Bitcoin, one of the popular cryptocurrencies, has been in the limelight for public scrutiny for quite some time now. Analysis of its past and speculations about its future have been made by people based on a wide variety of reasons – some people are curious how to make money with bitcoin; others want to understand the history of cryptocurrencies.
Whatever the reason you could be having, this guide will inform you on how to make money with Bitcoin.
We’ll discuss the different ways on how to make money with Bitcoin – but to begin with, we will mull over why Bitcoin has a fanatic following in the first place. After that, after understanding the super short version of the history of this cryptocurrency and its rise to power, we shall dig into its profiting opportunities.
The Short Version of Bitcoin History
Bitcoin was launched in 2009 by some group of people (or someone) known by the pseudonym of Satoshi Nakamoto. At the time that it was created, nobody had neither encountered nor heard of cryptocurrencies.
The infant and teenage years of Bitcoin were fairly rough – it did not gain substantial attention and traction, even though its price kept fluctuating for some time. Nobody had started wondering how to make money with Bitcoin.
Finally, at the start of 2017, Bitcoin broke the benchmark of $1000. Within one year, it had almost reached the $20,000 checkmark.
As you would expect, everybody either invested everything they had into Bitcoin or stood with their chins reaching the floor. It appeared like an unstoppable force that sustained an increasing momentum every single day.
This was huge – everybody either stood with their chins reaching the floor or poured everything they had into Bitcoin – it seemed like an unstoppable force that kept increasing its momentum every day. However, if you’ve recently checked the Bitcoin price charts, you know that things took a different turn.
The Fall of Bitcoin(?)
At the start of 2018, the price of Bitcoin was around $11,000, then hit an unexpected low of nearly $6,000. At the time of penning down this article, Bitcoin is currently worth $61,573.
What triggered a crash of this proportion? Well, there are many hypotheses.
People who frequently search for ways of making money with cryptocurrency will likely know how the Bitcoin price chart looks like:
Does it probably, remind you of something? A tooth, maybe?
This type of diagram is known as the “shark tooth” diagram. It implies that a cryptocurrency’s price rose and fell so quickly that the trajectory it took on the chart looks like a sharp shark tooth.
This is also known as a “burst bubble.” A popular economist was once quoted saying that Bitcoin was the “biggest bubble burst in history.” The causes behind this are postulated to be market manipulations, lack of support, built-up, and many more.
How to make money with Bitcoin
So now that you have information on a couple of things about Bitcoin’s rise and fall, we can now comfortably transition into the money-making methods.
There are a few methods of making money with the help of Bitcoin. Nonetheless, this guide will cover just the main methods.
The list is not arranged in any specific order. Some methods are faster or work better than others, but it depends on the person more often than not.
Method #1 – Buying Bitcoin
The first method of making money with Bitcoin is by buying Bitcoin. No, I’m not jesting!
There are big groups of people who make money with Bitcoin by simply purchasing it. This method carries a huge risk, of course, but possibly the simplest one to do.
There are some types of such investors. Some purchase a specific quantity of Bitcoin and leave it for a year or five. These individuals generally have no real intention to make profits in the short-term – they have confidence in the flourishing future of cryptocurrencies and trust that their investment will one day pay them a tenfold profit.
Another type of investor is those who do tons of research, study all the available predictions on how to make money with Bitcoin, and spend days analyzing statistics and data. These individuals tend to have a very particular time frame in mind – usually, they intend to invest short-term and need to know when to do it.
Likewise, these investments are likely to be smaller when compared to the long-term ones. Ultimately, individuals invest having done lots of prior research; if the investment fails, they could wait for the next time frame.
If you consider how to profit financially using Bitcoin or cryptocurrency in general, purchasing Bitcoin can be an excellent starter – or a disastrous one. It can generate huge profits for you within a short time or drive you to the verge of debt. It’s all tagged on a single factor – the depth of research you’ve conducted beforehand.
Read also: The Perfect Beginner’s Guide on Dogecoin!
Method #2 – Accept Payment in Bitcoin
Have you come across Fiverr? This is a site where people pay $5 for services done by other freelancers. Now take this same idea, but picture Bitcoin substituting USD.
All that it takes for this method to work is the following:
- Figure out a skill you are good at
This can honestly be anything – beginning from singing and painting to copywriting or digital marketing. Select your strongest quality and figure out ways of monetizing them.
