In this article, we have a beginners’ guide for how to make money with Bitcoin: ways to get profits with Bitcoin. Here is our beginners’ guide to getting closer to the world of digital currencies.
Bitcoin is a digital asset and payment system that was invented by Satoshi Nakamoto in 2008. It is a form of peer-to-peer (peer-to-peer) transaction that takes place directly between users, thus eliminating the need for an intermediary.
How to Make Money with Bitcoins in 2021
1. Open a bitcoins tap (Bitcoin Faucet)
The first and the least risky way to get bitcoins is to go to your own bitcoin faucet or Bitcoin Faucet. This term refers to those websites that give bitcoins in exchange for time spent on the page. The business model of these sites is simple: monetize the traffic that comes through the ads. For this, the user will have to register in these places, either with a bitcoin address or with an email. Next, a security captcha code will have to be filled in to receive a small number of bitcoins.
2. Trade bitcoins
This carries a higher level of risk compared to the previous one, although the reward increases. Bitcoin arbitrage works the same way other markets do. It is about trading with this currency as if we were doing it in the stock market or in Forex. Some electronic trading platforms specialized in digital currencies are BTC-E, Bitfinex, or Bitstamp.
The risky part comes when we refer to the volatility of the bitcoin market. Some exchanges take several days to take place, so if there are significant movements in the market, the initial value can be lost. Therefore, platforms that offer immediate exchange are the best option.
3. Lend bitcoins for profit
Another way to get more bitcoins that carry risks of the same level as the previous method is through P2P loan platforms such as BTCJam or Bitbond. Most investors earn between 10% and 14% of the amount invested, depending on the type of investment strategy used.
These platforms do everything in their power to know the credit history of loan applicants. In this way, guarantees and solvency are offered to the lenders. However, there will always be people who can pass the filters and not meet the requirements and will not be able to repay the loan.
4. Sell bitcoins on LocalBitcoins
A moderate risk method of making money with Bitcoins is to list them for sale on LocalBitcoins, a Finnish startup that not only brings together buyers and sellers locally but also allows the exchange to other currencies. On this platform, you can see the exchange rates and payment methods to buy and sell bitcoins in different currencies.
5. Doing Mining
In addition to being purchased, Bitcoins can also be generated. The operation is called mining; The process involves using sophisticated machines that are expensive and consume a lot of electricity to solve mathematical algorithms in exchange for Bitcoin. It is not a solution for non-expert users. In recent years, due to the difficulty of the process, it is no longer considered an advantageous system. Or rather, not if homemade. It would be better to be part of a group that deals with “mining” virtual currency. The most famous groups on the Net for mining are Antpool, BTCC, and SlushPool.
6. Cloud mining
This is the highest risk form of all we have seen. With bitcoins, you can rent hash power on sites like Miningrentals. Equipment that runs all kinds of hash algorithms suitable for each type of digital currency can be rented.
Cloud mining equipment rental can be a fun activity if you do your research before choosing which currency to invest in. However, don’t make the mistake of renting cloud mining equipment that promises daily payments.
7. Coinbase for holding in Bitcoin and altcoins
First, to make money in cryptocurrencies, you need to own them. To convert euros into bitcoins and altcoins, just sign up on one of the dedicated platforms. Coinbase is one of the best tools for beginners: it allows you to create a free account in just a few minutes and offers you a quick and practical app to convert.
In this regard, it is necessary to have a wallet, also called a virtual wallet, which allows you to keep your cryptocurrencies: Coinbase also offers you an integrated wallet, which is also protected by high-security standards. Coinbase is the easiest method to invest in Bitcoin and other supported cryptocurrencies, also ideal for those who are not familiar with the PC.
The application has been designed to be very intuitive, so you won’t have any problems using it. Register, follow the required steps, and make the minimum deposit you want. The platform will guide you step by step to purchase the cryptocurrencies of your choice.
8. Celsius Network for passive cryptocurrency income
Another interesting way to generate profits with Bitcoin and other cryptocurrencies is the Celsius Network. Unlike Coinbase, Celsius Network is not a real exchange but rather an application that offers you a constant interest rate over time due to the mere fact of having purchased and maintained a certain amount of cryptocurrencies over time.
The platform offers a variable passive income opportunity ranging from 6% on average for Bitcoin to 14% and above for other crypto owned. The highest rates are obtained by purchasing the official Celsius Network token. Also, in this case, you will not have to worry about anything else because CN has an integrated wallet, and in addition, it also offers other services such as lending money or obtaining a loan.
