The emergence of Bitcoin as one of the hottest new investment assets has surprised many who once believed that the blockchain-driven cryptocurrency would never have any real-world value. It also generated huge amounts of interest from those who either had never heard of Bitcoin before or had relatively little knowledge of it. As a result, there are now incredible opportunities to make extra money in the cryptocurrency niche.
In the following article, you’ll find out how to make money with Bitcoin and discover some of the many different ways to capitalize on the cryptocurrency trend and earn Bitcoin in a variety of ways.
First up, man. A Word of Realistic Caution Before you start thinking about how you can earn Bitcoin and make money with Bitcoin, it’s important to take a realistic view of how much money you can make. Although there is certainly a huge amount of money to be made on this market, many of the beginner-friendly ways to earn Bitcoin will only result in small amounts. Don’t be discouraged, though. Even small amounts of bitcoin can be useful assets, especially given the current rapid increase in the value of cryptocurrency. If you want to accumulate larger amounts of bitcoin, that’s entirely possible, too.
However, it will require an initial investment that may not be easy for you to afford. With that out of the way, let’s start exploring the different ways in which you can start making bitcoin money.
# 1 — Bitcoin Mining — Number one way to make bitcoin money.
If you want to put together as much of a bitcoin as possible, mining is one of your best options. Mining refers to the use of computer hardware to perform a set of mathematical operations automatically, which in turn creates a new bitcoin. By the way Bitcoin is set up, only 21 million can be produced. At the time of writing this article, about 16.7 million of these bitcoins were successfully mined, leaving more than four million miners on the table.
One thing you’ll need to know about Bitcoin mining before you get into it is that the difficulty increases over time. In other words, it will take more time and more computing power to generate every bitcoin that follows. In the early days of Bitcoin, cryptocurrency enthusiasts were able to use graphics processing units on regular computers to mine them. Now, however, the difficulty has risen to such an extent that much more specialized equipment is needed.
One way to approach the mining of Bitcoin is to do it yourself. You’ll need to invest in a bitcoin miner to do this. Bitcoin miners are external devices that supply the computing power needed to produce Bitcoin in today’s high-difficulty environment. The price of a Bitcoin miner will vary considerably on the basis of its ability to process. Small USB miners start at less than $100, while larger, more powerful mining devices can run into tens of thousands of dollars. Although the initial investment in buying a Bitcoin miner may be fairly large, it allows you to produce your own steady stream of new Bitcoin until the full 21 million has been reached.
If you decide to start mining yourself, be sure to keep your peripheral costs in mind. You will not only have to pay for whatever equipment you choose to use, but there will also be electricity costs involved. If you have a large miner that produces a considerable amount of heat, you may also need to install a cooling system to keep it running properly. Together, these costs can make up much of the profit margin in Bitcoin mining. Luckily, if Bitcoin continues to appreciate in value, these peripheral costs will eventually be compensated for retroactively through this appreciation.
If you don’t want to go to the initial expense and have trouble setting up your own personal bitcoin mining operation, you can still get involved with what is known as contract mining. In contract mining, you will pay a fee in exchange for a company to use its Bitcoin mining equipment on your behalf. This contract will last for a certain period of time, and all Bitcoin mined during that time on the equipment you have contracted will be sent to your Bitcoin wallet. Two of the major contract mining services are Genesis Mining and Hashing24. Contract mining is an easy and passive way for you to accumulate bitcoin, although it will cost more over the long run than having your own bitcoin mining equipment.
# 2 — Complete Micro-tasks for Bitcoin
Although mining allows you to earn Bitcoin faster than any other method, its high investment threshold means that it won’t be suitable for everyone. If you’re looking for a smaller way to dip your toe in the Bitcoin pool, you might prefer to complete the micro-tasks you pay for in Bitcoin. Micro-tasks are small, simple actions, such as viewing an advertisement or engaging with a social media post. Although pay is usually very low, micro-tasks are probably the easiest way to get to Bitcoin.
CoinWorker, a marketplace that specializes in such tasks, is one of the best places to get started with the micro-tasks that pay in Bitcoin. CoinWorker tasks are paid in points each worth $0.01(USD). Although many CoinWorker tasks pay as little as $0.03–0.05, some pay more than $1.00. The tasks listed on CoinWorker are usually very easy and only take a few minutes to complete.
There are also a number of sites that will pay you a small amount of bitcoin to view ads. Like other micro-tasks, these actions pay very small amounts of bitcoin, but they’re incredibly easy to perform. If you’re trying to earn your first bitcoin, watching ads is one of the easiest ways to do it. Some of the best sites that enable users to view ads in exchange for Bitcoin include CoinAdder, Ads4BTC and Advercoins.
# 3 — Bitcoin Faucets
Bitcoin Faucets are a bit like micro-tasks in the sense that they pay very small amounts of Bitcoin in exchange for a small amount of your time — often around 1 Satoshi, which is one hundredth of a millionth BTC. In the case of hawks, however, Bitcoin is usually available to be claimed by users at a fixed interval, such as every five minutes.
The idea behind Bitcoin hawks is that their owners are selling on-site advertising, which is then viewed by users who come to claim their bitcoin. Bitcoin jackpots pay amounts that are almost too small for many users to bother with, but they’re a good way to break into the world of Bitcoin and start seeing a small amount of cryptocurrency in your digital wallet. Moon Bitcoin is one of the most popular of these hawks, but there are many others out there, including FreeBitcoin, Bitcoin Zebra, and Daily Free Bits.
# 4 — Invest in Bitcoin and Bitcoin Derivatives
One of the most interesting developments in Bitcoin over the last few years has been its emergence as a fairly popular investment asset. Investing in bitcoin, though not as common as putting money into stocks and bonds, is fast moving into the mainstream of finance. Investment, as one might imagine, is one of the most lucrative ways to make Bitcoin money.
The most basic form of investment in Bitcoin is to purchase and hold Bitcoin until its price rises enough to make a profit. Thanks to its high level of price volatility, Bitcoin has produced some incredible gains for investors who have already pursued this strategy. If you had just invested $500 in Bitcoin when it was worth $1 at the beginning of 2011, your investment would be worth more than $9.5 million today. Of course, this is an extreme example, but it does show how profitable Bitcoin investment has been for some traders who have been willing to hold on to their investments for a long time.
One of the problems that has plagued Bitcoin’s investment in the past is the lack of reliable exchanges. If you’ve been following Bitcoin for a while now, you might remember the surprise collapse of the Mt. Gox exchange that occurred as a result of a massive hack in 2014. With millions of dollars lost to Bitcoin, that hack has set back the mainstream adoption of Bitcoin for years. Now, however, a new generation of more secure and better-run exchanges is coming to the market to deliver Bitcoin services. The most prominent of these was Coinbase, which became the de facto Bitcoin exchange for most new investors, if you’re interested in other cryptocurrency exchanges, then check out these Coinbase alternatives.
A less well-known way to invest in Bitcoin is to trade it as a CFD or a differential contract. Essentially, the CFD is a derivative instrument that is based on the price of the asset, in this case Bitcoin. In contrast to standard investment, however, CFDs do not actually involve buying the asset they mirror. Instead, traders open positions with a CFD broker on the movement of an asset’s price. Typically, CFDs have high leverage rates, which means that both gains and losses are higher than they would have been at a higher rate.