Can You Still Make Money With Bitcoin?

I am writing this mid-May 2019. If you’ve been following the crypto market, you may recall this day being when Bitcoin reached new highs for the year hovering around $8000.

Even though it’s a long way from its all-time-high price of around $20,000, it’s 167% up from its “bottom” just a few months ago.

can you still make money with bitcoin

As it seems, the 2018 bear market is over and we’re now at the beginning of what could be one of Bitcoin’s last parabolic bull runs (ala 2017).

So the question is;

Can you still make money with Bitcoin?

Now, before I get into this; just know that I am not a financial advisor. As it stands now; my portfolio is down double digits so that should tell you about my “investment prowess”.

However; I do believe think Bitcoin (and other cryptocurrencies) still have the potential to make huge gains in the coming years and yes; can even change your life.

If it makes any difference knowing; my crypto portfolio is mostly made up of; Bitcoin, XRP, IOTA & Ethereum.

Can you still make crazy gains with Bitcoin?

I sure think so. Here are some ways you can make sure you are well-prepared for what could be an even bigger run in this upcoming bull market of 2019 and beyond.

Where Is Bitcoin Going?

is it still a good time to buy bitcoin

Spending just a few minutes reading online trying to understand where Bitcoin is going is not helpful.

Mr. Roubini & Kevin Leary (aka Mr. Wonderful from Shark Tank) think it’s going to zero.

Others – such as John McAfee – think it’s going to $1,000,000 by the end of 2020 – which is crazy, but ok.

The people I follow – which seem to be more reasonable level-headed folks you can trust – think Bitcoin’s next all-time high price (before it goes into another bear market sometime in 2024-ish) would be around $300,000 to $400,000.

& I agree.

I think the next bull run could see Bitcoin reaching the $300,000 level mark.

Of course; this figure wasn’t pulled out of thin air either, but rather from technical analysis which of course, could be wrong (technical analysis in the crypto market are hard to gauge).

Here’s a great video which explains how Bitcoin can go to $300,000 in the next 3-4 years, I highly suggest you watch it (along with other videos from this YouTuber).

For the remainder of this article, I will go with this $300,000 prediction; so yeah;

I’m bullish on Bitcoin.

How To Make Money With Bitcoin

There are two ways which you can make money with Bitcoin.

These are:

  • Buying and holding
  • (Margin) Trading.

Let me explain what these two “methods” are:

Buying & Holding Bitcoin For The Future

Basically; all you need to do here – if you genuinely believe Bitcoin is here to stay – is buy now (whatever the price maybe) and hold for at least 2-4 years.

This means you buy today, and never touch it or sell it again until it reaches a price you are happy with, let’s say $300,000.

So, if you invest $1000 today at the current price, which is around $8000, you can get 0.12BTC, which if it does reach $300,000 mark, your $1000 investment turns into $36,000.

Again; I am not a financial advisor so don’t just go out and do as I say: continue researching the topic and make the decision yourself.

How To Protect Your Bitcoin Investment (For The Long Term)

how to make money with bitcoin and other cryptocurrencies

If you are going to go this route, you need to have two things to make sure your investment is safe:

Get a Ledger Nano S:

The Ledger Nano S is a hardware wallet that will allow you to store your Bitcoins “offline”, meaning it’s safe from scammers and as long as you keep a record of your private keys; your BTC will stay in the blockchain indefinitely and safe from hackers.

Ledger Nano S - The secure hardware wallet

This is just a short explanation, you can see how to store crypto with a hardware wallet here.

Next;

Don’t Worry About The Price (Too Much):

If you plan on holding it for many years, just know that BTC can vary wildly in price.

Your $1000 investment can go to $700 tomorrow and $2000 next week.

Don’t worry about this; hold for the longer term (which is the best way to make money with Bitcoin IMO) and let the price do as it pleases.

Just have a price target in mind and before it hits that, don’t even bother touching your BTC.

(Margin) Trading Bitcoin

Next up is (margin) trading.

The reason I am putting margin “in brackets” is because you can margin trade or you can simply trade.

What is margin trading?

Margin trading allows you to trade with more capital then you have available; if it sounds dangerous, it’s because it is.

