Most of us use bitcoin for three main purposes – payments, investments and speculation. The first use case is rather self-explainable, people transfer bitcoins in order to pay for all types of stuff, website hosting, logo design, or even a cup of cappuccino. Today the bitcoin is so widely accepted that it is possible to pay for nearly anything, although not yet everywhere. In particular, bitcoin is quite a common payment method for many shady translations, gambling, purchase of illegal goods and services and so on.
When it comes to investments, it is not tricky too. People purchase bitcoin and they expect this crypto currency to appreciate in the future. Most probably these investors wait for the turning point when bitcoin mining will be completely over.
Speculators are people similar to investors, yet their vision is way more shorter. Instead of waiting for bitcoin price growth over the course of a few years, these group of people tries to make profits on the bitcoin’s ups and downs that happen nearly daily. Yet there is much more you can do with the bitcoin, and some of these activities do not even require you to have any bitcoins.
Most of the bitcoin speculators are filling their orders on a certain bitcoin exchange. This is quite risky as some exchanges got hacked, others went bankrupt. Also, bitcoin speculation could be even more profitable when done on margin, Unfortunately, it is quite hard to get any gearing with a local exchange, yet there are many currency brokers and even more binary options brokers available for BTC/any major currency trading. This means that you can deposit in Dollars, Euros or any other currency, and generate profits on either falling or raising BTC price.
If you enjoy some little thrill, you may find poker quite useful. However, until just a few years bitcoin poker rooms didn’t exist at all. Today you can deposit bitcoins into a certain poker room and use them as a buy in. Also, all of the gains are withdrawable in bitcoins too. This option is quite handy for those that keep some bitcoins for investment purposes, yet would rather spend bitcoins instead of their cash.
This one should be even more surprising and useful for those that hold bitcoins for investment purposes. While one can expect his bitcoins to grow in the price, it doesn’t mean that bitcoins cannot generate some passive income. A few years ago the first online bitcoin peer-to-peer lending company appeared. Today it is possible to lend funds to a large pool of people via these platforms, and this way it is possible to generate up to 20-25% of extra return on a monthly basis.
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