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How to Earn Bitcoin in 2020 – Free Guide for Beginners
The emergence of Bitcoin as one of the hottest new investment assets has surprised many who once believed the blockchain-driven cryptocurrency would never have real-world value. It has also generated immense amounts of interest from those who had either never heard of Bitcoin before or who knew relatively little about it. As a result, there are now incredible opportunities for making extra money in the cryptocurrency niche.
In the following article, you’ll find out how to make money with Bitcoin and discover a few of the many different ways to capitalize on the cryptocurrency trend and earn Bitcoin in lots of different ways.
Remember, keeping your bitcoins or altcoins on your exchange wallets is highly insecure. You should never store then on the exchange for longer than is necessary. To make your Bitcoins, LiteCoins or any other crypto currency safe, you will need a hardware wallet like the Ledger Nano S or Trezor.
Once you purchase your Bitcoin or Altcoins from one of the exchanges that I have listed below, simply move your coins off the exchange and into your own hardware wallet. This is really the only safest way to store digital currency.
First up…. a Word of Realistic Caution
Before launching into the ways you can earn Bitcoin and make money with Bitcoin, it’s important to take a realistic view of how much money you could make. Though there is certainly a huge amount of money to be made in this market, many of the beginner-friendly ways of earning Bitcoin will only result in small amounts. Don’t get discouraged, though. Even small amounts of Bitcoin can be useful assets, especially given the current rapid growth of the value of the cryptocurrency. If you want to accumulate larger sums of Bitcoin, that’s also entirely possible.
It will, however, require an initial investment that may not be easy for you to afford. With that out of the way, let’s begin exploring the different ways in which you can start making money with Bitcoin.
#1 – Bitcoin Mining – Number one way of making money with bitcoin.
If you want to put together the largest possible amount of Bitcoin, mining is among your best options. Mining refers to the use of computer hardware to automatically perform a set of mathematical operations, which in turn creates new Bitcoin. The way Bitcoin is set up, only 21 million can ever be produced. At the time of writing this article, about 16.7 million of these Bitcoins have been successfully mined, leaving more than four million on the table for Bitcoin miners.
One thing you will need to know about Bitcoin mining before getting into it is that the difficulty increases over time. In other words, it will take more time and more computing power to generate each subsequent Bitcoin. In the early days of Bitcoin, cryptocurrency enthusiasts were able to use graphics processing units on regular computers for their mining. By now, however, the difficulty has gone up so much that much more specialized equipment is needed.
One way to approach Bitcoin mining is to do it yourself. To do this, you’ll need to invest in a Bitcoin miner. Bitcoin miners are external devices that supply the necessary computing power to produce Bitcoin in today’s high-difficulty environment. The price of a Bitcoin miner will vary considerably based on its processing ability. Small USB miners start at under $100, while larger, more powerful mining devices can run into the tens of thousands of dollars. Although the initial investment of buying a Bitcoin miner can be fairly large, it allows you to produce your own steady stream of new Bitcoin until the full 21 million has been reached.
If you decide to start mining yourself, be sure to keep the peripheral costs in mind. Not only will you have to pay for whatever equipment you choose to use, but there will also be electricity costs involved. If you have a large miner that produces a substantial amount of heat, you may also have to install a cooling system to keep it running properly. Together, these costs can eat up much of the profit margin in Bitcoin mining. Luckily, if Bitcoin continues to appreciate in value, these peripheral costs will eventually be compensated for retroactively through that appreciation.
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If you don’t want to go to the initial expense and hassle of setting up your own personal Bitcoin mining operation, you can still get in on the action with what is known as contract mining. In contract mining, you’ll pay a fee in exchange for a company to employ its Bitcoin mining equipment on your behalf. This contract will last for a certain period of time, and all Bitcoin mined during that time on the equipment you’ve contracted will be sent to your Bitcoin wallet. Two of the most major contract mining services are Genesis Mining and Hashing24. Contract mining is an easy and passive way for you to accumulate Bitcoin, though it will cost more over the long run than having your own Bitcoin mining equipment.
#2 – Complete Micro-tasks for Bitcoin
Though mining lets you earn Bitcoin faster than any other method, its high investment threshold means it won’t be suitable for everyone. If you’re looking for a smaller-scale way to dip your toe into the Bitcoin pool, you may prefer completing micro-tasks that pay in Bitcoin. Micro-tasks are small, simple actions, such as viewing an advertisement or engaging with a post on social media. Though the pay is usually very low, micro-tasks are probably the simplest way to get into Bitcoin.
