Coinbase is available to all EazyBot users.January 21, 2024
Cryptocurrency Investment StrategyJanuary 29, 2024
Bitcoin is a cryptocurrency that is almost universally known. It essentially kickstarted the growing popularity of cryptocurrencies. Originally conceived as a virtual means of payment, it was useful for conducting online transactions quickly, securely, and almost cost-free. Over time, however, it has revealed its enormous investment potential.
How to invest in Bitcoin? Do you need to tie up substantial funds for a long time, or is there a way to make money from Bitcoin on a small budget? You will find out from today’s text.
Bitcoin and Cryptocurrency Exchanges – What is the Most Popular Digital Currency?
The origins of Bitcoin date back to 2008, when a person or group of people known as Satoshi Nakamoto published a brief outline of an alternative payment system. This sketch was just the beginning – in 2009, Bitcoin was officially launched.
The operation of Bitcoin requires Blockchain technology, a chain of blocks that stores all information about each completed transaction. Such a decentralized solution is designed to streamline the transfer of payments, increasing transaction security, reducing costs, and shortening the time needed for completion.
New coins are obtained by mining Bitcoin using special computers, as we have written about, for example, in the article: ‘How to Mine Cryptocurrencies – A Practical Guide.’ This is a way to earn money from cryptocurrencies, though it’s important to remember that over time this becomes increasingly difficult, and the total number of Bitcoins is limited to 21 million.
However, there are other ways to make money from Bitcoins. Cryptocurrency exchanges are one such method.
Bitcoin vs Bitcoin Cash – What’s the Difference?
On cryptocurrency exchanges, you can encounter a wide variety of cryptocurrencies. It’s important to stay alert and pay attention to find exactly the ones you are interested in.
Here, we would like to highlight the difference between Bitcoin (BTC) and Bitcoin Cash (BCH), which is a kind of offshoot of the base currency, created by a group of Bitcoin miners and developers. It emerged in 2017. Both cryptocurrencies have very similar code and are user-friendly in terms of operation. The price of BCH is also rising, and its market capitalization is at a really good level of 19 billion Polish złoty (data from: Coinbase).
How to Invest in Bitcoin – How Much Does Bitcoin Cost?
Is it worth buying the world’s most popular cryptocurrency? Although at the very beginning, the price of Bitcoin was just under one cent, over time the Bitcoin exchange rate became higher and higher, turning its first buyers into real millionaires.
The historically highest price of Bitcoin was recorded on November 10, 2021, when one BTC cost as much as 68,744.03 dollars. Currently, buying Bitcoin is possible for about 41,751 dollars (data from Binance as of 21.01.23). This makes these digital assets some of the most important in terms of market capitalization and some of the most sought-after in the cryptocurrency market.
Long-Term Investments in the Cryptocurrency Market
How to start investing in Bitcoin? One of the more popular models is to purchase cryptocurrency through an exchange or cryptocurrency bureau, and then hold onto it for an extended period. Many long-term investors with significant capital choose to buy Bitcoin and then forget about it for many years, disregarding short-term price fluctuations.
If you opt for this approach, it is advisable to invest in a good cryptocurrency wallet. This is a special space that allows for the secure storage of your cryptocurrencies. There are many variants available, enabling everyone to find a wallet suited to their needs, where they can safely store cryptocurrencies – both the most popular ones (Bitcoins) and other coins.
Short-Term Investments in Bitcoin – Is it Worth Deciding to Trade on a Cryptocurrency Exchange?
Another strategy for earning in the crypto industry with Bitcoins is cryptocurrency trading. Trading allows you to buy a particular cryptocurrency and then sell it, acquiring another digital currency, when the exchange rate is favorable.
The high popularity of Bitcoin means that it is easy to find many variants and cryptocurrency pairs that allow for effective and, most importantly, profitable trading, even for beginner investors who are just honing their skills in the world of cryptocurrencies.
Moreover, automated solutions like EazyBot also support trading in Bitcoin pairs. This offers a wide range of investment possibilities, with a partial reduction of risk if you lack the knowledge, experience, or time for constant market analysis.
Cryptocurrency Market and Earning from Bitcoin on a Small Budget
Unfortunately, not everyone can invest in cryptocurrencies like Bitcoin by purchasing a larger number of them right away. This is due to their very high price in the cryptocurrency market. Fortunately, cryptocurrency exchanges offer other solutions.
It’s quite easy to acquire fractional parts of Bitcoin. As a result, such digital assets become more accessible, and a broader range of people who want to invest in cryptocurrencies can add BTC to their cryptocurrency portfolio.
However, the topic of Bitcoin is even more complex. You can also invest in other cryptocurrencies, namely satoshis. What are they? They are a small fraction of one Bitcoin, constituting one hundred millionth of it (0.00000001 BTC). While it may seem like a small amount, in everyday life in the crypto world, Satoshi Coins are often more practical to use than whole Bitcoins. And their low price makes them a more accessible digital currency.
Cryptocurrency Market and Investments in the Crypto World – Can You Make Money on It?
More and more people are looking for financial instruments that can provide significant returns, even greater than options in the stock and securities markets. The cryptocurrency exchange sometimes offers such opportunities, with popular digital currencies like Bitcoin.
The value of Bitcoin is rising (despite temporary fluctuations and drops), and its mining will eventually come to an end. This means that investing in cryptocurrencies could be profitable and lucrative. In the case of long-term investing or trading cryptocurrencies (either whole Bitcoins or their parts), it’s important first to understand the basics of investing, then continuously expand knowledge and analyze the market. A secure wallet for storing cryptocurrencies is also beneficial.
Is it worth investing in cryptocurrencies? The volatility of this market and the factors mentioned earlier suggest that the answer can be affirmative, and even the most popular cryptocurrency has the potential to yield substantial revenues. However, one must always tailor their actions to their individual financial situation and invest wisely. After all, every investment is always associated with the risk of loss.