If you’re looking forward to the next crypto bull run, you’re a step closer to profiting from it than those who don’t even know it could be around the corner.
However, you need to have a strategy for investing to profit from the market. One of the best assets you can invest in is Bitcoin. First it is the largest crypto asset currently, and also the most attractive to investors.
Bitcoin has also done extremely well as a long-term investment asset over the last decade, and there’s reason to believe more of that is still coming.
For many, the probable Bitcoin ETF approval is a green light that the price of Bitcoin may skyrocket following the approval.
There’s also the upcoming halving in 2024, following which the price of Bitcoin usually skyrockets as well. Therefore if you wish to have a part in the price rally that will eventually come, here are five ways to get in while you wait.
Bitcoin Mining
Bitcoin mining is the process through which transactions are validated on the Bitcoin network and new Bitcoins are minted and brought into circulation. Miners get rewarded with these new Bitcoins for helping to secure the network.
Fortunately, mining Bitcoin isn’t the exclusive preserve of a select few, it is something anyone can do, even you.
It is also a method of getting into Bitcoin without any high investment knowledge. All you need is your mining equipment and a source of electricity.
Mining however has become more difficult and you’ll need special computers known as ASIC miners to do it profitably.
You can also mine Bitcoin through a mining pool. This will allow you to invest a little amount that would otherwise not be enough to mine Bitcoin on your own.
In a pool, you get to contribute mining power from different participants and the revenue is shared among them when they succeed in mining.
Trading
Another way to invest in Bitcoin is to trade it. Trading is one of the top ways that people have benefitted from Bitcoin’s rallies in the past.
The volatile nature of the asset makes it particularly suitable for swing traders and you can easily profit from trading it even though losing is equally fast.
You should know though, that trading requires a lot of experience to do profitably. However, you can start by practicing with paper trading or copy trading which gives you the opportunity to copy the trades of pros.
You can also make profit in the process and then learn how to trade better, all at once. You can then go on and apply your perfected strategies for your own trading.
Buy and Hodl
You saw that right, HODL. This is an ancient Bitcoin investing strategy that has worked for many years. It involves just buying and holding Bitcoin in your wallet and that’s it. This is ideal for those who don’t want to get involved with Bitcoin mining or trading.
This method requires some patience and courage when the market is at its lows. You can also adopt strategies such as dollar cost averaging to further improve your investing in order to make the best out of the process.
It is also advisable to get a good wallet, preferably a cold wallet that you can use to safely hold your Bitcoins. When it’s time to sell, you simply move the Bitcoin to an exchange and sell for fiat money.
Final Thoughts
Investing in Bitcoin is a great idea, but only if you do it at the right time. Most investors wait until when the bull run starts to start rushing to buy, but this isn’t the best approach, especially if you wish to just buy and hold.
You can however use any of these strategies to get into Bitcoin and profit from the next bull cycle which is expected to be on the horizon soon.
