9 Ways to Make More Money With Bitcoin You Bought
So, you bought some bitcoin. And you’ve got no clue what to do with it.
Maybe you bought in during the media-induced bitcoin craze. Perhaps you bought Bitcoin later, thinking you were getting a good deal as the prices were falling. Or it could be that you only bought it recently.
Regardless of how it happened, first you asked should I buy bitcoin, then you asked where to buy bitcoin, and now you’re asking what can I do with bitcoin.
To help you out, we’ve compiled this handy list. It outlines nine of your choices, their pros and cons, and what type of person each choice fits best.
Option 1: Sell Bitcoin right now
If you’re having second thoughts about your purchase, you might elect to sell bitcoin right now. This is the fastest way to convert bitcoin to cash. If you act quickly, your losses will be minimal and will consist only of transaction costs.
A word of warning, though. While it can be tempting to use one of the no-name exchanges that advertise too-good-to-be-true transaction fees, this is often not a good idea. Best case scenario, you’ll be hit with a multitude of hidden fees you weren’t warned about. Worst case? You’ll get scammed.
This is why you should only sell bitcoin to an exchange you can trust. We’ve created Wunderbit to be exactly this type of exchange. It is a government-licensed, accredited EU financial institution that prides itself on transparency, security, and complete compliance with European regulations. Read our About us page and consult our FAQ for more reasons why the Wunderbit Exchange is the best place to sell bitcoin online.
Pros: Selling immediately is the fastest way to convert bitcoin into cash
Cons: If you bought bitcoin during the bubble, you’re likely to only get a fraction of your investment back.
Good option if you: Bought bitcoin recently and are now having second thoughts about it
Option 2: Sell Bitcoin when the price rises above a certain level
If the bitcoin price has lowered significantly since you bought in, it may be wise for you to wait for the prices to climb back up before selling. According to crypto experts, Bitcoin already reached its price bottom. So, at this point, it’s reasonable to expect some bitcoin price growth.
If you bought 1 BTC for $20,000 USD during the peak and you sell it now, you’ll receive $4,000. If you wait for the price to increase to $6,000 USD, your payout will increase by a whopping 50%. So, in this case, it really pays to be patient.
Pros: Ability to minimize your losses.
Cons: You’re still taking a loss.
Good option if you: Invested in bitcoin during the bubble and want to minimize your losses.
Option 3: Buy BTC to lower the average price, then wait and sell
If you’re an experienced trader, you probably looked at Option 2 and saw an easy way to further minimize your losses (or even make a profit).
So let’s look at the previous scenario again. Only this time we’ll look at it like a trader would, basing our decisions on math and logic, rather than emotion.
You bought at 20k, the current price is 4k, and you’re thinking of selling at 6k and taking a 14k loss. Sure, it’s better than selling immediately, but there’s a much better move on the board.
What if you were to buy bitcoin in this position? Let’s do the math. If you were to buy bitcoin now, it would cost you $4,000 USD. At this point, your portfolio would consist of 2 BTC, and the average cost of 1 bitcoin in your portfolio would be 12k. So when you sell it at 6k, you’ll receive 12k and take a 12k loss.
That's already better than before, but what would happen if you bought 9 BTC? You'd have 10 BTC. The average price of bitcoin in your portfolio would be $5,600 USD. So now, if you were to sell at $6,000 USD, you’d actually be able to earn a profit of $4,000 USD.
Once again, it’s important to stress that you should only buy bitcoin from trusted, licensed, and accredited financial institutions. Click here to buy bitcoin on the Wunderbit Exchange.
Pros: Effective way of minimizing losses and the potential for making a profit.
Cons: Requires an additional investment of fiat. Degree of risk.
Good option if you: Understand the basic concepts of trading and can afford a calculated risk.
Option 4: Hold Bitcoin until the price rises above what you bought it for
This is a good option if you’re a crypto optimist and believe that bitcoin will rise above $20,000 USD during the next price cycle. If this is your belief, just wait until the bitcoin price surpasses what you bought it for and then sell bitcoin.
Pros: A chance to profit from your original investment. No need to invest extra funds.
Cons: There’s a chance that the price of bitcoin might never surpass the previous peak.
Good option if you: Are a crypto optimist.
Option 5: HOLD Bitcoin forever
"HODL Bitcoin" forever is a popular choice among crypto maximalists. In their view, bitcoin is so valuable that its price will never stop rising. And because it’ll never stop rising, selling it at any point will mean losing out on its future appreciation. So holding bitcoin forever is the best choice you can possibly make.
