How Can Bitcoins Make Me Wealthier?

Have some cash in hand? Why not invest in bitcoins? How can bitcoins make me wealthier? But how? Is it a reasonable and rational investment considering the wild swing in bitcoins’ prices? What is the cost-benefit analysis of investing in bitcoins? These are a few burning questions most frequently asked by people trying to find new ways to earn money. What do you think? Is it a myth or truth?

Let’s dive deeper into the stunning ocean of bitcoins to hunt each of these questions down and get our answers. We’ll be sticking to the title throughout this blog as it is assumed that everybody already knows bitcoins in depth. If you want to know about bitcoins, you should start with my blog, Cryptocurrency – The Virtual Money.

Bitcoins Are The Future Of E-commerce.

Bitcoin is a decentralized global currency that is drastically reshaping the future of e-commerce and redefining modes of online transactions. This rapidly growing technology is becoming the new norm these days and will suffuse our world in the coming times. Someday this so-called digital gold will surely take over the traditional money backed by central banking authorities or the states.

Is Bitcoins Only For The Elites?

No, it’s just a misconception regarding the affordability of digital coins that an ordinary man cannot afford to buy it. Besides the truth that a single bitcoin is not economical enough, you can buy only a fraction of the bitcoin. You can provide capital for investment in the bitcoins market according to your budget, be it as little as $10.

A bitcoin contains 100 million Satoshis (Satoshi is the smallest unit of bitcoin), which makes it possible to invest in a fraction of the bitcoins. However, it is optional for you to spend either a minimal amount on it or a hefty amount. It depends on your financial stability, and how much risk you can stand in case you lose your investment money. The best investing approach is to make a portfolio and divide your money into multiple investments rather than just one.

How Can Bitcoins Make Me Wealthier?

You are getting it wrong if, by any chance, you’re thinking of bitcoins investments as a get-rich-quick scheme. These bitcoin investments would not make you wealthier overnight like any other investment; no, it does not work like that. Practically, there’s no magic wand created yet that can do any magic to escalate your riches for real. It will take time, effort, steadiness, discipline, and energy to make it happen, like any other asset worth having.

To honestly answer this query, yes, bitcoins can make you richer only if you rationally invest in and trade them. That said, multiple factors are vital to determine the success of an investment, including the investor and the investment itself. According to a precise estimate, more than 99.8% of people who own the asset of bitcoin are yielding its profit.

Before delving into the how part of the query, know that it works out differently for everyone. Bitcoin prices fluctuate roughly within no time, so it cannot be a win-win scenario at all times and vice versa. These bitcoin investments are also contingent on the investor’s trading skills and market timings, though they are capable of yielding more than ordinary assets.

What Are The Potential Returns On Bitcoin Investments?      

However, before making an actual investment in the bitcoins market, the investor should know the return on their investments (ROI). It is analyzed by the bitcoin market experts that bitcoin investments have the potential of returning 200% on your investments. A single bitcoin is traded for 16,518.60 USD today (as on Nov 23, 2022), which is 1.97% higher than yesterday.

Usually, bitcoin investors either trade coins over the blockchain or hold the coins back, waiting for a greener market event. In any of the two cases, extensive observation of the bitcoin market trends is recommended to make wise trading decisions. A single coin can benefit you manifold as its value is diversely elevated; you must keep an eye on it. Be vigilant and observant regarding when to buy the bitcoin or hold it to sell while it’s swinging up.

Should I Invest In Bitcoins?

Does this question also pop into your head whenever you hear or read something about cryptocurrencies, more specifically, bitcoins? The answer may vary from person to person; therefore, take your final verdict accordingly by outweighing the pros and cons.

Pros

• Bitcoin is the safest asset among all other digital currencies, and the SHA-256 algorithm highly secures its blockchain. Its blockchain is protected from hacks, and the addition of new blocks makes it more difficult for any hacking attempt.
• Bitcoin is a flourishing market for investors, as it has outgrown multiple times in the past, even after being declared dead. It has no expiry date; hence it’ll stay by your side until you make a transaction to pass it on.
• The supply of bitcoins is capped at 21 million coins, thus creating scarcity for the asset and increasing its value. This technology has the potential to drive revenue even after the supply is exhausted and new coins won’t be mined.

Cons 

• The bitcoin market had majorly crashed in the past decade, specifically in 2013 and 2015, making it more unsustainable. Moreover, past trends clearly show that the high prices are for the long run while the price drops are temporary.
• Bitcoin technology came with technical barriers; however, the keys, digital wallets, apps, and bitcoin ATMs have improved usability with time.
• Since its inception, bitcoins have been supposed to take over traditional currency and be an alternative to cash or credit payments. But it’s not accepted as a recognized payment system to date, and it’s still not evident in the coming days.

How can you not consider investing in an ever-scarce asset with exponentially growing value and the most significant market capital – bitcoins? Though it has been through phases of massive price drops a couple of times, and that’s when investing is easier. The point is to have your share in the growing capital by participating in bitcoin investments, though small, but consistent.

How Can Bitcoins Make Me Wealthier?

