Bitcoin is a digital currency that has taken the world by storm. While some people are hesitant to use it because they are unsure how it works, others have embraced it and are using it to earn money. In this blog post, we will discuss different ways to earn money with bitcoin.
We will cover everything from mining to trading to simply holding onto your bitcoin! So whether you are just starting or a seasoned pro, read on for all the information you need to start making money with bitcoin.
Let’s take a look at these ways.
If you are new to Bitcoin, this may seem like an obvious way. You buy low and sell high, right? Unfortunately, the volatility of Bitcoin makes this impractical. If you had bought 1000 bitcoins in August 2010, you would now have over 4 million dollars. If only it were that simple.
Because of the incredible growth, Bitcoin has become very volatile, with wild daily swings in either direction. This means that trying to time the market could net you a great fortune or end up costing you dearly if not done correctly.
There is no magical formula for when to buy or sell your coins, as this will vary on a case-by-case basis with each trader, so be sure to study all of the resources available before trading any sizable amount. You must choose the right exchange platform like Bitcoin Up if you’re a beginner.
Less popular way of earning money with Bitcoin is through money-making apps that allow payouts in cryptocurrency. For example Honeygain offers an option to payout in JMPT and Bitcoin. You will get these tokens for free, depending on the app, where you might need to do some tasks or share your internet connection. Afterwards you can apply the methods like trading and lending, that we have mentioned before. So it potentially can become an even bigger profit, since you don’t need to invest initially.
Bitcoin mining is the process of adding transaction records to Bitcoin’s public ledger of past transactions or blockchain. This ledger of past transactions is called the blockchain as it is a chain of blocks. The blockchain serves to confirm transactions to the rest of the network as having taken place.
Mining is purposefully designed to be resource-intensive and difficult so that the number of blocks found each day by miners remains steady over time, producing a controlled finite monetary supply. Individual blocks must contain proof-of-work to be considered valid.
One great way to earn Bitcoins is by lending them out. Lending can be done at interest, or there are many peer-to-peer services where you lend your coins to other individuals in need- for example when they are in an emergency and cannot access fiat currency easily. Popular p2p sites are Bitbond, BitLendingClub, BTCjam, Coincove, and Loanbase. You can also check our complete list of P2P Bitcoin lending platforms.
Accepting as payment
Bitcoin payments are processed much faster than credit card transactions, usually taking only 10 minutes to process when paying with the currency directly (i.e., not using a third-party service like BitPay). This is particularly useful for business owners who need to make sales quickly or can’t wait until they get their money in another form. On top of that, there’s no risk involved in receiving bitcoins as payment because transaction fees are minuscule compared to credit card transaction fees. It all adds up to savings that can be passed on directly to customers.
The Bottom Line
Bitcoin is a new kind of money. As an investment, Bitcoin promises higher yields than traditional safe investments like bonds and savings accounts. But to generate these higher yields, you need to invest in Bitcoin directly or through mining equipment.