One of the best places to go to get started with micro-tasks that pay in Bitcoin is CoinWorker, a marketplace that specializes in such tasks. CoinWorker tasks are paid in points that are each worth $0.01(USD). Though many tasks on CoinWorker pay as little as $0.03-0.05, some do pay over $1.00. Tasks listed on CoinWorker are typically very easy and take only a few minutes to complete.
There are also several sites that will pay you small amounts of Bitcoin for viewing ads. Like other micro-tasks, these actions pay very small amounts of Bitcoin, but are incredibly easy to perform. If you’re trying to earn your first Bitcoin, viewing ads is among the easiest ways to do it. Some of the best sites that allow users to view ads in exchange for Bitcoin include CoinAdder, Ads4BTC and Advercoins.
#3 – Bitcoin Faucets
Bitcoin faucets are a bit like micro-tasks in the sense that they pay very small amounts of Bitcoin in exchange for a small amount of your time – often around 1 Satoshi, which is a hundredth of a millionth BTC. In the case of faucets, though, Bitcoin is usually available to be claimed by users at a set interval, such as every five minutes.
The idea behind Bitcoin faucets is that their owners sell on-site advertising, which is then viewed by users who come to claim their Bitcoin. Bitcoin faucets pay amounts that are almost too small for many users to bother with, but they’re a good way to break into the world of Bitcoin and start to see a small amount of cryptocurrency in your digital wallet. Moon Bitcoin is one of the most popular of these faucets, but there are many others out there, including FreeBitcoin, Bitcoin Zebra and Daily Free Bits.
#4 – Invest in Bitcoin and Bitcoin Derivatives
One of the most interesting developments in Bitcoin over the past couple of years has been its emergence as a fairly popular investment asset. Investing in Bitcoin, though still not as common as putting money into stocks and bonds, is rapidly moving into the financial mainstream. As one might imagine, investment is one of the more lucrative ways of making money with Bitcoin.
The most basic form of Bitcoin investment is buying and holding Bitcoin until its price goes up enough to turn a profit. Thanks to its high level of price volatility, Bitcoin has produced some incredible gains for investors who pursued this strategy early on. If you had invested just $500 into Bitcoin when it was worth $1 in early 2020, your investment would be worth more than $9.5 million today. Of course, this is an extreme example, but it does demonstrate just how profitable Bitcoin investment has been for some traders who have been willing to hold their investments for long periods of time.
One of the problems that has plagued Bitcoin investment in the past is the lack of reliable exchanges. If you’ve been following Bitcoin for a while, you might remember the surprise collapse of the Mt. Gox exchange that occurred as the result of a massive hack in 2020. With millions of dollars worth of Bitcoin lost, that hack set the mainstream adoption of Bitcoin back by years. Now, though, a new generation of more secure and better-run exchanges are coming onto the market to supply Bitcoin services. The most prominent of these has been Coinbase, which has become the de facto Bitcoin exchange for most new investors, if you are interested in other cryptocurrency exchanges then check out these Coinbase alternatives.
A less well-known way of investing in Bitcoin is to trade it as a CFD, or contract for difference. In essence, a CFD is a derivative instrument that is based on the price of an asset, in this case Bitcoin. Unlike standard investment, however, CFDs don’t involve actually buying the asset they mirror. Instead, traders open positions on the movement of an asset’s price with a CFD broker. CFDs typically have high leverage rates, meaning that both gains and losses are higher than they would be in a more traditional investment environment. Used properly, Bitcoin CFDs can be fairly profitable. If you’re too reckless with them, though, they can be high-risk investments. Whether you should personally trade Bitcoin CFDs depends almost entirely on your personal level of risk tolerance.
#5 – Market Bitcoin-related Products
By now, you’ve probably gotten the idea that you can make money with Bitcoin. What you might be more impressed by, though, is the fact that there are ways to make money from Bitcoin without actually owning any. The way to do this is to market profitable Bitcoin-based products and services to the growing audience of people who are interested in the cryptocurrency market.
The easiest way to get into being an affiliate marketer for Bitcoin products is to promote Bitcoin mining devices through the Amazon Associates affiliate program. Using this program, you can send visitors from your website to Amazon and receive a small commission on any products they buy there during the next 24 hours. Though Amazon’s selection of Bitcoin mining equipment is a little limited, it should be enough to get you started. You’ll also need a website on which to post your affiliate links. The good news is that, since Bitcoin miners are generally priced at $100+, you don’t need to sell too many of them to start making some decent money from your marketing efforts.
