Is it possible to make money trading bitcoins?
BitCoin is a world of abundance, the ideas economy and compounding to £1m... (but you have to put yourself in a position to benefit!)
As you know I am a big fan of Gold and Silver right now (despite the recent falls) and the recent collapse in the £ has once again underlined how vulnerable we are in a world where chaos is becoming increasingly commonplace.
On top of that we appear to have a crumbling banking systems with banks paying out pathetically low interest rates and, sometimes, confiscating deposits to prop up their ailing balance sheets.
Odd to think we used to look to these people for advice!!
For this reason I decided to make a small investment in Bitcoin, or more precisely in Bitcoin mining shares. By small I mean between $500 and $3500, albeit you can always deal in multiples thereof and you can also buy partial shares so you can get in with less than $500.
NB: The investment is in $$$ so the price of bitcoin does not affect the costs of investment. Although it does affect the value of what you mine!
I wanted to get a foothold in this area as I believe it is going to be increasingly important as the older forms of money continue to be corrupted and bent out of shape by the various Governments and their wish to print ever more of the stuff... ie money!
Also it is still early days.
I don't know anyone who actually hold bitcoin themselves (other than GrahamL who I mention below). It seem to me that is a fairly good guide as to the potential here.
Here is how it works...
You can open an account with Bit Club Network for free but you then need to upgrade to buy mining shares - this costs $100
You then have the opportunity to buy "mining shares" - these create bitcoins and these are credited to your account on a daily basis, this starts 10 days after purchase. A proportion of the bitcoins created purchase new mining shares - you can set the proportion as you wish. These are shares in actually mining (ie computer hardware) - you can see pictures, and join (at zero cost)
The shares are valid for 1000 days (increased from 600 days) from inception, this includes the new shares credited daily.
Over the course of the first year you should earn at least as much as your initial investment (in terms of shares but the actual bitcoin price is variable) and after that you just keen earning.
Here is the experience of one investor who I work with personally...
"I've now been in BCN (Bit Club Network) for just over a year. In that time I've earned 5.87765 BTC (bitcoin) but I've also now got 1.5 shares in pool 1, 1.4 shares in 2, and 1.3 shares in pool 3. The compounding effect of that means that by the end of year 2 it should be more than double that." Graham L
Graham invested $3500 (plus $100 to open the account) - in fact I have started off with exactly the same sum. For $3500 you can buy 1 share in each of the 3 pools. After one year he has increased shares in each pool and 5.87765 bitcoin (BTC) - in November 2016 one bitcoin is priced around $700 each so his bitcoin alone is worth around $4000 and he also has more than he originally invested in mining shares.
So he is up significantly more than 100% in that first year!
Now this does not mean that I will benefit to the same degree, nor that you will, but the ingredients are in place for a decent return going forwards, and, of course, compounding!!!
This could work rather well. Graham L is up well in excess of 100%. Here is how that would work looking 10 years ahead and assuming 100% each year...
Inception - $3500
After 1 year - $7000
After 2 years - $14000
After 3 years - $28000
After 4 years - $56000
After 5 years - $112,000
After 6 years - $224,000
After 7 years - $448,000
After 8 years - $896,000
After 9 years - $1,792,000
After 10 years - $3,584,000
If you start with $1000 the same process would take you to $1,024.000.
Does that seem far fetched?
I don't think so. It has become increasingly clear to me over the years that we truly live in a world of abundance.
But you have to put yourself in a position where you can benefit from that.
In many cases, that means hard work but here is one example which could give you the abundance without the work!
I must stress that I am not saying you will double your money every year, but it has happened once and may well happen again. However all I can guarantee is that it will NOT happen as set out above.
It may be better, it may be worse, maybe a lot worse. As ever, getting involved with this is a personal decision.
Personally I plan to hold this as a passive investment going forwards and I will add to it from time to time and intend to gift shares to my family.
I have also created a web page on the pro's, cons and basics of Bitcoin:
Bitcoin was created by a somewhat mysterious person called Satoshi Nakamoto who has said...
"...The root problem with conventional currency is all the trust that is required to make it work. The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust. Banks must be trusted to hold our money and transfer it electronically, but they lend it out in waves of credit bubbles with barely a fraction in reserve. We have to trust them with our privacy, trust them not to let identity thieves drain our accounts. Their massive overhead costs make micropayments impossible."
Satoshi Nakamoto had a better idea, he designed Bitcoin to be a system of money based on "proof instead", not trust. (Cryptographic proof via the BLOCK CHAIN)
The science of encoding and decoding data to maintain privacy is the science of cryptography.
Go to http://bitclub.bz/tr4der8888 and sign up - this involves no cost.
I will shortly take you through the whole process but first a look at...
THE IDEAS ECONOMY
This is a concept put forward by James Altucher, author of "Choose Yourself" and a number of other excellent books and full of interesting ideas - his free blog is worth a try.
The concept is simple. In the investment world ideas are now key. Ideas like Uber, which is transforming the taxi business worldwide, ideas like Airbnb which is doing the same to hotels.
