Bitcoin has been around for a cool 12 years, but only a small fraction of the population knows what the cryptocurrency business is about. If you are contemplating dipping your toes into Bitcoin, you may wonder what it takes to make good and come out with some profit or what to do with your coins. You may not even know where to start. Here are five ways that you could make money with Bitcoin:
Bitcoin is an unregulated currency that relies on millions of computers – also known as nodes – to validate and record data in the Bitcoin blockchain. This data is stored in the form of “blocks,” Your task as a miner is to find new, accurate, and non-duplicate blocks to add to the ledger. With each successful addition of a block, the miner gets a Bitcoin reward.
2. Through micro jobs, PTC, and faucets
Micro-earnings offer the easiest and surest route to earning through Bitcoin. The catch is that it will take you an eon to make anything of substance.
Bitcoin faucets are websites that allow users to earn Bitcoin by performing small tasks on their pages. Users may be asked to answer brief quizzes, mostly about products, or solve captchas for a small percentage of the site revenue.
3. Selling and buying
Investing in Bitcoin typically involves obtaining the cryptocurrency and holding it until its value increases. It can be a daunting process waiting for a significant positive value change, but people have made a fortune out of this method, so it is a viable one.
Given Bitcoin belongs to an unregulated market, investing with the intent of earning big in the short term is a precarious affair. Of course, people are making good exploiting short-term opportunities, but that requires plenty of skill and experience. You need to learn how to buy Bitcoin and understand its dynamics to detect, assess, and capitalize on profitable opportunities.
4. Join Bitcoin affiliate programs
Promoting affiliate programs is one of the most underrated ways of earning with Bitcoin. Affiliates are individuals who promote brands and products for free but earn a percentage of the sales revenue if they manage to bring in a converting lead.
Many online Bitcoin exchanges have affiliate programs that you can join for free. Once you sign up, you get an affiliate link to promote the brand and its services.
Success as an affiliate marketer is almost entirely down to the marketer’s effort. A good website with thousands of unique visitors per week will perform better than a poorly-designed low-traffic site.
5. Engage in Bitcoin lending
Another relatively popular way to increase your Bitcoin wealth is to lend your coins to borrowers for an interest. Many online platforms connect borrowers to lenders. All you need to do is sign up, stock up your account, and start lending.
While lending provides one of the most lucrative channels to earn with Bitcoin – with interest rates of up to 20 percent – it comes with a significant downside: you can lose your money plus the interest if the borrower takes to the hills. Thus, you need to prepare to take the bad with the good if you want to be a successful lender.
6. Claiming Bitcoin airdrops and forks
Back in 2017, Bitcoin made it possible for users to fork their funds into other coins. Forking is the process of creating a Bitcoin clone from an existing Bitcoin. Some of the most popular forks include Bitcoin Gold, Bitcoin Cash, and Bitcoin Diamond.
Forked coins are referred to as forkscoins. The process of claiming them is a bit tricky, but with some standard knowledge in Bitcoin, you can maneuver it with ease.
Airdrops, just like forks, give you coins out of nothing. Usually, they are used to market specific cryptocurrencies, whereby cryptocurrency users receive free coins. In doing so, the distributors spread the word about the existence of their cryptocurrency.
7. Run a master node
Operating a master node requires maximum dedication and superior understanding of the Bitcoin technology, but all the hassle comes with substantial rewards. Master nodes keep track of transactions in real-time, and running one means validating and sharing new and authentic transactions with other nodes. You will also be charged with transaction broadcasting, governing voting events, ensuring seamless protocol operations, and a range of different assignments.
There are many ways to earn with Bitcoin. The cryptocurrency is still growing, too, so there is no ruling out the prospect of new and better money-making channels emerging. Whichever method you deem suitable, always remember that knowledge and skill are essential ingredients for success. The industry has drawn quite the crowd in recent years, and that has translated to increased competition for the limited profitable opportunities in the industry. If you are a complete greenhorn, take the time to understand Bitcoin and cryptocurrencies before launching yourself into the trade.