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Sierra Leone Bussiness: Startup- Business How To Invest In Bitcoin Business (Part 2)

4). Bitcoin Exchange:

Bitcoin exchanges are increasingly popular as they’re platforms that people signup on to buy and sell bitcoins to each other. The bitcoin exchange may collect a commission on every transaction that happens or may even charge a monthly subscription fee to use them without charging users on transactions they carry out on their platform. If you have the ability to pull a large traffic of bitcoin buyers and sellers, starting a bitcoin exchange platform may be a profitable move to make.

5). Bitcoin Mining:

There are approximately just 21 million bitcoins in the world, and just as gold, emerald, diamond, and more are mined, bitcoins are also mined, but digitally. To mine bitcoins, people purchase certain technical tools in the forms of hardware and software that are built for the task, and run the mining operations on many servers to increase the chances of successfully mining a bitcoin or several bitcoins. If you have the financial capacity to invest in bitcoin mining tools, you could start a bitcoin mine.

6). Blockchain ICO (Initial Coin Offering) – Token business model:

This is one of the latest and common ways to make money with bitcoin anywhere around the world. Here, just like an Initial Public Offer (IPO), an Initial Coin Offering (ICO) is the process of selling and releasing a brand new cryptocurrency into the network or industry. Essentially, it helps people launch their own cryptocurrency through the cryptocurrency network, thereby making the founder of the new cryptocurrency a part of the blockchain initial coin supply and owning a significant amount of the cryptocurrency whose value could either grow or dwindle.

Challenges Of The Bitcoin Business

1). Bitcoins can easily be used for money laundering since there’s no real way for governments and banks to monitor which transactions belong to whom.

2). The bitcoin market is extremely volatile and can either jump in value overnight or crash overnight.

3). It’s extremely easy to lose a bitcoin once you forget your blockchain login details as if you can’t remember it or the other recovery details you pre-set, your bitcoins are permanently gone.

4). Using bitcoins for any type of transaction is not as easy as using legal tender where you can easily just pay cash. You’d need to understand how bitcoins work and more to get used to using it for various purposes.

The bitcoin business is a highly volatile one as it has created millionaires & billionaires, while also crashing at the most unexpected times. While investing in bitcoins requires a complete understanding of how the various bitcoin business opportunities work, mastering the bitcoin business can grow your finances by leaps and bounds once understood right.

When is the right time to buy?

As with any market, nothing is for sure. Throughout its history, Bitcoin has generally increased in value at a very fast pace, followed by a slow, steady downfall until it stabilizes. Use tools like Bitcoin Wisdom or Cryptowatch to analyze charts and understand Bitcoin’s price history. Bitcoin is global and not affected by any single country’s financial situation or stability. For example, speculation about the Chinese Yuan devaluating has, in the past, caused more demand from China, which also pulled up the exchange rate on U.S. and Europe based exchanges. Global chaos is generally seen as beneficial to Bitcoin’s price since Bitcoin is apolitical and sits outside the control or influence of any particulate government. When thinking about how economics and politics will affect Bitcoin’s price, it’s important to think on a global scale and not just about what’s happening in a single country.

How to Invest in Bitcoins and Where to Buy

The difficulty of buying bitcoins depends on your country. Developed countries have more options and more liquidity. Coinbase is the world’s largest bitcoin broker and available in the United States, UK, Canada, Singapore, and most of Europe.

How to Secure Bitcoins

As with anything valuable, hackers, thieves, and scammers will all be after your bitcoins, so securing your bitcoins is necessary. If you’re serious about investing in bitcoin and see yourself buying a significant amount, we recommend using Bitcoin wallets that were built with security in mind.

  1. Ledger Nano S – Ledger is a Bitcoin security company that offers a wide range of secure Bitcoin storage devices. We currently see the Ledger Nano S as Ledger’s most secure wallet. Read more about the Ledger Nano or buy one.
  2. TREZOR – TREZOR is a hardware wallet that was built to secure bitcoins. It generates your Bitcoin private keys offline. Read more about TREZOR or buy one.

Bitcoins should only be kept in wallets that you control.

If you leave $5,000 worth of gold coins with a friend, your friend could easily run off with your coins and you might not see them again. Because Bitcoin is on the internet, they are even easier to steal and much harder to return and trace. Bitcoin itself is secure, but bitcoins are only as secure as the wallet storing them.Investing in bitcoin is no joke, and securing your investment should be your top priority.

It’s important to understand how Bitcoin works before investing any money. Bitcoin is still new and it can take months to understand the true impact Bitcoin can have on the world. Take some time to understand Bitcoin, how it works, how to secure bitcoins, and about how Bitcoin differs from fiat money. Bitcoin has come to stay.

John F Fowler is a business consultant, entrepreneur and youth entrepreneurship development trainer. He has produced books on various SME business start-ups . For business advice or speaking engagements contact him on info@startabusiness.com.ng , www.startabusiness.com.ng, whatsapp +234 802 325 4577.

Thursday December 03, 2018.

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