This year, the attention of investors in digital money will focus on the leading cryptocurrency – bitcoin.
So also attention will be on the development of the cryptocurrency derivatives market and mining.
How can you now benefit from this growing market?
With Bitcoins, you can make money not only by trading but also by mining, cloud mining or even exchanging against other currencies.
Today, I would like to discuss five ways you can make money with Bitcoins.
Trading Bitcoins yourself
The first way to make money with Bitcoins is to buy the cryptocurrency or trade it.
You can trade bitcoin with crypto brokers where you will be able to buy and sell any digital currency, or preferably Bitcoin.
When trading Bitcoins, you make money only when you’re able to sell higher than the price you buy.
You can employ candlesticks patterns to identify a bottom reversal for buying and sell when there is a huge supply capable of depressing the price.
Trading Bitcoins via CFDs
Another way to make money with Bitcoins is to trade the cryptocurrency through Contracts For Difference (CFDs).
In this case, you do not buy coins directly but speculate on rising Bitcoin prices using the Contracts For Difference.
This option is currently very popular with many traders because CFDs use leverage so that only a small part of the trading value has to be raised by the trader.
Binary Options on the Bitcoin
The third way to make money with Bitcoins is to trading binary options.
Some Binary Options brokers currently already provide cryptocurrencies as underlying assets, especially the Bitcoin.
However, when trading Binary Options, you should keep in mind that they always have a limited duration and you will usually have to decide whether the price of the Bitcoin at expiration is higher or lower than when you bought it.
Bitcoin Mining in the form of Solo Mining
Another profitable way in which you can earn money from Bitcoin is through mining but this method is expensive.
This is not about buying bitcoin crypt or speculating on its price, it involves producing Bitcoins yourself.
In so-called solo mining, you are on your own, so you must observe all the requirements for mining the coins.
This includes, for example, that you have a powerful computer with the appropriate hardware, software for mining is required and you should not forget that high electricity costs must be taken into account for mining.
In the last few weeks, a new way has been established: Masternodes – passive income by securing the network.
Cloud mining as an alternative to solo mining
Another way to make money with Bitcoins is what is known as cloud mining.
This has become a real trend over the last few years, as it gives almost any interested party the opportunity to participate in Bitcoin Mining.
In this case, you do not have to use hardware and software yourself and there are no electricity costs.
Instead, you transfer an investment amount of your choice to the cloud mining provider and are rewarded at regular intervals on a pro-rata basis.
The mining market is becoming increasingly mature. We do not expect a very high profit from crypto-currency mining unless its price starts to grow rapidly, as it was in 2017.
At the same time, mining continues to attract institutional investors.
Today, the market is saturated with equipment. Manufacturers have learned how to increase their sales flexibly and quickly.
These are a driving force for network growth and keep mining profitability at a relatively stable, moderate level.