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14 Practical Ways to Make Money with Bitcoin

By: Luke Britton

 

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Online currency is economic wave of the future; all forms of online money are on the rise. However, there is one that remains the favourite, and that is Bitcoin.

Bitcoin has seen a meteoric rise of late, yet it will be 12 years old in 2021. It is a popular digital currency, has aged pretty well, and is still growing substantially. Significantly, so have the money-making opportunities it brings along with itself.

The ways to earn money through bitcoin are many, but quite confusing, too. For a newcomer, it can be incredibly frustrating figuring out the nuances of bitcoin. But the Bitcoin revolution is certainly here to stay, so here are some of the money-making methods using bitcoin.

Read more on Bitcoin statistics

  1. The old but gold method of mining
  • A relatively straightforward process where you need to solve complex mathematical problems. Once you deduce the code, the reward is a lot of bitcoin. This method requires some high-end computing power and skills.
  • It was initially not very complicated, but now, it is quite challenging due to the competition. To start mining, you need a high-end setup that will set you back by a lot of money.
  • A mining pool is a better and useful way to get some Bitcoin. Here a group of people pool their resources together and divide earnings. Mining cloud is of the same concept. But the only exception is that all resources are shared through the cloud as all transactions get evenly split.
  • To increase profits, you need to invest more in setup, and the cycle continues. The thing to note is that the profit through mining has gone down over the years.
  • Many crypto enthusiasts opt for the cloud mining option because it does not require a high initial investment. All you need to do is choose a cloud mining service provider, select a plan, and wait for your earnings. Needless to say, you must choose a trusted and reputable provider that will not leave you high and dry.
  1. The simple process of buying and holding onto Bitcoin
  • It is by and large the simplest way to begin accumulating Bitcoin. For its ease, it is the recommended way for beginners in the Bitcoin world.
  • Begin by getting a good Bitcoin wallet and then proceed to buy the BTC. The next step is simple enough as you have to sit and wait for values to tip. This process is somewhat based on luck as the spike may not be for years to come or just in a matter of days.
  • The popular acronym HODL – Hold on for Dear Life – came to be because of this process of waiting for a rise. Hence as is already apparent, the process of buying and waiting is a long game.
  1. Trading for those bent on spend
  • If the waiting game is not your forte, you can try your hand at trading. The trading of BTC is taking advantage of its unstable or volatile nature. This method needs practice knowledge and not to mention street smarts.
  • There are various styles present when it comes to BTC trading, and three prominent ones are –
  • Day Trading: Short and quick trade option through which you can get less but swift gains. Such traders do not hold positions overnight, so it requires careful analysis, such that they try to get hold of any small money-making occasion. Once the day is over, the cumulative profit for these kinds of trades can be relatively high.
  • Swing Trade option: This is a sort of middle line in terms of the length of trade. Consider it halfway between the long term HODLing and the short term day trades. Like the HODL format, traders buy and wait for values to go up; the wait duration is less.
  • Arbitrage: The style is the same as the above two mentioned ones. The significant difference is that such traders work across different platforms that they may buy from a particular platform but sell it at another place to gain maximum profits.
  • All the trading ways demand a lot of practice and most don’t succeed on the first try. If you plan on this method, do appropriate research and chart your strategy.
  1. Affiliate marketing has many advantages too
  • A strategy that many companies use to ring in new customers is the use of affiliate marketing. Through this marketing, existing users bring in new members (friends) lured by incentives.
  • There are many incentives in the market, but all differ – so carefully study and choose.
  1. Bitcoin as a mode of payment
  • As the BTC continues to mature, many companies now accept BTC as payment, so why should you stay behind?
  • Enable your business to accept payment via BTC as it will increase your global reach. Along with that, payments will be way more secure and faster too.
  • Set up signs if you have a physical store and put out banners on your site in online dealings.
  • You can easily use the payment received via BTC to invest further, and they might grow even more.
  1. Bitcoin faucets
  • If you are among the few who like ads and regularly do surveys, why not earn some money that way, too? Look up the unique and simple idea of Bitcoin faucets.
  • It is a reward mechanism where one receives factional BTC to do such simple tasks. Many of the functions and things to do are, in fact, in the form of minigames.
  1. Getting a tip in the form of Bitcoin
  • Helping someone out is a very fulfilling and also rewarding thing that one can do. The app Bitfortip takes that a step by rewarding Bitcoins if you help someone out online. The help can be of any kind, such as in the form of answers to questions or helping someone buy something.
  • Another option is for streamers who stream games as they can easily accept tips via BTC.
  1. There are a lot of Micro jobs and also many Pay-To-Click websites
  • Many websites are willing to pay you in BTC if you click on an advert or a link leading to adverts. Of course, this method requires a lot of tedious work to get significant gains but still a good start. There are several excellent sites to earn some quick bucks too.
  • Similarly, some websites pay small amounts to do particular tasks. These may range from watching a video to taking a survey. A good site for such earning is Microworkers.
  1. Writing about Bitcoin and its related topics
  • Cryptocurrency, by and large, is still in its novice stages. There are only a handful of people who know about it well and can write on it.
  • If you have good writing skills, try your hand at places like CryptoCurrency News. Blockchain News is another site on the lookout for good writers on BTC. They pay relatively well in Bitcoins for such writeups.
  1. There are several forum campaigns on Bitcointalk
  • Bitcointalk is a forum set up by Satoshi Nakamoto himself and is quite old. If you follow it regularly and gain some mileage in the community, you can earn it too. After some regular posting, your posts may be a sponsor by the forum. From then, get paid for posting and answering, also.
  1. Lending Bitcoin is also an excellent way to earn more
  • Bitcoin transactions are way faster as they essentially decentralize in nature that no authority validation ever requires for BTC transactions.
  • Due to this fact, you can easily lend out your Bitcoin at a particular interest rate.
  • One can use this in conjunction with HOLDing as you use the wait time to earn more BTC.
  • Unchained Capital and BTCpop are good sites if one is considering lending out BTC.
  1. Binary Trading
  • Binary trading is an age-old practice, and so it naturally found its way into the BTC world.
  • Here a trader has to purchase any particular option along with a time of expiration. “In for the money” or “out of the money” are the only two ways available to the trader.
  • Let’s understand it via an example, where the price of BTC is 2000 dollars at 11 AM. You choose whether the price will be lower or higher before 5 PM. If you choose higher and it happens, you earn a certain amount. However, if the opposite happens, your investment is lost. If you choose lower and that happens, you gain the payout as per the option.
  1. Become a master node
  • If you handle a master node, you have to keep a check on the block-chain all the time diligently. Masternodes are always functioning much the same as Bitcoin’s full nodes.
  • They have to run a lot of tasks continuously, so they are highly paid for their tedious work.
  1. Bug Bounties
  • Many companies offer handsome rewards if you find bugs and shortcomings in systems. Essentially you have to find out vulnerabilities in their software and systems. There are a lot of Bitcoin exchanges willing to shell out BTC to better their ecosystems.

Now armed with this knowledge on how to earn Bitcoin, go ahead and try your hand at trading for yourself. Bitcoin is here to stay, so join the curve and get on that earning bandwagon.

Editor’s Note: Any financial information or opinions contained in this article are the author’s own and do not represent endorsement or support of any products or services by SmallBizClub.com.

Published: January 16, 2021
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