Bitcoins can definitely make you wealthier by making a sound and consistent investment in the bitcoins market and trading it wisely. It is evident that bitcoin prices are rapidly increasing as they rose to 16,476.78 USD today from merely 8 cents in 2010. Imagine how much wealth it would add to your finances if you’d purchased and held a single bitcoin since then.

This in-demand technology with scarce supply has superseded all the other kinds of assets like stock, gold, silver, and others. Although the price of bitcoins tends to go upwards, they can precipitously drop; that’s why it’s called the speculative market. Being a new asset class, its performance cannot be determined precisely; therefore, its price curve is also unpredictable for analysts.

Bitcoin investments have more potential for making money compared to all the other asset investments available in the market. Hence, it is advised not to put both feet in the water, as risk factor comes side by side with investments. Ensure wise decisions regarding when to invest and how much, similarly, when to hold or sell out the coins.

How Much To Invest?

The recommended amount varies from investor to investor because it depends upon multiple factors, including the investor’s financial stability. The risk associated with any investment multiplies to a great extent when investing in bitcoins and must be considered before investing. You can get started with a small investment amount by purchasing just a fraction of bitcoin, like $10 or so. Your confidence level and trust in bitcoin investments will be enhanced as soon as your investment starts making money.

When To Invest?

The crypto market trends should be watchfully analyzed to thoroughly observe the right time for investing in the bitcoins market. This can easily evaluate the prices to help the investor make an informed and wise decision regarding when to invest. Buying when the prices are low and selling at a rise is the norm; the same goes for bitcoin investments.

The dollar cost average (DCA) strategy helps you allocate small amounts of money daily, weekly, or monthly for bitcoin investments. Therefore, price swings will not bother the investor as they already have saved up money for small investments. In this manner, the DCA strategy helps investors to collect numerous bitcoins in the long run without being burdened.

Can Bitcoin Be Convert Into Cash?

Indeed, bitcoins can be converted into cash, although the investors will experience tax payments every time they convert the coins. The several ways to convert bitcoins into cash are listed below:

• Cryptocurrency exchanges are most commonly used to move bitcoins out of your digital wallets and turn them into hard cash.
• Bitcoin Automated Teller Machines (ATMs), also known as Bitcoin Teller Machines (BTMs), are also there to turn bitcoins into cash. Read more: Bitcoin ATMs
• Financial institutions in the USA are also coming forward to offer their customers the buying, holding, and selling of bitcoins.

How To Keep Your Coins Safe?

Investors are persistently concerned about protecting their digital assets that are prone to online theft and hacks. Since it’s decentralized, the owner is solely responsible for securing it as there’s no helpline in case of any issues.

The fundamental rule asks you to store your bitcoins away from crypto exchanges because they are also vulnerable to hacks. Be your own bank to securely store your private keys as it is said; not your keys, not your bitcoins. A cold wallet is the best option to securely hold your bitcoin keys offline, away from any computer or cloud.

What Parameters Should Be Considered While Investing In Bitcoins?

An investor should consider these multiple factors before investing, as they govern the success or failure of a particular bitcoin investment.

1.    Risk Factor

The bitcoin market is famous for its volatility (i.e., price fluctuation), which poses a massive risk for potential investors. Numerous apps are available to help observe and analyze the current market trends to make a rational investment. Various investors have to bear losses who invest unseeingly and think of it as a means to get richer overnight.

2.    Acceptability Lackings

The decentralized cryptocurrency markets are still untapped in most countries and need to be regulated worldwide. Consequently, there is only a sprinkling of companies that dare to trust digital money and accept bitcoins transactions as payments. On the other hand, El-Salvador’s blind trust led them to legally tenderize the cryptocurrencies, and crypto-transactions are widely accepted there.

3.    Market Competitiveness

Bitcoins are not the only cryptocurrencies that exist on our planet; there are numerous other digital currencies collectively called altcoins. With bitcoins’ introduction in the market, the monopoly of bitcoins has ended, and they have to compete with their alternatives. Consequently, the market trend prediction for a single cryptocurrency has become a challenge for those who analyze the bitcoin market.

4.    The Source Of Purchase

It is vital to purchase bitcoins from a reliable and authentic source, whether a bitcoin dealer or any crypto-exchange. Make sure to read all the seller’s terms and conditions before buying any digital asset to have a safe purchase. PayPal won’t allow you to be in charge of your cryptocurrency and move or trade coins away from the platform.

Are You The Next Bitcoin Billionaire?

Bitcoins are scarce and highly demanded assets, implying that it is has a high potential for yielding returns on Investments. However, it is essential to do prior research to satisfy each and every query when making the actual bitcoin investment. Your demographics, financial stability, cognitive skills, ability to take risks, and market trend –all count when making a bitcoin investment.

However, the investor has the right to decide each detail regarding the bitcoin investments and how much to invest. Investors should calculate the involved jeopardies, make opportune investments, expand their portfolio, and sensibly trade the bitcoins. If you haven’t made any bitcoin investment, think about it because it’s never too late to upsurge your monetary well-being. If you want to know more regarding the purchase, storage, and security of bitcoins, read my blog on how to buy cryptocurrencies.