Making Money Online with Ethereum?
I did a post about Bitcoin five months ago. I’m not an expert in investing in cryptocurrency (some say it’s just speculation) don’t take this blog as financial advice.
But I had spare change to gamble with and decided to copy what smarter people were saying. It did make intuitive sense that cryptocurrencies will become more valuable over time, and they are more exciting than investing in Gold or stocks.
So I threw a few $k into Bitcoin to try it out, nothing huge. Fortunately the value of BTC went from ~$600 when I wrote that post to ~$1500 as it stands today. So I am up a few $k since then.
Many people made A LOT more than that by buying Bitcoin when it was in the early 100s a few years back.
BTC lifetime graph
Investing in Ethereum
At some point I took the advice of smart readers (thanks Cam!) to buy Ethereum too, or swap BTC for it.
If you don’t know, Ethereum is a newer ‘altcoin’ (alternative to Bitcoin), and said to be technologically better. The only reason Bitcoin is worth more at the moment is it was the first of the cryptocurrencies.
Cam told me to buy Ethereum in the comments on that first post when it was at $10. I didn’t get round to it and then it jumped to $40 shortly after. I’d have made a ton if I listened. One of my mates made ~$30k.
I finally bought a few $k of ETH at $40 in March and now it’s at ~$80. So I’m up ~$6k so far combined from BTC and ETH. Three hundred Bangkok blowjobs!
My other mate is almost up six figures as he pumped a lot more money into it than me.
Ethereum lifetime graph
Will it keep going up? Well Bitcoin is worth ~$1500 now and Ethereum ~$80 and everyone’s saying ETH is superior, so it’d make sense if it eventually approached the same price as BTC.
Here’s an article about how big names like Microsoft, Intel and JP Morgan are getting behind Ethereum.
And here’s one about thirty big banks and tech giants like IBM investing in Ethereum.
In the short term there might be a correction in the market because it’s going up too fast at the moment, similar to what happened to BTC in 2014.
How to Buy Ethereum
I’d love to help my readers to make money online too!
Different cryptocurrencies in Exodus wallet
The main online wallet I now recommend (again Cam’s advice) is Exodus.io which is a downloadable desktop wallet (less chance of getting hacked). It has shapeshift.io built into it which is a service to exchange cryptos with no fees on top of a competitive spread.
On Exodus you can hold BTC, ETH, Dash, Litecoin, Dogecoin, Golem, and Monero will be added this year.
You can buy ETH with VISA on Coinbase but it sets daily limits and requires a lot of ID docs. You can also store ETH and BTC in Coinbase too but it isn’t usually recommended to hold large amounts online.
Coinbase charges 1% to buy Bitcoin with VISA. Coins.ph and Coins.co.th charge about 2% and with LocalBitcoins it depends on the seller. So shop around.
How to Withdraw Ethereum
Exchanging cryptocurrencies in Exodus
Then when you’re ready to sell Ethereum (I just plan to hold it and see how high it goes though) convert it back to Bitcoin, then send it from Exodus desktop wallet back to yourself on one of the online wallets.
Or you may be able to make a profit by selling on LocalBitcoins, trading it for a bank wire, Paypal, etc.
Or find someone to sell ETH to directly, you can also send from Exodus to any other ETH account.
Is it Safe?
Obviously don’t put all your money into it but ETH is looking good right now, so is Dash and Monero. They’re all technologically better than Bitcoin. If you’re concerned about risk buy a bit of each cryptocurrency.
Don’t put more into it than you can afford to set aside if there’s a correction like the 2014 bitcoin crash. Then hold for the long term if that does happen.
Arguably it’s all speculation / gambling, not investing, but I’ve been lucky so far.
You can also buy Gold on Goldmoney.com and withdraw to Asia via bank wire. But people say precious metals are not investments either, just insurance. And it’s a lot more boring / slow.
I’ve been having some funny debates with Dante about buying cryptocurrencies in his forum thread, starts from about halfway down this page.
Update: ETH hit $100 the day after this post. I also bought some Dash, Augur, and Golem coins, which are rallying. Here’s an article about Dash.
From what I read those are good pics. Litecoin and Dogecoin not so much. Litecoin is going up but perhaps only spiked because it was added to Coinbase.
Update: a couple weeks later it hit $160.