9. eToro to copy the best: the advantage of Social Trading
If despite the advice, we have given you, you want to venture into cryptocurrency trading, and we recommend the well-known eToro platform. This is another well-known method, particularly suitable for beginners, that allows you to invest without having any trading knowledge.
Registering is very simple, and you have an unlimited demo account to try out all the available services. Among these, Social Trading is certainly the most interesting. By accessing the Copy Trading section, you can copy all the operations of the chosen user, obtaining his own profits, simply with a click.
The traders can be chosen on the basis of a catalog, which shows their profit percentages and the success obtained by the number of followers.
10. Bitcoin for ads
Some internet sites pay users in Bitcoins if they view advertisements. Obviously, we will have to register on the site to start earning virtual coins in this way. Beware. However, this is a very, very slow method to obtain Bitcoin. The most famous sites in this regard are Bitcoin Aliens and BTCclicks.
11. Sale of goods in exchange for Bitcoin
On the Net, there are people who sell clothes, old gadgets, cars, and even houses in exchange for Bitcoin. What appears to be an extravagant method is actually one of the most used systems in recent years. It allows those who don’t have a lot of time to earn Bitcoins in other ways to start with a good amount on their virtual wallet. The most used sites for these exchanges are Bitify and Purse.
12. Use CFD
Contracts for difference (CFDs) are one of the most influential financial instruments of the moment, as they have a high trading volume, thanks to the large number of online brokers that allow you to trade Bitcoin.
CFDs are instruments that replicate the value of an asset, such as Bitcoin. The main advantage is that CFDs are very liquid, and you can bet both up and down. Yes, it is possible to win if the BTC goes down.
Bitcoin CFDs should be used for short-term speculative investments, using reasonable financial leverage to minimize risk.
13. Use affiliates programs
If you have a blog, social networks with many followers, or any other online channel with traffic, you can earn Bitcoin by recommending products/services related to the crypto world.
One of the most complete affiliate programs is the Exchange Binance, which allows you to earn up to 40% of the commissions generated by investors. It is paid in the native BNB Token, which you can then easily exchange for Bitcoin.
If you don’t have a Binance account yet, you can open it in a minute to start making money with Bitcoin and trade online.
14. Receive bitcoin rewards or tips
One of the most rewarding things in this world is helping others, and if you get any money in return, even better!
One of the most prominent platforms for this is Bitfortip, which provides BTC as an incentive to help people with various types of tasks. These tasks can be helping someone to find a dress on the internet, giving well-founded technical answers, among many others.
Also, if you are a gamer who loves to broadcast your favorite titles, why not accept tips in BTC? Twitch and other streaming platforms have integrated tipping services in cryptocurrencies. Check out!
15. Small jobs and pay-to-click (PTC) sites
Several sites pay you in bitcoin if you watch an ad or click on a link to a specific page that contains ads. But know that, to really make money from it, you have to engage in a tedious activity. If you don’t care, these sites are an excellent way to earn money fast. Coinpayu and adBTC are interesting sites to check if you are interested in making money from cryptocurrencies.
Similarly, Microworkers and Cloudfactory are sites that pay you a small fee to perform very simple tasks like watching a video on YouTube or responding to someone’s search. There are versions of these sites that pay in bitcoin, like Bitcoinget and Cointasker, where members can choose from thousands of tasks to perform and earn bitcoin in return.
16. Write about bitcoin
In general, cryptocurrencies are a new niche, genuinely known only to a few writers. This means that the market is flooded with novice copywriters (or copywriters) who rewrite the same content over and over again.
So if you really have mastered this niche and write well, why not try to educate the masses with your skill? Cryptocurrency News and Blockchain Aliens are some of the many sites that can pay you for writing about bitcoin. You can also use various freelance sites like Upwork and Freelancer.
17. Being a holder
If you trust the potential of this money technology, being a Holder is the most promising option to earn money with Bitcoin since your horizon will always be long term, forgetting about current fluctuations.
A Holder is one who buys Bitcoin and forgets that he has it, betting on a strong revaluation in the medium / long term.
How long does it take to mine a Bitcoin?
Cryptocurrencies have acquired increasing importance in recent years, Bitcoins are undoubtedly the most used, but it is good to know how they work and how to get the best.