The same concept can also be applied to Bitcoin services. Many services surrounding Bitcoin, including the contract mining services discussed earlier in this article, offer generous commissions to marketers who refer customers to them. If you’re going to create a website, integrating promotions for services can be helpful to your readers and profitable to you.
#6 – Do Freelance Work and Get Paid in Bitcoin
As you may already be aware, there is a massive online marketplace for freelance services / online jobs ranging from writing to website development. Hundreds of sites already exist to connect freelance workers with customers who are willing to pay for their services. A novel twist on this trend has come in the form of a handful of sites that send payments to freelancers in the form of Bitcoin. If you have a useful skill that businesses or other individuals would be willing to pay you for, you may be able to render services in exchange for fairly significant amounts of Bitcoin.
Freelancing in exchange for Bitcoin has two advantages that make it one of the best ways to make a serious entry into the cryptocurrency market. The first is that, unlike mining or investing, there is little or no initial cost for most forms of freelance work. The second is that some freelance jobs can pay amounts of Bitcoin worth dozens or even hundreds of dollars, setting it apart from the other free methods that often involve receiving only a few cents worth of Bitcoin at any one time. If you want to earn Bitcoin at a reasonably fast rate without investing a large amount of money at the outset, freelancing is likely your best option.
Before jumping into freelancing, give some thought to what kind of service you are going to be selling. Some of the most popular options include writing and proofreading services, graphic design, video production, voiceover work, programming and audio editing. Of course, the services you’ll end up offering will depend on your own interests and skills.
Once you’ve decided on the services you intend to sell, you’ll need to sign up for a freelance marketplace that pays in Bitcoin. One option that may be attractive to some is XBT Freelancer. This site offers many high-paying jobs, but most of them are fairly technical in nature and may not be suitable for all freelancers. Cryptogrind, another major marketplace, lets freelancers offer simpler services in exchange for lower prices. If you’ve ever used the traditional freelancing platform Fiverr, Cryptogrind will probably seem familiar to you, as its basic workings are very similar to Fiverr’s.
#7 – Create Content to Be Monetized With Bitcoin-based Ads
If you know much about making money online, you’ve probably encountered the idea of being paid to place ads on a website. Luckily, the exact same concept works well with Bitcoin. If you want to earn some cryptocurrency passively by creating great content, consider signing up with a Bitcoin-based ad network like BitMedia. These networks will pay you in Bitcoin for click-through actions on ads placed on your website. The more visitors and clicks your content gets, the more Bitcoin you can earn.
Though Bitcoin ad networks can theoretically be implemented on any type of site, they’ll be most effective on sites that actually focus on cryptocurrency and technology. This is because most of the advertisers using these services at the moment are in the Bitcoin niche themselves. The good news is that this makes Bitcoin ad networks easy to implement on the same site you use to promote Bitcoin-related affiliate products. This approach gives you the chance to earn Bitcoin and normal dollars at the same time from the same website, diversifying your income stream between the two.
#8 – Lend Out the Bitcoin You Already Have
Lending out money for interest has always been one of the best ways to generate passive income, and this principle holds very true with digital currencies. Bitcoin lending is a great deal like peer-to-peer lending in that it allows individual lenders to take on the role of a bank or other financial institution. In turn, these lenders then collect the interest as the money they lent out is repaid. To earn Bitcoin through loans, you’ll need to use a lending platform. Bitbond is one of the most popular and trusted platforms at the moment, though there are several others available. Interest rates on Bitcoin loans can be quite high, with some exceeding 10 percent.
Before you can get into lending, you’ll need to have some initial Bitcoin to start out with. You can buy it, mine it or earn it using one of the other methods described here. You can also use lending to complement other methods of earning Bitcoin. If you want to make serious amounts of money from lending, though, buying an initial stock of Bitcoin may be a good idea, as it will allow you to fund more loans and receive more interest payments. Remember that, just like any other loan, default is a possibility in Bitcoin lending. Always be sure to carefully consider the person you’re lending to and only fund loans you have a high degree of confidence in.
#9 – Become a Blockchain Developer
Most of the options you’ve seen on this list so far have been small, simple ways to earn money with Bitcoin that you can do on the side. If you’re really serious about making a living with Bitcoin, though, one of the best ways to do it is to become a developer for the growing number of sites and digital systems that use Bitcoin and other cryptocurrencies. For every new website that decides to accept payment in Bitcoin there is a potential opening for a developer with a specialized knowledge of Blockchain. If you are that person, the opportunities available to you in the coming years could be virtually limitless.
