Bitcoin is a hot topic where many people think they know exactly what it is and how it can be used. However, it is created to be versatile with several ways to spend and earn.
So apart from buying Bitcoin directly in the market, what can you do to learn how to make money with Bitcoin?
So, how do you make money with Bitcoin?
Probably the easiest way on how to make money with bitcoin is to buy and hold. Just like any other currency, you can also trade Bitcoin as a method of making money on bitcoin. There are several business opportunities, ranging from long-term investments (as I mentioned) to opportunities in trading markets.
I have reviewed them all for you:
1. Buy and wait
Because Bitcoin varies in market value compared to other Fiat currencies, you can choose to buy and hold Bitcoin as a way to make money on bitcoin.
Because market demands fluctuate so much, some may become millionaires overnight and others await growth as a long-term investment.
There are obviously risks in buying and holding because Bitcoin can increase in value 100 times overnight and fall 1,000 times the next day.
But if you buy and hold and know how and when to shop, it’s really a great way to make money on bitcoin.
All you really need to buy and hold Bitcoin is a Bitcoin wallet. Just choose when and how much you want to start investing in Bitcoin and keep an eye on the market!
One step away from just buying and holding Bitcoin is trading as another method of how to make money on bitcoin. Bitcoin is not the only cryptocurrency on the market!
You may have heard of Ethereum, Litecoin or other altcoins. Like other fiat currencies, they will rise and fall in value relative to each other.
If you like to monitor the crypto market, this may be the perfect way to make money on bitcoin.
Do not forget to establish a trading strategy!
Cryptocurrencies are still a very volatile market, so a trading strategy is relevant for you to profit from your investment and not lose everything.
How to trade:
3. Binary options
A more risky but also an option for Bitcoin trading is binary options for making money on bitcoin. It is the same principle as trading, but this is a step where you instead make bets.
Basically, the only thing you are speculating about is the value of Bitcoin, whether the value will rise or fall.
If your prediction is correct, you will be rewarded and if not, you will lose what you bet.
Of course, this is a more risky option because you are now betting. But if you are at higher risk, it can be a perfect way to make money on bitcoin! The advantage of this is that this is a high risk with a high return.
You can earn more Bitcoin through trading and possibly more with the binary options if you play your cards right!
But I have not tried this so be careful.
How to bet:
My top 4 tips on how to make money on Bitcoin
1. Sell goods and services
Selling goods and services in exchange for Bitcoin is the original intention of the creators of cryptocurrencies and the way many people make money online.
Why not sell your creations, used books or services online and pay with Bitcoin?
It’s just a small change from what we’re already doing on Etsy, Amazon or Craigslist. Some already accept Bitcoin as a payment method so why not use this as an effective way to make money on Bitcoin!
If you want to earn extra income and are interested in getting payments with Bitcoin, there are websites that help you sell to potential customers.
Want to know how to make money on Bitcoin by selling products? Online markets like Bitify and Purse.io can help you!
You can buy or sell everything from electronics to books or even your own products. Just like Etsy and Amazon except with the ability to complete transactions with Bitcoin.
This is also a great way to learn how to work from home.
Do you want to offer your expertise as a service in exchange for Bitcoin? You can do that too. How to make money on bitcoin is no stranger to freelancers.
Why would it not be completely legitimate to be employed and get paid in Bitcoin? You can use sites like Upwork or Freelancer.com to get paid in Fiat money or you can use sites like BitGigs and Coinality to get paid and grow your Bitcoin wallet!
There is no reason why traditional buying and selling methods can not be used as a way to make money on bitcoin.
It is actually one of the most effective methods for how to make money on bitcoin and can lead to the highest returns.
2. Cranes, micro-tasks, advertisements and loans
If you want to make extra money, there are other more creative ways to make Bitcoin. However, these methods either provide the least income for your time or require a higher initial investment to get started.
So let’s briefly look at these other methods of how to make money with Bitcoin:
Bitcoin faucets and micro-data
Bitcoin faucets and micro-tasks (also called microtasks) are usually clumped into the same category called “mini-earnings”, as the payouts are in small amounts of Satoshi (fractions of Bitcoin) that are distributed to interact with online ads.
For those starting out and learning how to make money with Bitcoin, it can be a great start.
This can range from clicking on ads, displaying short video ads or playing mini-games.
The downside to this is that you may not earn much in the beginning or that it may take time to build your revenue from using Bitcoin faucets and micro-data.
But if you do not mind taking a few minutes of your time on a regular basis, this is a small increase for how to make money with Bitcoin.
Is it worth it?:
Paid-to-Click Bitcoin faucets
If you have a website or are going to create one, you can add a Bitcoin faucet to your site and earn more.
This is probably a more efficient way of how to make money on bitcoin, as one can earn more as passive income.
Because Bitcoin faucets are built on ads that pay for a place on your site, you can add a pay-per-click (called PPC) option and a company pays you an amount in Bitcoin instead of Fiat -currency.
You should be aware of how much you have to take from your total amount to pay to those who actually click on the ads but overall, you can earn more than your revenue.
Peer-to-Peer Loans (P2P Loans)
If you already have a little Bitcoin and you are interested in increasing your investment, peer-to-peer loans are an option on how to make money on bitcoin.
The idea remains the same as a regular loan: you become a bank that lends Bitcoin to another person who in turn pays you back with interest.
There are some advantages and disadvantages to be aware of when it comes to borrowing Bitcoin.
An advantage is that the industry for cryptocurrencies and lending is largely unregulated and therefore interest rates can be high, which is advantageous for the lender.
But lack of regulation also means that you risk that the loan will not be repaid. Keep in mind that this can also happen in a regulated system, as this is part of the financing industry.
Also keep in mind that peer-to-peer lending is also an exciting opportunity for crypto traders.
As businesses and individuals find other ways to start and grow investments through Bitcoin, peer-to-peer loans can be a lucrative option for how to make money with Bitcoin.
Keep in mind:
3. Make money with Bitcoin mining
You can make money on bitcoin and borrow Bitcoin, but you can also be part of Bitcoin’s backbone by contributing to the so-called blockchain.
Another method of how to make money on bitcoin is Bitcoin mining.
This is done by investing in high-performance computers dedicated to securing and confirming Bitcoins to the blockchain, which is what helped Bitcoin succeed from the beginning.
But if you do not have a large stock and several advanced computers at your disposal, it is not as easy to just start mining Bitcoin in your garden.
But if you want to dedicate some computers and participate in a community where you collaborate in a Bitcoin mining group, this can be a good opportunity to make money on bitcoin.
Just keep in mind that since this is an ongoing process, there will be ongoing fees for use and administration that will affect your profits.
The reward works as if when a blockchain is confirmed, a miner / group receives 1 Bitcoin (which at most has had a value of $36 433). If you are part of a mining group, you would have the income divided into the group.
So depending on the success of your mining group, this can be an effective way of making money on bitcoin.
If you want to participate in a Bitcoin mining group remotely, you can also participate in cloud services where the data center is in a separate location, but everyone in the group shares processing power.
However, this would mean that you could possibly contribute a higher initial investment plus administrative fees because you do not buy hardware or software to contribute. This is worth considering as you increase the costs and benefits.
Summary: How to make money on Bitcoin
All in all, there are more methods to make money with Bitcoin in addition to buying and keeping the trend I have seen in recent months.
Because Bitcoin was created to be a digital currency, there are many different ways you can spend it and many great ways to make money on it!
These are some creative ideas if you want to earn a little more Bitcoin instead of just converting from Fiat currency!
You can also go ahead and check out this video on the top 11 ways on how to make money with bitcoin: