Creating an electronic currency was significantly required in today’s fast-paced world, which gets exchanged through its own payment network. As a result, one such currency was introduced back in 2009, named Bitcoin, as a cryptocurrency.
The creator of cryptocurrency ‘Satoshi Nakamoto’ realized that the world needs an electronic payment gateway based on cryptography. This led him to create a decentralized digital currency that you can buy, sell, and exchange effortlessly without intermediary and government intervention.
With evolving time and rapidly increasing money-making opportunities, numerous people are trying to earn a lot of money with Bitcoin.
Ample investment opportunities are waiting outside your door; you just need to make efforts, recognize, and grab those opportunities.
For a long time, this was a hot topic seen everywhere on the internet, ‘How to Make Money with Bitcoin,’ that’s why we chose this topic to finish the debate about Bitcoin, once and for all. Our team has done vigorous research on Bitcoin and drafted vital information regarding making money with Bitcoin.
How to Make Money with Bitcoin in 2023
Hold your horses! We will also brief you about how to make money with Cryptocurrency.
Bitcoin – Overview
Understanding the real concept of Bitcoin is very easy. It is a computer file stored in a digital wallet app. The Bitcoins can be sent to the other person using your digital wallet and vice-versa (The other person can send Bitcoins to your wallet).
It is not a physical asset, so don’t focus on images displayed on websites as they are simply a hypothetical representation of what digital currency will look like. You can also buy Bitcoin and hold it until its price increases.
All the transactions in Bitcoin are recorded in a public list, known as the Blockchain. It is a decentralized technology facilitating managing and recording transactions. However, Cryptocurrency is a form of payment that uses Blockchain technology.
Cryptocurrency is primarily used to exchange online goods and services that are not controlled by one particular organization or government body. Instead, it is governed and run by the nodes spread worldwide. Furthermore, this digital currency is secured by cryptography which makes it disappointing for hackers as it is impossible to counterfeit the Cryptocurrency.
More than 20 million Bitcoins can exist on the Blockchain, which can be further subdivided into smaller units. The smallest unit of Bitcoin, which is also called a Satoshi, is valued to be at 0.00000001.
Which Cryptocurrency Wins the Battle?
In total, more than 5000 cryptocurrencies are being traded with a total market capitalization worth more than $200 billion. However, the top 3 cryptocurrencies that are considered most powerful include:
- Bitcoin with a market capitalisation of $1,051,179,684,596
- Ethereum with a market capitalisation of $389,488,966,162
- Binance coins with a market capitalisation of $100,665,561,023
Now that you got to know that Bitcoin is the granddaddy of all cryptocurrencies. Moreover, it was the first Cryptocurrency introduced in the market. After its emergence, several other cryptocurrencies have also gained attention, such as Ripple (XRP), Litecoin, Bitcoin Cash, EOS, Chainlink, etc. Another reason for Bitcoin’s worldwide recognition is that numerous people have earned a lot of money with Bitcoin and become filthy rich. Therefore, it kept on gaining worldwide recognition.
The History of Bitcoin
Bitcoin was the first-most Cryptocurrency introduced in 2009 by Satoshi Nakamoto. However, at the time of its emergence, no one was aware of or even heard the term ‘Cryptocurrency.’
Until 2013, Bitcoins were being traded for not more than $10 each. However, soon after 2013, its value peaked at over $200. Well, after 2015, the value of Bitcoin increased immensely. In contrast, it breached the benchmark of $1000 in 2017.
At the beginning of 2018, the price of Bitcoin raised to around $10000. However, soon a few months after, the price dropped down to almost $6000. Many speculations were conducted to make it clear what caused the crash of the peak.
While these were the prices three years back, but you would know the Bitcoin’s price is rising and growing each day if you have checked the price today. The current price of Bitcoin in 2022 is $53,500. Yes, you have heard it right!
The reasons for its appreciation may vary upon external market factors and variables. Many cryptocurrencies have emerged in the past few years, but investing in Bitcoin has proven to be one of the best money-making ways. It has boosted the wealth and has turned many people into a millionaire.
How to Make Money with Bitcoin?
If that’s your question, then the wait is over. We have briefed you about all the basics of Cryptocurrency, and Bitcoin, so now you are ready to get informed about the money-making methods.
