Bitcoin is an opportunity for making extra money
2 min read
After Bitcoin become one of the hottest new investment assets it has surprised many who once believed the blockchain-driven cryptocurrency would never have real-world value. It has also produced huge interest. This interest, as the nature of this digital currency as well, cause great opportunities for making extra money.
Traders Paradise wants to present you several ways how to make money with Bitcoin and several different ways to earn Bitcoin.
How to earn bitcoin?
There is a huge amount of money to be made in this market, and many of the ways of earning with Bitcoin may result in small amounts. It shouldn’t dishearten you. Even small amounts of Bitcoin can be useful assets.
The rapid growth of the value of the cryptocurrency gives possibility. If you want to accumulate larger sums of Bitcoin, that’s also entirely possible. It requires some initial investment of course.
Let’s begin exploring the different ways in which you can start making money and earn Bitcoin.
Selling Bitcoin-related products
It is the fact that there are ways to make money from Bitcoin without actually owning any. For instance, you can sell products and services and be paid in Bitcoin.
The easiest way to get into being an affiliate marketer for Bitcoin products is to promote Bitcoin mining devices through some affiliate program. Point is that you can send visitors from your website and receive a small commission on any products they buy there. For that, you’ll 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 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. This is one way to earn bitcoin.
Do freelance jobs and get paid and earn Bitcoin
A huge online marketplace for freelance services exists to connect freelance workers with customers. A new twist has come in the form sites that send payments to freelancers in Bitcoin. If you are freelancer already or have a skill that businesses 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: first, unlike mining or investing, there is little or no initial cost for most forms of freelance work and the second, some freelance jobs can pay amounts of Bitcoin worth dozens or even hundreds of dollars. If you want to earn Bitcoin at a reasonably fast rate without investing a large amount of money at the outset, freelancing can be your best option.
You’ll just need to sign up for a freelance marketplace that pays in Bitcoin.
Invest in Bitcoin and Bitcoin derivatives
Investing in Bitcoin, indeed still not as common as investing in stocks and bonds, but is fast moving into the financial mainstream. To be honest, investment is one of the profitable ways of making money with Bitcoin.
Basic Bitcoin investment is the simple buying and holding Bitcoin until its price goes up enough to gain a profit. Bitcoin has produced some incredible gains for investors in past years. If you had invested just $200 into Bitcoin when it was worth $1 in early 2011, your investment would be worth millions today. This is an ultra example, which demonstrates how profitable Bitcoin investment has been for some traders who have been willing to hold their investments for long periods of time.
In the past Bitcoin exchange was easy to hack, like Mt. Gox exchange which was hacked 2014. But now the new generation of more secure exchanges come onto the market to supply Bitcoin services.
A less known way of investing in Bitcoin is to trade it as a CFD, or contract for difference. In core, a CFD is a derivative instrument that is based on the price of an asset, in the case of 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 careless with them, they can be high-risk investments. It depends on your personal level of risk tolerance.
Mining refers to the use of computer hardware to automatically perform a set of mathematical operations. That, in turn, creates new Bitcoin. Bitcoin is set up that only 21 million can ever be produced. At this moment, more than four million are on the table for Bitcoin miners.
You have to know one important fact about Bitcoin mining before getting into the difficulty increases over time, which means, it will take more time and more computing power to generate each following Bitcoin.
At the beginning of Bitcoin, cryptocurrency enthusiasts were able to use graphics processing units on regular computers for mining. But nowadays the difficulty has gone up so much that much more specialized equipment is needed.
To start Bitcoin mining, you’ll need to invest in external devices called a Bitcoin miner. That provides the necessary computing power to produce Bitcoin. The price of a Bitcoin miner will vary based on its processing ability.
Small USB miners start at under $100, while larger, more powerful mining devices can cost thousands of dollars. Although the initial investment of buying a Bitcoin miner can be fairly large, it allows you to produce your own permanent flow of new Bitcoin until the full 21 million has been reached.
If you decide to start mining yourself, you will have the peripheral costs too, like electricity costs, for example. If you have a large miner that produces a large amount of heat, you may have to install a cooling system.
These costs can eat up much of the profit margin in Bitcoin mining. Fortunately, if Bitcoin continues to grow in value, these costs will be compensated later.
But there is another way you can get in on the action. It 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 some period of time. And all Bitcoin mined during that time on the equipment you’ve contracted will be sent to your Bitcoin wallet. Contract mining is an easy and passive way for you to accumulate Bitcoin. But it will cost more over the long period than having your own Bitcoin mining equipment.
What else you can do to earn Bitcoin?
For example, you can do micro-tasks 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 the simplest way to get into Bitcoin.
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.
Or you can create content to be monetized with Bitcoin-based ads. Maybe you can lend out the Bitcoin you already have and generate passive income. But if you have respectable knowledge you can make a decent amount of money form helping other people learn about cryptocurrencies.
The easiest and fastest way to have Bitcoin is to buy instantly with a credit card or debit card. You can acquire $50 or less for Bitcoin, fast and usually within 10 minutes. However, you may be new to the entire cryptocurrency concept and for that we recommend you learn these few things above.
Bitcoin is extremely empowering but also different than the currency you know and use every day.