Of course, this method of making money with the Bitcoin trend is far from simple. To start with, you’ll need a strong understanding of computer science, mathematics and computer programming. From there, you’ll also need to become knowledgeable in the specialized field of blockchain. Realistically, you should expect to go back to school to earn a computer science degree if you haven’t done so already.
With such a high threshold for entry, you may be wondering why becoming a blockchain developer is worth your time. The answer to this question lies in the amount of money that skilled blockchain experts can earn in the current market. The average salary of blockchain developers comes in at about $80,000, while top-level developers can command salaries in excess of $300,000.
This large earning potential is also tied to growing demand. With Bitcoin becoming more and more well-known with each passing day, the number of companies investing in blockchain technology could increase substantially over the next few years. Since blockchain developers are few and far between, this means that the developers who are active in the marketplace can rely on being in very high demand for the foreseeable future.
#10 – Teach Others About Bitcoin
Once you’ve established yourself in the world of Bitcoin, you may decide to share what you’ve learned with others who are less knowledgeable than yourself. Whether it’s Bitcoin investment strategies or how to properly set up a miner, there are people out there who will be extremely interested in learning from your experience. If your content is good and you have valuable information to teach, you can even end up making a decent amount of money form helping other people learn about cryptocurrencies.
One way to get into teaching about Bitcoin is to make YouTube videos about it. Though YouTube certainly won’t make you rich, you can monetize videos with Google’s Adsense program to make some ad revenue from them. If your channel becomes a popular source of Bitcoin and cryptocurrency information, this stream of income could even add up to being fairly appreciable.
If video content isn’t your strong suit, you can also write articles about the ins and outs of Bitcoin. These articles can be posted on your own site, or guest posted on another website in the Bitcoin niche. If you create good written content, you can make good money by selling articles to websites that need them.
Finally, if you’re feeling really ambitious, you can create a course about some aspect of Bitcoin. Online courses are a great way to make some extra money, but they take quite a bit of time and effort to put together. If you’re going to create a course, your best bet for marketing and selling it is to post it on Udemy, a user-generated course content site. Through Udemy, you can sell your course for whatever price you like and have access to millions of potential students. Whatever you do, make sure that the advice you are offering is valuable enough to make it worth paying for. If you create a sub-par course filled with information that could be found using a simple Google search, you aren’t likely to make much money off of it.
#11 – Earn Bitcoin by Playing Games
What better way to end this review of the different ways to make money with Bitcoin than on the fun note of playing games? Games that pay out in Bitcoin are very similar to faucets in that they pay very small amounts of Bitcoin and generate a profit through advertising. The advantage of Bitcoin games is that they monetize an activity that you may well dedicate time to every day for free. If you are in the habit of playing mobile games, try finding some games that will pay you small increments of Bitcoin to reward you for the time you spend on them. Even if it doesn’t amount to much, it’s still better than playing a game for free.
The category of Bitcoin-based gaming also includes digital casinos that use Bitcoin as a currency. Though these may be fun for you if you enjoy gambling, they aren’t a very good way to reliably make money. Like any other casino, the odds will always be in favor of the house. If you’re okay with losing some Bitcoin and just want to have some fun, though, there’s nothing wrong with giving this type of gaming a try.
As you can tell, the ways in which you can profit from the rise of Bitcoin are practically limitless. Whether you want to hold cryptocurrency yourself or make money by supplying services and know-how to other Bitcoin enthusiasts, there are opportunities for you in the current market. Best of all, the full potential of Bitcoin is probably far from being realized. As cryptocurrencies start to enter more widespread use as financial instruments and everyday methods of payment, the opportunities to make money with them will only continue to increase.
So You Want To Become A Bitcoin Millionaire?
Last Updated On February 11, 2020 John Williams 1 Comment
When you think of trading or investing, you probably think of stocks and bonds. You might also think of commodities, currencies and whatnot. But strolling into a mutual fund manager’s office and mentioning Bitcoins would probably get you an odd look, assuming he or she is not an avid reader of TechCrunch.
Introduced in 2009, the electronic currency Bitcoin is exchanged through its own payment network. The Bitcoin can be stored in a virtual wallet and has been described as a cryptocurrency; a decentralized, peer-to-peer currency which relies on cryptography to facilitate currency generation and transactions. To prevent double-spending, computers known as “miners” receive transaction fees and free Bitcoins in exchange for running a proof-of-work system.
If you’re just looking on how to invest in Bitcoins, sign up with Coinbase and get started. By using THIS LINK you’ll get $10 in bitcoins after you buy $100 in Bitcoins.
If you don’t like this idea – check out Stockpile. You can buy fractional shares of Bitcoin using the fund GBTC. You get $5 for free by opening an account at Stockpile here.