Listed below are the most efficient ways that will help you know how to make money with Bitcoin:
It is one of the best methods of earning a lot of money with Bitcoin. One can make great money by solving cryptographic puzzles and adding new blocks to the Bitcoin Blockchain network.
It includes 2 types of Mining:
- Personal Mining- This type of Mining is done individually. Since Bitcoin is a subject of mainstream success, it is considered one of the toughest cryptocurrencies to mine. The supply of Bitcoin is limited compared to its demand. Thus, you may need to struggle to make great profits after identifying the electricity and maintenance prices.
- Cloud Mining- Cloud Mining is opted by most individuals as this process of Mining does not involve any recurring charges or rising electricity bills. You only need to pay a one-time fee for the contract. Moreover, it does not require you to buy any software or hardware. Therefore, it has become a great alternative to personal Mining as you keep receiving your share of the cake.
Your earnings are solely based on the plan you have chosen and the electricity bill raised at the facility where the cloud mining service is based.
The only thing required is the knowledge and proficiency before you dive into the pool and pour your money into a mining company.
Note: Always ensure to verify the credibility of the cloud mining company before investing your hard-earned money.
2. Buy & Hold Bitcoins
Many people believe in simple formulae. For example, buying a commodity when the price is low, holding it until the iron becomes hot (the price increases), and then sell/retain it further. Long-term investors usually follow this approach.
For buying Bitcoins, get a Bitcoin Wallet. Invest, hold (wait for the right time), and sell.
You can invest and buy some Bitcoins if you think the price of Bitcoins will increase in the future as soon as the price surge, sell it, and enjoy the profit. The fact behind this approach is it not like short-term investments; you may need to hold them for long as they are not tied with fancy expectations. However, you should know the right time to sell.
One can also invest in companies/organizations, Blockchain, startups, development, etc., and make money with Bitcoin. But before making research-intensive investments, it is imperative to determine the potential of a company by analyzing market demand, expert opinions, white papers, etc. This way, you might be able to hit a treasure chest.
3. Accept Payments in Bitcoin
Many businesses today have started accepting Bitcoins as payment for providing their goods and services. If other businesses start it, so why not you? Go for it and accept Bitcoins as payment.
Accepting Bitcoins as payment is a straightforward process. For instance, if you are running a physical product business, you can start accepting Bitcoins by simply putting a small sign at your showroom/shop. Whereas, if you are running an online business, use a payment merchant or put a banner on your homepage. Whatever way you choose, integrating Bitcoin into your payment ecosystem opens the world for you.
The best part is it will make your payment secure and expedite the payment process. Moreover, you can receive payments from any part of the world that too hassle-free. All you need is a Bitcoin Wallet to receive bitcoins as your payment. Thus, it eradicates the dependency on a third party for processing payments and also helps you avoid losses.
Also Read: How to Cash Out Bitcoin Easily
4. Earn Bitcoin by becoming an Affiliate
You can earn a lot of money with bitcoin by leveraging social media platforms. You can become an affiliate for Bitcoin or any other cryptocurrency company, promote their products or services, increase their visitors, and earn a commission on each converted sale. The amount of commission is entirely based on increasing the customer base and sales.
You can use your social media followers to influence and convince customers why they should buy that product/service. You can also earn immensely by conducting affiliate programs on telling people how to make money with Cryptocurrency.
The only thing you need to ensure is that you sign up with the credible affiliate program as no one wishes to sell spam products. Another thing to do is share the links and websites on your social media handles while promoting a product or service.
5. Lending Bitcoins
The best part about making and accepting payments in Bitcoins is that you need not require any authorities to validate it. You can process transactions seamlessly without any interruption. So why not offer loans by lending other people Bitcoins at an interest rate.
Think of it this way: when you are not trying to make money with Bitcoin, you are letting Bitcoin make money for you! Isn’t that great?
Many websites help you with your lending services, including Bitbond, Unchained Capital, BTCpop, and many others. Choosing a credible lending source is vital; otherwise, you may end up losing all your Bitcoins. All the reliable lending platforms offer an interest rate of up to 15% p.a.
6. Micro Earnings
It is truly acceptable that micro earnings may not be enough to change your destiny. Still, it is definitely a reliable source of income, helping you meet the daily expenditures and lifestyle needs. Moreover, suppose you are working with the legitimate PTC websites that pay you for opening particular websites, clicking on specific ads or links, watching videos, or playing games. In that case, they may pay you in Bitcoin.
