How to Make Up to 20% Profit from Your Bitcoins Through Investing

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One of the most common questions I get asked by our users is how can I invest my Bitcoins. I’ll start out by saying that I’m no investment expert but throughout the year and half I’ve been dealing with Bitcoins I’ve gained some insight about the different options for investing. This post lists my own personal and uneducated opinion about Bitcoin investments – use it at your own risk.

Option #1 – Keep your Bitcoin for the long term

This option is as simple as it sounds. Buy as much Bitcoins as you can afford losing (don’t ever invest an amount you can’t afford to lose) and hold on to them until they reach a profitable target goal. For example, I bought my first Bitcoins when they were $120. Even if I sell them now I’d still be at a 350% profit. My personal opinion is that the price of Bitcoin will rise as it gets more and more mainstream so I prefer to use times like these when the price is low to buy and wait for at least a 20% profit before selling. You won’t find a better ROI (Return On Investment) anywhere else.

Option #2 – Loan Bitcoins to “strangers” for a steady monthly yield

One of the more promising startups I’ve encountered lately is BTCJam. The site acts as a peer to peer lending network were you can lend your Bitcoins to strangers that are in need of a loan and they are committed to paying you back under certain terms. The annual percentage rate (APR) for these types of loan can reach almost %20 which is huge.

btcjam

This investment method is a bit risker since you are trusting someone you do not know to pay you back. Having said that, keep in mind that all transactions are done through BTCJam and that loaners have specific credit scores according to the amount of credibility they have (verification of identity, paid out previous loans etc.).

I loaned my first Bitcoins this month and am currently waiting for my first payment to come in, once I have it I will update how much profit I made from this transaction. The advantage of using this method is that if all goes well you are actively increasing your number of Bitcoins month by month. For the record – I’m not affiliated in any way with BTCJam.

Option #3 – HYIP (High Yield Investment Programs)

About 2 months ago I was introduced the the concept of HYIP. The basic idea is that you invest some money and get a high yield on that money pretty quickly. Almost all of these programs are complete scam. At the time I wasn’t aware of this and decide to take my chances on a website called MyDailyBitcoin (the site is no longer active). The site promised to give you a 10% return daily for the amount you invested.

MyDailyCoin

Since I was pretty skeptical I initially invested a small amount of 0.1 Bitcoins. I waited for 2 weeks and saw that I actually got paid what I was promised. I then invested a larger amount of 1 Bitcoin. About a week or so after the site became inaccessible. I’ve searched the Bitcointalk forum and found a post debating the legitimacy of MyDailyBitcoin. Reading through the threads it seemed that MyDailyCoin was closing shop and several people stated that if you send your public address to a woman name Alana Tor you will supposedly get a refund.

I was hesitant about this since the email was just a general email address ([email protected]) not even related to the domain MyDailyBitcoin.com – this is typical of Bitcoin scams. Also, no actual verification was required other than sending your public address and your email address. After debating this for a while I decided to actually give it shot. Amazingly enough I got my refund, but as I continued to read through the post on BitcoinTalk I saw that I was lucky – many people didn’t get any response or refunds from MyDailyCoin.

To sum it up I would advise you to avoid any HYIP investments you find. If you’re still considering such an option I’d look for an informative “about” page of the company which includes actual people and their personal profiles on LinkedIn or Facebook. I’d also inquire a bit about the investment process and of course not spend more than I can afford to lose.

If you have any other forms of investments you use to profit from your Bitcoins I’d love for you to share your thoughts about them in the comment section below.

Update: Following this post I got a lot of emails with other various investment opportunities which I will list here. I am not affiliated in any way with these site nor do I recommend them since I haven’t had any experience with them. Use these sites at your own risk.

Bitcoin Trader – Another HYIP that so far seems to be paying out for most people that contacted me and also has some testimonials on Google + which seem to be legit.

BTC Lending Club – Seems to be some sort of a HYIP (400%+ APR) although they claim to make their money through lending and borrowing just like BTCJam.

