Want to know how to make money with Bitcoin? You couldn’t have chosen a better cryptocurrency. Bitcoin isn’t just the oldest (now in its 11th year of existence) digital coin, but it is also the largest.
Historically, Bitcoin investors have experienced massive surges in the value of the digital currency, making huge gains within a short time.
That’s despite the volatility that defines the cryptocurrency market. At the time of writing this article, the value of Bitcoin was $10,239 on currency.com, up from $9,356 in February. For a digital coin that’s always on the forward match, the future couldn’t be brighter than it looks.
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Can I Make Money with Bitcoin?
Yes! You can make money with Bitcoin as long as you know how to go about it. Early adopters of Bitcoin made a lot of money during the peaks of 2011, 2013, and 2017. However, you don’t have to wait for the digital coin to reach another peak to benefit.
Today, money markets offer Bitcoin and other cryptocurrencies as part of their currency pairs. That presents multiple money-making opportunities for Bitcoin traders.
As its popularity grows, the value of Bitcoin can only keep rising. Also, Bitcoins have a limited supply, compared to the other cryptocurrencies. Because of that, its increasing demand across the world can only result in higher prices – and improved gains for investors. Why shouldn’t you be one of them?
Therefore, the right time to invest in Bitcoin is now – if the prediction of a $50,000 peak is anything to go by. When the bull-run finally happens, you will be one of the primary beneficiaries.
Besides, experts say it is not a question of “if” but “when” the next Bitcoin bubble will happen. So, you have to join the Bitcoin market and make money daily as you get ready for it.
How to Make Money with Bitcoin: 19 Methods
You can make money with Bitcoin in several ways, depending on your technical skills. If Bitcoin mining doesn’t work for you, then you can pick another method. Let’s delve deeper into 19 ways to make money with Bitcoin.
1. HODL Bitcoin – Bitcoin Investing
To HODL is to buy and hold onto the cryptocurrency instead of selling it immediately. If you choose that route, then you are a HODLer. And, HODL Bitcoin is the term the cryptocurrency community uses to refer to that form of investing.
You can buy Bitcoin with a broker like eToro or an exchange like CEX.io.
How does it work? Well, you buy Bitcoin, hold onto it, and sell when its value is substantially high. That means you should exercise patience at the highest levels possible. Also, you should be ready to ride the wave of emotions that comes when the value of Bitcoin goes down.
You can also trade Bitcoin as a contract of difference (CFD), which means investing in the cryptocurrency without buying or owning it. The volatility of Bitcoin makes it perfect for investors looking to make money by hedging on risk. Thus, you can speculate on whether the value of Bitcoin shall rise or fall and make money in the process.
It works by a buyer and seller entering into a contract. When the contract expires, the seller pays the buyer when there is a positive change in the value of Bitcoin. An unfavorable change means the buyer has to pay the seller. Due to its speculative nature, Bitcoin CFD trading may result in gains or losses.
Brokers that offers offers Bitcoin CFD Trading are eToro and AxiTrader. At eToro you can either buy Bitcoin or trade Bitcoin through CFDs. AxiTrader does only offer Bitcoin CFD trading at the moment.
Like CFD trading, Bitcoin futures allows traders to make money from Bitcoin without owning it. Investors can speculate on the future price of Bitcoin by trading the cryptocurrency via exchanges like Kraken or Coinbase. It works the same way as the stock exchange, where traders deposit money to trade.
As such, you are free to choose when to buy or sell your stake. You will pay a small fee to the exchange to access its services. However, you have to start by opening an account with a reputable Bitcoin Exchange. This method is also excellent for Bitcoin HODLers looking to insure their investment against future volatility of the cryptocurrency.
4. Binary Trading with Bitcoin
If you want to know how to make money with Bitcoin, then you should try Binary trading. In this case, Bitcoin Binary Options refer to speculating on the rise or fall of the value of the digital coin by a given amount. If your prediction is correct, you will earn from the trade.
However, making the wrong prediction leads to automatic losses. Generally, trading in Bitcoin binary options is a safe way of making money. First, the risk is known and limited. Second, it has high and fast returns. And, third, it is simple and easy to understand. However, you need to do your homework on the provider so that you don’t fall prey to scamming.
5. Bitcoin Arbitrage
To make money with Bitcoin, you don’t have to trade on only one exchange. Bitcoin arbitrage enables you to buy Bitcoins from one exchange and sell them on another at a higher price. It involves taking advantage of price differences on two exchanges. Thus, you buy Bitcoins at a lower price and sell it at a higher price, making a profit in the process.
To succeed in Bitcoin arbitrage, you need to be fast in executing your trades. That’s because the price differences (spreads) on two exchanges may exist only for a few seconds. Any delay would result in losses. That may mean holding Bitcoins on two parallel exchanges at the same time. Buying from one before selling will create some delay time, which you don’t want to risk.
