How Can I Make Money With Bitcoin?

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How Can I Make Money With Bitcoin?

The constantly developing cryptocurrency industry is leading to new opportunities for you to make money with Bitcoin. Often likened to the goldrush which hit California in the nineteenth century, Bitcoin has generated some great returns for the more astute amongst its adopters. Today, there are many creative ways to make money with Bitcoin, and you can start right away.

Crypto Mining

Mining was the very first way which allowed people to get their hands on Bitcoin. Without going into the details of cryptocurrency mining, in order to successfully create new coins, you need to invest in dedicated equipment and ensure that you can cover the electricity consumption costs. Once you go over these initial hurdles and start producing Bitcoin, you can easily sell them by opening an account with Binance or Bitpanda.

Bitcoin Faucets

Faucets are simply websites which ask viewers to watch advertisements and reward them with cryptocurrency. While each Bitcoin faucet has its own rules and conditions, they generally operate along these lines, awarding you with small amounts of Bitcoin or other currencies directly into your wallet.

Bitcoin Trading

The majority of those who make money with Bitcoin normally do it through trading. In its most basic, trading cryptocurrency involves buying when the price is low and turning a profit by selling when the price is high. However, with cryptocurrency trading attracting professional stock market traders, it is a good idea to do your research and learn to read and understand crypto graphs.

You can start cryptocurrency trading right away, by opening an account with one of the top Bitcoin exchanges, such as Coinbase. Depending on the exchange, you can use debit or credit cards to make payments and instantly receive your digital currency.

Once you have sufficient experience trading cryptocurrencies, you can experiment with higher risk options, such as margin trading and trading Bitcoin CFDs. These options bring with them increased risk, but also more flexibility and leverage in the way you carry out your trades.

Arbitrage

Trading Arbitrage is a very specific type of Bitcoin trading, where you would take advantage of the coin’s price difference across multiple exchanges. If one exchange is trading Bitcoin at $10,000 and another exchange is trading it at $10,050, there’s around $50 to be made by simply buying from one exchange and selling on another. While this is easier said than done, creating the right strategy and being patient could help you turn a meaningful profit over time.

Bitcoin Hard Forks

When a Bitcoin hard fork takes place, once a specified block is created, the blockchain splits into two. Similarly, nodes also split, with some choosing to stay on the original blockchain and others opting to incorporate the protocol of the new one. Apart from creating a new blockchain, hard forks also provide coin owners with free new coins.

When a Bitcoin hard fork takes place, those holding Bitcoin in their wallets are automatically provided with a specific amount of the new blockchain’s coins. This has happened several times in the past, including with the release of  Bitcoin Cash and Bitcoin Gold. As long as the existing coins were held in a wallet which would accept the new coins, users were rewarded simply for owning Bitcoin at the right time. Hard forks continue to take place, and you can benefit if you time your purchase well.

Lending

Fintech companies have been busy revolutionising the industry, allowing individuals to generate a profit in a variety of ways which were, until then, only available to large banks and corporations. Amongst the many innovations, P2P lending has proven to be extremely popular and rewarding to investors. Without requiring massive capital funds, individuals can lend out their fiat currency in exchange for weekly or monthly interest.

A similar mechanism is now also available to you also in the crypto sphere. You can deposit your Bitcoin into special accounts which reward you with interest, sometimes upwards of 4%. The funds you deposit are usually lent out to other traders, such as those trading on margin, and the interest comes from the profits of these trades. The majority of these loans are unsecured, however, platforms have been finding ways to try and guarantee investor’s funds in order to gain an advantage over their competitors.

While Bitcoin lending is still in its infancy, it offers a great opportunity for returns without much effort.

Brokerage

Technology today allows any individual with the right set of skills to become a Bitcoin broker. Through tried and tested P2P trading platforms such as LocalBitcoins you can easily set up your Bitcoin brokerage operation and start turning a profit by facilitating trades for third parties. Before you become a Bitcoin broker you need to understand the basics, but once you have sufficient experience it can prove to be a very lucrative opportunity.

Airdrops

In some ways, airdrops are similar to hard forks, in that you get rewarded by simply owning cryptocurrency. However, airdrops are not splitting a blockchain and they do not contribute towards the creation of a new network. 

There are two types of airdrops, effortless ones and task-based ones. Effortless ones consist of you receiving a number of new coins into your cryptocurrency wallet simply because you own Bitcoin or, depending on the airdrop conditions, another currency. The task-based airdrops normally require you to carry out a minor task, such as Like a social media page or refer a friend.

Airdrops continue to prove themselves as valuable marketing tools, providing users with free coins which they can then use on a platform or sell on an exchange. Nevertheless, they are surprisingly under subscribed, and you will find numerous opportunities, depending on your jurisdiction, to receive free coins. Since not all wallets accept these new coins, you should consider investing in wallets which accept a high number, such as the Ledger Nano X or the Ledger Nano S.

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