Pros: The potential of owning an always-appreciating asset.
Cons: The idea of the price of any asset increasing infinitely is suspect at best.
Good option if you: Are a hardcore crypto maximalist.
Option 6: Actually use Bitcoin to buy stuff
We all know that bitcoin is a cryptocurrency. So why not just use it the way it’s meant to be used?
What kinds of things can you buy with bitcoin? Literally any kind. From coffee and pizza to sports cars and first-class airplane tickets. If you want a quick introduction into how to spend bitcoin online, read our article on 17 Amazing Places to Spend Your Bitcoin.
Pros: You’ll use bitcoin the way it was intended to be used.
Cons: While bitcoin is widely accepted by retailers, there are still some major holdouts (e.g. Amazon).
Good option if you: Bought bitcoin and want to use it as a currency.
Option 7: Trade Bitcoin in for an Altcoin (like Ethereum or Litecoin)
Perhaps you like the idea of crypto, but you’re just not feeling it with bitcoin. If this is the case, you may want to exchange bitcoin for another cryptocurrency. Popular choices include Ether, Monero, Bitcoin Cash, Dash, and EOS, but there are countless others on the market. And many new ones are being created every month.
When it comes to buying altcoins, Bitcoin is actually the best currency for the job. While many exchanges won’t allow you to buy altcoins with cash, nearly all of them will accept bitcoin. This is especially important if you’re interested in a lesser-known altcoin that’s not available on large exchanges.
Pros: The possibility of finding an altcoin that’s right for you.
Cons: The prices of altcoins are notoriously unstable.
Good option if you: Love the idea of crypto, but bitcoin isn’t your cup of tea.
Option 8: Get into crypto trading
If you’re interested in both altcoins and trading, bitcoin can introduce you to cryptocurrency trading.
Crypto trading is one of the most lucrative types of trading. Why? Because of high price volatility. While price volatility is usually seen as something negative by most people, it’s exactly what you want if you plan on earning money as a trader.
Pros: One of the most lucrative types of trading.
Cons: Volatility is a double-edged sword.
Good option if you: Are interested in both trading and in crypto.
Option 9: Join a social trading platform
Perhaps you want to make money trading crypto, but you don’t have the time required to keep up with the latest developments in altcoins. Does that mean you can’t earn money from crypto trading?
What if a skilled crypto trader would trade for you? And not in the regular sense, where they’d risk your assets in ways they’d never risk their own. And you wouldn’t have to worry about them having direct access to your funds. You’d simply digitally connect your portfolio to theirs and a piece of state-of-the-art software would intelligently mimic their trades. And if you didn’t like the returns the trader’s actions brought you, you’d be able to disconnect your funds at any time and choose another trader.
Sounds like a dream, doesn’t it? Well, at Wunderbit, we make crypto dreams come true.
Our new social trading service allows you to look through the profiles of top crypto traders and connect your assets to theirs in just one click. So every time they make a trade, our system will intelligently copy it.
And it’s a win-win arrangement. The trader will earn a small portion of the money they earn for you, so they’re always incentivized to be on top of their game.
Click here to sign up for Wunderbit’s social trading platform.
Pros: Easiest way to make money on crypto trading.
Cons: Your gains will only be as good as your trader, so you have to choose them wisely.
Good option if you: See the money-making potential of crypto trading, but would rather leave the actual trading to the experts.
So what should you do with Bitcoin
In summary, there are countless things you can do with bitcoin. No option is better than any other. Everything depends on you and the context in which you bought bitcoin.
If you purchased it by accident and want to get your cashback as soon as possible, selling it immediately is an obvious choice (click here to sell bitcoin now). If you’re more patient, you might want to wait until the price rises a little and sell bitcoin at that point. If you’re familiar with trading logic, you may elect to buy bitcoin at the current price to lower the average price of each bitcoin in your portfolio and then sell it when the price rises.
If you’re a crypto enthusiast, you might wait until the price of bitcoin surpasses the previous peak before you sell. And if you bought bitcoin as a currency, you’ll obviously use it to buy stuff (see our article on 17 Amazing Places to Spend Your Bitcoin).
Your bitcoin could get you into the lucrative field of crypto trading. You can try your hands at it yourself or let an expert trader do it for you via a social trading platform. If the second option interests you, sign up for Wunderbit’s social trading platform right now!