Bitcoin, a valuable, decentralized digital asset, is among the most popular cryptos. PoW (Proof of Work) consensus protects the crypto and its ledger. Bitcoin is open source and offers anonymity. The fact that this crypto has a limited supply raises its value. Bitcoin is censorship-resistant, which enables transactions that cannot be reversed, altered, or blocked by any individual, institution, or government.
Investing in Bitcoin means you can use it anonymously without the government spying. There are various means to earn with Bitcoin. Discussed below are four ways to make money with Bitcoin.
Bitcoin trading is all about buying and selling the crypto through a cryptocurrency exchange to make a profit. Trading leverages short-term opportunities. Since the crypto market is unpredictable, Bitcoin prices can fall and rise drastically within a short period. To succeed at trading, you should have solid analytical and technical skills. To begin Bitcoin trading, open a trading account with a trusted crypto exchange and fund it.
Upon funding your account, decide on the number of Bitcoins to purchase, then select a trading strategy and start trading. Keep an eye on exchange rates (depending on your local currency), including BTC to USD, to determine how much you can earn for each Bitcoin unit.
Bitcoin mining involves generating new coins and verifying new transactions. It’s a profitable way to make money using Bitcoin, provided your system is capable and can join a mining pool. The crypto’s profitability is influenced by several factors, including:
- Electricity cost for powering the mining machines
- Mining machine availability and price
- Mining difficulty
- Mining pool fees
- Block rewards
- Hash rate
- Bitcoin’s market price
Besides validating ongoing transactions and bringing new digital coins into circulation, Bitcoin mining checks double-check and counterfeiting while helping maintain a centralized ledger. As a miner, you verify transaction blocks by solving encryption issues on the blockchain then get rewarded using Bitcoin. Note that Bitcoin mining isn’t a quick get-rich scheme.
Also, you must be well-equipped and technically skilled to handle the Bitcoin mining complex process. This venture requires significant investments in cost equipment, reliable electricity and internet, and high algorithmic power.
Bitcoin lending involves depositing BTC to a platform, including DeFi (decentralized finance) or CeFi (centralized finance), for a preset period in exchange for monthly, weekly, or daily interest. The process is controlled by a platform that links borrowers and lenders. As a lender, you supply crypto to a high-interest lending account where borrowers apply for loans and repay with interest over a predetermined period.
The interest the borrowers are charged varies from one platform to another and is paid back to you as a reward. You can turn your BTC into a profitable asset that earns you dividends over time through Bitcoin lending.
4. Join a Bitcoin affiliate program
Bitcoin affiliate programs provide you with a way to earn passive income for a long time by sharing an affiliate code or link on social media, communities, or crypto forums and encouraging your audience to buy Bitcoin or take a specific action. Once your audience takes the action they’re expected to, you earn a commission. You can also create content to promote Bitcoin affiliate programs. When looking for a Bitcoin affiliate program, consider:
- Security measures
- Commission rates
- Payment methods
Bitcoin investing can earn you money in multiple ways. Familiarize yourself with the different ways to make money with Bitcoin to choose the most appropriate.