6. Bitcoin Mining
Bitcoin mining is the traditional way of making money with Bitcoin. It involves solving complex mathematical problems online. For that, you need a powerful computer capable of cracking challenging cryptographic puzzles. Bitcoin mining consists of adding new blocks of transactions to the blockchain.
Because of that, you get a reward in terms of Bitcoins. In the beginning, mining bitcoin was a lucrative adventure, mainly because of minimal competition. Today, it is more challenging and competitive. Besides, you need powerful computers that consume lots of electricity.
However, if you can afford the cost of power, then it should be the way you make money with Bitcoin. Once you get your Bitcoins, you can sell them or keep them for use in the future.
7. Bitcoin Mining Pools
Mining pools are groups of miners working together to solve cryptographic puzzles. They combine hash power so that it is easier for them to mine blocks. Once they get a block, they share it one proportionally, according to the hash power they had contributed. The shared cryptocurrencies go into a Bitcoin wallet for safe-keeping.
Apart from the wallet, you also need mining software to use in the process. Average Bitcoin miners find this method very convenient. Pool owners provide services to different miners and are in control of the entire process. However, a miner can choose the other pool owner, depending on his or her needs at a particular time.
8. Bitcoin Cloud Mining
Bitcoin cloud mining is just that – mining the digital currency on cloud-based platforms. In essence, you don’t need your equipment to do it. Apart from saving installation costs, you do not have to worry about the maintenance costs of the mining gear. However, when looking for a cloud mining provider, you have to consider the cost.
If affordable, it will result in the highest profits for a small investment. Even so, Bitcoin cloud mining can be frustrating since you are not free to participate in pool mining. If all you want is to mine bitcoins without buying expensive equipment, then it is the best method.
Finally, ensure you cushion yourself from possible loss by researching the platform beforehand. Otherwise, you will rue the audacity of Bitcoin scammers.
9. Make Money Being a Bitcoin Masternode
A master node is a Bitcoin full-node or a wallet keeping the blockchain’s full copy in real-time. As such, the master node is continuously running on big servers. Having one of these allows you to earn a passive income. An excellent example of a Bitcoin master node is the platform called Dash.
Masternodes work in two ways – accelerating transaction verification and placing a vote on a project. As a newbie, you require a substantial amount of Bitcoins to establish a master node, and that may mean spending a fortune. For instance, obtaining a Dash master node will cost you $100,000 or more. That’s for an expected return on investment (ROI) of less than 7 percent.
However, if you hold onto your investment for longer, you could earn millions annually.
10. Bitcoin Network Marketing
If you want to know how to make money with Bitcoin, then you should try network marketing. In the cryptocurrency market, this method comes naturally since you do not need intermediaries to do it. Because of that, you are unlikely to get scammed.
Don’t confuse this with Bitcoin trading. Instead, Bitcoin acts as a currency in network marketing. Multi-Level Marketing (MLM) companies use Bitcoins instead of Fiat currencies to pay their members, vendors, and employees. So, you can participate in that as a member or a vendor. You buy Bitcoins by investing a given sum and get commission by introducing new members.
Some MLMs even sell products at a fee and recruit members periodically. The major drawback of Bitcoin network marketing is the extreme volatility of the digital coin, which could lead to more significant losses.
11. Bitcoin Faucets
A Bitcoin faucet is a website that offers free coins in exchange for a particular action. If you open one, then you would be dishing out Bitcoins to visitors to your site. So, how do you make money from that? Most Bitcoin Faucet owners rely on ad revenue. They place a lot of advertisements on the site for visitors to click and enable them to earn income.
Therefore, they give away small amounts of BTC so that they can collect lots of money in terms of clicks on the advertisements. They also make money from affiliate links on the site.
If you are not a Faucet owner, you can still make money by going to existing sites. As a visitor, you can earn Bitcoins by referring your friends and family to the site. However, the money isn’t as much as that the faucet owner makes.
12. Accepting Bitcoin as Payment
If you operate an online business, then you should consider accepting payment in terms of Bitcoins. You may set a favorable exchange rate against fiat currencies to make a more significant profit. Once you get the Bitcoins, you can invest them in making money. For instance, you could become a HODLer waiting to make a kill when you sell the cryptocurrency.
13. Bitcoin Lending
Instead of sitting on your Bitcoins, you could lend them out to those in need. All you need is to join a Bitcoin lending platform like Celsius. With that, you will issue Bitcoin loans and get back your money with interest. Luckily, several reliable platforms exist where you can lend cryptocurrency at 8 to 15 percent interest.
Besides, you don’t have to go looking for borrowers or following them up to repay their loans. That’s because the platforms ensure they do all of that on your behalf. After investing money in these platforms, sit back and wait to earn a passive income.
However, the lack of centralization and regulation means your deposits on these platforms lack protection.
Needless to say, that you could lose your entire investment in it.
As an affiliate, you could make a lot of money by redirecting traffic to a Bitcoin website. Once you identify an appropriate website, find out how to join their affiliate marketing program. In that case, you will promote their products for free and get payment when you refer a paying customer.
