Have you ever thought about cryptocurrency? In recent times, cryptocurrency has been on the headlines throughout the world. There are more than 5000 cryptocurrencies in the world and new ones are being introduced every now and then. Among these numerous cryptocurrencies, there is one that has been a top since the very beginning. It is bitcoin, the number 1 cryptocurrency in the world.
Bitcoin: History and Origin.
On October 31, 2008, a person called Satoshi Nakamoto posted a message on the cryptocurrency mailing list. It was titled ‘ bitcoin: P2P eCash system’.
In this paper, he introduced the concept of bitcoin to the world. According to him, it was a decentralized currency with no administrator. It would have a public ledger that would be stored in the computers and will be available to anyone. It meant that the bitcoin will travel from person to person directly, with no middleman.
The next year, January 3, 2009, the first blockchain of pi was laid and people could start mining. Mining was done through computers, where users would solve complex math problems to uncover Bitcoins. It also made sure whether the past transactions were legit or accurate. People would transfer bitcoin for fun because during this phase it had no value.
It was after a year that the first economical transfer with bitcoin would take place. Some man would buy pizza worth $25 by exchanging 10,000 Bitcoins. During these times, people used bitcoin to gain services over the internet. It only started gaining momentum when certain businesses started using bitcoin alongside traditional money.
Bitcoin was available in exchanges during 2010. It was the beginning of bitcoin when its value was only a few cents. 7 years later, in 2017, it touched the peak, when a single bitcoin was worth $20,000.
From its beginning in 2009 to today, bitcoin has seen several highs and lows but still maintains the position of the number one cryptocurrency in the world.
Bitcoin price history
In the month of February 2011 bitcoins value was $1. During its early years, Bitcoin’s price remained well under $2.
June 2011 bitcoin saw an abrupt rise in its price, it cost $31, but also saw a dramatic fall soon, when it fell down to the single digits again.
Bitcoin’s rise was seen in the month of April 2013, when its price hiked up to $200. Later that year, the price went even higher up. This time it was $1000. Keeping its steady pace, it reached $10000 in 2017.
During the end of 2017, bitcoin reached its all-time high rate of $19,650. Although it didn’t last long. It lost 25% of the value in a day. Its value went so low that it was priced at $4000 at the end of 2018.
Bitcoin began the year 2020 with a value of $7100 and by the end of the year, its value went significantly high. It started in November at $14000. However, unlike last time when its value crashed, people are expecting it to remain steady.
So, many people keep thinking, how do you earn with bitcoin? It is quite a simple process and you need a good sum of money for it but many people are not aware of it.
In order to get profits from bitcoin firstly, you will need to register yourself in the Bitcoin exchange. For that, you need to open an account in bitstamp, eToro, or CEX.io. there you will need to verify yourself with documents and then you can deposit your money for starting the trade.
Depending on how you decide to trade you can either become a winner and earn a good profit or you can become a loser and lose money.
The Bitcoin market is open 24/7, which means you can buy and sell anytime you want. Trading means to buy Bitcoin and to sell it quickly when you see a price hike. Since, no one can predict if the price is going high or low, you can either make some good money or even lose some.
There is another thing called bitcoin investment, where you buy Bitcoins and keep them for a long time, waiting for the perfect time to sell them. There are many possibilities in this case. For example, there may be a sudden price hike like in 2017, when Bitcoins value skyrocketed. You can sell your Bitcoins at that time and earn a huge profit. The other possibility here is that bitcoin sees a significant drop in its market price and if you decide to sell then, you are bound to suffer losses.
No one can predict if Bitcoin’s price goes up or down but there are certain mistakes that you can avoid to prevent significant losses.
- Risking more than you can afford to lose.
Bitcoin is risky, you should never risk investing an amount that you can’t afford to lose. Consider the worst-case scenario. What if you invest a very high amount hoping you will make good fortunes and you end up suffering losses. You will have no way to cover your losses and you may face a financial burden and end up in a lot of trouble.
- Not having a plan.
Have a plan before you enter the trade. You must know when you have to enter and also know when you have to exit. For example, see a price point where you can buy some Bitcoin and plan on when you want to sell it, taking little profit into consideration. Don’t get carried overseeing price hikes because it may fall well below your buying price and may not rise. Focus on little profit and avoid losses. Make a proper plan and execute it accordingly.
- Leaving money on exchange.
You should never lose your money on an exchange if you are not going to trade with it. In case the exchange is hacked or goes offline with your money in it, you will lose all your money. This is one of the most common mistakes that a trader makes and you must avoid it.
Therefore, you must make sure to move that money that you are not going to use into your bank account.
- Giving in to fear and greed.
You may hear that the market is going to go down, or you read a certain article, and you are stuck with the fear of losing your money. This may lead you to sell your Bitcoins prematurely no matter whether you are making a profit or not.
You may also hear that the market is going to spike and you decide to trade with the greed of making more money. In this case, the market may never spike and may fall instead leaving you with losses.
Therefore, you need to let the fear and greed go before your trade and start trading smartly with a plan.
- Not learning the lesson.
Whether you make a profit or suffer a loss, there’s always something to learn. No one makes the only profit with bitcoin. You will lose some money before actually earning from it. You may earn some profit in your first trade and may lose some in your next or you may even lose some money in your first trade. At this point in time, you can stop trading or what you need can do here is analyze your trade and look for ways you can do better trades the next time.
Future of bitcoin
For people new to bitcoin trading, they are always thinking, is there any future in it? Why should they invest in it? These thoughts are justified, thinking about the recent controversies.
There are people who think cryptocurrencies will go down and there are people who think bitcoin will keep on rising. What is the truth in it?
The truth here is that bitcoin is continuing to trade in the world and will keep on being traded. Studies have shown that bitcoin can reach a value of $60,000 in the near future and it seems to be true because there is a constant rise in its value.
Even though there are fluctuations in its value from time to time, it eventually rises up.
One thing to keep in mind is the supply of bitcoin. The amount of bitcoin in the world is limited. The supply is limited while the demand seems to rise every day. This demand will lead to the rise of its price in the near future.
It is true, we are indeed entering an era of cryptocurrency, where bitcoin is the most dominant force. Although, there are other cryptocurrencies present but they are in no way valued high enough to compete with bitcoin.
In this article, we learned about what bitcoin is, its history and origin, how to enter bitcoin trading and how you can become either a winner or loser with it. Now, we know that bitcoin is the future and it is for you to decide whether you are willing to take the risk or not.
The secret to earning money through cryptocurrency
One thing to keep in mind when making money through cryptocurrency. When you buy crypto, if you see that the price is higher than the price you bought, then sell it. There are two things you need to control, one is to expect more profit and the other is to regret if the price goes up more after you sell. Then you can earn money through crypto.
Contact us if you want to start a cryptocurrency business and start with advice. I will help you with how to trade cryptocurrency without loss.