Bitcoin tuned a decade old and over the years its
Bitcoin tuned a decade old and over the years its understanding, usability, and importance have grown in leap and bounds. Many realized its potential at a very early stage and they made billions out of it once the prices skyrocketed in December 2017.
Many of us have felt left out and ignorant to have missed out on the golden opportunity as the majority of us had heard of the term Bitcoin at some point in our lives. Are you one of them?
Well, no need to worry as the 2018 bearish market might have been a headache for investors, but looking at the brighter side, it serves the perfect opportunity for newbies to make a foray into Bitcoin Trading and investment.
This article will discuss the top 5 Bitcoin trading strategies in 2019, which might help you to enter and establish yourself as a prominent Bitcoin trader.
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Top Bitcoin Trading Strategies That Might Help You To Earn the Bitcoin Riches
Since its inception in 2009, Bitcoin has seen a widespread acceptance and understanding among the masses, and that has been reflective on its prices too. A commodity which started at zero value and reached to $20,000 price must have something that has helped it not only survive the brutal trade market fluctuations, but also jump back from the worst lows.
That ’something’ is the technology that underpins Bitcoin- Blockchain. Cryptocurrency is just one use case of it. Now let us focus on the task at hand and discuss various strategies which might help you to earn and multiply your Bitcoin riches.
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1. Buy Bitcoin Directly
The best strategy to begin with especially when the market is down is to make a direct investment into the Bitcoin. i.e buy Bitcoin directly and then start trading it against other cryptocurrencies depending on the market trends.
Bitcoin can be bought in various ways- you can make use of an exchange which allows buying Bitcoin against a fiat, or you can opt for a peer-to-peer transaction, i.e join a community and see if anyone is willing to sell theirs. If you feel you cannot afford thousands of dollars, you can buy fractions of it for whatever amount you have.
2. Mining
If you are new to the crypto realm, you must know that Bitcoin is based on the concept of decentralization and make use of Distributed ledger technology. In a decentralized scheme of things, all the transactions of Bitcoin blockchain are verified by the peers on the network.
The process of transaction verification requires solving cryptic digital signature associated with each transaction, and this verification process is called mining. For verifying every block on the network, the miner receives a certain Block Reward (12.5 BTC), which get halved every 4 years.
Now mining might look attractive, but it requires a ton of computational power which can only be achieved using a specialized mining rig like ASIC mining rig or GPU mining rig. These rigs can easily cost you thousands of dollars in initial setup apart from the energy bills.
So, if you feel you have enough computational power or you feel mining is the right way, you can make an investment.
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3. Invest in Mining Pool or Mining Farms
Due to bearish market trends, individual mining has turned unprofitable as the initial cost of setup and energy consumption is too high. You can still earn Bitcoin through a mining pool or mining farm.
What a mining pool does is it combine the computational power or hash power of multiple users and the Block reward is then equally distributed among the members. Generally, theses pools charge a mere 1% of the profit.
Mining farms, on the other hand, rent out computational power to users through a centralized cloud-based service. You can buy hash power from the mining farm and continue mining through your home-based computer.
4. Services in Return of Bitcoin
If you believe you do not have enough funds to either directly invest into the crypto or set up a mining rig, then don’t worry there are still other legal ways to earn the Bitcoin. You can charge for your service in return of Bitcoin as payment.
Your service can be anything, a freelance writing project or freelance software developer, all you need to make sure is looking for people who are willing to make payments in cryptos. There are numerous online portals and service websites where you can get paid in Bitcoin.
5. Staking
Staking is one option that can help you get monthly dividends over your staked deposit of Bitcoin. What you need to do is find a service provider or master node runner who is ready to stake your coins and give you timely returns.
Staking is like putting your money in the bank, but unlike banks, there is no minimum requirement. Whatever number of Bitcoin you hold can be staked and get timely returns.
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