Although the pay of these websites is not very high, it is still one of the fastest means where you can earn a quick buck. Some websites that pay you in Bitcoins for completing tasks and filling online surveys include adBTC, Coinpayu, Coinadder, and BTC4ADS.
Many people are trading bitcoin and making plentiful money. Primarily, proficient traders analyze the trading charts, study the market, evaluate external factors, and are ready to take risks.
The moment these traders spike in their current trade, they close the position to generate profits. The best part is you can trade 24×7 in the world of Bitcoin at your convenience.
You can select from 4 trading strategies while you are investing your money in Bitcoin, including:
a) Day Trading– It is also called intraday trading, in which investors buy and sell a position within one single trading day. The major benefit of day trading is you need not pay the overnight funding charges on your position.
b) Bitcoin Hedging- It is a strategy in which you try to minimize your risks by taking an opposition position you have already purchased. This type of trading is usually practiced when the market is moving against you.
c) Trend Trading- People practicing trend trading opt for a position matching the current trend. For instance, if the trend is bullish, you will prefer investing for the long term, whereas if the trend is bearish, you will make short-term investments.
d) HODL (Buy and Hold)- It is a strategy in which you buy and hold Bitcoins until their price increases. Usually, this trading involves long-term investments, and lots of patience is required if you opt for HODL.
8. Earning through Tips
One of the most effective ways to make money with Bitcoin is by helping other people out and get tipped a little money from them. You can use a platform called Bitfortip if you want to get Bitcoins in the tip.
While you assist other people and help them complete different tasks online, they may grant you BTC as an incentive. It may include a wide range of tasks such as providing answers to technical questions, promoting their products or service, streaming video games, finding suitable clothing, and many other tasks.
Many platforms have integrated crypto-tipping services these days; you just need to check those platforms and earn extraordinarily.
9. Bitcointalk Forum Campaigns
Bitcointalk is a platform set up by Satoshi Nakamoto, the founder of Cryptocurrency and Bitcoin. It is one of the oldest and recognized forums in the crypto sphere that bountiful people use.
If you are active on the Bitcointalk forum and an avid follower, you may even get paid for every post you put on it. If you get paid for your posts, it will also have your sponsored signature. Wow!
10. Bug Bounties
The incentives offered by various organizations and software developers for finding any technical glitches or other vulnerabilities in their systems are a great source of earning and increasing your income. Primarily they reward you for maintaining their systems. Also, you may get to earn bitcoins for improving their ecosystems for their users.
Basics to follow if you are investing in the world of Bitcoins:
- Do extensive research
- Analyze the market
- Foresee all your risks and pick a method fulfilling all your requirements
- Ask the experts and read articles before investing
- Never put all your eggs in one basket
Bitcoin is worth your time and investment only if you follow basic principles and do not take risks you can’t afford. As people witnessed immense profits in the world of Bitcoin, simultaneously, some people have also incurred massive losses in Bitcoin investments. Evidently, you will prefer coming in the first category of people enjoying great profits. To ensure this, you need to be patient and cautious as you venture into a volatile market.
Also Read: 11 Best Cryptocurrency to Mine
What are the steps involved in Bitcoin Trading?
1. Analyze the factors affecting Bitcoin’s Price
The most important factor is to gauge the factors that have an impact on Bitcoin’s price, which may include:
a) Supply- Bitcoin’s supply is capped at 21 million. Speculating its demand since its launch in 2009, it’s expected to get exhausted within a few years. If the supply of Bitcoin becomes limited, then the price of Bitcoin could increase in the future.
b) Integration– The demand for Bitcoins may increase if Bitcoin’s public profile is integrated with robust banking frameworks and the latest payment systems.
c) Other events- In case of security breaches, government interventions, regulatory changes, and macroeconomic bitcoin announcements may affect the prices immensely, either positively or negatively.
d) External Market Factors- It may include any breaking news related to Bitcoin’s security that may have a negative or positive impact on its overall market price.
2. Choose a way you want to get exposure
It is imperative to know what way will help you get the maximum exposure to Bitcoins. Listed below are those 3 ways:
a) Buying Bitcoins through an exchange: This method is pre-dominantly opted by individuals using the HODL strategy. These people take direct ownership of Bitcoins and sell them when the price of Bitcoins rises in the future.
