What To Do With Your Christmas Bitcoins?
If you received a Bitcoin, or at least fractions of it, for Christmas 2013 then you are probably wondering what you should so with it especially if it is your first time in the Bitcoin scene. Before you offload it on a friend who is more into Bitcoin, here are some points to consider. You have several options and some of these could earn you a handsome profit in time.
Sell Your Bitcoins
Thinking of selling those Bitcoins? It is all profit when you receive something for free as a gift. You can use a number of different exchanges to sell Bitcoin on your behalf, but for a fee of course.
If you do not trust the online route and want to do it in person then you may want to look at LocalBitcoins where you can schedule to meet interested buyers in person. Make sure that you first read the do’s and dont’s of face-to-face Bitcoin trading. Alternatively you can find Robocoin Bitcoin ATMs that will allow you to withdraw it as cold hard cash.
But before you rush off to dump your Bitcoins, here is some history to consider. Bitcoin started off 2013 at the $13 mark and closed the year in the mid $700 range. That is about 40 times more than what it was worth at the start of the year. Plus Bitcoin experienced an all time high of almost $1,200 in December 2013 which was about 80 times the price on 1 January 2013.
You could be selling at a much lower price if you are quick to offload your Bitcoin as soon as possible. There is already talk about Bitcoin reaching $10,000 in 2014 although much of this is speculation. The next few months at least will be an indication of just where Bitcoin will go. So it may be worth considering holding on to what Bitcoin you received as a gift for at least a few months, if not longer.
Spend Your Bitcoins
There are now more businesses taking Bitcoin payments around the world. In fact the number of Bitcoin merchants increased by 81% in November 2013 alone. You can buy just about anything for Bitcoin, from groceries and wine to cars and real estate. You may want to first check online businesses that are selling goods for Bitcoin. BitDazzle is a good starting point.
But look around carefully. There are some merchants willing to give you hefty discounts on products and services if you pay in Bitcoin. You might as well make the most of your Bitcoin and get something for much cheaper than you would if you had paid with plastic or cash. However, before you frivolously blow your gifted Bitcoin, think carefully about storing it instead. You may be able to buy something much bigger and better for that same Bitcoin in the next few months or years.
Storing Your Bitcoin
Look at storing your Bitcoin for the long haul if you are interested in an investment that does not take money out of your pocket. After all, you received this Bitcoin for free. If 2013 Bitcoin price boom is anything to go by then your Bitcoin today could be worth 80 times more by the end of 2014. Some think that this is unrealistically optimistic while others believe it is very much a reality this year.
Whatever your reason for storing your Bitcoin, it is important to be careful as to how you do this. There were no shortage of Bitcoin scams, wallet hacking and theft in 2013. Try to keep Bitcoin that you plan to hold onto in a separate private wallet while you use your daily wallet for receiving and buying with Bitcoin. Do not divulge the details of this storage wallet to anybody.