In this post, I’m going to show you how to invest in bitcoin and cryptocurrency to make money in 2022.
So, if you’re looking for how to invest in crypto and make money then you’ll love this post.
- What are Bitcoin and Cryptocurrency
- What do you need to invest in Bitcoin and Crypto
- How to Invest in Bitcoin and Crypto
- Is Bitcoin and Crypto a good Investment
- Should you invest in Bitcoin and Crypto
- Different ways to invest in Bitcoin and Crypto
What are Bitcoin and Cryptocurrency?
At its core, bitcoin is a cryptocurrency.
Cryptocurrency is an internet-based medium of exchange that uses cryptographic functions to conduct financial transactions.
Cryptocurrencies leverage blockchain technology to gain decentralization, transparency, and immutability.
Additionally, cryptocurrencies use decentralized technology to let users make secure payments and store money without the need to use their name or go through a bank.
Unlike traditional currencies, they are not controlled by any central government or authority.
In the case of some of them (Bitcoin, Monero, and Litecoin for example), the supply of new coins is controlled by a process called mining.
Mining is a computationally-intensive process where computers (mining nodes) compete against each other to secure the network by solving mathematical equations, collecting bitcoins as a reward if they are the first to create a new valid block, which is then broadcasted to the rest of the network and added to the blockchain.
Other coins are pre-mined, where the mining occurs before the public launch of the coin.
Pre-mined coins are sometimes viewed in a negative light as they are often heavily promoted to increase demand and drive up the price, allowing developers to cash out.
Since many of them have been created as open-source software, they continue to evolve as developers work to implement solutions to address problems that arise.
Some of the common problems include scalability and security issues.
Even if cryptocurrency is in a bubble, the trend could very well be toward bitcoin and cryptocurrency being an important medium of exchange and store of value in the future.
What do you need to invest in Bitcoin and Crypto?
You don’t need very much to invest in Bitcoin!
You only need the following:
Personal identification documents
Bank account information/other alternative payment methods
A secure internet connection
The straightforward way you can invest in bitcoin and crypto is by purchasing a coin or a fraction of a coin via a crypto exchange such as Binance.
In most cases, you’ll need to provide personal information to set up an account, then deposit money you’ll use to purchase bitcoin or preferred crypto.
How to Invest in Bitcoin and Crypto in 4 steps
Here’s how to invest in Bitcoin and Crypto in 4 easy steps.
- Register for a bitcoin and cryptocurrency exchange like Binance, Coinbase, and Localbitcoins.
- Create a crypto and bitcoin wallet to store your coins.
You can use secure wallets like Blockchain.com, LedgerNano, or TrustWallet.
- Fund to your exchange account.
After you’ve successfully created your crypto exchange account, you’ll need to link it to your bank account or other preferred payment options.
This enables you to purchase coins and sell coins any time you wish.
- Later sell your bitcoin and crypto for a gain or loss.
After you’ve purchased bitcoin or your preferred crypto, you can:
- Use your coins to make online transactions.
- Hold your crypto for a long period in the hopes it’ll appreciate in value.
- Perform day or swing trading with your coins—that is, buying and selling coins with other Bitcoin and crypto owners, which can be facilitated on the cryptocurrency exchange.
Most significantly, you can grow your bitcoin and crypto account into a powerhouse portfolio in under 30 days with our highly profitable bitcoin investment plan.
Is Bitcoin and Crypto a good investment
Bitcoin was the best performing asset of the decade, returning 10x more than Nasdaq 100.
Bitcoin and cryptocurrency is a good investment if you want to gain direct exposure to the demand for digital currency.
Many cryptocurrencies like Bitcoin and Ethereum are launched with lofty objectives, which may be achieved over long time horizons.
While the success of any cryptocurrency project is not assured, if a cryptocurrency project achieves its goals, then early investors could be richly rewarded over the long term.
For any cryptocurrency project, however, achieving widespread adoption is necessary to be considered a long-term success.
Bitcoin as a long-term investment
Bitcoin is currently viewed by many investors as “digital gold,” but it could also be used as a digital form of cash.
Investors in Bitcoin believe the cryptocurrency will gain value over the long term because the supply is fixed, unlike the supplies of fiat currencies such as the U.S. dollar or the Japanese yen.
The supply of Bitcoin is capped at just under 21 million coins, while central-bank-controlled currencies can be printed at the will of politicians.
Many investors expect Bitcoin to gain value as fiat currencies depreciate.
Those who are bullish about Bitcoin being extensively used as digital cash believe that, over the long term, Bitcoin has the potential to become the first truly global currency.
Ethereum as a long-term investment
Ether is the native coin of the Ethereum platform and can be purchased by investors wishing to gain portfolio exposure to Ethereum.
While Bitcoin can be viewed as digital gold, Ethereum is building a global computing platform that supports many other cryptocurrencies and a massive ecosystem of decentralized applications (“Dapps”).
