What is Bitcoin and how to make a profit with the main cryptocurrency

What is bitcoin and how to make money with it

09-04-2020

The people started getting increasingly interested in Bitcoin in 2017, when this cryptocurrency demonstrated a rapid growth, having spiked from just over $700 per coin to almost $20,000 within a year.

Even those who shunned away from financial markets warmed up to this idea and wondered how much money they could have made if they had decided to invest in Bitcoin when the time was right. This is what one famous politician once said:

«Where and How to Buy BitcoinWhen I see the way Bitcoin’s price grew, I start hating it while looking for ways to somehow buy it.»

In this article, we are going to explain what Bitcoin is and how you can make money with it today, even if you have never dealt with investing and trading before. Since then, the Bitcoin value has dropped to $3,000 and gone up again. However, the asset has always remained in the investors’ limelight.

What is Bitcoin and how to make money with this cryptocurrency

Contents:

1. What Is Bitcoin
2. Bitcoin’s Price Prospects
3. Where and How to Buy Bitcoin

What is Bitcoin

The first cryptocurrency ever created was Bitcoin. It is often referred to as the first, or main cryptocurrency. The creator of Bitcoin is the mysterious Mr. Satoshi Nakamoto whose identity remains unknown to this day. The link to a paper titled Bitcoin: A Peer-to-Peer Electronic Cash System was first published on October 31, 2008, and in 2009 Bitcoin network came into existence with the issuance of the first bitcoins. As far as the initial value of Bitcoin goes, everyone has probably heard the story about how two pizzas were bought for 10,000 bitcoins.

Many new cryptocurrencies have been created since then. Digital coins which are an alternative to Bitcoin are collectively called altcoins. Ethereum, Ripple and Litecoin are among the most popular tokens. There are also the so-called stablecoins, the cryptocurrencies whose value is backed by oil, U.S. dollars, real estate and different precious metals. There are a number of cryptocurrency exchanges where crypto traders earn money with digital tokens. Some countries started talking about creating national cryptocurrencies.

This points to the fact that Bitcoin is a new reality, and cryptocurrencies are here to stay.

Just like with many other cryptocurrencies, blockchain technology lies at the heart of Bitcoin. This coin is obtained through mining. The total number of all bitcoins that can be mined in total is 21 million.


Do you wish to sell or buy digital tokens profitably?

Read, how to trade cryptocurrency profitably!


Bitcoin’s Price Prospects

Bitcoin has become one of the most popular trading and investment assets within three years. Meanwhile, those who once wondered what Bitcoin was ended up becoming successful crypto traders and crypto investors.

Even though the cryptocurrency market is still pretty young in contrast to the stock exchanges or the fiat currency market, we already have enough information to be able to make forecasts about the Bitcoin’s value in the short run.

Significant highs and lows have been formed since 2017. By taking them into consideration, you can figure out how good the Bitcoin’s price is now for a long-term purchase or for speculative sale.

What is Bitcoin and why is it interesting

In early April 2020, the price of one Bitcoin is about $7,000 per coin. According to the technical analysis of the daily chart, we can conclude that this is an extremely attractive price for an investment purchase in the medium term. The short-term growth goals are the highs of June 2019. If the Bitcoin’s price plummets to $3,000 per coin, these prices as an investment point will be even more attractive.

Aside from that, there are other factors evidencing the excellent investment attractiveness of Bitcoin. Recently, major global investors have started seeing the main cryptocurrency as a safe haven asset. Previously, such instruments were chiefly gold, the Japanese yen, and more recently, the U.S. dollar. Bitcoin is considered the safest asset in the cryptocurrency market.

What does this mean for investors? As the coronavirus pandemic fueled the world crisis, huge amounts of liquidity have been thrown into the market by the global central banks. Cheap money, which flooded the economies of developed countries, will trigger the drop in price of the major fiat currencies. At the same time, the demand for safe haven assets will increase.

One of the leading cryptocurrency experts Michael Novogratz believes that in light of this Bitcoin will become extremely popular. This, in turn, will lead to the rise in its price.

How relevant is Bitcoin for big market players? This is a new safe haven asset which is limited to 21 million coins that can be created in total. It stands out favorably in comparison to fiat currencies. According to Mr. Novogratz, buying Bitcoin today is the best investment decision one can make.

Where and How to Buy Bitcoin

This pretty logical question comes to mind when you recognize the whole investment attractiveness of this cryptocurrency and the importance of the current situation. Below are some of the practical tips you can use if you wish to trade Bitcoin.

For starters, it is worth pointing out that the Bitcoin’s price is obviously quite high as compared to other financial assets. On top of that, this is a highly volatile instrument. So, when it comes to trading Bitcoin, a speculative approach works best for the newbies.

Bitcoin CFDs are your best bet in this case. With brokerage company Gerchik & Co, traders have a chance to trade this instrument with 0.01 lots. This means that you will be able to make money with cryptocurrency, having even a small starting capital.

If you have no prior experience in stock exchange trading, you can complete training at Gerchik & Co. Plus, you will get your hands on the Risk Manager solution which will minimize the risks in your Bitcoin trading and make it more profitable thanks to the accurate settings.


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