Although bitcoin has developed several new uses now (making payments, remittance, wealth preservation, etc.), the majority of people mainly still buy bitcoin for one purpose: earning a profit. Most people want to invest in bitcoin to earn a significant profit… and why wouldn’t they? The potential ROI for bitcoin is extremely high (but high risk as well).
If you’re thinking about getting into the bitcoin game, it’s not too late! There are still plenty of ways to make money with bitcoin. Here are the best ways to do so:
Bitcoin mining is a money-making method that has been around for a while now. For those who don’t know, bitcoin mining is the method in which “miners” verify bitcoin transactions by solving complex computational problems on specialized computers. This allows the network to be more secure as each transaction is verified by several miners. If a miner successfully solves a block/verifies a transaction, he/she is rewarded with newly-minted bitcoins and transaction fees.
Unfortunately, the profitability of bitcoin mining has been questionable over the years. It’s not only that there’s more competition, but it’s also not as profitable as it used to be (with the halvings over the years).
Investing in bitcoin
Although “invest” may be a broad term, investing in bitcoin is something that a lot of people do. In this sense, “investing” refers to HODLing. If you don’t know what HODLing means, it’s a crypto slang that means “Holding On for Dear Life.” It refers to the action of holding onto coins for a long period of time in the hopes that the value will appreciate greatly over time.
If you’re aware of what bitcoin is, chances are you’ve heard of “bitcoin trading.” While “investing” in bitcoin refers to buying and then holding, “trading” refers to a strategy that is much faster-paced and short-term. The most popular among all bitcoin trading strategies, day trading, refers to buying and selling assets all within a single day—having no open positions before the day ends. Day traders usually do short and long trades to capitalize on the market price of the day.
If you’re looking to do day trading, make sure that you do your research as it can get a little complicated for first-timers. Thankfully, there are tons of guides on the internet that will guide you through the process.
Accepting payments in bitcoin
If you’re a business owner that mainly operates on the internet, accepting bitcoin as payment might be beneficial for you. First of all, it’s easy. If you don’t want to use the several payment intermediaries that are available, you can start accepting bitcoin by using a small banner on the side of your website. You can have people message you privately and you can provide your wallet address to those that want to pay in bitcoin.
Now that bitcoin is starting to get more accepted worldwide, there are better affiliate and referral programs now that allow you to earn a steady passive income on the side. For example, Paxful’s (one of the leading peer-to-peer bitcoin marketplaces) affiliate program allows you to earn not only from your direct affiliates (users that sign up using your link) but also your affiliate’s affiliates (users that sign up using your affiliate’s link).
The choice is yours
Looking at the different ways to make money with bitcoin, the choice is really yours when it comes to what method you want to use. It depends on how much time you can offer within a day, on how much money you’re willing to invest, and mostly, it depends on how much you know about bitcoin. Some methods are easier than others and if you want to survive in the bitcoin game, you’re going to have to do your homework. Good luck!