However, you need a website to get started. The company will give you an affiliate link, which you will add to your website. When a customer clicks on the link and buys the company’s products, you will receive a commission.
Even better, several cryptocurrency companies have lucrative affiliate programs through which you can earn substantial amounts of money.
The emergence of sites that pay people for completing simple tasks is a phenomenon that continues to confound many. Some of the sites require you to complete a survey or watch a YouTube video to get paid. While some of these sites pay in fiat currency, others utilize Bitcoins to reward their micro-workers.
For example, Cloudfactory and Microworkers pay using fiat currency. However, Bitcoinget pays a fraction of Bitcoin to those who perform micro-jobs. Another player in that market is Cointasker, even though it has lower rates.
In addition to topical discussions, you could run a signature campaign. For example, on Bitcointalk, your campaign is flagged as sponsored after consistent posting and gaining substantial authority. Every time you post on the forum, sponsors will pay you for your efforts.
For full members, every post could be worth 0.0003BTC. Now, if you are posting consistently, that could be a great source of income.
17. Bitcoin Casino Gambling
Did you know that you can make money with Bitcoin through gambling? Several Bitcoin gambling sites allow you to bet your cryptocurrency in several ways. Instead of using fiat currency, you place a bet in Bitcoins.
Most of the sites offer spread betting, online lotteries, sports betting, gambling games, and traditional casino games. When you place a bet and win, you get paid in the form of Bitcoins. However, you could lose your bet if the game doesn’t go your way. In that case, you have to accept the results and move on.
The most significant advantage of Bitcoin betting is that it offers enormous bonuses just for joining. While at it, ensure you find a trustworthy site to avoid getting scammed. Check out a site like Best10BitcoinCasinos.com to find the safest casino sites.
18. Pay-To-Click Websites
Pay-to-click websites are comparable to Bitcoin faucets even though they operate differently. Instead of offering free Bitcoins, they pay you to click or watch an ad. It is an effortless way to way money with Bitcoin, especially if you can handle many ads at the same time.
But that doesn’t mean you get the money for just sitting idle. For you to make a substantial amount of money, you need to click on lots of ads. That can be tedious by any standards. For example, you will get 0.000001BTC or 100 Satoshis for clicking an advertisement on BTC4ADS. Similarly, Coinadder offers 25 Satoshis for every click you make.
So, to make 1BTC, you should click at least 1 million ads on BTC4ADS and even more on Coinadder.
19. Make Money as Bitcoin Writer
Are you a good writer? If so, then you should think of writing about Bitcoin and other cryptocurrencies. As a new and popular niche, cryptocurrency has a lot of potentials. Yet, very few writers can write a good copy of digital currency content.
So, if you understand the niche and write well, this could be an excellent way for you to make some money. For instance, you could start your website and create Bitcoin-related content. When people visit your site and click on ads, you will earn some cash.
Also, you could include affiliate links in your content to earn commissions by referring paying clients to other websites.
Alternatively, you could write for other websites and organizations. As a freelancer, you can find work on Fiverr, Legiit, and so on. If you are an above-average writer, you could also seek opportunities with significant news websites like CNN. So, writing about Bitcoin is a great way to utilize your talent and make some money.
Stay Away from Bitcoin Scams
Like anything else that happens online, buying and selling Bitcoin can expose you to various scams. You can stay away from Bitcoin scams if you know what they are. For example, many people get scammed by putting their money in fake crypto investment platforms such as BitKRK.
In 2017, investors lost millions of dollars to the forum before the authorities discovered it in South Korea.
Another standard scam involves Bitcoin cloud mining. As such, many newbie investors have fallen prey to fake cloud mining sites. That’s why we keep insisting that you check that a platform is genuine before investing your money in it. Always watch out for platforms that make seemingly lofty promises.
Beware of malware programs targeting Bitcoin wallets. When they hit you, they will wipe out all your Bitcoin balance, leaving you broke. However, you can protect yourself by installing a strong antivirus and keeping the system firewall updated.
The Future of Making Profits from Bitcoin
The future of making profits from Bitcoin remains as bright as ever. Bitcoin mining will become more complicated, making the digital coin scarce. With increasing demand, its value will keep rising. Of course, its volatility means Bitcoin could experience periods of huge dips.
However, money-making opportunities from the emerging digital currency can only increase.
Interestingly, miners can only get up to 21 million Bitcoins. So far, 18 million Bitcoins are out there in the market. Therefore, miners are competing for roughly 3 million Bitcoins. In economics, scarcity can only mean one thing – the ever-increasing value of Bitcoin.
But you don’t have to stick to Bitcoin mining when you can make a profit in other ways, do you?
Now you know how to make money with Bitcoin. And, you don’t need to be an expert cryptographer to gain profit in this market. Why would that worry you when seemingly mundane tasks like clicking ads can bring in the cash?
In short, you can have your fair share of Bitcoin if you are ready to do the work. Start now!
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