While the Bitcoin craze has certainly subsided in recent years since the popular form of cryptocurrency took the world by storm in 2009, the open-sourced form of currency is still the most recognizable big player name in the market.
While the value of Bitcoin has steadily declined since its brief peak, the price of the currency remains high, as do most big holder’s reluctance to sell or trade the currency. So, if there is still money to be made in the Bitcoin market, then how do you get in on it?
Luckily, we got you covered. In this article, we discuss some of the viable ways you can still make money of Bitcoin — either by earning it, trading it, or just talking about it. While we should stress that cryptocurrency is a volatile market — like most stock market investments — but the payoffs can be significant.
But, before we go into some of the ways you can learn how to make money with Bitcoin, let us do a quick refresher course on what the product is and how it works.
What Is Bitcoin and How Does It Work?
As we mentioned before, Bitcoin is a relatively new type of cryptocurrency that relies on decentralized transactions for its operation. As of now, no government can tax Bitcoin, because the currency is not specific to one country.
When you sign up for Bitcoin, you can access your wallet and use a unique Bitcoin address for navigating your transactions. Think of Bitcoin as a shared private ledger. This ledger, which contains a detail report of all the Bitcoins out there in the world relies on an entire network for maintaining its privacy.
Bitcoin operates on a blockchain. Essentially, a blockchain is a public record of all of the various transactions that specific bitcoin goes through. Think of it as a chain with every link representing a different transaction dating back to a source or the seed.
This system provides Bitcoin with proof that you actually own the currency you claim (there have been numerous issues with hackers stealing funds). However, more importantly, it uses cryptography to hide the addresses of anyone using the service — which keeps things anonymous and safe.
So what is mining? As we mentioned, Bitcoin runs on a distributed network, one that uses blocks, or individual computers. Anyone can offer these blocks, and they maintain the strict neutrality inherent in Bitcoin. While the price of Bitcoin remains high, there will always be a need for miners.
This process also prevents the last block from being modified since it would ruin the chain. Mining is a competitive process, with multiple miners racing against each other to finish the intersection first. Once a block becomes complete Bitcoin pays the miner or miners a fee for their service.
Best Way You Can Make Money Using Bitcoin
We will be the first to admit that Bitcoin is not as lucrative in terms of opportunity as it once was. However, people who own the currency show no signs of wavering, so there is still money to made either through the product or through interactions. Here are some of the best was you can even make money with Bitcoin.
1) Try Mining the Remaining Bitcoin
As we mentioned earlier, you can mine Bitcoin to generate more income. Mostly this process involves solving complex math problems. In exchange for addressing these complex coding issues, which help ensure the decentralized nature of the product, the miners become rewarded in Bitcoin.
Early bitcoin miners made a killing off of old mining operations since the company desperately needed users. However, these days the process is much more complicated. Since you will compete with veteran miners, you will need an expensive computer system that can handle complex algorithms.
Since mining these days is often a race over who can finish the block. First, it usually comes down to the computer with the fastest processing power. However, there are ways you can bypass this inconvenience.
For example, you can team up with other miners and pool your processing power. However, keep in mind that this process will involve coordination and you will need to split the earnings with whoever helped you mine.
The future of miners depends entirely on the value of miners. Indeed, some people speculate that if the price of Bitcoin continues dropping, then eventually miners will no longer exist for the service. However, as of now, you can still try your luck at it.
2) Earn Bitcoin By Using Pay-To-Click Websites
If you do not have the computer or the processing skills for mining Bitcoin, then do not worry. There are more natural (albeit more boring) ways of earning Bitcoin. For example, if you do not mind watching advertisements or clicking on websites and viewing their ads, then you can make some money.
Some websites like Coinadder pay a small percentage of one Bitcoin for each advertisement or page that you decide to view. However, you should keep in mind that you will need to watch quite a few ads before you earn enough money. But if you do not mind the tedious work, then it is a good fit for you.
3) Write About Bitcoin
Since cryptocurrency is still a relatively new field in the tech industry, there is a significant need for people who know how to write about the service in a way that is both understandable and informative. This way of making money requires both a detailed knowledge of Bitcoin and some writing skills.
But, if you possess both of these things, then you should search major publications that pay writers for Bitcoin or cryptocurrency topics. There is too many writers merely rehashing the same points, so anyone with specialized knowledge is considered an asset.
