Bitcoin is a digital currency that has taken the world by storm. It is a secure, global payment system that allows people to send and receive money without going through a bank. Bitcoin can be used to purchase goods and services online or cashed out into traditional currency. This article will discuss four ways to use bitcoin to earn money.
Let’s take a look at these ways.
Bitcoin trading is the most popular way to earn money Bitcoin. If done correctly, it can provide a consistent source of income and perhaps a nice side-hustle that will allow you to have some fast cash in your pocket at all times. At this point, no one knows exactly what will happen with bitcoins in the future. Bitcoins may continue to appreciate steadily over time as more people use them for transactions or shift towards using them as an alternative asset class.
In such a case, holding on to your earnings from bitcoin trading could yield significant returns, both from an investment return standpoint and from a personal finance perspective (bitcoin trading profits are not subject to capital gains taxes). Bitcoin Era is a top trading platform that every beginner must use.
Bitcoin mining can be done by a computer novice—requiring basic software and specialized hardware. Conversely, it can be done by a bitcoin veteran—requiring an extensive understanding of the bitcoin network. The concept of mining is simple: Miners verify recent transactions, and they receive new bitcoins in return for their work through that process.
Mining occurs regularly on the bitcoin network; as more miners join the community, it becomes increasingly difficult to mine bitcoins, and the difficulty level adjusts accordingly. The total number of bitcoins in circulation has not exceeded 21 million coins since the first block was mined back in 2009. Since then, over 4 million Bitcoins (almost 30% of the total) have been “lost” due to irrecoverable passwords, forgotten wallets from hard drive crashes, and other issues.
Bitcoin lending (or peer-to-peer bitcoin lending) refers to the process of loaning Bitcoins without depositing any. It works similar to other types of peer-to-peer lending: loans are managed through an open-source platform and facilitated by a P2P network, which allows each user to borrow or lend bitcoins directly from or to other users on the same network.
The main difference between bitcoin lending and fiat-based peer-to-peer models is that there is no central authority approving borrowers and lenders. Still, rather Bitcoins are transferred directly between lender and borrower.
Accepting bitcoin as payment
This way is suitable for people who already have a business/website, have products they want to sell and are looking for ways to get more clients. Various plugins are available that let you accept bitcoin on your website. This one is a good example.
For this solution, you can use the purse.io service with a 10% discount – send them your product link, and they will provide you with the payment address where customers should send their BTC to receive the product in return (here is an example).
The Bottom Line
You can make money with Bitcoin in four primary ways: buying the currency as a speculative investment, accepting it for goods and services, mining new ones, or investing in pooled mining accounts. Earning Bitcoins through competitive mining is very difficult; most available pools are not worth joining due to low rewards.
4 Ways to Earn Money with Bitcoin is a feature post