Now, if you’re looking to become a Bitcoin millionaire, keep reading.
“Do You Take Bitcoins?”
The Bitcoin is essentially a speculative vehicle for geeks. Basically, do not eat out and expect to pay for the meal with Bitcoins. Not long ago you could have bought illicit drugs with the currency, but the FBI closed down “Silk Road” earlier this year, which allowed people to buy illegal substances anonymously.
Some legitimate vendors have taken to Bitcoin, allowing customers to purchase real products and services with the digital currency. Richard Branson of the Virgin Group has even decided to accept Bitcoins through his Virgin Galactic. Reddit allows you to use Bitcoin to buy Reddit Gold. Yes, you can’t buy your everyday groceries with Bitcoins, but you can buy a trip to space. While some everyday vendors have looked into accepting Bitcoins too, most of the demand for the currency has been fueled by speculators, rather than early adopters.
If you’re looking to use Bitcoin to pay for stuff, you need a Bitcoin wallet like Coinbase. It’s a simple website/app that allows you to securely store your Bitcoins and sell them.
With so much volatility, using Bitcoins in everyday life would be extremely risky anyway. Buying a TV for $1,000 might have cost up to 10 Bitcoins last month and just one Bitcoin now. With such volatility, any serious commerce conducted with Bitcoins is likely to result in one party losing out on a lot of value. So right now, the cryptocurrency is realistically just a tool for speculation. Coinbase is one of the major Bitcoin exchanges, which allows you to buy and sell Bitcoins as you please. You sign up, deposit real-world money and exchange the currency with relatively low fees.
Bitcoin’s Bullish History
First, let’s take a look at the price history. According to Bitstamp, as of today the market capitalization is over $12B with over 12 million Bitcoins in the system. Until 2020, Bitcoins were trading for either less than $10 each or not much over. As soon as 2020 started, Bitcoins seemed to ever-increase in value until April 9 where they peaked at well over $200. By April 16, Bitcoins had lost almost half their value.
Since April, Bitcoins have made a ridiculous comeback. Bitstamp shows that the price of a Bitcoin didn’t reach its previous peak until November this year. However, in this same month, Bitcoins surged up to well over $1,000 a piece.
Right now, they seem to be fluctuating. Of course this is all speculative. You can make all the predictions you want, but no one knows what the future holds for Bitcoin. Is it just a fad or could Bitcoin genuinely develop into an everyday currency? If it really took off, would the government not just ban it completely? Only time will tell, but for now let’s speculate.
As of December 2020, the price of Bitcoin is past $18,000 – some people have made millions and billions investing in Bitcoin. Furthermore, there have been hard forks (i.e. splits) into things like Bitcoin Cash, which also have boosted people’s profits.
How To Make A Million With Bitcoins
You have two options: mine or trade. By mining for Bitcoins, as long as the markets remain active you can basically make money for nothing. But the problem is, mining is such a tough gig now that it is hardly worth it. Turning your computer into a miner will likely make it noisy and heat up. It would likely take you a long time to even mine a single Bitcoin, by which time you probably would have spent more on electricity. However, if you have access to some serious computing power and you don’t have to pay the bills, you could make some easy money here.
The more realistic way of making a million with Bitcoins is going to be trading them through the most prominent exchanges, such as Coinbase. Back in 2020, you could have bought Bitcoins for $10. Selling them at $1,000 today would have delivered a profit of $990 per Bitcoin. Basically you should have bought about 1,000 Bitcoins back when they were cheap. This would have cost you around $10,000 in 2020, making you a millionaire today.
Making a million with Bitcoins today is probably still possible, but you will need some capital. Bitcoins can fluctuate many percentage points every day (on May 22, 2020 the price jumped up 10%). Day trading Bitcoins is going to be risky, but where is there is volatility there is opportunity. Otherwise, you need to take a longer-term approach and conclude whether or not you think Bitcoin will be successful. If you think Bitcoin is going to be traded by foreign exchange dealers, market makers and institutions one day, you might want to go long. Buying right now would be incredibly risky; the price chart is screaming “bubble”, but your point of entry is up to you. Don’t expect to see more of the same fast growth now though.
On the other hand, if you have a strong conviction in the downfall of the Bitcoin, you need to short the cryptocurrency in any way you can. This would be an extremely risky endeavor still, but if the Bitcoin market is truly destined for failure, why not get rich when the bubble pops? To short Bitcoin, you will either need to get creative or join an exchange which allows you to do so.