4) Buy and Hold Bitcoin, Then Sell It at a Larger Price
While this method of earning can be risky, buying and holding was one of the original ways you can learn how to make money with Bitcoin. As the name suggests, the process involves purchasing large amounts of Bitcoin, keeping it in your wallet, and letting the value gradually increase.
Of course, this method of earning works off the assumption that Bitcoins value will continue to rise. Unfortunately, in recent months Bitcoin’s value continues to drop. As such, investing any more at this point might be a risky endeavor that could backfire on you if you are not careful.
However, the stubbornness of many holders might be enough to keep the currency value, if not for all then at least for a select few. Generally, we recommend doing a lot of research before you try this method of making Bitcoin since it requires strategy and confidence and risk at this point.
You should never trust anyone’s advice besides your own, but we do recommend you take a deal if someone offers you more for your Bitcoin than you initially paid for it. Considering the volatile nature of the Bitcoin market, this instance is becoming increasingly rarer.
5) Complete Micro jobs and Earn Bitcoin
This process is similar to pay-to-click services in that you earn tiny amounts of Bitcoin for completing easy jobs that do not require too much mental power. In this case, companies like Bitcoin get will pay you to watch Youtube videos or complete surveys.
However, like Coinadder you will need to complete a lot of these before you get enough currency to become worth it. At best you will get twenty thousand satoshis per survey or video you complete.
6) Charge People for Your Services Using Bitcoin
Sometimes there is so much hype behind the technology surrounding Bitcoin that we forget that the service is at its core a currency. As such, you can charge people in Bitcoin when you sell something or perform a function for someone.
Unfortunately, the money has not reached the widespread acceptance it once expected. As such, you might have some difficulty finding people who will pay you with the product. However, offering the payment option might open up some unique offers. Just make sure you factor in the coin’s current market value.
Bitcoin Frequently Asked Questions
If you do not know much about the specifics of how Bitcoin works, then all of these suggestions might seem a little confusing. The truth is that the service underwent massive changes and value dives in recent years. As such, it is important to stay on top of where the product stands in the current market. In this section, we will go over some of the common questions that people who are new to the service ask.
Is Bitcoin an Actual Currency?
Both yes and no — the answer is a bit complicated. While Bitcoin comes with value to the people who hold it and it operates similarly as currency, from a technical standpoint Bitcoin does not meet these criteria.
The value of Bitcoin is volatile and not yet widely accepted — nor does it have a store of value. However, as we mentioned — people believe in the amount of something when more people subscribe to it. So, a surge in popularity and usage might Bitcoin into the realm of actual currency.
What Determines the Value of Bitcoin?
While Bitcoin values once soared, they dropped pretty significantly once the cryptocurrency hit the futures market. Prominent and well-known investors, unfortunately, foresaw severe problems with service, which caused the price to fall dramatically.
While this accounts for the gradual drop in value in recent years, it also has a lot to do with the way the developers designed Bitcoin. Unlike a traditional monetary, the production of which is controlled by a federal bank, Bitcoin is intended to stop production at twenty-one million units.
In theory, this limited supply of Bitcoin will increase demand as the units cease production. However, since the units value remains incredibly volatile, then fewer and fewer people will widely accept the product as a legitimate currency.
Is Bitcoin a Risky Investment At the Moment?
Yes, Bitcoin has remained a risky investment since it hit the market. Though recent spikes in value created an electric buyer’s market, the reality of the situation is that the price of Bitcoin could free-fall at any second. As such, we do not think it represents the most viable investment opportunity.
However, with that said, any diversity added to an investment portfolio looks pretty good and the idea of Bitcoin — whether it is positive or negative — remains a well-known name in the market. Still, the only thing that comes with Bitcoin is speculation at this point.
And considering that soon investors will be able to trade Bitcoin index funds without actually owning any of cryptocurrency will likely only increase speculation in the product. As such, we would recommend getting out now while you still can.
Ultimately, you should never invest anything into Bitcoin that you are not eventually prepared to lose. If you are confident in the future of the company and the service, then by all means invest. But, we are looking more into blockchain technology — which will likely eclipse Bitcoin in the coming years.
We hope this article helped teach you how to make money with Bitcoin. As we mentioned, there is always risk involved when dealing with new technology — especially one with as little regulation as Bitcoin.
But, as in the past, often time the first wave of people who interact with the new form of technology makes the most money off it. So, if you are not afraid of the risk, then good luck on your Bitcoin journey. Now get started earning some money!