Disclaimer: I am not a financial expert. I am someone that has invested in Bitcoin and I am sharing my learnings and experiences. Please seek advice from a financial professional prior to investing in Bitcoin or any Cryptocurrency.
I invested in Bitcoin in 2018 just as the hype around Cryptocurrency started to take off. I had invested approximately $5000 and that had grown to a $10,000 value in 6 weeks.
The strategy that I used was a buy and hold.
The reason why I decided to invest in Bitcoin and cryptocurrency is because I could see the value in switching to another trade or bartering system that could be done quickly, with low fees, and maintain a global market value compared to the multiple currencies that the world currently uses; as well as having to go through banks and other financial institutions that charge high fees to transfer money.
My investment choice was based on the projected growth in the uptake of Bitcoin in trade.
If my projection was correct, there would be increased demand, which would increase the value of the price of Bitcoin.
How can you make money from Bitcoin?
You make money from Bitcoin once you sell it. When you buy it, Bitcoin won’t give you an income and there isn’t a way you can monetise Bitcoin until you sell it.
To make money from Bitcoin, you have to sell Bitcoin for a higher price to make a profit.
How can you guarantee that you will make money from investing in Bitcoin?
Unfortunately, I don’t have this answer. But you do want to take some measures that will minimise your exposure to risk.
Bitcoin prices are driven by the demand of people buying Bitcoin and driving up the bid price. Or by people selling their Bitcoin holding and creating an oversupply in the market.
You need to ride a rising tide of demand to somewhat guarantee the money that you can make.
The other thing is you need to minimize your exposure. You do this by minimizing your time in the market and holding the asset based on the predicted forecasts and demand trends that you can see.
What is my position at the moment?
I bought Bitcoin when the price was around $5000USD. I intend to sell once the price hits $11,000USD.
Should this happen, I would have doubled my original investment within a 2 year period. I also expect the price rise to continue. So I would aim to sell at a price where I know there is still more profit to be made.
What should you consider when investing in Bitcoin?
If you can do Bitcoin mining, you can actually earn alot more without putting in the financial risk. Should you be able to put together 1 Bitcoin, that can earn you $5000-10,000USD.
If you decide to put in your own money, try to put in an amount that will minimise the amount of time that you will need to spend during the trade. So instead of putting in $100 to test it out, purchase 1 or 2 whole coins and multiply your earnings, whilst having short exposure in the market.