However, there are some factors to keep in mind while buying bitcoin through an exchange, including:
- Bitcoin exchanges impose a fee and apply certain restrictions on funding and withdrawing the amount.
- It often fails to provide good customer support.
- Lack of proper regulation.
- The servers and matching engines on bitcoins are not fully reliable. This can often lead to suspension of markets or reduced execution accuracy.
b) Trading Bitcoin Derivatives: You can trade bitcoin derivatives by speculating on their price with CFDs (contract for difference). It is a financial contract in which you pay the difference in the settlement price between the open and close trades without owning any bitcoins. Major benefits involved in trading bitcoin derivatives include:
- Hedging- Hedge your bitcoin derivatives to lower the risk against market declines.
- Deep Liquidity- Due to the massive client base, the market of Bitcoin is vast and is very liquid, signifying you can sell orders at the desired prices.
- Leverage and Margin- You only need to put a nominal deposit known as margin and play big with leverage.
Note: It is considered one of the riskiest trading methods as it is highly unpredictable and involves huge profits or heavy losses.
c) Crypto 10 Index: Trading through the Crypto 10 index will provide you with tremendous exposure to 10 powerful cryptocurrencies, including Bitcoin, in one single trade. This index tracks or mirrors the underlying market price of these cryptocurrencies.
Also Read: How to Become a Millionaire in Your 20s
3. Know your Limits
Apart from setting the limit within your mind of how much money you want to invest, you can set your stop and limit as:
a) Guaranteed Stops: Regardless of any slippage, it will close your position at a level already set. You will only be charged a fee in case your guaranteed stop is triggered.
b) Normal Stops: These stops are liable to slippage, although the position will be closed at the set level.
c) Trailing Stops: These stops are entirely based on the market movements to secure profits while capping your risk. However, similar to Normal stops, Trailing stops are also liable to slippage.
4. Keep a Watch on your Trade
It is one of the most important steps if you are trading in Bitcoins. Without monitoring your trade, you will not know whether the price is rising or falling, leading you to miss the right opportunity for buying or selling. Therefore, ensuring the market is moving the way you anticipated is essential and should not be ignored.
One should also consider technical indicators to evaluate whether the price of bitcoin is going to rise or fall.
5. Close the Position to Generate Profit or Cut a Loss
If you reach a level where you cannot afford the additional risk, you can cut a loss. Whereas, If your position has reached a level of accumulating a good amount of profit, close the position and enjoy the profit.
Why Invest in Bitcoin?
Bitcoin is the one-stop solution for all your trading and investment needs! And there are many reasons to invest your time and money into the colossal world of Bitcoins and cryptocurrencies.
If you possess complete knowledge and a profound understanding of investing or trading in cryptocurrencies, you have a great chance to increase your wealth tremendously. Numerous people are keen to invest in the world of Bitcoins today, but we only recommend this once you have got a deep insight as it is always said; ‘To succeed in business, one needs to know math.’
With this thought in mind, we want to inform you of major reasons why you should consider investing in Bitcoin:
- Robust Future Potential
- Great Possibility of Accelerating Profits
- More Reliable Compared to other Cryptocurrencies
- User Autonomy
- Low Transaction Fees for International Payments
- No Banking fees
- Peer-to-Peer focus
The price of cryptocurrencies is volatile; if you have the risk tolerance, you can invest in this business, have patience, and earn handsomely.
If you are a savvy investor, Bitcoin might not entice you. However, individuals who invested in Bitcoin thought that they might have a possibility to earn a lot of money with Bitcoin in the future, and they were right.
The chances of Bitcoin’s value may increase magnificently in the future, but many people opt for short-term trading to play safe. Instead, investing in Bitcoin for the long term, they trade Bitcoins and take advantage of short-term price volatility. On the other hand, Some people think of taking a risk and making a bet on the long-term success of Bitcoin.
Recommended: Top 15 Cryptocurrencies to Invest other than Bitcoin
The foremost thing to ensure if you are investing for the long term is to choose a reliable, secure exchange. The other important thing to consider is keeping cryptocurrencies insecure wallets.
Just remember, knowledge is the key. Now, you know how to make money with Bitcoin; it’s up to you what methods you select to make money with Cryptocurrency. Whatever method you will choose, you are going to reap huge profits. Just be confident, have patience, and trust yourself.