Cryptocurrency is changing the face and pace of the modern economy. Many investors are jumping into the cryptocurrency bandwagon and there is every reason to get so excited about this digital currency.
There are tons of ways to make money with bitcoin, but how exactly do you earn money from it? The idea is said to be very ambiguous, but bitcoin actually is a way to decentralize and simplify the complexity of how currencies work in the modern pathways. Earning money out of bitcoin can be a walk in the park if you know how to dance to the rise and fall of bitcoin prices. If you want to find out more about bitcoin, then check this article.
Here are a multitude of ways on how to make money with bitcoin:
- Bitcoin Mining. This is by far the original and most popular method of making money with bitcoin. If fiat money is created by banks, bitcoin is generated thru mining. Miners are responsible for solving very complex mathematical equations using high-end computers. When you discover a new block or successfully solve difficult math problems, you as a miner are awarded bitcoins and you help secure the blockchain network at the same time. The more miners there are, the more difficult the level becomes. You also have to beat other miners to the game of 1 in 7 trillion probability or odds of getting that proof of work.
Years back, you would do fine using a simple computer with cryptocurrency mining, but now, you would need a specialized computer designed specifically for mining bitcoins to meet your need of processing power to generate more bitcoins. This means you have to put in more investment than you normally would. Mining pools are also now more feasible for mining bitcoins faster than usual.
There are, of course, risks involved with bitcoin mining, similar to all other investments. Right now, China, the largest bitcoin mining country in the world (second to Georgia), can vouch as to how profitable bitcoin mining is as it mines over 60% of bitcoins in the world.
However, you should have the capital to cope with the processing requirement of hardcore bitcoin mining. Yes, it’s generally expensive to mine bitcoins nowadays, but there are companies or even groups of miners who collaborate and get around with the system.
- Buying and Selling Bitcoins. As most investors would tell you, it’s all about thinking long term. Also, timing is everything. If you study the statistical data and value of bitcoin prices, you’d be able to predict and know when it’s the season or right time to buy bitcoins.
To buy and sell bitcoin, you would need a cryptocurrency exchange, such as Coinbase, Kraken, or Bitfinex, and a digital wallet for storage. Once you have your account and bank details set up, you are now ready to roll. You can buy and sell bitcoins upon verification of your account.
With buying and selling bitcoins, you need to look at the current market prices and check on the market prices per hour or day. You have to strike while the iron is hot. Timing is everything, so buy when the price is low and hold it long term, like five years or so. Then, sell once the price is high and you profit from your bitcoins.
- Day Trading. As opposed to doing long-term investments with bitcoin, this method shoots for small- and short-term investments, judging mainly on trends or fluctuations on the market. You can trade bitcoins against the US dollar or any other fiat currencies. With day trading, you buy and sell on the same day and take advantage of the volatility of the cryptocurrency market.
- Accept Bitcoin Payments. You should consider making bitcoin as one of your payment options if you have an e-commerce website or a physical store. Considering that many businesses are now using bitcoins for payments, your customers would greatly appreciate having extensive options to choose from, especially now that there are many people worldwide using bitcoins and other digital currencies as a form of payment.
You provide flexibility and convenience in payments with the bitcoin option, which will help you earn in bitcoins, which you can convert into fiat money right away, and will help you expand your target market to bitcoin users and investors.
- Blog about Bitcoin. If you’re a bitcoin guru or you’ve done extensive research on the subject, then why not blog about it? Bitcoin and cryptocurrencies, in general, are a hot item, so this should be an awesome topic to blog about. Well, anything about money or currency will certainly catch any reader’s attention.
Blogging about bitcoin will help you attract the attention of businesses or blockchain owners that will pay for blogging about bitcoin in relation to their products and services. You won’t run out of ideas on this one, and people would definitely want to get in the loop of things when it comes to digital currencies. Blogging about bitcoin will definitely beef up your wallet in no time.
- Use Trading Bots. If you’re new on bitcoin investments and trading, then you might want to consider the idea of using trading bots. This is basically automated and works via intelligent and calculated prediction in line with data analysis of how bitcoin is performing on the market.
The great thing about using a trading bot is that you get the freedom to set the perimeters of your trading strategy such as the take-profit and stop-loss targets; you also get to automatically trade 24/7 even if you’re only on your mobile phone. It’s a no-brainer, so you basically let the bot do its job while you relax, do your thing, and watch your profit roll.
Cryptocurrencies are constantly evolving. The ways to make money with bitcoins are limitless. You have tons of options to choose from. You just have to know what is right for you and your budget. Research and join groups or forums online where you can meet fellow bitcoin enthusiasts. Who knows for sure? Bitcoin may or may not be on the mainstream in the future, but it’s all a matter of betting on the digital currency that has the best technological backup that will stand the economies of the future.