People who bought 100 USD worth of Bitcoin back in 2010 have tens millions of dollars worth of the cryptocurrency today, but how?
Bitcoin, the worldwide cryptocurrency and decentralized payments system introduced by Satoshi Nakamoto in 2009, has been making headlines about making people rich really quick, but how does it work? There are three ways: trading Bitcoin, investing Bitcoin and lending Bitcoin.
As complex as it sounds, the Bitcoin trade is actually quite easy once you get the hang of it. Just like you would with any other currency, you make profit from Bitcoin with either three methods: trade, investment and lending.
— The Life Pile (@thelifepile) November 1, 2017
Using a digital wallet, you can buy cryptocurrency with regular money, either through a bank transfer (if your local financial regulations allow it), through Paypal, or local vendors who will take physical cash for it.
This is probably the easiest and fastest way to make money out of it, but maybe not the most profitable.
What you do is buy Bitcoin while at a low, and then sell at a higher price. And since the price of Bitcoin has mostly been going up ever since it was created, many have chosen this method as their primary type of cryptocurrency business.
— The Life Pile (@thelifepile) October 25, 2017
Holding Bitcoin is like investing in anything else, you simply put in an initial capital, wait it out until the market value has increased, and then you pull out your investment which has grown exponentially.
Reports are saying that people who bought Bitcoin for 100 USD back in 2010, could sell them for 73 million USD in May 2017.
— The Life Pile (@thelifepile) August 22, 2017
Lending Bitcoin works the same way as lending regular money; you trust a company or person with your money, and expect a return on investment. However, what makes a cryptocurrency investment better than a regular investment, is the option to diversify. You don’t need to bet all your money on one business. Instead, put a small amount of money in many businesses.