How To Make Money With Bitcoin: 5 Best Methods To Earn Great Money Through Bitcoin And Cryptocurrency

How to make money with bitcoin?

Can you make money with bitcoins? The question seems to be hovering in the air for quite some time now, at least since early 2015; and fast forward six years, it is still all too relevant a topic: how to make money with cryptocurrency?

Do Bitcoin and other cryptocurrencies really provide any significant early potential? Are they any good as an investment option? What to do with Bitcoin? What are some viable ways to go if you are looking to make money with Bitcoin?

People are curious, and in answer to that, we’ve carefully drafted this article around the topic of ‘how to make money with bitcoins’ — in 2021. TAKE NOTE that things have changed and some of the methods that were the most profitable in 2015 or 2017 will yield almost next to nothing if applied today.

So, no matter whether you are already well-versed with the crypto world or a complete newbie to this space, the methods we list below and the explanations therewith will hopefully help members of the both camp.

However, for newcomers to the party, here is a little history and overview of Bitcoin and cryptocurrency. (The versant members can skip this part if they so wish).

Bitcoin for Beginners

To begin with, Bitcoin has come a long way since its inception/introduction back in 2009 by the ‘legendary’ (since still unidentified) Satoshi Nakamoto. However, to the general populace, the very concept of Bitcoin or cryptocurrency was all but Greek until around 2013. But the year 2013 was pivotal to the fate of Bitcoin and for cryptocurrencies in general.

This is since things really started to change, and change rather radically, since late 2013 itself. Early 2013, Bitcoins were valued at around $10 each. By 2017, it had already gone up to over $1,000. And already within the Q1 of 2018, the price soared to around $10,000!

However, many people had already caught up to the huge potential of cryptocurrency much before that. Already by 2015, internet was already awash with articles, advice, expert opinions, and just any number of blogs devoted exclusively to the topic we are on today — “How to make money with Bitcoin.”

By the way, curious to know the current price of Bitcoin? By early June 2021, Bitcoin was trading at $53,500 apiece! About a year ago, the value was around $30,000.

However, don’t jump to conclusions reading these figures. The latter do not mean that bitcoin’s value is consistently rising higher and higher all the time, consistently and without fail. The digital currency is also vulnerable to a lot of volatility (which may make it enticing to short-term traders). On the other hand, the overall trend has been upward all through this period, and according to not a few analysts, this upward trend will continue in the future as crypto and the blockchain technology powering it become more sophisticated and more importantly, mainstream, integrating into the daily lives of people (this should encourage potential long-term investors in Bitcoin or other major crypto currencies).

Bitcoin Technology

For complete beginners, Bitcoin or any cryptocurrency is a decentralized digital or electronic currency that uses an electronic payment gateway to buy, sell or exchange consumer goods and services. In contrast to any conventional transaction, this digital currency exchange does not involve any government intervention, third-party intermediaries or interference from any regulatory bodies. As such, the process is lightning-quick and entirely hassle-free.

All transactions in the cryptocurrency space is powered by blockchain technology, the Blockchain being a sort of electronic public ledger managing and keeping record of all transactions. Blockchain technology is used for all conventional electronic transactions as well, so it’s not exclusive to cryptocurrencies. And most major crypto currencies (there are already about 5,000 of them, both major and minor) use their own, often proprietary, blockchain software.

These are the very basics of the crypto technology, but we strongly recommend that you understand the specifics of it in greater detail (you can find countless good resources on the subject in the internet) if you are interested in making money with bitcoins.

All that said and done, let’s now dive without any further delay on to our main topic: how to make money from bitcoin.

How to Make Money with Bitcoin: Top 5 Methods

Method 1 — Bitcoin and Other Cryptocurrency Mining

This is no longer the most lucrative opportunity if you are looking to make money with Bitcoin. However, we mention it first since many newbies in the space are highly interested about the topic (Google ‘bitcoin mining’ and you’ll know what we’re talking about!).

Simply put, Bitcoin mining involves adding new blocks, by way of solving various cryptographic puzzles, to Bitcoin’s blockchain network. This means you’ll need to have, first, the required technical know-how and then, your own mining rig (which can be quite expensive).

Now, the reason why the topic became so popular is many people in the early stages of Bitcoin revolution made huge amounts of money through bitcoin mining. However, now as the bitcoin blockchain has already become quite sophisticated, it has become so much more difficult to add new blocks.

However, this doesn’t mean the end of the road for people who do possess the necessary technical knowledge. In addition to the original Bitcoin (and other market leaders in the crypto space such as Ethereum and Binance), there are other smaller networks (Bitcoin SV, Bitcoin Gold, Bitcoin Cash and many more) with their own blockchain architectures. Now, since the latter are not as sophisticated as the networks used by the major players, they are at higher risk of getting hacked (for example, in 2018, Bitcoin Gold fell victim to such a hacking attack).

This means that mining for original Bitcoin may not earn you a lot of money anymore; however, for the right people, cryptocurrency mining still presents a very good opportunity to earn some lump sums as long as they are investing their efforts with and for the right company.

Finally, nowadays, miners can take advantage of Cloud Mining Services. With the latter, you don’t need your own mining rig anymore. Instead, you pay a one-time fee to the service to rent and use their own equipment.

However, an alarming number of spam cloud mining services have sprung up in the recent days. So, make sure to do your research well before you invest your hard-earned dollars on one of these services.

