invest in bitcoin It’s not just a fad. This virtual currency, like many others to a lesser extent, has become an alternative to traditional currencies and has offered unprecedented economic returns to those who trusted it. But is it really possible to start a business with it to make a living? The answer is yes. Here we tell you how.
Aspects to consider when investing in Bitcoins
It has to be weighed up Different factors to invest successfully and safely in bitcoins or other cryptocurrencies. The first is how you intend to generate profitability through them:
- Mining. The original way of investing in bitcoins, but also the most risky and least profitable at the moment. In addition, it is quite a complex task, in which a small commission is received for each transaction made with this cryptocurrency.
- hodl. Probably never has a spelling mistake had such an impact. This term actually refers to the English word stop, which can be translated as “keep” or “keep on”. Cryptocurrencies refer to an investment system through which virtual currencies are stored wallet for a long time to avoid its volatility and with confidence to take full advantage of its uptrend. It can be taken as an antonym of trade. The best example are those users who bought a bitcoin for a few cents in 2010 and sold it again in early 2021 for more than 60,000 euros.
- trade. It is the most popular method today. Its aim is to take advantage of the volatility and fluctuations in value of this currency to generate profits through quick operations in the market.
Where to trade Bitcoins or other cryptocurrencies?
The next important point is choice of platform which can be used to work with bitcoins or other cryptocurrencies. With that in mind, we encourage you to keep a cool head. There are many scams on the internet about this.
So the best advice we can give you is trust Platforms with a large number of users that get excellent reviews from them and that offer you the best possible guarantees. For example, Coinbase and Binance currently have more than 10 million users, have secure payment gateways that allow credit card purchases and SEPA transfers, and use encryption protocols similar to those used in banking apps.
The initial investment
Now how much money do you need to invest in Bitcoin? It’s a difficult question to answer as you need to find the balance. On the one hand, It is not advisable for any investment to spend more than 30% of the total capital available. On the other hand, if you spend a very small amount to buy cryptocurrencies, the benefits of each successful operation will be very small and it will take a long time to start your business with all the law.
Is it necessary to register to invest in Bitcoins?
All it depends on how much money you make with this job. But we have already told you that if your income exceeds the equivalent of multiplying the SMI by 14, you are required to register with the IAE (heading 831.0, section 1) as a self-employed person. Of course, you might be more interested in the option set up a limited liability company, especially when meeting with other entrepreneurs interested in cryptocurrencies.
Is it Safe to Invest in Bitcoins?
Bitcoin is a virtual currency, independent and intangible. This means that, unlike traditional currencies such as the euro or dollar, they are not owned by any state, nor are they administered by a central bank. This decentralized nature makes many people wonder if it really is safe. We assure you yes.
It’s the users themselves that get through P2P exchange, Validate bitcoin exchange operations. The structure created around them makes impossible to manipulate its value since it says the community needs to approve your changes. There is also a fixed number in circulation: 21 million. In the future there will be none.
For your part, only you, through a private key, you can access your bitcoins. Usually this is provided by a Bitcoin wallet. These are perfectly encrypted applications that allow you to work with your cryptocurrencies in total security, wherever you are.
Definitive, invest in bitcoin Not only is it a safe option to earn a return on your savings, but one that can offer you higher profit margins. So if you’re interested, remember the advice we just gave you here and start your own business. Making a living trading cryptocurrencies is not as crazy as you might imagine, far from it.