Other Ways To Invest In Bitcoin
It’s important to remember that Bitcoin is a currency – not a stock or bond. This means that “investing” in it is like investing in a currency. You’re essentially hoping the value of Bitcoin relative to your native currency goes up.
The easiest way to invest in Bitcoin is to simply get a Bitcoin wallet and buy Bitcoins. We recommend Coinbase for U.S. investors – it’s the easiest, links to your bank account, and allows you to buy and sell Bitcoins. Plus, if you buy $100 USD in Bitcoins, Coinbase will give you a $10 bonus! That’s awesome.
If you want to invest in an ETF through your broker, check out the GBTC at Stockpile. This ETF tracks Bitcoin, and you can invest in fractional shares. Get started at Stockpile and get $5 for free. Start here.
But What If I’m Sane?
If you are a sane individual, Bitcoins probably don’t excite you too much. The risk/reward profile of the Bitcoin market is not going to be very appealing to the savvy investor. This is just a chance to either make a quick buck, or lose everything. Bitcoins may well take off in the real-world in the future, but then again what would stop another cryptocurrency from emerging and defeating the Bitcoin, especially if it was indeed better?
So in conclusion, if you want to be a Bitcoin millionaire, you need to hijack someone else’s hardware and get mining for an extended period of time (and cash out before you get penalized or arrested). Failing that, you need to either day trade Bitcoins and take advantage of the short-term price volatility, or make an extremely risky long or short bet on the long-term success or demise of the Bitcoin.
By shorting, you might be able to make money on the downside in the short-term too if the so-called Bitcoin bubble is about to burst. On the other hand if you are sane, it’s probably wise to just sit back and watch the chaos unfold.
Filed Under: Cryptocurrency
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About John Williams
Matthew is a student currently studying Accounting and Economics. He is mainly interested in business, economics and finance. He enjoys watching CNBC and studying the financial information of various companies while also managing his own small live and virtual portfolios.
Good advice but first you have to have nomey to do it I am in the negative numbers. Alot fo great info though!
15 Practical Ways to Make Money with Bitcoin in 2020
So you want to get your hands on some free bitcoin, eh? By now, you might have heard of how you can make money with bitcoin, magic internet money and digital currency that can be traded or used to make purchases. This digital money uses encryption to make safe and secure transactions instantly from anywhere in the world. Not regulated by any bank, government or Federal Reserve, this open network is managed by the users and investors themselves. Here is our guide to earning real money with bitcoin in 2020.
Contrary to people’s knowledge, getting bitcoin is easy, there are a number of ways to earn bitcoin online- some more popular than the others. There are methods that involve a minimal effort with the minimal return and others more lucrative that requires you to have better expertise in the industry.
Below are some of the most famous ways to make money with bitcoin.
1. Mining bitcoin
No, you don’t have to raise the ground to get bitcoin. Not in that sense anyway.
So, why do you call it mining? Similar to gold miners, bitcoin miners have to bring out the gold, in this case, bitcoin into the surface.
Did you dare to ask how? While paper money has a government, who prints and distributes it, Bitcoin has miners who use special software to solve math problems and are issued with bitcoin in exchange. This system is what makes the Bitcoin network go round.
Mining Bitcoin used to be relatively simple, and the earliest miners were able to mine thousands of Bitcoin using their home computers. However, in today’s very competitive and volatile market, miners buy expensive computer parts, that the high street customer has little access to, required for more processing power in order to mine more difficult algorithms. Since this is a race that can solve blocks faster, miners team up in what we call mining pools where they combine their processing power in order to solve each transaction first. The reward mostly comes from several miners’ fees, is then split up by members of the pool.
This video helps to explain the process of bitcoin mining more visually:
Remember that bitcoin mining is not as profitable as it used to and many are claiming it to be the end of profitable mining.
The future of mining in 2020 will depend on the price of Bitcoin. If the price goes up, mining will continue to evolve and the number of miners will increase. If the price goes down, miners will gradually disappear.
It presents new miners with new challenges and also unique opportunities to come into the market when everyone else is leaving and then the price of bitcoin will go up. It all depends on your ability to analyze the market and correctly predict future changes.
2. Bitcoin Faucets
If you don’t mind looking at a few ads and answering surveys, you can visit a bitcoin faucet website. Generally, these websites generate revenue from advertisements placed on their pages. Those who visit their site and answer short questions or captchas will be paid from the small portion of their revenue. You can readily check one of the most popular faucet sites here: earn.com.
