Everyone is now looking for a way to capitalize on bitcoin and other cryptocurrencies because of their volatile nature, as well as the seemingly endless opportunities that bitcoin brings to citizens of the world. People are naturally going to flock to something that is going to make them money and now that bitcoin has captivated the world there are countless bitcoin investment options linked with bitcoin and we will be discussing a few methods that you can use to invest in bitcoin. From what we know of bitcoin, it is merely a virtual currency that is used to pay for goods and services, and for some reason, these virtual coins have value even though we cannot physically touch them or see them and yet they continue to make people money. So how can you invest in bitcoin and make a return from it?
Cryptocurrency Exchange Platforms
These exchange platforms are like marketplaces for different cryptocurrencies where people are allowed to buy, sell and trade a varying number of the digital coins. This is one of the most common types of bitcoin investment options, as these platforms are operating 24 hours a day and are being updated every single day. In order to access one of these platforms you will first need to create an account, and to do this you need to provide a certain amount of information about yourself as this is the regulations that have been imposed. You will need to provide your full name, address and photographic evidence of an ID such as a driving license. With this information governments and organizations are able to trace your transactions, which goes against what cryptocurrencies stand for which is anonymous spending. That being said, there are other ways of obtaining bitcoins and there are plenty of privacy-based cryptocurrencies out there that offer full anonymity.
Cloud Mining Contracts
Cloud mining contracts are offered by companies to people who don’t necessarily have the technological prowess or the money to invest in expensive equipment. The user is basically utilizing the power of a remote data center with shared processing power, and this enables miners to mine bitcoins or different altcoins without having to physically set up a mining rig, or maintain one. Users can choose different contracts with different hash rates to help turnover more profit, but this, of course, will cost more but the more you invest the more you get out of it.
Manual Bitcoin Mining
This is the process of setting up your own mining rig with the intention of mining for bitcoins and storing them in your wallet. This is probably the most expensive option and the more outlandish one, as the competition for bitcoin mining is incredible with companies being established for the sole purpose of mining bitcoin and other cryptocurrencies, so the potential for manual mining as a viable bitcoin investment options is quite far out. However, that is not to say that it isn’t possible as it is very possible, as long as you have the money to invest in the hardware.