How to make money using bitcoin
It’s safe to assume that everyone knows about bitcoin, but what everyone might not know is that you can make money using bitcoin! That’s right, there are many ways to make money with cryptocurrency, some easier than others. Getting paid in bitcoin sounds like a dream come true for many, and it’s a real possibility.
Here are some ways one can go about making money through Bitcoin;
Starting off this listicle, I will talk about how to make money using bitcoin. Unlike fiat currencies like the dollar, where new money is printed by central banks, new bitcoins are mined in a process where users lend computing power to verify existing bitcoin transactions.
1) Buy bitcoins for cheap and sell them at high rates
Like stocks, cryptocurrency’s value fluctuates rapidly. One can buy cheap bitcoins and then sell them at a higher price, therefore earning a profit. The trading market is very volatile though, so you should monitor the prices closely before deciding to invest any money into it.
Unlike stocks, which have closing times, crypto-trading never closes, so you can buy and sell bitcoins at any time. Beware, it can also mean your profits can skyrocket or crash while you’re sleeping. Sweet dreams!
2) Offer services for bitcoin
There are many platforms where individuals can offer their services in exchange for bitcoin. A few examples include Fiverr, Bitfortip and Coinality. This method of earning bitcoins is especially useful if the exchange rate is very high, allowing you to earn more money.
You can also get paid in bitcoin simply by requesting to be paid this way. Using the Copay app, it is possible for employers or clients to send you payments in bitcoins using simple QR code technology.
3) Mining
Users can mine bitcoins by devoting their computing power to verify transactions. The bitcoin network rewards users with new bitcoins whenever they successfully verify a series of payments, therefore miners are paid for their services. There are three ways you can mine bitcoins: on your own, as part of a pool, or through the cloud.
If you are starting off with no money, mining bitcoins is a way to go, since you will need a large amount of money to buy bitcoins. However, mining can be difficult and kind of scary for newbies, so it is recommended to buy the coins instead of mining them.
Mining on your own or as part of a pool is possible, but not recommended unless you really know what you are doing. Cloud mining may require less skill than regular bitcoin mining, but it involves a monthly fee, and it can be difficult to determine if a company is legitimate or not.
The good thing about mining bitcoins is that you will get your money back since there are many ways you can pay for the equipment and electricity. There are also a lot of tax benefits. The bad thing about mining bitcoins is that it involves a lot of work, and it is easy to make the mistake of either spending more money on equipment than you should have or be forced to buy bitcoins at a high price.
When it comes to using your computer as opposed to a specialized unit for mining, it is possible but not recommended. You can use Bitcoin Miner or one of many other programs available for this purpose. The more hashes you can perform, the bigger the chance that a specific block will be solved and added to the blockchain. As more people join in on mining, it becomes harder and harder to solve a new block. This makes it impossible to predict exactly how much time will elapse from when you start working until you receive your reward.
Conclusion
As you can see, there are quite a few ways to get involved with the bitcoin economy, including mining new coins, accepting bitcoins as payment for goods or services you provide, and investing in them. As with any investment, there are significant risks associated with this volatile market. However, if you take the time to understand what makes it unique, you may find yourself profiting from this new economy.
Hopefully, reading this has been helpful to you. If you want to take your bitcoins to the next level, then try out the tips in this article.
So what are you waiting for? Take action today!
