How To Make Money On Bitcoins
Some say we were lucky because making money with bitcoins is an unattainable dream. But today, I come to tell you that if you want to earn money on bitcoins, you are not late to hop into this movement.
Despite the fact that the market is filled with more people every day, new opportunities are emerging to earn good money and one of it is investing and working around Bitcoins and cryptocurrencies.
What Is Bitcoin?
Bitcoin was created by an unknown person using the alias Satoshi Nakamoto. Transactions are decentralized, with no middle men, banks or central figure! It can be used online just like real money.
When you purchased something using bitcoins, you remain anonymous and the best thing is that it doesn’t have any dreaded credit card fees.
Simply put, bitcoin is a new currency which can be used just like real money online. The difference is that it doesn’t have a central authority regulating the system (unlike credit cards where banks hold the funds being used for the transaction).
The whole system is maintained, verified and secured by the community and individuals such as yourself. The payment system has permanent records that cannot be changed (no chargebacks). Once a transaction is made, it is permanently recorded within the system called the blockchain.
How Does Bitcoin Work?
The first step to earning money with bitcoin is to know its functionality well. Bitcoin is a cryptocurrency with impressive qualities and benefits: It is secure, encrypted, and decentralized.
Bitcoin is an encrypted currency that works on 3 fundamental technologies: the block chain, or chain of blocks (which in simple Spanish is a distributed database); P2P or peer-to-peer networks (a decentralized data network); and cryptography.
Bitcoin was created as a decentralized and anonymous payment network (think of Visa, Mastercard and other payment gateways), with open source and irreversible payments.
To not complicate technical things, Bitcoin works in the same way as conventional money, but with many more benefits.
There are many ways to earn money with Bitcoins. Logically, the most popular methods imply that you acquire bitcoins, and then you can sell them to earn money in your preferred currency.
Below, you will discover the most popular methods to obtain and earn money with bitcoins.
Method 1: Mining And Selling Your Coins
The cryptocurrency mining works in the following way: A program on your computer uses your graphics processors to solve very complex problems that the Bitcoin network provides.
If your computer solves this problem and gives a working test, the bitcoin network rewards you with a fraction of its cryptocurrency.
You will be able to obtain bitcoins by repeating this process successively. But there is a challenge in this method: more and more people are mining, and the more people mine, the more difficult it will be to solve these problems and get bitcoins.
Additionally, you have to factor in the power and electricity cost because mining requires a lot of energy for it to function.
Cryptocurrency mining was the best way for making money from Bitcoin for several years but, since the network evolved and the number of transactions is getting bigger day-by-day, traditional bootstrap mining with graphics processor is not cost effective anymore. Hence, a new trend arise which is called cloud mining.
Basically, cloud mining means that you invest in others mining rigs that are at the remote locations with low electricity costs. You don’t have to buy and set up any mining rigs, you “piggy-back” on other mining rigs instead. One of the best which I have personally tried was Genesis Mining.
Method 2: Charging In Bitcoins And Reselling Your Coins
Another very interesting option to earn money with bitcoins is receiving payments in Bitcoins for your products or services (Stripe just recently integrated bitcoin options). To collect your services or products in bitcoin, you will need to have a payment platform supported by bitcoin technology.
All these services will help you collect bitcoins on your blog or website, and also allow you to convert your currencies at a real market rate.
Also, you can have a Bitcoin address, which consists of a 16-digit code that you can use to receive payments from anywhere in the world. If you dedicate yourself to activities such as having an independent business, the best way to charge in bitcoin is to have a bitcoin portfolio.
Method 3: Buying Bitcoins And Retaining Them (Buy low, hold and sell when the price shoots to the moon)
Hundreds of people who have relied on bitcoin as an alternative investment have managed to retain their bitcoins for several years. This has allowed them to see how their investment in crypto currencies is revalued and multiplied.
This is one of the easiest ways to earn money with bitcoin. All you need is your bitcoin wallet (physical or virtual) and a reliable bitcoin provider, or a currency exchange.
Method 4: Trade Bitcoin Against Other Cryptocurrencies
This is becoming very popular especially as bitcoin makes top headlines everytime it hits a new all time high. You can see below the most popular cryptocurrencies other than bitcoin:
- Litecoin
- Ethereum
- Dash
- Ripple
- Monero
- Zcash
Coinbase gives you the options about almost everything from opening a wallet, trading bitcoins against other cryptocurrencies, day trading bitcoins against major currencies etc. Visit the site and you’ll see how they make it so simple.
Method 5: Apply For Jobs Related To Coins
Some websites like Coinality provides a job board with tons of clients looking for people who has skills related to cryptocurrencies. Just to point out that Bitcoin related skills is one of the highest sought job in Upwork based on their recent report.
Method 6: Day Trade Bitcoin
Most of the trading platforms nowadays offer cryptocurrency trading option. Just be reminded that this form of earning money in Bitcoin is a high-risk, high-reward type of trading as cryptocurrency is extremely volatile and you have to know what you’re doing before you embark on this kind of trade. Only trade what you can afford to lose.
Final Thoughts:
Many have entered the bitcoin movement and achieved tremendous success especially when the price skyrocketed last 2017. Cryptocurrencies are still a new concept to the vast majority and needs ample time for it to be fully accepted and understood.
If you are interested in venturing on this field, what I want to suggest is for you to give yourself a week or two focusing on studying how it works and how you can position yourself to make money out of cryptocurrencies. Do not be overwhelmed by the tons of information available. Take it one step at a time and make it consistent. You’ll never know where your chosen path will lead you.
If you have questions about how to make money on Bitcoins, please feel free to leave a comment below and I will answer them for you.
A lot of people are talking about bitcoin lately – it’s most interesting to see how it might affect the other markets as well. Nice explanation of the different ways to make money with Bitcoin!
Glad you like it! Though bitcoin hasn’t been fully integrated to the current market system, it will surely be in the near future. Some of the major companies (e.g Nvidia) have already benefited from cryptocurrencies and as more people and industry become involved, that’s when the obvious realization and impact will occur.
Markets tend to have a pattern and bitcoin is no exemption. It ebbs and flows. For me, it really doesn’t matter if the price goes up or down, what matters is how you position yourself during the movement and execute your plan the moment the signals present itself.
Yes, altcoins and the likes are on the rise. Thanks for the insights!
You’ve probably seen a lot lately about Bitcoin including speculation that it may drop in the future.
There is a paradigm shift coming that is going to make Bitcoin look like old news.