Advertising
Advertising

Three Ways You Can Invest in Bitcoin

Three Ways You Can Invest in Bitcoin

Bitcoin is gradually becoming a must-have currency today. As a digital currency, bitcoin serves three unique purposes for investors: Bitcoin doesn’t involve third parties. Secondly, bitcoin is a value-creating unit, where the number of units gained or lost is equivalent to a gain or deduction in a person’s net worth. Thirdly, bitcoin is a value unit that facilitates the exchange of goods and services for an agreed currency value.

That said, you can strategically invest in bitcoin. This article seeks to highlight 3 distinctive strategies that can help with your bitcoin investment. (Please know that your investment outcomes, however, will depend on many other factors than just the 3 strategies listed below.)

Here are 3 avenues that can help you with your bitcoin investment, possibly increasing your capital.

Advertising

Purpose-Driven Strategies For Bitcoin Investment

1. Predict the bitcoin value

It is possible to generate profit without exchanging any goods or services. To do this requires knowing the supply-demand trend in the market. By observing the market and correctly predicting the likely trend of the bitcoin, you can make an investment potentially influence the market and increase your profit. .

2. Bitcoin mining 

(While it may be a form of currency, it tends to be treated as assets.)

Nonetheless, bitcoin mining is another way to increase your bitcoin investment. Bitcoin mining is where you add new blocks (bitcoin transactions) to the public ledger (database of all bitcoin transactions). You solve algorithms from your computer (competing with others to be the first to crack it). When your hardware generates the first correct answer you create a block, getting block rewards (amount you can claim for creating that block).

Advertising

This stuff can get a little confusing so let’s look at it another way. Think of bitcoin mining as technological mining. Instead of using a pick axe or drill, you’re using your computer. You’re drilling through the algorithms possibilities, trying to crack the algorithm.

The thing with bitcoin miners is that every four years, the blocks will depreciate in half, meaning that if creating a block was worth 50 bitcoin, the block would then be worth 25. That way bitcoin increases value.

There are several things you should note about bitcoin mining in terms of an investment avenue:

Advertising

  • It is relatively expensive to set up the mining hardware and specialized software for bitcoin mining.
  • Do your research and choosing the right company for you to design, launch and maintain your hardware (which is a part of the investment costs).

    On the long term, the Bitcoin currency will reach 21 million Bitcoin, and then it will forever be terminated. This limit means it will increase in value and thus pose greater rewards for those who invest in mining now.

    3. Taxes and location

    There are two things you should know about bitcoin as unit of trade when exchanging it for goods and services. To understand this, imagine the meaning of responsible investment, where your strategy is what makes returns, and not fate. These are:

    Advertising

    (i) Keep record of your bitcoin transactions

    • Like with any investment you need to keep account of it for tax purposes. You will have to include bitcoin transactions in your tax records when filing your taxes. Bitcoin is usually regarded as an asset/assets.

    (ii) Do your research

    • Please note that some governments are anti-bitcoin (Russia happens to be very anti-bitcoin). This means that activities such as bitcoin mining is probably going to be illegal. Make sure you understand your government’s bitcoin policies when considering to invest in bitcoin. For the most part, North America and Western Europe consider bitcoin mining legal.

    Image Credits:

    Bitcoin coins gold money currency , bitcoin btc cryptography , bitcoin btc cryptocurrency Via Pixabay.com

    Featured photo credit: typographyimages via pixabay.com

    More by this author

    50% of Marriages Ends up in Divorce, Is It That Hard to Save a Marriage? Top 5 MP3 Music Downloader Apps 7 Effective and Readily-Available Herbal Remedies for Modern Ailments 6 Powerful Tips for Successful Contract Management How to Safely Browse the Deep Web

    Trending in Money

    1 10 Reasons Why Following Your Passion Is More Important Than Money 2 How to Pay off Debt Fast Using the Stack Method (A Step-By-Step Guide) 3 9 Millionaire Success Habits That Will Inspire Your Life 4 How to Set Financial Goals and Actually Meet Them 5 How to Develop a Millionaire Mindset in 6 Simple Steps

    Read Next

    Advertising
    Advertising
    Advertising

    Last Updated on June 1, 2020

    10 Reasons Why Following Your Passion Is More Important Than Money

    10 Reasons Why Following Your Passion Is More Important Than Money

    Elite Daily have got some great points as to why you should chase down your dream job, regardless of how much the wage is. If you’re feeling unfulfilled in your career, maybe it’s because you’re on a path that doesn’t connect with your passion? Maybe it’s time to steer right off that road and take a different route:

    Money is a very powerful thing, it builds empires and breaks down kingdoms, it allows for dreams to come true and it takes others away, it makes some people happy and others completely miserable. Today the pursuit of money is almost directly linked to the pursuit of happiness, many will argue that money = happiness.

