Investing in Bitcoin

[bitcoinrocks]

I love the Bitcoin concept.  Which is the best way to invest in the currency?

Is Bitcoin mining a profitable venture?

What about Litecoin?

[TheSpiral]

I love the Bitcoin concept.  Which is the best way to invest in the currency?

Is Bitcoin mining a profitable venture?

What about Litecoin?

1. Opinionated. Someone else will tell you.
2 and 3. http://www.coinish.com/calc/ and http://www.coinwarz.com/cryptocurrency to see how profitable (or not) mining is.

[bitcoinrocks]

If I buy an Avalon ASIC for $1300, I will make $80k/year?  What's the catch?

[duravello]

If I buy an Avalon ASIC for $1300, I will make $80k/year?  What's the catch?

the difficulty increase by about 10-15% every 12 days, thus you wont get $80k in one year

[Kazimir]

If I buy an Avalon ASIC for $1300, I will make $80k/year?  What's the catch?

You would make $80k a year if you'd receive your ASIC now, and nobody else would, and mining difficulty would stay the same. The mining difficulty is how much processing power it takes to mine a block, which depends on the total processing power in the network, which will significantly increase as soon as ASICs are actually being used in the field.

Having said that, I think Bitcoin is an extremely profitable investment. More so than Litecoins or other altcoins, they're just cheap spinoffs, Bitcoin is by far the largest and most popular. But I just simply buy my bitcoins directly, rather than going through all the trouble of mining them, which isn't even cheaper in the end (not even accounting for my time involved).

The BTC/EUR currency rate has been kinda volatile, but I'm in it for the long term and I expect a great future for Bitcoin (and the huge price rise that comes with that). The time, technology and social conditions for Bitcoin are ready. Everybody hates banks nowadays, but so far we've been highly dependent on them, well here's an alternative.

[jeannie]

Bitcoin profitable or not depends on how early you had them

[bitcoinrocks]

It sounds like maybe mining isn't the way to go.  Kazimir, how would you recommend buying Bitcoins for investment purposes?  coinbase.com?

[b!z]

Try daytrading/speculation to invest.

[bitbybit2]

I love the Bitcoin concept.  Which is the best way to invest in the currency?

Is Bitcoin mining a profitable venture?

What about Litecoin?

This is the best place to invest your bitcoins  http://rommel.2truth.com


Is Bitcoin mining a profitable business. Yes, contrary to what mainstream media is spreading, it is profitable.

[bitbybit2]

It sounds like maybe mining isn't the way to go.  Kazimir, how would you recommend buying Bitcoins for investment purposes?  coinbase.com?

Online wallets like coinbase is not recommended to fetch your roi . Cold storage is the way to go.

[b!z]

It sounds like maybe mining isn't the way to go.  Kazimir, how would you recommend buying Bitcoins for investment purposes?  coinbase.com?

Online wallets like coinbase is not recommended to fetch your roi . Cold storage is the way to go.

Yes, that's right. Online wallets can't be guaranteed to stay safe.

[Bitcoin Merchant]

best way to invest in Bitcoins is simply to buy bitcoins

[tstang]

Hi,

is there a offline wallet that is free? The current one I am using always ask me to pay for transaction fees.

[kjib]

There are a few wallets but I thought most let you decide if you want to pay the transaction fee. That fee is meant to speed up your transfer so, if you want the coins to get there today, pay the fee I gather.

[RodeoX]

Hi,

is there a offline wallet that is free? The current one I am using always ask me to pay for transaction fees.

The fee is optional, but without it miners have no incentive to include your transaction in the blockchain. They may just abandon it and leave you with a hassle. You should pay the tiny fee, it is still the cheapest way by far to send money.
As far as investing... That is tricky. "Investing" in BTC is extremely risky and you should be prepared to loose everything. Bitcoin is not designed as an investment, it is a payment system and I would recommend thinking of it that way. But if you want to do it anyway for fun or whatever. Then start with 1 bitcoin and try selling it high, then buying it back low. Make a game of it!
Remember to also track what you put in and the value when you sell. You will be required to report any profits you make and pay capitol gains.
Good luck fellow peer!

[PeterB]

I would invest in bitcoin companies, such as ASICMiner, or loans such as Graet Loan.

[bitcoinrocks]

best way to invest in Bitcoins is simply to buy bitcoins

How would you recommend I do this? 

Online wallets like coinbase is not recommended to fetch your roi . Cold storage is the way to go.

How does that work?

I'm just trying to buy and hold some Bitcoins.  What should I do?

[tospace2006]

me too

[mewsie]

best way to invest in Bitcoins is simply to buy bitcoins

How would you recommend I do this?  

Online wallets like coinbase is not recommended to fetch your roi . Cold storage is the way to go.

How does that work?

I'm just trying to buy and hold some Bitcoins.  What should I do?

Hello fellow forum members,

I'm a long time lurker that decided to get into BTC and LTC investing / trading after doing some very simple mining at home for the past few months.

As to bitcoinrocks question:

How do you acquire bitcoins? Join an exchange like Mt. Gox or BTC-e or Camp-BX or similar (https://en.bitcoin.it/wiki/Buying_bitcoins)

Be prepared to wait for a while to get verified (due to Anti-Money Laundering requirements, also referred to as AML), and be prepared to wait for a while for your bank deposit or transfer to show up. A lot of people put money into a fund transfer service like Dwolla, and then send their money on to the exchange, where you change those dollars or euros into BTC or LTC or whatever currency you're interested in.

How do you store your BTC? You need a wallet, check out this "getting started" (http://www.weusecoins.com/en/getting-started) or this site (http://bitcoin.org/en/choose-your-wallet). Keep in mind that you have to have different wallets for BTC and LTC because they are different coins based on different blockchains. Its like having a USD denominated bank account, and another for EUR or GBP.

How do you make a profit with BTC and LTC? Simple - buy low, sell high... same as it has always been. You build a portfolio with a variety of risks, watch the markets for trends, crunch your own numbers, build experience, and be blessed with more good luck than bad.

That's it  

And there is my first post!

[aceking]

better buy bitcoins because mining difficulty will skyrocket

you can see it here http://bitcoindifficulty.com/