Is it profitable to buy Bitcoin?

Now that we are in 2023 and 14 years have passed since the invention of Bitcoin, there is still the question of whether buying Bitcoin is profitable or not. And still, as before, it can be said that the answer to this question is It is both yes and no. Whether buying Bitcoin is profitable or not depends on many factors and cannot be answered in one sentence. From the bullishness or bearishness of the market to the amount of capital you plan to allocate to the purchase and the loss limit you have set for yourself, everyone has a role in this issue.

While Bitcoin (BTC) and the first digital currencies were created with the goal of providing a decentralized currency and payment solution to increase users’ control over financial capital, the nature of their activity and extreme price fluctuations caused a lot of attention to the monetization opportunities of digital currencies. also attract

Cryptocurrencies have been around for over a decade and are quickly becoming a popular way to make money online. Today, with the existence of thousands of diverse digital currencies, every investor can have suitable investment options according to their conditions and interests.

In the meantime, Bitcoin transactions are still very popular as the first digital currency in the market, and most market investors have bought at least some of this digital currency in the hope of increasing its price and making a profit.

There are now various articles on the internet that explain different ways to buy bitcoins and earn profits; But is it really possible to make a profit with digital currencies, or is the main purpose of advertising around the purchase of Bitcoin, only to deceive and attract users’ capital?

In the rest of this article, we will examine the profitability of buying bitcoins as well as ways to invest with bitcoins.

The reality of buying bitcoins and earning profits

Over the years, it has become increasingly difficult to make money from buying Bitcoins. The activity of fraudsters and hackers has increased in this global financial market, and Bitcoin mining, which was once an accessible and profitable method for enthusiasts, has become more difficult, and many do not have the ability and devices required to mine this digital currency.

However, it is still possible to make money with Bitcoin. Now, Bitcoin buyers can trade, lend, hold, or earn profit from their Bitcoin capital in other ways.

Therefore, buying Bitcoin is profitable; However, the method of investment and activity in this market has an impact on profitability and the rate of return. As with other global financial markets, simply buying Bitcoin does not mean guaranteed profits, and investors may sometimes face significant losses for various reasons.

For this reason, in the rest of the article, we will examine some of the proven and popular methods of profiting from the purchase of Bitcoin. You can also choose one of these methods to earn money by buying bitcoins according to your conditions and capital.

Hold Bitcoin

Buying and holding Bitcoin as a long-term investment can be an easy way to make money from Bitcoin in the long run. This method of investing is also called HODL and is especially useful for newcomers to the digital currency market. In this method, the investor just needs to buy some bitcoins in a suitable price range and then wait for the price to increase.

The increase in the price of Bitcoin may last for a few weeks or even a few years; Therefore, Hodel investors should be ready to endure the ups and downs of Bitcoin price for a long period of time in order to finally get the best opportunity to sell and make a profit.

The return of this method depends on the size of the investment and changes in the price of Bitcoin. In the past, Bitcoin has managed to increase its price many times within a one to two year period, and therefore, if this trend is repeated in the future, Hodel investors can make a good profit from the new price peaks.

Bitcoin day trading

Bitcoin buyers can use the trade method if they intend to make a profit in a shorter period of time. Trading is a method of investing in the financial markets, and investors in this method try to buy Bitcoin at a low price and then sell it at a higher price. A process that is carried out continuously and in various amounts so that in the end significant profit will be given to the investor.

While the day trading method can bring you the profit of buying Bitcoin in a shorter period, it also has more risk. To trade successfully, Bitcoin buyers must identify the right times to buy and sell.

Reviewing price charts, analyzing recent trends, reviewing news, global economic conditions, and legislation are just some of the things that a successful market trader should pay attention to. Examining and drawing correct conclusions from the data requires training and experience, which not all investors have the time or interest for.

Therefore, if you want to make a profit from buying Bitcoin in the short term, we suggest that you enroll in digital currency trading training courses and start trading with the knowledge, knowledge and experience gained. Otherwise, the trade can have a lot of risks and cause a lot of losses to your capital.

Bitcoin day trading returns are highly variable and depend on investment size, number of trades and Bitcoin price changes.

Investing with Bitcoin

Earning profit from buying Bitcoin is not only limited to trading and volatility. Today, with the expansion of digital currency platforms and the decentralized finance (DeFi) market, there are various opportunities to invest and earn profits with Bitcoin. Some popular methods of operating in decentralized applications are lending.

To make a profit from Bitcoin in the lending process, it is enough to provide your assets to needy users with the help of decentralized platforms and in return, receive fees and interest from them.

Today, various lending platforms are available, each of which has its own unique conditions. Each platform gives a different profit to the loan providers and based on the loan repayment period, this profit can be more or less.

Loan services in the field of digital currencies is a relatively new category and has a high risk. As with staking, people who lend their bitcoins to others on lending platforms may end up facing a significant loss due to a sharp drop in the price of bitcoin, and due to the price fluctuation loss, all the profit obtained from lending and Liquidity supply will be lost.

The annual percentage return on lending with Bitcoin is typically 5% or less.

The important point of earning profit by buying Bitcoin

In all Bitcoin investment methods, the first step is for investors to purchase their own Bitcoins. Today, it is possible to buy and sell Bitcoin in various centralized and decentralized platforms and exchanges, and those interested have access to a wide range of exchanges.

Digital currency exchanges each have their own characteristics and offer different services. For this reason, it is important to determine your investment strategy first and then choose the best exchange for your transactions.

For example, if you want to profit from buying bitcoins in Hodel’s way, it is important that the exchange you choose has a safe and secure wallet so that you can safely store your bitcoins in the exchange’s safe wallet for a long time.

Or, if you are a day trader and constantly trade digital currencies, the exchange you choose should have low transaction fees so that you don’t spend a significant portion of your profits on exchange fees.

Despite the activity of dozens of diverse domestic exchanges, choosing the best option for buying and investing Bitcoin can be a difficult process. For this reason, a new section has been launched in ErzDigital, which allows users to check and compare the features and facilities of the country’s top exchanges in just a few seconds.

In the section of the list of Iranian digital currency exchanges, you can check important information such as the minimum and maximum transaction fees of the exchanges, and in addition, access other important information such as the volume of daily transactions, liquidity, monthly visits and descriptions of the exchanges.

Checking and studying these things is very important and will help you to choose the best exchange for your investment method. Viewing and using this section is completely free and all users can use its useful information.

Conclusion

In the end, whatever investment method you decide, it is important to be familiar with the risks of buying Bitcoin.

Bitcoin is a digital currency, and most digital currencies experience extreme price fluctuations, these price fluctuations affect all investment methods of users, and as the increase in the price of Bitcoin leads to a lot of profit for its holders, many times until today There have been sharp price crashes and many investors have lost their capital.

Buying Bitcoin can be profitable, but only when you consider the investment risks and have the necessary knowledge and skills to profit from the market.