Get on board the right idea (and James has suggestions for doing this through the "back door" to make it possible and more profitable) and the profits can be huge.
James tells the story of how he was down to his last $2000 and he targeted one investment (I suspect linked to Uber or Airbnb). Some months later he was a multi millionaire!
That story underlines two of the points I am making, first that we live in a world of abundance and, secondly, that you have...
to put yourself in a position where you can benefit from that.
I will be returning to this concept in the future. But now back to...
SETTING UP YOUR BIT CLUB ACCOUNT
Here is the process to get this started...
Go to http://bitclub.bz/tr4der8888 and sign up.
Having set up your free account you now need to upgrade your Bit Club account which costs $100 but you need to pay in Bitcoin. If you have Bitcoin you will know how to do that and also how to invest in mining shares - if not see the QUICK GUIDE a little lower down in this email.
BUYING YOUR MINING SHARES
There are 4 choices as to how you want to invest in mining shares. You will find details in the BitClub Store (or shop) and this is the link on the top right of the welcome page.
"Best Value" is the $3500 deal which gives you 1 share in each of the pools and a bonus. But smaller (or bigger) investments are possible - you can multiply the size as you wish.
I cannot usefully add to the information on the BitClub web site but I will do my best to answer any questions you may have.
Don't forget that additional resource page (I mentioned before) where I explain basics , as well as the pro's and cons:
Here is a...
QUICK GUIDE TO THE PROCESS
If you have no Bitcoin then you need to buy some and here is a quick guide which I hope you find useful. If you do have any questions, or are still struggling, then just let me know and I'll try to help. (Thanks to Graham L for the following guide!)
The first thing you should do is open a free BlockChain Wallet:
This is basically your own personal, private wallet where you keep your bitcoin. It's like a bank account, but it isn't owned by a bank, it isn't owned by anyone except you. Nobody, not even BlockChain, can access this wallet so it's absolutely vital that you write down and store your password somewhere safe. If you lose it and can't get into your wallet there is literally nobody that can get into it.
You can send and receive bitcoin from your BlockChain wallet, so you use that to pay for stuff with bitcoin or to be paid in BitCoin. You can also get a BlockChain Wallet app for your Smartphone which allows you use your bitcoin on the move, plus you can download a copy of your wallet to your computer hard drive so that you can even use it if the BlockChain website goes down.
You cannot buy bitcoin from BlockChain, you have to buy bitcoin elsewhere and have it sent to your wallet.
So you've opened your BlockChain wallet for storing bitcoin. The next thing to do is to buy some BitCoin to put in your wallet and the easiest way to do that is to buy from a BitCoin broker.
A broker is very straightforward. You open an account at LocalBitCoins and then buy bitcoin through them, paying by bank transfer, and they transfer the bitcoin straight to your LocalBitCoins wallet. You may have to provide ID the first time you use it. Once it's in your LBC wallet you then send it over to your BlockChain private wallet. That way, it's in your own wallet rather than some broker's wallet, a bit like having cash in your wallet in your pocket rather than sitting in your bank account.
For UK and European bank transfers, this is the recommended broker:
For US accounts use this broker:
Upgrading your BitClub Network account
Ok, so you've got your BlockChain wallet, and you've bought some bitcoins which are sitting in your wallet. Now you can upgrade your BitClub Network account.
Log back into BitClub network by going here:
Where it says 'Leads/Free Members Enter Email for Access', enter the e-mail address you originally signed up with.
Click on the button to upgrade your account and it will generate a unique BitCoin Address that is linked to your account. You will have 10 minutes to pay this invoice before it expires.
To pay it, log into your BlockChain wallet and click on 'Send Money'.
Then copy the BitCoin Address from the BitClub Network Invoice and paste it into the address field in your BlockChain wallet.
Next, copy the EXACT amount of BitCoin from the BCN invoice and copy that into the Amount field in your BlockChain wallet. IMPORTANT: make sure it is the exact amount of BitCoin including any partial amounts otherwise it will cause errors.
Click on Send Payment and you should see the invoice in BCN marked as PAID almost immediately, at least within a few seconds.
Buying into a BitClub Network mining pool
Now you can choose which mining pool you would like to join. Log into your member account and on the Welcome page you will be given the option of choosing either Pools 1,2,3 or the Founder Pool, which is a share in all three. The Founder Pool has the most benefits but you can always choose a single pool and then buy into the others at a later stage.
So to do that, you click on Buy Now, select Pay with BitCoin and it will generate another invoice exactly the same as it did for the Upgrade fee. You pay that in exactly the same way and you're done.
Don't worry if you faff about and the 10 minute countdown timer starts to worry you. You can always just create another invoice by starting again. The timer is there because the value of BitCoin changes, so to make sure you are paying the correct amount you get 10 minutes to make the payment. It's advisable to open up another window with your BlockChain wallet open so you don't have to rush.
To start this process go to http://bitclub.bz/tr4der8888
PS. I think it is time to get on board this gravy train which is why I have signed up.
PPS. I developed a trading course, please follow the link below: