There are huge groups of people who "invest" into Bitcoin
There are hundreds of cryptocurrencies available but the most well-known one is Bitcoin.
It is a type of digital currency which can be exchanged in a similar way to normal currency.
But while most cryptocurrencies are not particularly easy to spend, more retailers and businesses are accepting Bitcoin.
The price of Bitcoin continuously fluctuates. As a result, many people invest in it in a bid to turn a profit. However, as more people invest in Bitcoin, the higher its price goes.
Its price surged to at least $44,000 on February 8, 2021, when Tesla announced it had purchased $1.5 billion worth of Bitcoin.
The company said it bought the cryptocurrency for “more flexibility to further diversify and maximise returns on our cash”.
Tesla also said it will start accepting Bitcoin as payments.
Tesla’s CEO Elon Musk had previously encouraged more people to buy Bitcoin after posting positive messages about it.
As more people invest in Bitcoin, we look at some of the ways to make money with the cryptocurrency.
Buying Bitcoin Directly
It may sound silly but buying Bitcoin is one of the easiest and safest ways to make money with the cryptocurrency.
There are huge groups of people who “invest” into Bitcoin by simply buying it.
While it is an easy method, it does come with risks. So it is advised not to invest money you cannot handle to lose.
When it comes to buying Bitcoin, it is best to analyse the data and statistics on when it is the best time to invest.
In most cases, people invest in Bitcoin for the short-term and it is usually smaller amounts. This is because if their investment fails, they can simply move on to the next time frame.
A benefit of buying Bitcoin is that investors will get the full amount on their return.
But the success of your investment all depends on the amount of research you’ve done beforehand.
Accepting Payments in Bitcoin
Accepting payments in the cryptocurrency is another way to make money, especially if you are an aspiring entrepreneur.
Obviously, research is vital when it comes to making a profit, otherwise, you will have no idea what direction you’re going in and that could lead to major financial loss.
For this method to be successful, you should:
Think of a Skill
Those wanting to take this moneymaking method should think of a skill they’re good at and that could be anything.
Pick the strongest qualities and think of ways they could be monetised.
Make a Cryptocurrency Wallet
A cryptocurrency wallet holds your cryptocurrencies safe and is ready to use, similar to a wallet for physical money.
Some wallets include Ledger Nano S and Trezor Model T. These are some of the most secure ones available, reducing the likelihood of cryptocurrency fraud.
One a cryptocurrency wallet has been set up, users will receive a unique digital address, allowing them to send and receive cryptocurrencies.
Find a Way to Charge Customers
A good place to start is to offer services on online forums and marketplaces, stating that only payments in Bitcoin are taken.
Continue with it and it will eventually lead to turning a profit with Bitcoin.
It may even lead some people to want to create a designated website for the same purpose and teach others how to make money with Bitcoin.
One of the most well-known ways on how to profit from Bitcoin is mining.
There are two forms of mining – personal mining and cloud mining.
Personal mining might not be the best way to make money with Bitcoin, given that there is a lot of demand for it, yet less supply.
However, cloud mining has become very popular and it is great because there is no need for hardware or software.
People wanting to take this method just have to pay a one-time fee for a miner.
Usually, you will receive your earnings at the end of every month. The amount is based on your chosen plan and the ‘power and maintenance fee’ that the mining company charges.
Cryptocurrency mining is popular when making money with Bitcoin, however, it does require knowledge in the field. It is also becoming increasingly difficult to mine Bitcoin as prices surge and as more people try to mine it.
Nevertheless, the results are worth the effort.
Investing in Bitcoin is different from buying it directly.
There are different methods like investing in startups, companies, stocks, or even blockchain development itself.
Blockchain-based startups are very popular when it comes to investing in Bitcoin. It is best to do some research and look for upcoming startups.
If you invest in the right one while it is still in its early days of infancy, you might make a significant profit.
Companies that deal with Bitcoin are also a good option for investments.