Bitcoin mining speed: the time to mine
Generally, the average time required to generate Bitcoins is ten minutes, but this system is only implemented with very powerful machines.
The speed to mine cryptocurrencies, and in this more specific case, Bitcoins, is given by the type of hardware used.
If you’re using a simple home computer, Bitcoin mining can take years!
For this reason, those who want to undertake the path of mining are equipped with specific hardware suitable for this type of work.
There are also different platforms that are used to mine; every year, different ones are created, always with higher performance. For more information, see the “Bitcoin Wiki.”
The difficulty of mining a Bitcoin
Mining Bitcoin is a very complex job that requires the organization of important machines, and above all, it must be kept in mind that the competition is great.
Mining difficulty is also affected by the number of miners that are present on the network at any given time. The more machines join the network to mine and extract Bitcoin, the more computing power increases, and as a result, it is easier to find new blocks.
Therefore the useful time to generate Bitcoin also depends even more on the difficulty of the network when you decide to mine.
What Factors Affect Bitcoin Mining?
There are several factors that influence a successful BitCoin mining. In particular, they can be classified as follows:
- Hardware: this must be very powerful and capable of solving cryptographic problems, furthermore being the action of undermining an activity that requires a large electrical intensity, the device must be well equipped from an energy point of view;
- The difficulty of the action of undermining: it is important to maintain a speed of at least one block every ten minutes. The more miners join the network, the shorter the time to validate the transactions, while on the contrary, the more miners they leave, the longer the operation takes;
- mine alone or decide to join a “pool”: in this case, it is good to evaluate, as if you join a pool, it is true that the speed for generating a BitCoin decreases, but the profits will be shared among those who are part of the pool.
There is a lot of mining competition, so during a grid connection, it is not sure if you will win a block. Even more so if we use a simple home computer, it is, therefore, important to equip ourselves properly so as not to be unprepared. The study is fundamental, and the acquisition of skills is the basis for being able to enter the new world of cryptocurrencies.
Bitcoin trading faqs
Is trading Bitcoin safe?
Like any type of financial trading, bitcoin trading has a risk of loss. We advise you to act with caution. Becoming a successful trader requires education and discipline. Taking a look at price charts often enough to make the right buying and selling decisions is not suited to anyone’s personality or lifestyle. If you want to trade bitcoins, you can decide to fund a trading account or a Bitcoin wallet with an adequate monetary amount and then ‘try it out’.
What is the best Bitcoin trader?
We suggest that the ‘best’ bitcoin trader is the one who takes a long-term strategic view on building up a healthy cryptocurrency balance. This depends on each individual choice. You may want to take advantage of short-term trading opportunities such as buying when prices suddenly collapse due to bad news and then start to recover. Or when prices peak with the expectation of falling back to capture the profits made. Trading bitcoin is risky and can change your life.
Can you get rich without trading Bitcoin?
Many hundreds if not thousands of people are ‘getting rich’ by trading Bitcoin. But likewise, many people lose money due to price volatility and emotional trading decisions. In the guide above, we take the trouble to explain why daily short-term trading should be avoided, with a long-term accumulating bitcoin approach considered the safest and most lucrative approach. This is something that each individual will have to decide.
There are many methods to learn how to make money with Bitcoin, both directly and indirectly. Direct methods could be buying the cryptocurrency and exchanging it, while an example of an indirect method could be crypto mining. It’s natural to get confused at first – cryptocurrencies are a tough nut to crack!
As I mentioned at the beginning, preferences for any of these methods are largely based on the person using them. Cloud mining might be a godsend to someone, while to someone else, it might seem like a big scam, and they’d rather do everything on their own. One tip: research. Do a lot of research. By putting in the right effort, you’ll be choosing the right method in no time. Forums are an amazing place to start. Join groups on Facebook, participate in their chats. Don’t be afraid to ask questions.
Also, it is worth noting that there are only a few carefully selected methods on how to make money with Bitcoin. If none of these methods you like or find attractive, you can always try to find an alternative, such as intraday exchange, crypto loan, etc. The options are limitless. Don’t be afraid to experiment and try new things!
Even when cryptocurrencies have been around for a long time, the world of cryptocurrencies remains a mystery to many people. Every day there are new analyzes, statistical information, and even new currencies that enter the community and the market. It’s not an easy task, but if you decide to go ahead and try one of these ways to make money with cryptocurrencies (or, more specifically, Bitcoin), I wish you all the luck in the world!