You might be new to cryptocurrency and wondering what to do with all that money you earned, or you might have started in 2009 and been searching for new ways to improve your earnings. Virtual currency has been bringing great profits since its onset, and there are many ways you can spend your newly earned money. From spending Bitcoin in restaurants and online Ethereum slots to investing in newer coins, riskier but with higher rewards. This article is aiming to help you to find out: what to do with cryptocurrency profits.
In the crypto world, there are many ways to earn money. Buying a coin that you think will rise in value like Ethereum or Bitcoin is one way. If you’re lucky and your prediction was accurate then you’ve just made a good investment. You might also try to make money on the fluctuations that are natural to any market – I mean buying when the price is a bit lower, and selling when it’s high.
There is also the option of investing in more recent coins like Dogecoin, lisk and other altcoins that seem promising. Investing in these coins can bring great returns but they also come with great risks. You can compare it with the stock market – people make great profits but also lose money if they invest in bad stocks.
So if you are willing to risk your money on something new, then this is probably the way for you. Just like with the stock market there are safer options, like Bitcoin, and more dangerous ones, but with higher profit margins, like Dogecoin. Just remember, you are never 100% safe (but it is true even for the USD!).
Another way of earning is by the mining of coins, this process is time-consuming and requires a lot of power but if you are lucky you might make some decent cash.
Although some diminishment of returns can be noticed especially when compared to the old days there is still a lot of money to be earned this way. And when you are not mining, the gear might be used for other purposes, like gaming or graphic design.
But what happens when you have a few coins in your pocket and you want to spend them on something? Well, the first thing you should consider is paying your bills with your cryptocurrency.
Many companies accept Bitcoin, other cryptocurrencies and even PayPal as a way to pay your electrical utility bills, phone bills, credit card payments and much more.
The payers usually convert your coins into fiat currency, so you don’t have to worry about how to pay your bills with bitcoin. Trading crypto can even replace your 9-5 job, and I know a lot of people who would like to accomplish that
Then there is spending cryptocurrency on entertainment online as you can play online slots at casinos accepting Bitcoin or other virtual coins. If you know where to play, those places can be a lot of fun. But if you’re not a gambler then there are many other ways to spend your digital coins.
Some people buy things online through an exchange or use their coins to buy items in restaurants and stores. However, since Bitcoin value changes all the time and fluctuates very rapidly, it’s hard to know what the exact amount of Bitcoins is going to buy you.
The best way to spend your money if you don’t want to lose it all is to buy stuff that doesn’t go down in value.
You can also trade your cryptocurrency back into fiat currency through exchanges like Kraken or Poloniex. But keep in mind that some of these exchanges charge high transaction fees (up to 1%). So if you start making small trades you’ll get hit with high fees.
These exchanges also require that you provide them with personal information, and send money through them. Many other services allow you to trade over the counter but they are more geared towards big investors who make bigger trades than you will be able to make at the start of your bitcoin investment journey.
The main thing that separates cryptocurrencies from any other form of money is their decentralization, so why not use it to your advantage?
Be smart about how you spend your money and don’t try to be greedy. Especially more recent, unknown coins which are rising in value are not going to be growing forever and they might just as easily become worthless tomorrow. By investing wisely you can add a new stream of income which is never a bad thing, but remember: be patient.