    However, this is inherently problematic as this mindset leads many people to stray down a path that doesn’t best suit them. When people choose their careers, they are sometimes blinded by money and so choose to follow the paper trail. Although money is great and can buy us all the things that will temporarily make us happy, no amount of money can buy time. Time is our most valuable asset and it is something, that while on this earth, we should spend most wisely. You shouldn’t feel like you’re mindlessly wasting your life away

    This generation is particularly in trouble because jobs are scarce and many of us will be stuck doing jobs we hate just because we need money. Although this may be the right move for our careers now, this shouldn’t be something we do for the rest of our lives. it is best we search for something we are passionate about. Here are the 10 reasons why you should follow your passion and not the money.

    Advertising

    1. Working for money may seem like good enough motivation for one to keep at their career.

    Every morning Monday through Friday you go to work 9 to 5 sitting their punching away the hours stressing about the work at hand. This is not a way to enjoy your life. Working for 8 hours a day 5 times a week at something that makes you miserable is not the way you live life to the fullest.

    Many people who choose careers that don’t make them happy will tell you that they would all do it differently if they had the chance. You only have one life, so don’t waste it working somewhere you hate just because of the money.

    2. You’re more passionate about the work you are doing.

    There is nothing worse than having to wake up every morning during the week to mindlessly go do work you don’t even care about. However, this is never really an issue when you are passionate about the work you do. If you are not forced to work somewhere because of monetary constraint, you truly enjoy what you do and you never really work a day in your life.

    3. You can relate more to the work and come up with better ideas.

    Being forced to do work is one of the most draining experiences. While there are times at every job where you may feel the work may be draining and dull, you have to realize that not every day is going to be an enjoyable one. There are highs and lows, but when you are passionate about the work you you look past the dull days. Your creative process is also different. You are more inclined to come up with creative ideas when you like what you do.

    Advertising

    4. Work doesn’t feel like it’s forced upon you.

    When you value money over your overall health and your passion, you will find yourself in an endless cycle of misery. Work no longer becomes a career or a journey, but more of a  taxing nuisance on your mind and body that has to get done.

    Every day that you go to work with this mindset you begin to hate your job more and more. While many people feel that they must work hard to retire and have money to enjoy themselves, what’s the point of enjoying yourself in your later years when you spent your life being miserable?

    5. No matter how much money you make, nothing will help you overcome the feeling of doing something you hate.

    Many accountants come into corporate America, put in reckless hours during the week and make a great paycheck on pay day. Many of them have all this money piled up, but they never really get to enjoy the fruits of their labor because their labor takes up most of their lives.

    Many of them hate their jobs because they aren’t really passionate about what they do. Is there a worse feeling than doing something you hate? Eventually this hatred will cause stress and in the long run, it will have lasting effects on your health.

    Advertising

    6. You are more inclined to work later hours.

    When you work somewhere that you are passionate about, putting in later hours isn’t as much of a burden as it is when you don’t like what you are doing. To you, putting in the extra hours doesn’t hurt as much because you don’t feel like you are forced to do it, which makes the experience that much more enjoyable.

    Every industry has a busy season and without a doubt there will come a time when you will need to put in the extra hours. Will it be easier for you to work longer on something you can relate to or something you can’t stand doing?

    7.You are willing to go above and beyond the call of duty.

    Certain obligations at your work will require you to go above and beyond the call of duty. In certain times during the busy seasons, you may be asked to do certain tasks that are not part of your everyday schedule. It is much easier for you to put in the extra work if it’s something you actually care about. Because you are passionate about your job, you will be willing to put in the extra effort to go beyond what is required of you.

    8. No obstacle will stop you from achieving success.

    When you really enjoy what you do, nothing will stop you from getting your work done. Because you are passionate about what you do, you feel unstoppable and nothing can obstruct you from achieving greatness. Your passion ignites your work, and like a rocket, it accelerates you past road blocks that may come about. Any obstacle that comes your way is accepted and fought off with a creative solution.

    Advertising

    9. Our working careers will consume most of our lives, so we might as well do something we enjoy.

    You will spend a majority of your life working and there is no other way around this fact unless you are born into a wealthy family or marry rich. For the rest of us who weren’t fortunate enough, we will be spending a good portion of our lives working in order to make ends meet.

    There is no way around this, so we might as well accept the cards we are dealt. Many people go about this the wrong way because they feel like work is something they have to do rather then something they can enjoy. Once you realize that your career should be something you enjoy, then you will lead a more happy and fulfilling life.

    10. You will get more fulfillment when you finally make it.

    There are few feelings better than achieving a level of success you set out for yourself. Nothing like crossing off your bucket list of goals you set out for yourself to achieve. When you finally reach the pinnacle, it is that much more enjoyable knowing you got there doing something you love. Remember work doesn’t have to be something that you hate doing, stay true to yourself and always do what makes you happy.

    The 10 Reasons You Should Follow Your Passion And Not The Money | Elite Daily

    Featured photo credit: Randalyn Hill via unsplash.com

    Read Next