Bitcoin is just over 10 years old now and has taken the whole world by storm. And, it reached its highest value in March 2021 when it peaked at just over $61,000. So, can you still make money with Bitcoin? The answer is a big fat YES.
So your next obvious question would be how to make money with Bitcoin? Earning Bitcoin online will require your time and knowledge, or your computer’s processing power. Some ways require minimal effort, while others are pretty technical.
When it comes to cryptocurrencies, many have become overnight millionaires while many have fallen prey to Bitcoin scams. Therefore it is important to know what Bitcoin is, and how you can effectively use it to earn money.
What Is Bitcoin?
Bitcoin is the world's largest cryptocurrency system. It works without a central bank or single administrator and is the first decentralized digital currency.
Bitcoin works on a peer-to-peer network and transactions here take place without any intermediary, that is, they take place directly between users. This new independence has been possible through new technology and a reliance on a method of protecting information and communications through the use of codes– known as cryptography.
Bitcoin lacks a single administrator, so how are the transactions verified? A public ledger, called a blockchain, is responsible for the maintenance or backing of Bitcoin as well as verifying the transactions and their recordkeeping.
How Does Bitcoin work?
Blockchain gets its name from its data structure. 'Block', a 1-megabyte file, which is the ledger that is 'chained' together through cryptography, or a set of complex mathematical codes. The term 'blockchawas first outlined by the anonymous author Satoshi Nakamoto.
As previously said, it is a public ledger that is distributed and maintained by a global network of computers through the internet. The blockchain isn't a single administrator, rather a shared public ledger that is shared between Bitcoin ‘miners’ and ‘nodes’ around the world.
How To Make Money With Bitcoin?
When it comes to making money with Bitcoin, there's a long list of options to choose from. Some of the most popular ways being Bitcoin mining, trading, investing, affiliate earnings, and micro earnings. But the amount you'll generate depends on how much risk you're willing to take and the method you choose.
Whether you are an institutional investor or a complete crypto beginner, here are 10 ways to make money with Bitcoin.
1. Bitcoin Trading
One of the most popular answers to how to make money with Bitcoin is Bitcoin trading.
Bitcoin trading is buying and selling on advanced cryptocurrency exchanges using trading charts similar to forex trading. Using techniques such as sentiment, technical and fundamental analysis, you have to try and forecast price movements. These price movements are caused by external factors in the market such as bitcoin halving, regulations, and industry news.
The best part about Bitcoin trading is that it is available 24×7. This allows you to trade at your convenience when the profits soar high and you no longer have to glue your eyeballs to your desktop all the time.
But if you are less risk-averse, intra-day trading and arbitrage opportunities are made for you.
2. Bitcoin Arbitrage
Bitcoin arbitrage trading allows you to buy bitcoin for a low price at the cheapest exchange and sell it at a higher price on different exchanges. Here the arbitrage trader can make a quick low-risk profit by taking advantage of the price difference between different exchanges.
3. Investing In Bitcoin
The term HODL (hold on for dear life) came about when a trader misspelled the word hold in a bitcoin forum when he meant to say he will 'hold' his profits instead of selling it when there's a price surge. HODLing is a form of long-term bitcoin investment where you buy now with no intention of selling soon, and bet on the currencies long term value. You must know when is the right time to sell. If you are eyeing long-term investments, you must keep your Bitcoins in a hardware wallet.
There are some other options apart from buying and holding kinds of investments to make money. These include investing in startups, companies, blockchain development, and other research-intensive investments.
Here are 5 things to do before investing in crypto
Bitcoin mining is the process of adding new blocks to the Bitcoin blockchain network by solving cryptographic puzzles. Bitcoin miners validate transactions, keep the network secure, and ultimately keep transactions moving. As a result of contributing to the network, they receive coin rewards, more technically known as block rewards.
Initially, Bitcoin miners earned huge fortunes in the crypto revolution. Nowadays, most cryptocurrencies require mining rigs for the miner to reap any benefit. And these mining rigs cost anywhere from $1,000 or more and consume more power which significantly increases your electricity bill.
But if it has a number of disadvantages, how do people still double their profits by mining? Well, let's look at the sub-types of Bitcoin mining and how to make money with Bitcoin.
- Bitcoin Solo Mining
If you have set up your own bitcoin miner, you can be a solo miner. The Bitcoin network requires massive hash rates. And as a solo miner, it can be difficult for you to generate blocks depending on your equipment.
- Bitcoin Mining Pools
When bitcoin miners join forces to increase hashing power so that they generate blocks quicker, it is known as the Bitcoin mining pool. They can generate blocks at a faster rate by pooling their resources and ultimately divide the rewards according to contributions.
