How to make money with Bitcoins

Day by day growing doubts about this digital currency, which may be as stable earnings?, Did all the losses you see?, Analyze points

Mexico - . Bitcoin price fell worldwide on December 5 , shortly after the People's Bank of China announced that domestic commercial banks in the country could no longer make digital currency transactions .
For a day and a half exchange rates plummeted, falling 50 percent from a record high of just under 600 in Mt.Gox , "
Bitcoin the largest stock in the world ." The price of bitcoin has increased again , which illustrates the degree of volatility criptomoneda .
The decision to end the financial institutions that are with Bitcoins transactions occurred after a period of high arbitration with Chinese Yuan ( CNY ), where opportunistic investors took advantage of the differences in value between BTC , USD and the Yuan . As there is greater regulation of domestic banks , some investors are questioning the future of the currency and its potential to make money.
business
As in other currencies , there are two main ways to make money with digital currency, the exchange , and savings. Bitcoins can be traded on the open market , taking advantage of the differences between the values ​​of the currency in different nations, also known as a "game of arbitration." Most referees are financial institutions such as banks or brokerage firms that have high amounts of funds available to move the market at the time that they can make profits without risk.
What makes the different Bitcoins is the high volatility have no other stable currencies . This is what led the People's Bank of China to avoid transactions with Bitcoins at the commercial level , people are still allowed to buy and sell BTC in China, provided they take responsibility for the risks.
The value of a stable currency goes up and down daily, but on a much smaller scale than what you can do with Bitcoins . Where the normal arbitration is small changes in value ( difference of less than a penny can still mean thousands of dollars of risk -free profits ) , Bitcoin referees deal of difference of total dollar amounts . As of this writing , the current price Mt.GoxUSD were closing on 875, the closing prices were 5415CNY Mt.GoxCNY , or just under 892.
For example , let's say Joe was an early investor , and has 5000 BTC sitting in a digital wallet . If I had to sell of Mt.Gox today, he would be richer 4.375 million . However, if I had to make use of arbitration between the values ​​of CNY and the USD TBTs could create more than $ 80,000 for himself , raising more than 4.45 million . Of course this is a simplistic exercise, there are costs associated with foreign exchange transactions and currency , but the point is the same. Just before the collapse of the December 5 , USD values ​​were around 200 dollars , and depending on the Bitcoin exchange , foreign prices were even higher .
Buy cheap face sale
The second way to make money with Bitcoins is an increased risk with higher reward situation . Bitcoins can be treated as a commodity to be invested in the purchase of a fixed amount, waiting for the value to rise and sell the same amount to get the benefit . A simple scheme inexpensive purchase and sale side . However, due to the nature of the market and the inherent volatility of the currency, this is not a long term solution .
buying luxuries
With all the discussion focused on how to make money with criptomonedas is easy to forget that Bitcoins are made to be worn. The TBTs can be used to buy things great and small , from martinis, cars and even space travel . With more retailers accepting the TBTs , currency gains validity for lasting power.
However, there are still problems to be overcome Bitcoins . Just a day before the Chinese last week "accident" , Lamborghini Newport Beach, a dealer in southern California, sold a Tesla Model S to a buyer using Bitcoins . 91.4BTC paid by the high-end all-electric car, which at the time was valued at $ 103,000 . But at this particular time, the same amount of TBTs has only 77 thousand worth $ 690 , or a net loss of more than $ 25,000 because of the fall in value.
Lamborghini Newport Beach BitPay used , a payment processor to immediately transfer funds back to dollars, thus reducing the risk of loss. However, not all retailers are using the service , some accept the currency directly , thus avoiding the fees and potentially increasing the value of their assets as the market rises . BitPay announced that more than 12 thousand companies and charitable organizations accept Bitcoins through their services.
Whether for personal or professional benefit , there is a lot of money to be made through criptomonedas Bitcoins and alternatives . How stable are these gains or large ? Will the losses everything you see ? Did you play in time? Only time will tell.
third Way
There is also a much less discussed method : trade within criptomonedas .
There are 45 digital currency values ​​listed on the site coinmarketcap.com some major and some minor .
With values ​​ranging from less than a penny to $ 31 , these "coins" are bought and sold very quickly as markets change , like the stock market .
Testimony : Modern Coins
"I think the market is totally tied to time, unless you are moving tons of cash ," said John Hammond , an operator who is living a great moment in the market for trade in Bitcoins .
Hammond would not be the first person they cataloged as a day trader . Businessman , half artist, Hammond is a DJ in the genre of psychedelic trance electronics , operating under the name Konvndrvm . He bought his first Bitcoin for a large sum for him at that time, $ 90 . That was in July this year . Now listed on the smaller coins, successes and losses that has learned the ins and outs of this new frontier .
"This is the wild west ," Hammond said, referring to the market volatility. "Even I was skeptical . I got after the first major collapse , but did not buy enough, " he said.
Six months later , Hammond now spends most of his free time centered in modern commerce , 12-14 hours a day buying and selling smaller digital currencies .
" I was very lucky with sexcoin ," Hammond said. "It is an alternative to be used in the adult entertainment industry currency." Sexcoin Bitcoin is a cover of one cent currently worth 8.8 cents per coin.
LTCs
The digital currency called Litecoin see boom , some call it the silver standard as gold Bitcoin .
"If I had purchased Litecoin ( in July) , so I could have made a lot of money . At that time it was only 2 to $ 4 , " Hammond recalled .
The LTCs are currently trading at 31dólares . While coins are attractive alternatives to the potentially large profits , as are the actions of a dime , they can also get to lose a good amount of money.