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Make Money with Bitcoin - A Quick Tutorial to Get You Started
You may have read an article or somewhere online that Bitcoins exist but you need more information because it all seems so interesting and you are right. It`s all very interesting no matter which way you look at it and there are plenty of money to be made daily in this market. Of course there are also risks involved but there is nothing in this life that doesn`t involve some kind of risk.
The Basics - What is Bitcoin
Bitcoin is a digital currency. So what? Who needs it when there are real money to be spent?
That`s a good and also tricky question! Well for start it`s something new and exciting. You can trade it for goods just like buying in USD, EURO or any other currency. So the great thing is that it can be spent like real money but what are the advantages?
Advantages of Bitcoin over real life Money?
- There are no Banks in the middle, the money are sent fast betweed the buyer and the vendor.
- You can make money without doing anything besides leaving your computer crunch away numbers
- There are no charge-backs, everything is verified by other so called "miners" in the network
- Nobody know who you are, it`s like an anonymous bank account where nobody knows your name
How do I get Started Making Money with Bitcoins?
It`s easy to start making money mining for Bitcoins but there are two ways of doing it:
- You will need to setup your own mining rig - A dedicated computer or even better - multiple computers that will have the hashing power you need in order to make a lot of cash.
You may want to check out my other article about Mining for Bitcoins where you can find other useful information.
- You can buy Bitcoins through an exchange website like BTC-E.COM. The value of a Bitcoin fluctuates a lot, it can go down by $5 in 5 minutes or it can go up $10 in 5 minutes. You just need a little time (one hour daily is enough) to be there when it happens.
The method is simple: You buy the Bitcoin or Bitcoins when the value drops and you sell when the value goes up.
How much money can I make in one day?
The money you can make in a day depends only on the mining rigs you have or the money you invest.
The difference is that by mining Bitcoins with you own rigs you risk nothing. If something goes wrong you can always sell the hardware and cash out what you already made.
If you decide you want to invest some money in the exchange market the rewards can be bigger but there is always a risk. There is no market with zero risk and you should always remember: don`t invest more money than you can afford to lose.
If you`ve already seen my other article about getting started step by step, you can surely make up your mind about Bitcoins and you know all the steps on how to make your own wallet, download the drivers needed, signup on a mining pool etc. If not, make sure you read it carefully.
Is $2000 or $3000 per month a realistic figure?
All I can say is yes, for the moment it is possible and even much more but for how long I cannot say. There will always be people who win and people who lose and those who have missed the train.
By investing in ASIC miners you can earn much more than that but you won`t have the benefit of being able to sell your equipment if someday Bitcoin mining dies.
What are ASIC miners?
- ASIC miners are dedicated mining machines that make calculations at a very high speed, and use a lot less power than graphic cards.
- The downside is that the companies that produce these machines can`t keep up with the demand and it takes months to get your order which can be risky (mining Bitcoins could no longer be profitable by the time your order is shipped).
There are people that currently make a lot of money with these machines but they jumped on the train when the time was right.
Watch the video below to find out more about the benefits and dangers of Bitcoin
I have recently decided myself to start mining after a lot of thinking about the subject I finally decided it`s worth a shot a bought a few mining rigs. I make about $500 per month, I know It`s not much and I will never get rich this way but at least I`m making money without lifting a finger, I can go to work, go to sleep and the rigs keep on going and making money night and day.
In a future article I will write about the best mining rig configuration (power consumption vs hashing power and how to make the best hardware choice) so be sure to check out this article for updates in the next few days.
Please feel free to ask me any questions and I will gladly answer as soon as possible.