- Bitcoin Cloud Mining
Cloud mining services involve renting mining equipment for other miners so that they can mine cryptocurrencies for you. You have to invest once, and you will keep receiving your share of the profit.
It must be kept in mind that many cloud mining companies are unreliable. So, verify its credibility before pouring your hard-earned coin into a cloud mining company. By investing you get daily payouts that are based on your investment without actually mining directly or spending on mining rigs and huge electricity bills.
5. Micro earnings
Micro earning is one of the easiest ways to make money with Bitcoin. But as the name suggests, it doesn't yield a fortune. It is a decent way to make money if you know what you're doing, such as simple tasks like watching videos.
The most popular to make money by micro earnings are as follows:
- Micro-earnings will seem appealing to you if you do not hit the skip ad button.
- Pay to Click (PTC) websites like BTC4ADS and Coinadder can help you earn Bitcoin to watch ads.
- Other micro-jobs include watching youtube videos or completing online surveys.
- Bitcoinget is one of the leading micro-jobs websites.
6. Bitcoin Faucets
Bitcoin faucets are websites that give away small amounts of Bitcoins to their users, with owners making money by placing ads on their website and paying individuals who visit the ads or complete surveys. Even though this industry amounts to over 50% of the traffic on leading Bitcoin websites today, the average payout is very low.
Bitcoin faucets are not a realistic way to earn good money, as watching an hour-long ad will earn you anywhere between 0.04 USD to 0.05 USD, to make no more than $1-2 per day.
7. BitcoinTalk Signature Campaigns
Another way to make money with Bitcoin is with BitcoinTalk Signature Campaigns. This campaign can pay for you to write posts on the BitcoinTalk forum, which includes a product campaign as a signature. The amount that you can get paid depends on your membership level on the forum. You can earn Bitcoin even if you're not a full member, but your payment will be comparatively low. To obtain full membership, you need at least 120 posts.
Most campaigns also have some criteria for posters, like minimum word limit or a post where no ads are directly included. Also, some campaigns may include a minimum or a maximum weekly post count.
The amount of money that you can earn from these campaigns varies depending on the number of quality posts that you could make as a user that achieve the word count minimums. Depending on the campaign you may be able to make $50-100 for 24 hours of work.
It must be clear by now that we can make money with Bitcoin. Now holding bitcoins will not make any money. But what if you let Bitcoin make money for you? Well, there's a way you can do that too. You can earn interest on your bitcoins by lending them to someone. This is indeed better than holding bitcoins as holding could prove no less of a gamble.
In order to avoid spam, trust your bitcoins with a credible lending platform. Some of the trusted lend-and-borrow platforms are Unchained Capital, Bitbond, and BTCpop. With these verified platforms, you can earn interest of up to 15%.
9. Affiliate Earnings
Do you have a blog where you educate people about Bitcoin? Or a social media account? Did you know that there is potential to make money with Bitcoin affiliate marketing? The good news is, you can.
So what exactly is affiliate marketing? This is a form of marketing where you can get paid a certain percentage of commission for every referral that you bring to an existing Bitcoin business through affiliate programs.
How to make money with Bitcoin Affiliate Program?
People who refer new customers to their businesses are rewarded by cryptocurrency companies. It is very common in cryptocurrency exchanges to have affiliate programs that their customers share via social media to attract other users. For example, you join a bitcoin affiliate program and then write a blog about the product with the affiliate link in the description and you get paid for everyone who signs up through your link.
10. Provide Bitcoin-Related Services
If your level of experience and expertise is more technical when it comes to cryptocurrency, there are a plethora of opportunities involved in cryptocurrency development projects.
Most of the cryptocurrency companies in this arena are startups with limited infrastructure and resources. Thus, they are always in need of software developers, web developers, mining experts, and marketing experts. They can either be contractual jobs that can be remote or full-time job opportunities.
The amount you can earn from a role such as this depends on the type of role, the level of expertise that you bring to the role, and the number of hours that you can dedicate to the role.
What Method Of Earning Is Best For Me?
There's no one answer to this question- there are no rules. If you are not sure, then take some time and explore each option. But before that, it is important to learn about cryptocurrency.
Bitcoin offers an amazing alternative to the traditional banking system. This is because it relies on an immutable mathematical proof for its foundation, and for the first time in human history offers a decentralized currency system where trust between two parties can be scaled to the level where a global community has equal access to a global monetary system that is natively digital. To leverage this incredible financial system, it's important to learn what bitcoin and other cryptocurrencies do, before learning to earn money with bitcoin.
The success of Bitcoin depends on how many people and markets around the globe will accept it as a de-facto digital currency and how many might perceive it as a threat.
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