Bitcoin has become the new buzzword for the internet age. If you’re going to be part of the next generation new money, you need to know how to make money from bitcoin.
In this post; you will discover 4 simple ways to make money with bitcoin. To help you get started with becoming a part of the bitcoin community or, at the very least, earn a bit of extra money by leveraging everyone’s favorite cryptocurrency.
Firstly we would want you to know what exactly is a bitcoin.
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It is a type of digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.
BUYING AND HOLDING BITCOINS
If you want to start earning bitcoin you first need to obtain a bitcoin wallet, which is used to send, receive and store your bitcoins. You can obtain one from an online based service wallet or exchange such as Coinbase or Blockchain or CEX. These are two of the most used bitcoin wallet and come with an online and a mobile version.
Get a Bitcoin Wallet
Having said that, the safest way to store your bitcoins would be offline. For that, you could use a so-called “cold wallet” such as Trezor.
Once you have a wallet service, you can establish multiple bitcoin addresses, which allow you to receive bitcoins from others. No real-life addresses are necessary; just your bitcoin address will suffice for any digital currency transfers.
Bitcoin Transactions are Transparent
All transaction can then be viewed on the blockchain at Blockchain.info. This is why bitcoin is considered as a semi-anonymous digital currency as transactions are linked to bitcoin addresses but who is behind those addresses is unknown.
Let’s get into it, how do people make money with bitcoin. More importantly, how can you get involved so that you also start cashing in on this new source of income.
MAKING MONEY FROM BITCOIN FAUCETS
If you who enjoy playing games or simply don’t mind looking at a few ads, you can visit bitcoin faucet websites. These websites generate revenue from ads placed on their pages and pay out a small amount of the ad revenue to its users.
All you need to do is sign up with your bitcoin address and start earning a few cents worth of bitcoin every day. While it is a very slow way to earn bitcoins, these sites allow anyone new to bitcoin to get obtain bits of the crypto-currency for free.
One that we have been experimenting with is BitsForClicks. A good start if you do not have the capital to start investing or trading in Bitcoin.
DAY-TRADING BITCOIN FOR A PROFIT
If you love the financial markets and regularly trade online, then day-trading bitcoin could be a way for you to make money with bitcoin.
When it comes to bitcoin trading, the basic speculation strategy applies. You buy when the currency is low and wait for the price to increase before you sell it a higher price to generate profit.
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It is important you understand market trends and price dynamics if you want to make successful trades and as bitcoin is primarily headline driven it is important to follow bitcoin news closely when actively trading the digital currency.
Some exchanges also allow you to trade bitcoin using leverage, which can help you increase your trading profit substantially but also possess a much higher downside risk.
INVESTING IN BITCOIN PEER TO PEER LOANS
You can also use your bitcoins to lend them to entrepreneurs and small SMEs using the bitcoin peer-to-peer lending platform Bitbond. You can generate excellent returns by lending through Bitbond.
Peer-to-peer lending refers to a method through which individuals, startups, and SMEs can borrow from individuals without the use of a traditional financial intermediary. One such company is BitBond, where you can put your Bitcoin to work through peer-to-peer funding.
This enables financing for those Who are finding it hard to secure a loan from a bank and generates strong fixed interest returns, with low transaction fees and a low correlation to stocks and bonds for investors.
SELLING GOODS AND SERVICES IN EXCHANGE FOR BITCOIN
And finally, one of the most common ways of earning bitcoins is by selling goods or services in exchange for bitcoins. This is the same as any e-commerce operation; the only difference is that you don’t only accept standard currency but also accept bitcoin as a form of payment.
Some of the things you can sell are clothes, old gadgets, cars and even homes in exchange for bitcoin. Presently, there a lot of sites that offer platforms for people to buy and sell products in exchange for bitcoins.