3. Pay To Click (PTC) Websites
There are several websites that will pay you in bitcoin if you watch an ad or click to a certain page containing ads. If you are ad immune and want to make quick crypto buck–this can be a good idea. Bear in mind, to make any significant money is still very hard work and a rather tedious task. BTC4ADS pays around 100 satoshis (0.00000100 ฿) and Coinadder pays around 25 satoshis per click.
4. Doing Micro Jobs
Much like Microworkers and Cloudfactory, which pay you a small fee to complete very simple tasks like watching a YouTube video or completing someone’s survey, there are several micro working sites that will pay you in bitcoin. Bitcoinget is the major player in this market which will pay you around 20,000 satoshis per task while there are several others like Cointasker that will pay you a slightly lower sum.
5. Writing about bitcoin
Cryptocurrency, in general, is a new niche and there is a scarcity of writers who genuinely know this niche. This means the market is flooded with newbie copywriters who simply rehash the content that contributes to the deterioration of quality. However, if you really know this niche and you have decent writing skills, you can actually make money.
CCN, Blockchain Aliens are among several websites that pay you for writing about bitcoin. You can also find a lot of related jobs freelance websites like Upwork and freelancer.com
6. Help others, get tipped in bitcoin
You can also get tipped in bitcoin by helping other people. One of the most notable platform to do so is bitfortip, which tips bitcoin as an incentive for helping people. Bitcoin is a new technology and there are people who are genuinely passionate about it and excited about what is to follow so incentives like this help to build a positive vibe around the community and also help people solve their problems.
7. Gambling bitcoin
Though its not advisable to anyone, if you are self-aware enough, the bitcoin gambling market can still be a good source of income. Just like any form of gambling, the people in general always lose and the casinos always win but since bitcoin gambling is a very little heard of the term, you can get huge bonus for joining or even several rounds of your stake to start with. Sites like Bitstarz and mbit are major players in Crypto gambling business.
8. Buying and Holding
Start with creating a wallet to keep your bitcoin safe. There are many places that allow you to do so. Paxful, for example, provides a free digital wallet whenever you sign up for an account. This is the easiest way if you are planning on buying and holding bitcoin. Make sure that the website you’re using is a safe and reliable one.
Investing in Bitcoin is a waiting game of its value to rise. This lets you decide when is a good time to buy or sell. There are several factors that contribute to how bitcoin is valued and you never know what will trigger the next bear market.
“Hodl”, a term the Bitcoin community whenever they are holding their coin with the belief their coin will be profitable one day. The slang word earned the backronym “Hold On for Dear Life” in the cryptocurrency space.
Note that this method can be tricky so don’t take anyone’s advice about it. Research and learn about Bitcoin and come up to your own conclusion.
9. Running a signature campaign in Bitcoin Talk forum
Bitcointalk is one of the oldest bitcoin forum set up by Satoshi Nakamoto himself. This is probably the most popular forum in crypto sphere and used by millions of people. If you are an avid follower of the forum and you have racked up some authority from consistent posting, then your posts of bitcointalk will have a sponsored signature and you’ll get paid by sponsors for every post you make on the forum.
According to Steemit, you can easily make a bit of coin doing simple forum posting – for example, a full member can earn 0.0003 btc per post
10. Bitcoin Trading
There is potential to make big money trading bitcoin. Unlike buying and holding, trading bitcoin means you buy at a low price and sell them back at a higher price. This requires practice and knowledge of the market and to some extent a crystal ball. Given that the cryptocurrency market is extremely volatile, this method can be very risky.
There is money in Arbitrage
The volatile nature of the market, however, gives rise to the opportunities for arbitrage. Arbitrage–as per Investopedia is the simultaneous buying and selling of securities, currency, or commodities in different markets or in derivative forms in order to take advantage of differing prices for the same asset.
There are several reasons why bitcoin arbitrage takes place, Market demands, the difference in the quality of the markets and diversity in client behaviors to name a few. If you have a good knowledge of the market and you can keep surveillance over multiple exchanges spanning over multiple countries, there is a good chance of making a big profit margin.
If you have at least some technical knowledge, you can also profit from using arbitrage bots.
Day trading has a good profit margin if done correctly
Though bitcoin is getting less volatile by day, we should not forget that its still early adoption years and there was price fluctuations of more than 3% in a single minute as early as April 2020. Day trading has a lower risk than say “hodling” but also lower rewards unless you are investing heavily. But if you are prepared to do your research on the bitcoin market and rules of economics in general, you can come up with your own strategies to profit from day trading without sacrificing too much.
