Feasible Ways to Make Money with Bitcoin in 2020 – TheNigerialawyer

By Atham Sunday

Bitcoin has become a major financial innovation since its launch
in 2008. The cryptocurrency is used as a financial currency and an
investment tool due to its ability to appreciate over time. The
Bitcoin boom in 2017 saw the coin rise to a record level of $20,000
for 1 BTC which increased the awareness of many towards the
potentials of Bitcoin. Several Nigerians have also begun to make
good money investing in the coin.

Making money with Bitcoin is not easy because of its high
volatility, but there are indeed ways you can avoid risks as much
as possible, and make money finally like the dollar-cost averaging
(DCA) investment.

Dollar-Cost Averaging

Dollar-cost averaging refers to the strategy of investing fixed
amounts of dollars at regular intervals, for example, investing
5000 Naira weekly. This is a means used by investors that want to
reduce the volatility on their investment and reduce risk of
losses. The advantage of dollar-cost averaging is that the investor
would be buying less of the asset when the price is high and more
units of the assets as the price goes lower. With this strategy,
the investor would gradually enter the market making profits in the
long run.

Index fund

Index funds are another viable method, which is excellent for
traders with less capital to gain access to markets with high
requirements of entry. This is an excellent way of making
investments in Bitcoin without having to face difficulties.
Crypto20 investment also allows mainstream traders to become
involved in crypto investment by removing the major obstacles of
broker fees and withdrawal fees. It also allows you to be able to
manage all your assets with a single token.

Bitcoin Trading

This is the most common way of making money from Bitcoin. You
can trade Bitcoins using different strategies to make good profits.
By speculating accurately, you can wait until the price drops to
accumulate more. When the price increases, you can sell it for fiat
currencies or hold it longer for extra gains. You can repeat this
process for more gains. There are many online resources which
traders use to predict the future through patterns on bitcoin price
charts. One of the major things about Bitcoin trading is that it is
a high-risk, high reward method of making money.

Holding Bitcoin

You can make money from Bitcoin by buying Bitcoin and holding
for a long period of time. This is one of the basic and easiest
ways due to the volatile nature of the cryptocurrency.
Investing in Bitcoin is something that should be done with long
term profits in mind. You can choose to go for three months, six
months, or longer depending on your strategy or how long you intend
to hold. For example, if you had purchased 1 bitcoin ($3500) in
February and hold for nine months the current value would be
($9000). This represents a 200% increase in the value of the coin
within that period.

It is to be noted that there are several factors to be
considered to note when it is a good time to buy or sell. You have
to know when to sell as there is no use holding a coin for long
periods of time if it shows no signs of appreciating.

Accepting Bitcoin as a Means of Payment

Bitcoin is a transactional currency, which means that you can
accept payment in BTC in exchange for goods or services. There are
several Nigerians that accept payments in bitcoin, and you can
accept it as a means of payment. This way, you can earn money with
bitcoin without going through traditional financial
institutions.

Where to Purchase Bitcoin for Investments In Nigeria
One of the difficult things that could hinder such investments is
finding the proper channels to purchase Bitcoins in Nigeria. There
are only a few platforms that allow traders from Nigeria to
purchase Bitcoin directly through vast majorities that don’t offer
reliable services. However, from our analysis, CoinCola stands out
for Nigerian traders. The “Buy Bitcoin in Nigeria” page on CoinCola
is an excellent trading platform that gives the security of
traders’ funds and data high priority. This means that funds kept
within the platform are safe from hacks or breaches.

In addition, CoinCola has some of the lowest fees on Bitcoin
Withdrawal and internal transfers for Nigerian users. You can buy
Bitcoin with Naira on its P2P crypto marketplace, with several
traders available to sell the digital currency. CoinCola also
offers an escrow system whereby funds are safe until transactions
are completed.

In conclusion, it is important to know that in your quest to
make money from
Bitcoin, you must be careful not to fall into scams. More so, keep
your bitcoin secure by using popular wallets that have a track
record of excellence. In addition, enabling 2FA verification makes
your bitcoin wallets safer.

*Atham Sunday writes from Lekki, Lagos.