 

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Ofir Beigel

Owner at 99 Coins ltd.
Blogger and owner of 99Bitcoins. I've been dealing with Bitcoin since the beginning of 2013 and it taught me a lesson in finance that I couldn't get anywhere else on the planet. I'm not a techie, I don't understand "Hashes" and "Protocols", I designed this website with people like myself in mind. My expertise is online marketing and I've dedicated a large portion of 99Bitcoins to Bitcoin marketing.

17 Comments

  1. Thanks for the mail link Ofir, after reading, I will take some of your advice onboard.
    Although not BTC rich I shall be keeping hold of my coins, till the market hits a big high again.

  2. thanks for sharing, well to be i have tried BTCjam and it worked for me.
    i have got paid severally but i don’t know how much that will last not saying its a guaranteed site but just give it a try with low amount first and see how far you can go.

  3. Boryana Kulinska on

    About the second Option – Loan Bitcoins to “strangers” for a steady monthly yield, at BitLendingClub you are able to see the social and trusted connection of the user. So you are not investing in a stranger. The main difference between BTCjam and BitLendingClub
    is that BitLendingClub can be described as a dutch-auction style lending. The borrowers submit loan requests and the lenders make loan offers. Furthermore, BitLendingClub offers secure loans: Merchant Integrated Loans! (“Hosted mining” loan type and “ATM
    Purchase” loan type). These loan types nearly eliminate the risk of default due to
    borrower malfeasance. Here you can find more about the merchant integrated loans and our partners: https://bitlendingclub.com/content/history

  4. Nice article Ofir. I too am against HYIP but yet as I say this, I’m invested in two of them. One since February (though they claim not to be a HYIP, they operate as one and use the usual scripts)

    Using them made me think that if I can successfully trade the markets, like I’m currently learning to, then I’d love to create a legit version of such schemes and allow investors to earn from their bitcoin.

    Its early days yet. In a years time, I’ll see how my trading progresses :)

      • Yes, not only earning from the BTC that I initially invested, this program also turned out to be one of the most lucrative affiliate marketing program that I ever promoted.

        And I learnt about HYIPs, an industry that I never knew existed until I very naively lost money in one very similar to this successful one. Who knew that it is possible to make money online this way.

        I think there’ll be many HYIPs that jump on the bitcoin bandwagon. The standard scripts that deal with HYIP all allow crypto-payment gateways these days, the one I use accepts btc ltc as well as ripple and as the popularity of crypto-coins goes up, there’ll be many target the crypto-community.

  5. Gabriel Hernandez on

    I’m with you on this one; there won’t be any High Yield Investment Programs that isn’t a scam just because the whole concept is wrong. I’m sure that in the near future there will be more and more investment options available, but right now the safest way to make a profit is to buy low and sell high.

  6. Because bitcoins are online money, capital you can’t actually get a hold of, it increases your chances of bumping into a scam and lose everything. Before either buying or deciding to invest, do your research and see if you can find some positive reviews about the system/product/website you are about to use. There are tons of reliable Bitcoins forums that are updated with the latest Bitcoins news; ask around and make sure you know all the facts before joining in.

  7. Jackson Young on

    Thanks for sharing, I’m rather new to this. I want to buy some bitcoins but I don’t want to keep them in the “bank”, I want to invest them.

  8. Damika Irving on

    Wow, you were so very lucky, Ofir! I actually never heard of MyDailyCoin and I’m glad I didn’t because I would have used them for sure. Now I’m using BTCjam and I’m waiting for the first loan to get paid – hopefully.

  9. Georgina Bianca on

    I remember reading about MDC last month and indeed some people weren’t able to get their money back which scared the hell out of me. I decided to try an investing option and wanted to give them a go but then I bumped into that thread and choose to hold on tight to my coins haha.

  10. I want to invest my coins hoping to make a profit and BTCjam seems genuine. My biggest concern is that not all of those who loan pay it back. I’m curious what enforcements they use to make sure all the loans are fully paid. Will check back later to see what happens with your loans.

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