The Ethereum platform enables the use of “smart contracts,” which execute automatically based on terms written directly into the contracts’ code.
The large number of cryptocurrencies built on the Ethereum platform, combined with the open-source nature of Dapps, creates opportunities for Ethereum to also benefit from the network effect and to create sustainable, long-term value.
The Ethereum network collects Ether from users in exchange for executing smart contracts.
Smart contract technology has significant potential to disrupt massive industries, such as real estate and banking, and also to create entirely new markets.
As the Ethereum platform becomes increasingly used worldwide, the Ether token increases in utility and value.
Investors bullish on the long-term potential of the Ethereum platform can profit directly by owning Ether.
Should you invest in Bitcoin and cryptocurrency?
Owning some cryptocurrency can increase your portfolio’s diversification since cryptocurrencies such as Bitcoin have historically shown almost no price correlation with the U.S. stock market.
If you believe that cryptocurrency usage will become increasingly widespread over time, then it probably makes sense for you to buy some crypto directly as part of a diversified portfolio.
For every cryptocurrency that you invest in, be sure to have an investment thesis as to why that currency will stand the test of time.
Different Ways to Invest in Bitcoin and Crypto
If you want fast, easy, and secure ways to make money with bitcoin and crypto, you’ll love these tips.
1. Buying and holding
Buying and holding bitcoin is one of the most straightforward and most beginner-friendly ways to invest in Bitcoin and crypto.
First, get a Bitcoin wallet, buy BTC, and then hope that the price spikes in the future—no matter how long that may take.
It could be weeks, months, or even years before you decide to sell.
The term HODL was coined because of this.
However, HODL investment must not be tied with fancy expectations.
You must know when is the right time to sell.
Most importantly, make sure to buy using the dollar cost average (DCA).
2. Cryptocurrency companies
There are quite a few choices you have when it comes to investing in Bitcoin and crypto.
You could make money with crypto by investing in startups, bitcoin investment sites, stocks, or even blockchain-based products.
You should be careful with investments, especially when it comes to cryptocurrencies.
It is no secret that the cryptocurrency market is a very unpredictable place.
Always do your homework and research the cryptocurrency and the platform that you plan to invest in, or else the question of “how to make money with bitcoin?” might turn into “how to get out of debt (no Bitcoin)?”.
3. Make money trading crypto
This method requires practice and knowledge of the market, so be sure to do your homework before you even think about giving bitcoin and crypto trading a shot.
Here are a few styles of trading to get you started:
Day trading – Day trading entails short and quick trades, allowing opportunities for small and fast profits.
Day traders don’t hold any open positions overnight, so the method consists of carefully analyzing the market, seeing small money-making opportunities, and capitalizing for a small profit.
At the end of the session, day traders could have a significant cumulative gain.
Swing trading – If HODLing is long-term and day trading is short-term, swing trading is kind of in the middle.
Like HODLers, swing traders will buy low, wait long enough to see their holdings increase in price, and then sell high.
However, their holding time isn’t as long as a HODLer and isn’t as short as a day trader.
A swing trader can typically hold a position for as long as 4-6 weeks to see sufficient price movement to render a reasonable profit.
All these methods require a lot of practice, so don’t expect to get it right on the first try.
Just do your own research, figure out which strategy is best for you, and trust that you’ll be on your own way to earning bitcoin and crypto.
4. Lending Bitcoin and Crypto
Cryptocurrency lending platforms offer investors the opportunity to make bitcoin loans to others and earn interest for their trouble.
With some sites offering interest rates of between 8% and 15% while requiring minimal effort from lenders, this can seem very appealing.
If cryptocurrency lending still appeals, research diligently and proceed with extreme caution.
The decentralized nature of bitcoin and other cryptocurrencies makes it simpler to make transactions.
This is because you won’t need any authorities to validate it.
Because of this decentralization, you can also loan BTC to potential loaners at an interest rate.
Think of it as a way to make your money flow even when you’re HODLing—you’re actually making use of the wealth rather than keeping it unmoved in your wallet.
5. Accept Payment in Crypto
Think of a skill you’re good at.
This can frankly be anything – starting from copywriting and digital marketing to painting or singing.
Pick your strongest quality (or qualities) and think of ways you could monetize them to earn crypto.
Find a way to charge people.
A good place to start is to offer your services on online forums and marketplaces, stating that you only take payments in the form of bitcoins or other cryptocurrencies.
Do this long enough, and you might eventually want to create a designated website for this same purpose and teach others how to make money with Bitcoin and Crypto.
I really hope you enjoyed this post on how to invest in bitcoin and crypto to make money.
And now I’d like to hear from you.
Which tips from today’s post are you ready to try first?
Are you going to buy and hold?
Or maybe you want to make money trading crypto.
Either way, let me know by leaving a quick comment below.