Method 2 — Make Money Trading Bitcoins

Right now, trading Bitcoin is the most viable option for making good money via cryptocurrency. You may choose to trade in other major cryptos as well, but Bitcoin with its largest market share is your best option, of course.

You can make plentiful money through Bitcoin trading as long as you have a knack for trading. The latter include proficiency in studying the market, evaluating variables and external factors and analyzing the trading charts.

So, either you already have these skills or you learn educate yourself in them (this will require some painstaking effort but the reward will be worth it). Either way, if you want to trade bitcoins, you’ll need to open an account with a reputable crypto trading platform. Next, you buy bitcoins with your local currency. Now, when it comes to trading, you can choose from different options.

If you are not afraid to take risks, you can opt for (commonly) short-term Bitcoin trading to bank profits. Depending on how you want to go about it, you can opt for Trailing Stops, Normal Stops or Guaranteed Stops for this sort of trading.

On the other hand, if you are not too keen to take risks, you may opt for trend trading or position matching, arbitrage opportunities or for intra-day trading.

No matter what strategy you choose, make sure you are fully aware of the risks and opportunities related to the strategy. At the same time, make sure to closely monitor the bitcoin market (supply, integration, external market factors and the like) and stay flexible enough to tweak your strategy based on your observation.

Method 3 — Investing in Bitcoin

There are two ways to invest in Bitcoin.

The first, Buy & Hold (in fancy jargon, HODL or Hold on for Dear Life!) is, according to many, is simply another form of Bitcoin trading. The only difference is that it can be regarded as a kind of long-term investment. The strategy is simple enough. You buy Bitcoin when the price is going low and then wait until it gets really hot. This strategy may require a good deal of patience but as long as you can exercise it, you can expect to earn heavy profits.

Keep it in mind, too, that although the overall trend of Bitcoin price has been consistently upward, the market sees a lot of fluctuations as well. For example, the price of Bitcoin dropped from $10,000 to $6,000 in a few months spanning early to mid 2018. As such, long-term investors can make good of these radical price drops.

For Buy & Hold, you’ll need to get a Bitcoin Wallet. Some crypto exchanges offer integrated wallets. So, if you open a crypto account at anytime, you may need to check whether the exchange offers this feature. Next, you make the investment, i.e., put bitcoin in your wallet and then hold on to it till the Bitcoin price rises up to your expectations. And once it does, sell the bitcoins and drive home the profits.

The second method involves investing in companies like crypto startups or organizations involved in developing Blockchain, etc. This is a somewhat high-risk option. However, if you make the right decision (and also if the luck favors you), you can make a fortune out of this sort of investment. Remember, though, that this is a research-intensive investment. You’ll have to determine, as accurately as possible, the potential of an organization by evaluating white papers, seeking expert opinions, analyzing market supply and demand and so on.

Method 4 — Accepting Bitcoin Payments and Then Lending Them

This method is particularly applicable to businesses. Even behemoths, such as Microsoft, AT&T, KFC, Buurger KING, Goldman Sachs, JPMorgan, to name but a few, are already accepting direct Bitcoin payments. Which means it is safe enough for all small to mid-sized businesses as well.

The best part about accepting payments in crypto is that it does not require any validation from any authorities whatsoever. There are no third parties to eat into your payments.

Now to the second part: lending. Curious to know how does bitcoin make money for you? This is how: the asset is sitting there with you and while you are not out making money with it, you let the Bitcoin make money for you! And you can make this happen by letting bitcoin or other major cryptos to people at an interest.

And, of course, lending is not open to businesses only. Any individual with a Bitcoin wallet can lend bitcoins and rake profits by way of interests. However, while lending, make sure you choose a credible and reputable crypto lending platform (to make sure you don’t end up losing all your crypto assets!). some of the most reliable crypto lending sources at present include BTCpop, Unchained Capital, Bitbond, and more. At all these sources, you are offered lucrative interest rates, at around 15 percent per annum.

Method 5 — Earn Bitcoin via Affiliate Programs

As cryptocurrencies become increasingly integrated into our daily life, there are more opportunities to make sizeable amounts of money through Bitcoin affiliate programs. You can start a blog or YouTube channel directed at making people aware of the benefits and advantages of Bitcoin or cryptocurrency in general. If you already have social media accounts with a good number of followers, you can also leverage that influence to direct people’s attention to cryptocurrency.

The formula is similar to any other affiliate programs. You sign up as an affiliate for any crypto or bitcoin agency, promote their services and earn commissions on the basis of converted sales amount. Additionally, if you have good PR skills (better even if you already have some reputation as an influencer), you can conduct affiliate programs to educate people on topics like ‘how to make money in cryptocurrency’, ‘how to make money from bitcoin’ and about cryptocurrency in general.

The only thing is that you need to make sure that you are signing up with a credible and genuine affiliate program. We reiterate this in every section only because, being an unregulated one, the crypto market is still unfortunately full of any number of spam players. And this goes true for all sorts of crypto services: cloud mining, crypto exchanges, lending platforms, PTC crypto micro-earning sites and more. So, no matter what method you choose to make money with Bitcoin, you will always need to be wary and overtly cautious about the company, service or product you are opting for.

The same goes for affiliate programs. If you don’t do your research well and end up promoting some spam product, you can already imagine how much this will affect your credibility and integrity as an individual.

So, whatever method you choose to make money through crypto, always be on your guard, make sure to devote enough time on research and you’ll not go wrong in your quest to earn money with Bitcoin.

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