anyone with Bitcoin or who would own Bitcoin would normally talk about. These are more things that are a little bit more extreme, like breath work, naturally producing DMT, traveling, being an expat, leaving America, finding ways to reduce taxes, and so on. These are what all these Americanexpats that are traveling around the world talk about. Most likely, they’re also probably talking about Bitcoin, most likely they have Bitcoin, most likely they would make a purchase in Bitcoin.

So, you make content about that and think about a problem that you could solve. Then, create a digital version of it. Why? Because you don’t have to worry about physical products. You don’t have to worry about buying more of these to sell more of these. It’s literally like air on the cloud that you sell for hundreds or, in some cases, thousands of dollars, and people can essentially buy in Bitcoin.

Affiliate Marketing

Another way to make money with Bitcoin is through affiliate marketing. You can sign up for an affiliate program with an exchange like BuyBit, which pays up to 30% commission on all trading fees. Then, you make videos on all the things that say Bitcoin, like Bitcoin news, Bitcoin trading, Bitcoin analysis, Bitcoin for beginners, and so on. These are things people are searching for, meaning you are going to be found if you make content about this.

Then, you can say, “Hey guys, check out my BuyBit tutorial or BuyBit affiliate link below.” When someone takes access to that, you get 30% commissions for life as long as they trade on BuyBit. The beautiful thing about this, which is different from the selling digital products approach, is that you do not have to create your own products. The exchange already exists, and you don’t have to employ tens of thousands of people to help run an exchange. You could literally just be one person with one camera, talking about Bitcoin news.

Wrapping Up

In conclusion, Bitcoin is a powerful cryptocurrency that has the potential to revolutionize the way we think about and use money.

Whether you choose to invest in Bitcoin, sell digital products for Bitcoin, or use affiliate marketing to earn Bitcoin, the opportunities are vast.

Just remember to do your research, understand the risks, and make informed decisions. Happy Bitcoin journey!