How to Improve Your Digital Finances With Bitcoin

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As we all know the online world is changing at a rapid pace. As more and more people are going online on a daily bases, the pace of innovative developments are growing as well. Therefore, it's no surprise that a new online digital currency has appeared that is special compared with the existing traditional currencies. In fact this digital currency is unique, because it has no central owner and instead of a central authority a decentralized network of computers is able to make the right decisions.

A decentralized network of computers manages it all

As stated above, this digital currency has no central owner or organzition that offers it's network as a service to be able to do transactions like VISA for example. In fact, transactions being done on this global network are borderless and there is no limit on the size in both ways(small or large). Moreover, transactions on this network are cheap compared to the traditional ones, however, because of this young technology, the transactions are slower. Of course this will change in the near future. This being said, how can you as an individual profit from this new technology?

Invest in Bitcoin and Hold

Starting an investment in Bitcoin is the easeast one and many online investors have already tried this with mostly astonishing results. However, to be profitable is this highly volatile market you have to be able to hold this asset for years to come. Hodling, or holding Bitcoin, is a very successful investment strategy that has a proven track record when you consider holding Bitcoin for years to come. For example, at the end of 2013, the Bitcoin price was trading against $500. Additionally, if you had stuck to your holding strategy until today you would make a stunning 13800% on your initial Bitcoin investment!

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Trading Bitcoin with other Crypto

Another option would be to trade this volatile asset with other cryptos in the market. Especially, if you can't wait or don't have the patience to hold Bitcoin for years this is the most common option. However, as stated above Bitcoin is a very volatile asset( not to mention the other cryptos!) and you must have a strong stomach for this. For trading Bitcoin or any other cryptocurrency you have to sign up at a centralized cryptocurrency exchange that will automatically generate a wallet for you. Also, it is important to know that if you hold crypto at an exchange you are not really the owner, because the private key for the wallet is also being held at this exchange. Therefore, to avoid scams or other bad internet people, I would advice you to do this at CoinbaseBinance or Bitfinex which are the most reliable players at this moment.

Earn crypto while spending online/offline

The last option I want to give you is to earn crypto while you are spending fiat-currency like USD or EURO. How does this work? For example, if you are travelling or on holiday the common way to pay for daily expenses is with a VISA credit card. As a result, cryptocurrency entrepreneurs have launched Bitcoin debit cards. The idea is that you can fund these cards with cryptocurrencies(Bitcoin, Ethereum, Litecoin etc) and you can exchange these crypto's immediately for USD or EURO. The big benefit of this is that you can do this from anywhere in the world and at a very low exchange fee. Also, when you pay for the daily expenses in hotels or supermarkets you earn 3%(!) of the total transaction back in crypto. My favorite debit card comes from Wirex, but there are also other options.

Finally, I would say that the developments in this highly entrepreneurial atmosphere are growing fast and it's certainly not too late to start an investment in Bitcoin or any other cryptocurrency. Also, if you are interested but don't know where to start, I wrote an extensive guide in starting a Bitcoin investment.

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