How to Make Money with Bitcoin

make money with bitcoinOne of the main reasons to get involved in bitcoin is so that you can make money from the cryptocurrency. Although bitcoin is gaining in popularity, there are still only a few ways to make a real profit.

Here are some of the avenues that you have at your disposal with bitcoin:

1) Mining for Bitcoin

Bitcoin mining is the original way of earning bitcoin. The bitcoin mining process is where recent transactions are compiled into blocks. It also involves essentially solving a very complicated computational puzzle.

Through this method, the first person to solve the puzzle receives bitcoin in return. Bitcoin mining is a surefire way to earn bitcoin. At the same time, it is an expensive and complex process that requires highly specialized equipment.

By joining a mining pool, you can reduce some of the cost involved although the bitcoin that you receive is also shared. Mining is also losing favor as the process is becoming more popular at an organizational level rather than for independent miners.

2) Buying and Holding Bitcoin

Then you can treat bitcoin much as you would forex trading. Here, you buy bitcoin when it is at a lower value. You then wait for the price to increase and sell it to make a profit. This is actually a viable option for a couple of reasons. First, recent spikes in the value of bitcoin have made it quite valuable. Then there is the other fact that there is a limited number of bitcoin available to be mined. The total amount of bitcoin that can ever be in existence is 21 million.

It is estimated that by next year, 80 percent of this supply will not only have been mined but also be in circulation. Now, it can be difficult to predict what will happen since bitcoin doesn’t necessarily behave or perform the same way as regular currency. Nonetheless, there is a good chance that there will be an increase in demand as fewer number of bitcoin are made available. This will automatically drive the price up.

3) Binary Options Trading with Bitcoin

The other form of trading that you engage in with bitcoin is binary options trading. The brokers that do deal with bitcoin typically give you one of two options. You can deposit bitcoin into your account and use it to place trades on any asset with. If the trade that you have invested in ends up in the money, your original investment, inflated by the payout rate will be paid back to you in bitcoin.

The other choice that you have is to use bitcoin as a trading asset. This means that you will have to depend whether the price of bitcoin is going to increase or decrease within a certain period of time. If you are right about the price movement, you win that trade and receive a greater number of bitcoin.

4) Set up a Bitcoin Faucet

Most people that get started with bitcoin have visited at least one bitcoin faucet. These are websites that give people minute portions of bitcoin for playing a game or completing some small task. A great way to make money would be to start your own faucet.

Yes, you will be required to part with small amounts of bitcoin. However, advertisers use these types of faucets to place their ads or run videos. They will pay you for the privilege. This means that you will have to give up a lot less than you have to give in.

5) Get Bitcoin as an Income

If you want to earn bitcoin as a regular income, this could be managed as well. You just need to find a job that will pay you in bitcoin. It can be quite difficult to find a full-time job in a traditional industry that will give you your salary in cryptocurrency. In fact, there are only a handful of companies around the world that even offer this as an option.

However, there are many bitcoin-related sites and forums that do post part-time or freelance jobs that pay in bitcoin. Therefore, engaging in these activities means that you will have a steady flow of bitcoin.

These are some of the ways that you can make money with bitcoin. They each come with their own advantages and disadvantages so you will need to decide which one is right for your requirements and skill level.


Page Updated: July 3, 2017

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