“Jessica, how to make money with Bitcoin? Is it with trading? With holding? How do I do that?”
That’s a question I hear a lot! Therefore, I want to share with you my investment strategy for 2021. But I want you to carefully read the warning below: I am not yet authorized to recommend investments! I’m just going to share my investment-based strategy in the short and long term! 😉💰
This text is NOT an investment recommendation!
I, the author of this article, am not a financial market specialist, nor do I have certifications for this, yet. The cryptocurrency market is highly volatile and just as dangerous! You must study and do your own analysis before investing money!
How to make money with Bitcoin? In the short or long term?
The answer is: in both! The strategy for 2021 is basically to hold positions and another portion in cryptocurrency trading.
Bitcoin in the long run
In the long run, we know the levels that Bitcoin can reach. So I have a position in Bitcoin for holding and keeping cryptocurrencies in a wallet for years. The investment for hold is made in 2 parts: monthly contribution of my retirement and weekly investments.
Through the Stock to flow I explained in this text: “What is Stock-to-flow? Bitcoin goes to $ 1 million!“, We were able to estimate the price of a single Bitcoin currency in a few years. As I follow this chart model and strongly believe in our “Digital Gold” as a store of value, I have this position in hold.
1. My retirement
I am 26 years old and therefore, I know that I have many years of work ahead of me and consequently, it will take me a long time to retire. Therefore, 10% of my net salary I reserve for my retirement. Only then, when I receive my salary or pro-labore, I pretend that I get 10% less, that they go to Bitcoin.
So if my salary is $ 1000, 10% will be $ 100. This way, I pretend that my salary is $ 900! Every month, that 10% goes to the exchange, where I buy:
- 70% for Bitcoin (BTC) ;
- 30% for Ethereum (ETH).
After buying the coins, I transfer them to my Coinomi wallet and there I forget them until the day that I am very old and want to spend everything on cachaça 🍺, clothes for my 300 cats 😸😸 or take a skydiving course!
And yes, I know it goes against everything that financial analysts and educators tell us to do. But … that’s it, right people? I work to make my money. Consequently, I will choose how to use it! 🤷♀️
2. Make money with Weekly investments
Another thing I do is buy R $ 50.00 in Bitcoin every week! Every Thursday I transfer R $ 50.00 to my Binance account and buy it from Friday.
“But, Jessica, isn’t it easier to buy everything 1x a month instead of buying it every week?” Yes, It is easier, but then you don’t catch different price fluctuations that occur during the month!
I transfer Bitcoins from 1x weekly purchases per month to my Coinomi wallet. Preferably, on the same day that I transfer my retirement to my wallet. This weekly money will not be taken out of your wallet until January 2022.
I make the purchase for 6 people in my family (counting me), and that gives R $ 300 every Thursday. This way, I can buy the minimum on Friday and then separate it in the wallets. This weekly money I invest from my extra income, without compromising my bills to pay or at the risk of running out of money.
Make money with Bitcoin in the short term
The name of cryptocurrency investments in the short term is: trading. In addition to my positions in HODL, I work all month to make extra income and have money to play in trading (I do not compromise my salary, or money to live, pay bills, eat, etc.). I make extra income from:
- Easter eggs (see the profile @_quimicadochocolate on Instagram);
- I produce homemade brigadeiros at home to sell;
- I sell things that I don’t use at home;
- I sell my clothes in good condition at the thrift store;
- I look for extra income on the Internet as a copywriter, social media analyst, translations, etc.
So I do many things that nobody sees, so I can have my money to risk in trading. So for trading my money I analyze the market and study every day. Every day! EVERY DAY!
“So you do day trade?” Not! I study and see the charts every day! When the opportunity arises, then I buy low and sell high. So I maximize the gains with: BTC, ETH, LTC, XML and EOS. Ah! Now I’m watching DOT there too, huh?
What gives more money? The long or the short term?
It depends! If you lose in trading along the way, you may win less, or in the worst case, you run out of money! So it is always good to have a holding position.
Bitcoin hold is almost impossible to say it will go wrong. We know, through Stock-to-flow and all the fundamental analysis, that Bitcoin can reach 1 million dollars! So, in the long run, we know we’re going to win!
However, trading is taking advantage of all the opportunities that arise in price fluctuations in minutes, hours, days. Trading offers much more risk than hold, but it is a way to maximize gains during the bullish trend that Bitcoin will have up to USD 1 million!
Therefore, if you do not lose money in your trading, you will earn more than hodl, but with more work and more risk.
In hodl, you have a lot less work (just by and hold), but the gains come more slowly, but you are not as risky as in trading.
Ready to make money with Bitcoin this year?
What did you think of this strategy to make money with Bitcoin in 2021? Leave your opinion here in the comments for me to stay on top of how you are investing in crypto this year! I will leave here in the comments the purchases I make for Hodl, as well as my tradings throughout the year! 😉💰
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A super virtual kiss in each one of you who have read this far! ♥