11. Accepting Bitcoin as a means of payment
Bitcoin is, after all, a digital currency. So why not sell goods or services in exchange for bitcoin. This gives you the freedom to sell anything to anyone without going through any banks or financial institutions that may prevent you to do so. If you are already selling, why not accept bitcoin as payment. As a matter of fact, there is a massive list of businesses that accept bitcoin.
These are some ways in which you can earn money with bitcoin. If you choose to mine or invest, it is important to do as much research as possible and be prepared for all possible outcomes.
12. Lending bitcoin
The decentralized nature of bitcoin and other cryptocurrencies make it simpler to make transactions without needing authorities to validate it. In such a case, you can also loan bitcoin to potential loanees at a certain interest rate. It is also a very good alternative to “hodling” as you are actually making use of the wealth rather than keep it unmoved and it’s better for the economy in general. Several lend-and-borrow platforms like Unchained Capital, Bitbond and BTCpop allow you to lend your bitcoin for interest rate up to 15%.
Bear in mind that this is still a new market and there are hustlers who may try to cheat you. Always choose trustworthy platforms and loanees while making your investments.
13. Binary Trading with bitcoin
Binary tradings have existed in the financial world for a very long time and did not take long enough to make a journey for that financial scheme to migrate to the crypto world. Binary–as the name suggests has just two options, a trader purchases an option and at the expiration time, the trader either is either “in the money” or “out of the money”. In its true essence, its not too much further from gambling or Russian roulette.
All you have to do is make an investment on an option. Say there are two options to invest– for the bitcoin price of $3000 now (at 10 AM), you can either invest in the price will be more than $3000 by 6 PM or the price will be less than $3000 by 6 PM. If at 5 PM the bitcoin is indeed higher than $3000, you earn the payout of certain payout percentage of your investment, if it’s lower, you lose your investment. Another option is to “put” if you think the price of BTC will go down. If the price at the expiration time is lower than the original price, you earn the option’s payout.
This YouTuber explains binary trading with real-time trading guide:
Remember its plain gambling and nothing to do with intricacies of bitcoin or other cryptos in any way. Nonetheless, its still a way to make money with bitcoin though its highly inadvisable.
14. Make money with Bitcoin Affiliates
Affiliate marketing works when you generate sales leads for a product or service and the organization offering a product or service pays you certain commission for bringing in potential consumers who would otherwise not have been interested.
Usually, these 3 steps allow you to set up your own affiliate business for passive income:
- Sign up for the affiliate program as an affiliate marketer.
- When you are accepted as a marketer, you will receive a unique URL that has a link to their product or service but also has a unique identifier which means they keep a record of who sent them there.
- You then share that link on any web or social media platform(Website, Facebook, Twitter etc. ) When someone comes to visit the website through your link and makes a purchase, you get a certain percentage as your affiliate fee.
We at Paxful also have an amazing affiliate program where you get paid 50% of the bitcoin escrow fee from your direct affiliate and 10% of the escrow fee from the affiliates made by your affiliates.
15. Being a master node
Bitcoin is usually used as an umbrella term for all the cryptocurrencies and though experts would say the return for being a bitcoin master node is not all that profitable, you can still serve as a master node for several other cryptocurrencies and get a reward for your service to the blockchain.
Masternode is a dedicated node that keeps track of blockchain in real-time. Much like bitcoin full nodes, they are always up and running.
In addition to saving, validating and announcing valid transactions to other nodes, master nodes also perform other tasks with the blockchain including ensuring smooth protocol operations, governing voting events etc Next to validating, saving and broadcasting transactions, master nodes sometimes also facilitate other events on the blockchain-dependent on their nature, such as governing voting events etc. For their dedicated service, they are heavily incentivized. It typically depends on the type of cryptocurrency but Dash, PIVX, Blocknet, Stakenet, and Zcoin are the 5 major coins that have the best incentives for a master node.
Tips for making more profit with bitcoin
Needed to say, here are a few tips before you start earning money through bitcoin. There are several scams in bitcoin space that you should be aware of and try to avoid them.
Like having physical cash, keep your bitcoin safe and keep your bitcoin wallet safe. This may mean enabling your Google 2FA, backing up your device or keeping your antivirus updated. There are a lot of digital threats waiting for you.
The industry is prone to fluctuations. This can be a good thing when you stay on top of it and learn the risk that comes with it.
Keep in mind that there is no free Bitcoin. Although there are several methods to earn from it. With the market always growing, there will always be a demand in expertise or a new product that will develop with time.
Paxful is a marketplace where people can buy and sell bitcoins directly with each other. You can get bitcoins instantly and pay with debit, credit, cash, Paypal and any currency.
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