Different ways to earn money with bitcoin
Most of the people that get into bitcoin are in it for one thing: money. Ever since its major price spikes, people have seen bitcoin as an investment opportunity – and they’re right. Bitcoin is an amazing and innovative way people can earn some money on the side. With bitcoin being a decade old now, there are tons of different ways to earn a little side moolah. We’re going to be going over some of the more basic and fundamental ways of doing so.
Earning money with bitcoin
If you’re new and interested in investing (and hopefully making a profit) in the bitcoin industry, you might want to look into these methods of earning money with bitcoin. Even if you already know how to buy bitcoin, you might want to reevaluate your current strategy.
Bitcoin mining has been around, well since the creation of bitcoin. It is done on specialized computers. Miners, the ones operating these computers, are tasked to secure the network and process every bitcoin transaction. They complete these tasks solving complex mathematical problems that allow them to chain together several blocks of secured and verified transactions – hence the blockchain. As a reward for doing this, they are rewarded with some newly-created bitcoins and transaction fees that come with each block.
When bitcoin was first created, the reward for solving a block would be 50 BTC. Since then, it has been halved twice, resulting in a reward of 12.5 BTC, and the reward is expected to half again in May 2020). The reward of the miners is designed to be halved as a way to battle inflation. Since bitcoin has a cap of 21 million coins, Satoshi Nakamoto’s plan was to incentivize the creation of new money instead of releasing 21 million coins all at once. According to him: “if the supply of money increases at the same rate that the number of people using it increases, prices remain stable.”
Unfortunately, bitcoin mining isn’t as profitable as it used to be. With all the “halvenings”, you’ll be going against a lot of competition – some of which are dedicated warehouses specifically made for bitcoin mining. Since it’s technically a race to whoever can solve the block first, you’ll probably need a good mining pool as well as a supercomputer to be able to beat your competition to the punch. Even with all that, the rewards aren’t so great anymore. It’s still something, but it isn’t as lucrative as it used to be.
Bitcoin trading is another very basic form of earning money with bitcoin. This is the primary way most people earn their money and how you’ll earn your money depends on what kind of trading strategy you’ll use. Here are a few trading strategies you’ll want to take note of:
- Day trading – This trading strategy refers to the full-time dedication to trading bitcoin. Most trades are done in the short-term, which could mean you holding a coin for just a few seconds to a couple of hours. The idea is that your coin should be sold before the end of the day in hopes that you make a small but quick profit. For this trading strategy, you’ll need to keep your eyes glued to the latest news and trends that could possibly affect the price of the coin.
- HODLing (Holding On for Dear Life) – HODLing refers to the long-term holding of a coin in hopes that it will increase in value over time. It involves staying invested despite the rises and falls in the market. If day trading means you holding onto a coin for just a few seconds to a couple of hours, HODLing means that you can hold your coin for a few weeks to a few months. Ideally, you’d want to buy in bulk when the price is slow and hope that the price skyrockets. Unlike day trading, HODLing doesn’t take up most of your time. It can be treated as a side gig and maybe even passive income (assuming that you’re lucky and earned a profit).
- Peer-to-peer trading – The market has recently seen an emergence in peer-to-peer marketplaces. These marketplaces add a personalized touch to the trading experience thus enabling more control for the users. As buyers, people are able to filter out the obvious scammers as well as choose offers that fit their preferences. As sellers, people are able to control more aspects of each offer – profit percentage, preferred currency, location, etc.
There are lots of other trading strategies out there, but these are some of the better options available. They’re also the strategies that are most suited for beginners.
Affiliate programs are a way for companies to incentivize the use of their product. It’s a method of marketing that has been around for ages and it targets multiple audiences such as influencers, non-influencers, businesses, entrepreneurs, and consumers. These different audiences use affiliate programs in different ways. For example, influencers can use affiliate programs as their main source of revenue (from commissions) as most brands and companies target this demographic when they create their affiliate program. On the other hand, customers can use affiliate programs to earn a little bit of money on the side or perks from the platform. They do this by simply purchasing from a brand. Some brands will even offer discounts for sharing specific links or codes with their friends.
Bitcoin affiliate programs are one of the best ways to not only get your friends and family to join the bitcoin rollercoaster, but they’re also a great way to build a passive income. As far as specific bitcoin affiliate programs are concerned, there are lots of options to choose from but there is one that stands out the most, and it’s the one that Paxful offers. Paxful is one of the leading peer-to-peer bitcoin marketplaces in the world and recently, they have revamped their affiliate program. The updates to the program have allowed users to make even more money. Their program can be broken down into two tiers:
- Tier 1 affiliates – These are your direct affiliates. They’re the users who signed up on Paxful using your direct link. From these affiliates, you’ll get 50% of the collected escrow fee per completed transaction.
- Tier 2 affiliates – If your tier 1 affiliates are those that signed up using your link, tier 2 affiliates are those that signed up using the link of your tier 1 affiliate. From these tier 2 affiliates, you’ll get 10% of the collected escrow fee per completed transaction.
With enough affiliates, your account will start to become self-sufficient and hopefully, these affiliates will be trading so much that you’ll be earning money without having to lift a single finger.
There are tons of other ways to earn money with bitcoin – such as bitcoin faucets and dropshipping – so make sure to look into a few other options as well as you settle on one. These are the utmost basic ways to start earning with bitcoin and if you build up knowledge out of comprehensive research, you’ll be able to make some money without having to deal with so many risks. It’s very important that you do your own research so that you can make yourself aware of all the risks involved and the ways in which you can minimize these risks.
It’s never too late to get into bitcoin and it damn sure isn’t too late to start making money. There are a lot of opportunities out there so go out there and grab them!