If you have $1000 and you want to margin trade it with 10X leverage, you have the “purchasing power” of $10,000.

With that formula, you can 10X your profit – even though you only invest $1000 but of course; you can also 10X your losses as well.

This means that if Bitcoin goes down $100, you actually experience the loss of $1000.

Yeah; it’s super complicated and if you are beginner, it’s best not to trade with a margin for now.

The other option is to trade your holdings without margin, for example:

Let’s say you buy one Bitcoin for $10,000 (just to keep the math simple here).

When it goes to $15,000, you can sell it – make $5,000 in profit – and then wait till it goes down to $12,000 (for example) and buy again.

You now have your original 1 Bitcoin + $3,000 in profit.

Of course, the catch here is that if you sell at $15,000 and it never goes back to $12,000 but goes to $20,000 well; you got out too soon and lost a potential $5,000 in profit if you had just waited and did nothing.

As you can see; both trading and margin trading does involve risk – although it has the potential for great profits – but it comes with a lot of stress so.

If you’re a beginner, it’s best to stick with the “buy and hold” method mentioned above.

How Long Do You Have To Wait To Make Money With Bitcoin?

Even though it seems like Bitcoin goes parabolic overnight, what you are seeing (just like what happened in 2017) is the final push of a four-year cycle.

As it is cleverly shown in the video above; Bitcoin moves in 4-year cycles with a heavy bear market and a tremendous bull market happening in this 4 year period.

At the time of writing, May 15th, 2019 – it seems like Bitcoin is about to kick start its bull market for this 4-year cycle.

We had 2 years-ish of a bear market, now it’s time for 2 years of a bull market.

So yeah; if you want to go with the “buy and hold” method, it’s best to hold for 2-4 years – in other words; that is how long you have to wait if you really want to squeeze the most money out of your Bitcoin.

Can You Still Get Rich With Bitcoin?

Even though I personally think there are other (better) options to multiply your money, I still think Bitcoin can make you rich if you are willing to wait for it long enough.

So yeah;

Bitcoin can make you rich, but don’t think it’s going to happen overnight.

I’m still not sure if Bitcoin will still be here 20 years down the line, but before that happens; I do believe Bitcoin can make a lot of people rich.

Just my 2c.

What Other Crypto Currencies Should You Invest In?

As stated above, my personal crypto portfolio is mostly XRP, Bitcoin, IOTA & Ethereum.

I do have others but combined they make up around ~5% of my entire portfolio, so it’s pretty much non-existent.

I honestly do believe – and I may be wrong here – that with coins and tokens such as IOTA & XRP, you can multiply your money quicker; but that’s just the risk I am taking, you don’t have to follow my advice (& you shouldn’t).

Before I let you go, I also want to share with you how I got started with investing in the crypto market and how I am investing now – this might give you an idea of how you should invest your earnings.

How I Started Investing (& How I Invest Today)

how long should you hold bitcoin

I started buying crypto around August of 2017

I started buying a little bit here and there and in the run-up, if 2017, I continued putting in more and more money as time went on (admittedly more than I could afford to lose, but anyway).

Of course; soon after, the crypto market crashed and just now we’re seeing it come back to life.

A major lesson I learned here is that you should take profits when you see the price goes unbelievably up.

If I was wise enough to sell at the top, and buy back at the bottom; well I’d already be sick and tired of my Lambo right now.

Today, I have a different strategy & it’s called dollar cost averaging.

This means simply buying a fixed amount each and every day/week/month – no matter what the price may be – and holding it long term, which is the safest, most stress-free way I have found to invest in crypto.

I fund my investment with the money I make from my online businesses so if you don’t have any extra cash to put in;

You may want to learn about how to start a small side hustle which you can then invest your profits into crypto and other digital assets.

Final Thoughts on Bitcoin (& Cryptocurrencies)

So, can you still make money with Bitcoin?

I sure believe so yes!

I look forward to coming back and reading this post 3/5/10 years from now and see where this crazy market ended up.

Till then; be sure to invest something – no matter how small it is – and wait it out;

I am almost sure you will be thankful you read this post and started buying up Bitcoin from today.

I’ll leave you to it. 

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