Is it still possible to make money with Bitcoin or has this train already passed?
Bitcoin was the best investment of the past decade. In the world, no asset has appreciated more than it in 10 years. This price appreciation draws a lot of attention and attracts people willing to invest, with the aim of making money with Bitcoin.
Unfortunately, the appreciation caught the attention of scammers, who use Bitcoin as a decoy for the creation of ponzi schemes. So, if you invest in “Bitcoin companies” that promise yield, you better be careful, as the chance of being scammed is high.
The truth is that there is no easy way. It is very unlikely that you will get rich overnight with Bitcoin. Therefore, you must avoid crazy promises and understand how it is possible to take advantage of crypto.
Care when investing
If you think about mining Bitcoin with your computer, you better forget. Today, Bitcoin mining has become a high-cost, industrial activity. Therefore, it is not feasible to try to do this at home, especially in countries with expensive energy, such as Brazil. The best alternative is to buy Bitcoin directly instead of producing.
No website or mining program that promises to pay you Bitcoins will give you money. Programs like Cryptotab and cloud mining sites are mostly scams used to steal your data or your money. Be careful!
Another important fact: Bitcoin does not earn interest! Avoid any company that promises risk-free monthly earnings. Bitcoin is a variable income investment, making it impossible to guarantee any kind of profit or profitability every month.
If buying Bitcoin, invest an amount that makes you comfortable in case of loss. Do not invest money that you will need for the next month. Bitcoin can depreciate with the same speed it does and stay months low.
So it is important to be careful about the amount of money you are going to invest. The market is a tool to take money from the impatient and transfer it to the patients. Never buy high and sell low!
Buy and insure
The Buy and Hold strategy is one of the oldest for those who invest. It is used in the stock market and also with Bitcoin. So far, it is one of the most profitable and with less execution complexity.
Buy and Hold consists of using Bitcoin as a savings: buy a little bit every month regardless of price. With this, you practice the average price betting on the valuation of the asset in the long term.
Bitcoin's price has been on a strong upward trend in recent years. Buying a little every month, you can take advantage of the increase and gain in the asset appreciation. A simulation on the BitcoinHodler website shows that if you had started buying $ 20 every week, you would have made a 38% profit!
This strategy is excellent and the most recommended for beginners. Just buy some every week with a long-term view. For this strategy to work, patience and discipline are required. If you've never invested before, start with it!
Bitcoin's price fluctuates several times a day, as if it were a wave breaking in the sea. It is possible to take advantage of these oscillations to buy Bitcoin and sell it more expensive on the market, what is known as Trade.
Traders use various tools to make their trades, including: fundamental analysis indicators, technical analysis indicators and TradingView to follow the charts. Operations can be done several times a day (day-trade) or a few times a week (swing-trade).
Although it seems easy, this strategy requires a lot of study and a long period of tests. In addition, it is extremely difficult for investors. A survey by FGV showed that the day-trade brings losses to 94% of the people who adhere to it.
You can make occasional trades for a small part of your money. The best alternative is to opt for long trades, which can last for weeks or months. The Bitcoin market is becoming more professional and giving less and less space to traders who operate without the aid of robots.
Arbitrage operations consist of buying cheaper Bitcoin at one broker and quickly selling it more expensive at another, without taking the risk of market volatility. However, this strategy is extremely difficult to execute manually, so that only robots can do it.
Arbitrators are essential for the Bitcoin price to follow the market price on different buying and selling sites. When there is a very significant difference, they turn on their robots and start doing arbitrage operations with high frequency, reducing that difference very quickly.
Another more complex type of arbitrage is that of futures contracts. It is possible to sell 1 Bitcoin on the futures market and simultaneously buy 1 Bitcoin on the spot market. With that, you load the operation until the expiration of the future contract and pocket the difference between the contracts. Arbitration operations are not suitable for beginners.
Bitcoin with strategy
It is possible to prepare for different market scenarios with strategies based on managed options and portfolios. The main operations are: Protected Capital, Purchase of Volatility and Covered Launch.
Through Protected Capital it is possible to protect yourself from the devaluation of Bitcoin and still bet on the valuation of the asset. It is excellent for anyone looking to invest in Bitcoin without worrying about volatility.
The Volatility Purchase is indicated for those who are bold. It is possible to bet that Bitcoin will have a wide price variation (up or down). That is, you can bet in any direction.
It is also possible to remunerate your portfolio with Bitcoins through the covered Launch operation. A Bitcoin option is sold and the investor pockets the sale premium. It is excellent for times when the market is at a standstill.
Don't delay to start
The best time to buy Bitcoin is today, the second best time is tomorrow. So, start shopping a little bit every week or every month. In this way, you are prepared for big Bitcoin valuations and can still take advantage of bearish moments to accumulate even more.
Whoever left it for later, probably missed a great opportunity. But it is still possible to make good gains with Bitcoin, although it is unlikely to make money like who bought it in the beginning.
So invest with patience, without much greed. You probably won't get rich with Bitcoin, but it's still an excellent investment alternative to further enhance your equity. It is still possible to make money with Bitcoin, start as soon as possible.
* Text written by Lucas Bassotto and originally published by the Investificar website.