If you’re unfamiliar, Bitcoin is a type of digital currency that is independent of any central banks or government regulation. This makes it appealing to international buyers as well as those who want to avoid inflation. Since its inception in 2009, Bitcoin has grown in popularity and value.
Now, thanks to the COVID-19 pandemic, a whole new sector has emerged: digital currencies that can be used to purchase virtual goods during the pandemic. While it’s not necessarily a bad idea to get in on the action, it’s certainly not easy. In this article, we’ll discuss how you can make money with Bitcoin during the pandemic, and what you should know.
The Bitcoin Revolution
The year 2009 was a banner year for Bitcoin. On one front, the decentralized currency made its debut on the financial stage, shattering the myth that all digital currencies are the same. On the other, the value of a single Bitcoin soared to $0.50, setting a precedent for the future. In fact, not long after Bitcoin’s digital wallet was launched, the cost of storing and transferring one Bitcoin was less than a cent per transaction. These days, Bitcoin’s price can vary anywhere from a few cents to nearly $9,000 per coin. It’s fluctuation makes it one of the more popular cryptocurrencies to trade.
The Emergence of the Crypto-Covid Market
With the world facing the worst pandemic in a generation, the demand for virtual goods exploded. Sales of gaming platforms, such as the Nintendo Switch, soared, as gamers turned to digital currencies to keep their wallets funded. Naturally, this opened the floodgates for a whole new market: cryptocurrencies designed for use during the pandemic. (We’ll discuss these currencies in more detail below.)
One such cryptocurrency is Covid-19 Cash, or CD20 for short. It was originally developed as a gift to commemorate the 20th anniversary of the SARS-CoV-2 virus that causes COVID-19. One percent of the coins are planned to be donated to the American Red Cross to help combat the pandemic. However, you don’t have to wait for the coins to be donated to receive them. You can simply choose to buy and hold them, seeing as the market demands for these types of cryptocurrencies are currently sky high. Just remember: this is a volatile market, and you should understand the risks before getting involved.
Where Can I Spend My Bitcoins?
Bitcoins can be spent anywhere digital currencies are accepted. Most places that accept credit cards and pay with cash also accept Bitcoin. So, if you have some coins sitting in your digital wallet, you can probably spend them. The most popular places that currently accept Bitcoin are:
- Square Cash
The Legal And Ethical Risks Of Getting Involved
There are many benefits to getting involved in the crypto-Covid market. Naturally, the most appealing aspect is the ability to make quick cash. However, beyond that, you should know that:
- There’s a lot of risk involved in trading cryptocurrencies Taxes may apply, depending on where you liveYou could lose money. Really, you could.
Bitcoin and other cryptocurrencies are still considered to be “high-risk” investments by most financial advisors and institutions. For that reason, some countries, like the United States, have outlawed their usage as some individuals have lost large sums of money trading cryptocurrencies. (Forbes has a list of the top 10 most popular cryptocurrencies along with their prices as of April 20, 2020.)
The Pros And Cons Of Buying And Holding Bitcoins
If you decide to simply buy and hold Bitcoins, you’ll be making a wise investment. Remember: the price of Bitcoin can vary significantly, so in the long run, you might make a profit. (Learn more about the risks involved in buying and holding Bitcoins in the above section.)
On the other hand, if you’re looking to enter the marketplace expecting huge profits, you’re in for a rude awakening. The short-term profits are there, but as we’ve seen from the market in 2020, the long-term prospects are grim. The value of a Bitcoin dropped from a peak of nearly $9,000 in January 2020 to a low of $3,200 in March of that year. Naturally, those who bought at the top were greatly affected. (Learn more about the long-term risks associated with Bitcoin investing in the above section.)
So, if you’re looking for a bargain or just want to diversify your investments, it’s probably a bad idea to get involved in the Bitcoin market. But if you’re looking for a long-term investment, there are few better places to be than the Bitcoin marketplace. Just remember: the risks are high and the rewards are low. But if you want to make a quick buck, the safest way to do so is by buying Bitcoin on the cheap and then selling it on the uptick – when its price goes up.
Which Virtual Currencies Are Worth Getting Involved With?
If you’re looking for an investment opportunity, you should know that not all cryptocurrencies are created equal. Some are simply engineered to fulfill a unique function. For instance, Nano (formerly known as Raibow) was designed to be a faster and more efficient form of payment than Bitcoin. So, while all cryptocurrencies are considered risky investments by most, not all are created equal. (Learn more about the unique properties of various cryptocurrencies in the above section.)
How Do I Get Started?
Whether you’re looking to buy Bitcoins outright or just want to short-sell them, you’ll need an account with a cryptocurrency exchange. Fortunately, many of the world’s largest exchanges make it easy for beginners to get started. Here’s a short list of the largest, most popular, and most beginner-friendly exchanges:
Simply sign up for a free account with one of these exchanges and make sure to verify your email. You’ll then be able to make your first purchase, or if you want to be able to short-sell, you’ll need to verify your phone number so the exchange can text you when there’s activity and so you can engage in real-time chat with customer support. This way you can be sure that everything is above board and that you’re not being scammed by anyone.
So, as you can see, this was a fairly detailed article on how to make money online with Bitcoin during the pandemic. Given the risks entailed in trading cryptocurrencies and the fact that we’re merely at the very beginning of this exciting new era, it’s a good idea to proceed with caution. Just remember: with the exception of buying and holding Bitcoin, there are almost no legal or ethical ways to make money online during the pandemic. It’s a very risky, and often fraudulent, market. But during this exciting time, anything is possible.