You will have to analyse their information and if their overall view seems appealing, it might be an idea to invest in their projects or the company itself.
However, you should be careful with investments, especially if it involves cryptocurrencies.
Always research the companies or stocks you plan to invest in.
A lot of Bitcoin investors are getting into day trading or technical analysis.
This is where you look at a specific chart and attempt to trade based on what the chart has done in the past and predict what it is going to do in the future.
There are two ways it can work:
What you have previously done affects how you approach future decisions.
For example, many traders tend to focus on the price at which they bought an asset. If it declines, they want to sell in order to break even.
Some traders identify trends and chart patterns which are common and act accordingly.
If a sufficient number of participants follow the same method, it is expected that these chart patterns will follow the expected outcome and that the trend will be more likely to be sustained by more and more participants joining the trend.
However, one flaw is that those with the most information are more likely to make a profit.
Given that the crypto market is still in a grey patch, it is most likely that investment banks and financial parties will have access to lots of information.
It is possible to make money this way but for most people, it is a riskier way to invest Bitcoin.
Micro earnings are a decent way to make money from Bitcoin, although it will not yield a fortune like other methods potentially can.
Pay to Click (PTC) websites will pay you in Bitcoins to watch adverts.
Other small jobs include watching YouTube videos or completing online surveys.
Micro earning sites reward you with tiny amounts of Bitcoin, also known as Satoshis. One Satoshi is equivalent to 100 millionth of a Bitcoin.
Always read the site’s terms of service before trying this method as it could be against the ad program’s terms of service.
A tip to take is to buy low-cost Android phones and have them run on WiFi 24 hours a day.
The ads will continuously play while you increase earnings. Before trying it out, look at the initial costs of the phones, the electricity to keep them powered and the automation required to run them.
Do everything right and you could earn a little side income.
By lending Bitcoin, it can make money for you instead of making money with it.
Lending it to other people can earn interest on your Bitcoin. Holding Bitcoin will not make any money.
Instead, if you lend them to someone, your Bitcoin will make money for you.
However, there is a risk of losing them. To ensure that does not happen, find a credible lending platform.
Some websites can net an interest rate of up to 15%.
There is potential for a high financial return if all goes well.
Being an affiliate to Bitcoin can lead to large sums of money in return.
Those wanting to take this method have to sign up to a cryptocurrency affiliate program and promote their products for a commission.
Depending on the customers you generate for that particular company, you will receive commissions.
The programs provide a unique link for each user which will track their progress.
For every customer buying through the link, investors will receive a good commission.
If investors have a good network, they can make even more money with the affiliate programs by telling people how to earn Bitcoin.
Social media links just have to be shared while promoting the product.
ICO stands for Initial Coin Offerings and it is one of the riskier ways to make money using Bitcoin.
Similar to crowdfunding, ICO lets entrepreneurs raise funds by creating and selling cryptocurrency without risk capital.
While it has the potential to make a huge return on your investment, it comes with risks.
Those wanting to take this method have to be wary when choosing the right ICO because the wrong one may lead to a more likely chance of fraud.
It may also run the risk of losing money if the ICO coin is not very valuable.
Therefore, only invest if it is worth doing so and only invest in what losses you can afford.
Crypto gaming is a fairly common way to earn Bitcoin. Users have to play games to receive Bitcoin, similar to micro-jobs.
New games will be released and developers need to have more people download and play them in order to grow the game’s popularity.
Subsequently, these games will reward users with Bitcoin.
Users simply have to download these games and play them. After completing the game, they will receive a certain amount of Bitcoin.
This makes for an easy moneymaking method with Bitcoin, however, it is time-consuming and it only offers a small return.
There are various methods of making money with Bitcoin and the preference lie with the person using them.
When getting into Bitcoin, it is natural to be confused.
Whether you know about Bitcoin or not, it is important to do a lot of research on the moneymaking methods as well as the potential outcomes.
A lack of prior research can have huge consequences but the right preparation can lead to huge financial return.