Make Money With Bitcoin
Towards the close of 2017, the price of Bitcoin rose to $19,000; a growth of more than 1,899,900% from its starting price back in 2009. As one of the strongest digital currencies, many people have been asking the question, “What is the best way to make money with Bitcoin?”.
While there are many ways that you can earn money with Bitcoin, it is important to understand that nothing comes for free. Note that the methods requiring limited efforts will only yield limited returns. Therefore, to make money with Bitcoin, a certain level of expertise about the blockchain and crypto markets will be required.
In this post, we dig deeper on how to make money with Bitcoin,and will assist you in picking the best strategy. The following strategies are arranged from the least difficult to the most complex.
What is Bitcoin?
Bitcoin is a decentralized cryptocurrency and an open-source peer-2-peer blockchain protocol created by Satoshi Nakamoto back in 2009. The platform was designed as a system for helping people send funds directly without going through centralized organizations such as banks.
Bitcoin works, in many aspects, like fiat currency because it can be used to make payments, as well as store and send funds. However, it is not a physical asset, and the lovely images you see online are simply representations of what digital currencies look like.
Bitcoin exists as a digital set of codes that can only be stored in the native blockchain (Bitcoin platform), or in digital wallets such as Ledger Nano S. To access, use, store and trade Bitcoin you will need to have the following set of codes generated by the respective wallet; private keys, public address, and a seed phrase.
As a decentralized platform, the Bitcoin system does not have a central governance system. Rather, the platform and its operations are run by nodes that are spread across the globe.
In total, there are 21 million Bitcoins capable of existing on the blockchain. However, they can be subdivided into smaller units and the smallest unit of Bitcoin is 0.00000001 units (commonly referred to as a Satoshi).
The following are the primary methods for making money with Bitcoin.
Using Pay-To-Click Sites that Pay in Bitcoin
There are websites that pay their users with Bitcoins for visiting specific sites and viewing them. Although there are a number of these sites, the most popular is Ads4BTC. This website allows people to view ads for 5, 10, or 20 seconds and get paid in Bitcoin.
If you take a closer look Ads4BTC, a 5-second ad earns 90 Satoshis, a 10 seconds ad yields about 300 satoshis, and a 20 seconds ad will get you about 900 Satoshis. Also, at certain times, the site runs bonuses which pay even more.
Micro Jobs that Pay in Bitcoin
This is one of the main methods on how to make money with Bitcoin.These are websites that pay people in Bitcoin for completing small tasks. A good example is Coinworker. Tasks may include testing features such as plugins or simply retweeting posts on social media.
Although the payments using this method are small, the earnings are higher compared to using pay-to-click sites. Here is a snapshot of CoinWorker platform.
Bitcoin Affiliate Marketing
Affiliate marketing is a method of marketing where a user gets paid a commission for all referrals to a business. If your social media profile or business has a significant following, getting referrals to a Bitcoin business could possibly earn you a significant commission paid out in Bitcoin.
To increase your income when using Bitcoin affiliate marketing, it is important to negotiate for higher commission rates. Also, remember to continue using strategies such as regularly reviewing crypto-related products, which will help portray you as a leader in the industry.
How to Make Money with Bitcoin Mining
Mining is the process used to create new coins on most cryptocurrency networks. In Bitcoin, mining utilizes a proof of work (PoW) algorithm that requires computers to use their processing power to solve complex puzzles for a chance to confirm new blocks and earn a reward.
In the early years of Bitcoin, mining was relatively easy. Today, however, mining Bitcoin requires a lot of processing power and cannot be done without specialized ASIC (Application specific integrated circuits) such as Dragonmint 16T and Antminer R4.
For people who find the ASICs equipment too expensive, or the mining process too complicated, a better option is to join mining pools such as Genesis Mining and AntPool. These are companies that have invested in mining equipment and lease the mining power to their customers.
How to Make Money with Bitcoin Trading
The best method on how to make money with Bitcoin is trading on the markets. However, this requires ample knowledge about the markets, much the same way as with trading on the forex markets. So, how do you make money trading Bitcoin? Here is the process.
- Identify an exchange that lists Bitcoin: This is the first stage, and perhaps the most important. It is advisable to select the markets that provide the most trading pairs, leverage, and diverse orders. Good examples to consider include CEX.io and Coinbase because they also allow users to make deposits with credit cards, as well as wire transfers.
- Register for a crypto trading account and verify it: After selecting your preferred exchange, you are required to register for an account and verify it with personal information such as a phone number, proof of location, and your date of birth. The verification info may vary depending on the selected exchange.
- Deposit trading funds and buy Bitcoin: Before starting to trade, you will be required to deposit the funds that you wish to trade. Note that a trader is required to convert fiat currencies to cryptocurrencies because most exchanges only trade digital assets.
- Pair Bitcoin and start selling or buying depending on the market conditions: With your funds in the trading account, you are ready to go. Identify a trading pair, such as BTC/ETH or BTC/USD, depending on your personal preference and start trading.
When you click the “trade” icon, a page showing the movement of the selected pair will appear in the window. To sell, you only need to hit the tab on the left side or hit the one on the right side to buy. (Note that this model is borrowed largely from CEX.io).
Here is a video to help you with trading Bitcoins.
The Final Take
When you set out looking for a strategy on how to make money with Bitcoin, it is important to understand that the amount you can make depends largely on the complexity of the method you choose. Trading is considered the best method to earn money with Bitcoin because there are no limitations or programming technicalities involved and it is similar to trading fiat currencies in many ways. However, you first need to understand the Bitcoin markets, and their ever-changing dynamics to be able to make the right moves to optimize your profits.