- Sign up for a cryptocurrency wallet
If you follow this guide on how to make money with Bitcoin, the probability is high that this step seems obvious, and you created a wallet long ago. But just in case, let this serve as a refresher – a cryptocurrency wallet keeps your cryptocurrencies safe and ready to use, just like a normal wallet does for your physical money. If you still haven’t created one – research and get it ASAP!
- Charge people for your services
A good point to begin is offering your services on online platforms and marketplaces, mentioning that you only accept payments in the form of Bitcoins or any other cryptocurrencies. Do this for a considerable amount of time, and you might finally want to come up with a designated website for this same reason and guide others on how to make money with Bitcoin.
If you are interested in making a profit from Bitcoin, doing research will be your daily meal. Without research, it is like attempting to drive a car at night with the headlights switched off – true, you MIGHT make it, but the prospects are not worth the risk.
Method #3 – Mining
Bitcoin mining is one of the famous ways of how to make money with Bitcoin. There are two forms of mining – cloud mining or personal mining (your own).
If you intend to mine individually (with your mining rig), it may not be the most effective wat of how to make a profit with Bitcoin. Bitcoin has earned a reputation as one of the tougher cryptocurrencies to mine because it is a case of mainstream success, and many individuals want to tag into the hype. At the same time, there’s a limited supply of it.
As effective as it could be, a single mining rig might have a difficult time making significant profits, particularly when you factor in the electricity and maintenance costs.
Cloud mining, on the other hand, has come into the limelight over the past few years. It’s a better alternative when it comes to mining since you don’t need to purchase any hardware or software, assemble or even DO anything – all you require is to pay a one-time fee for a contract, and that’s all!
Normally, at the end month, you will receive your monthly earnings. The amount will be calculated on your plan of choice and the electricity bill at the facility hosting the cloud mining services.
Generally, cryptocurrency mining is a famous method for individuals interested in making money with Bitcoin. It does demand some knowledge and expertise to operate successfully, and the results are definitely worth the effort.
Method #4 – Investing
For your information, this is not the buying-bitcoin-and-then-selling-it type of investing.
There are many choices at your disposal when it comes to investing in Bitcoin. You could profit from Bitcoin by investing in stocks, companies, startups, or even blockchain development itself.
Startups based on blockchain are a common choice when it comes to investing in the cryptocurrency space. Some outstanding startups have already found their space in mainstream success, such as Brave’s Basic Attention Token.
You will have to do some searching to find out the next best thing. If you are right and invest in the startup at its infancy stage, you might just hit the jackpot and get great profits.
Companies that handle blockchain development or blockchain are also a good alternative for investments. You would have to check their statistics, results, goals and work ethics, White Paper, etc. If their general view seems attractive, you could consider investing in their projects or the company itself.
It would be best if you were keen on investment, though – particularly when it comes to cryptos. It is not a secret that the market of cryptocurrencies is so unpredictable.
Always do your research on the objects you intend to invest in.
There are many methods of making money with Bitcoin, both indirectly and directly. An example of an indirect method would be crypto mining, while direct methods would be to purchase the cryptocurrency or trading it.
As mentioned earlier, in the beginning, the preferences for any of these methods depend on the individual using them. If one person finds cloud mining, another could think it is a scam and want to operate everything independently.
We cannot overemphasize the need for research. Conduct a lot of research. If you invest hours of research, you are likely to pick the right method in no time. Do not be afraid to ask questions.
In addition to that, it is worth noticing that these were just a few handpicked methods to profit from Bitcoin. If none of these methods appeals or suits you, you could always look for alternatives like crypto lending, day trading, etc. The alternatives are truly limitless. Don’t be skeptical about trying new things!
Even though cryptos have been in existence for quite some time now, the space of cryptocurrencies is still a riddle to many people. There are fresh statistical info, new analysis, and even cryptocurrencies that enter the market and the community every day. It is not a simple venture, but if you decide to follow through and attempt one of these methods to profit from cryptocurrencies, I wish you the very best of luck! We highly recommend a course by Bitcoin Breakthrough. They have a free sign-up offer at the moment, which may excite you. Check them out!
Just bear in mind that if you settle for long-term investment, it’s important to select reliable crypto exchanges and store your currencies in secure wallets.