You hear about making money with bitcoin every day and you keep wondering if you can do such. Of course, you can but, only if you know how. In this article, some practical methods of making money with the most popular cryptocurrency will be discussed. So, if you want to know to make money with bitcoin, this is a must-read.
When referring to making money with bitcoin, they are mostly referring to trading bitcoin. This is the most common means of making money with bitcoin as it is the easiest. Trading bitcoin simply involves buying and selling bitcoin. You trade on the exchange rate of the cryptocurrency; buy when it is low and sell when it is high. It is as easy as that and anyone can make money with bitcoin via trading.
There are many online platforms were the bitcoin can be traded. Some widely used ones include; Bitfinex, Kraken, PIT by Blockchain and, Bitstamp. You can carry out research on your own to choose a bitcoin trading platform. You would need to register on your chosen platform to own an account and a bitcoin wallet.
Once your account is set up, you are ready to start trading. The most-traded bitcoin pair is the BTC/USD trading pair. It exchanges the Bitcoin with the United States Dollar. All you need to do is to watch the exchange rate and purchase the Bitcoin when the price is favorable. When the price increases to a higher amount which you are sure to make a profit, you set your Bitcoins up for sale. The value of bitcoin is very volatile so it should not take long for this to happen.
Just like every other trade, profit is not guaranteed 100%. After purchasing your bitcoins, the value might depreciate further instead of appreciating. In such a case, you make a loss. It is advisable to sell off your bitcoins the price shows no positive signs to avoid losing more.
Investing in Bitcoins
This method is very much similar to trading bitcoins but it is done differently. To invest in bitcoins, you would need to buy and hold them for a long period before selling them off. Unlike trading where you trade in days and weeks interval, you would be holding your bitcoins for 6 months or more.
Once again, the volatile nature of the value of the bitcoin makes investing very profitable. The value of the bitcoin can double up within 6 months interval which means you can make x2 of your investment amount. As usual, a bitcoin wallet would be needed for you to store your bitcoins. You can make use of popular wallets like Blockchain, Coinbase, and Luno; you can purchase your bitcoins directly from these platforms. The higher the duration of your investment the higher your chances of making more profit.
However, it is still very possible for the price to depreciate within your investment period. Therefore, if you want to invest in bitcoin, you would need to be up-to-date with the cryptocurrency market. Follow up the rates and know when the value is appreciating or depreciating. Also, you shouldn’t invest more than what you can afford to use. The crypto market is unpredictable and anything can happen.
Mining of bitcoins is another common way by which people make money with the cryptocurrency. What you should note is that it is not an easy task; it’s one of the hardest ways of making money with Bitcoins. It might be easy to mine other cryptocurrencies but for the bitcoin, it is difficult; very difficult.
As a bitcoin miner, you get to verify and approve transactions on the blockchain and you get rewarded with new bitcoins called block rewards. This process involves solving very complex arithmetic problems with high-end computers that were specially designed for this purpose. Mining bitcoin can be done personally (standard mining) or via the cloud (cloud mining).
For standard mining, you do the mining work yourself with bitcoin mining devices like the ASIC. In other to succeed, you would need to be very knowledgeable about the blockchain in other to solve the arithmetic. It is often referred to as a job for professionals. For cloud mining, you won’t be required to use any computer as you won’t be the one doing the work. All you need to do is to register on a cloud mining platform and pay a contract fee. You will be paid according to your mining plan when due.
For a random person who wants to make money with bitcoin, the best option out of the two would be cloud mining as it is less difficult.
Getting paid in Bitcoins
You can receive payment in bitcoins as an alternative to normal currency. That way, you can exchange it at a different rate (higher rate) and make more money. This is practically easy if you offer online goods or services to clients. It could be anything, writing services, designing, or programming; so long as your clients are willing to pay in bitcoin.
Bitcoin wallets such as Blockchain, Coinbase and, Luno are recommended wallets that you can sign up with. After that, share your wallet address to any client who is willing to pay with bitcoins so they can pay you.
If you are a freelancer making use of Fiverr or Upwork you can easily implement this. Lots of clients on these platforms are willing to pay service providers with cryptocurrencies. If you run an online store (e-commerce) you can add your bitcoin wallet address as a possible payment method. On WordPress, you can use plugins such as the WordPress Bitcoin Payments and Digital PayBox to implement this.
As you get paid in bitcoins, you can then exchange them for normal currencies. To make money via this method, you should exchange your bitcoins when the value appreciates a bit. Let’s say you get paid $100 when the bitcoin rate is 1BTC to $8,717, you receive 0.0115. If the price appreciates to $9,500 per BTC, you get $109; an additional $9.
Thinking of making money with bitcoin? You can do so using any of the practical methods discussed above. There are many other ways of making money with Bitcoin but the ones listed above are the best ways.