6 Helpful Tips to Make Money With Bitcoin

Cryptocurrency is becoming increasingly widespread by the day. And with it, the largest coin – Bitcoin – will also experience an increase in value, according to industry experts. By 2025, a single Bitcoin is predicted to be worth more than $100,000 – five times more than it is now.

Therefore, it’s unsurprising that many people are still looking to learn the cryptocurrency ropes and begin trading. In this article, we’ll discuss several ways to make money with Bitcoin for beginners. Regardless of the promising Crypto Future Predictions, if you have the time and energy, there’s no reason why you can’t earn a profit with Bitcoin even today.

1. Make money with bitcoin mining

Let’s begin with the first thing that is associated with Bitcoin. Mining is an enticing proposition in theory, as it promises an alluring passive income. You will receive Bitcoin after your hardware solves mathematical equations necessary for adding blocks to the blockchain (which is, by the way, what mining actually is).

However, there are some difficulties that make it harder to make a mining profit, even though this is a potentially lucrative way to earn a profit in Bitcoin. 

For starters, you’ll need powerful and expensive hardware – you’ll need to set aside a substantial sum before even attempting to make money. The good news, however, is that prices of graphics cards are dropping, so the situation now is better in this regard than it used to be. In addition, the competition is rather stiff and there’s a high chance of someone’s hardware solving the same equations before yours.

That’s not to say that making money with Bitcoin mining is impossible. A way to bypass the need for powerful hardware is to use cloud mining, where you’re connected to computing power on the cloud. Another way is to join a mining pool – a group of miners who have combined their individual computing powers and who then share Bitcoin earnings.

Regardless, patience is a must – don’t expect to gain a substantial profit overnight by mining Bitcoin.

2. Buy and hold

The fundamental rule of commerce is: buy cheap, sell at a higher price. There aren’t too many intricacies to this method of earning a profit with Bitcoin. 

As we said, the price of Bitcoin will likely increase in the future, so what you can do is simply buy Bitcoin now and wait and sell it once the value significantly rises in the next few years.

Of course, this isn’t a good solution if you really need to make money with Bitcoin fast. You will need to wait for an extended period of time before seeing the profit from your investment. Still, this is a sound method for those who aren’t in a hurry.

3. Make money with Bitcoin trading

Bitcoin, and crypto trading in general, require at least some expertise on the investor’s part. Therefore, absolute beginners should proceed with extreme caution, until their know-how increases over time. But, that doesn’t mean you can’t start trading now; just, exercise due diligence and invest with small amounts for starters.

There are several strategies that Bitcoin traders rely on. One of them is arbitrage. If you choose this option, you will need to monitor several different crypto exchanges. The idea is to make small profits by buying Bitcoin where it’s cheapest at that moment, and then selling on the exchange where it costs the most. This is how to make money with Bitcoin on Coinbase, for example.

Another option is day trading. It involves several quick trades made in a single day. For this to work, you will need to analyze the market and identify small chances for profitable trades. The reason why this method is alluring is that you won’t be paying charges for overnight funding.

Finally, we will also briefly talk about trend trading. With this strategy, a trader adapts to the current market trends. If the market is bullish – make mid or long-term investments; if it’s bearish – make short-time investments. 

4. Crypto trading bots

Trading bots are software designed to automatize the trading process. In theory, this software enables users to attend to other matters while the bot does most of the work. 

In practice, however, user input is still necessary for setting the trading parameters/ overall strategy. While it can be helpful, such automated trading software is not the answer to the question “How to make quick money with Bitcoin”.

In addition, there is a huge number of trading bot scams. The con artists are targeting beginners who are enticed by the scammers’ false promises of an easy passive income. If you decide to use a crypto trading bot, we suggest examining specialized websites such as Scammer Watch first.

For instance, as this helpful Bitcoin Up review tells us, you won’t be able to find the con artist(s) behind this ‘trading bot’ after placing (and losing) a minimum deposit of $250. Multiple fake websites and reviews, and the lack of a Bitcoin Up registered company at the provided physical address are telltale red flags.

Regardless, after gaining some experience with crypto trading, this kind of software can successfully automatize a portion of your trading activities and become a useful ally for investing.   

5. Lending Bitcoins

Certain, potentially profitable opportunities in the crypto market appear, but one first needs a certain amount of Bitcoin to take advantage of those opportunities, and Bitcoin isn’t cheap. 

The solution for the hypothetical person in this situation is to borrow Bitcoin and pay back the interest rate upon returning it. And the person who had lent that Bitcoin can be you.

Whether you will be loaning short or long-term, this is a reliable way to make a profit through interest rates. Have in mind, there are some platforms that will make lending Bitcoin easier for you. These include Bitbond, Unchained Capital, and BTCpop. 

These websites will usually charge an interest rate of up to 15%. Paying this amount is worth it, as unreliable lending platforms will charge less, but you may easily end up with no Bitcoin at all when dealing with them. 

6. Affiliate Programs

Here’s a great option for those readers with many followers on social media. By becoming an affiliate for Bitcoin and attracting new traders, you can earn a commission out of each converted sale.

Choosing the right affiliate program is key for making money in this way. Things to look for include: strong security measures (you don’t want the program to get hacked and lose your potential earnings); adequate commission rates (we recommend choosing the one that will get you at least 5% commission); and finally, the program’s reputation (as a rule, the best affiliate programs will be the most reputable ones on the internet).   

After that, it’s up to you to find new buyers and earn that commission. Good luck!

Author

Michael Klias

Crypto enthusiast with 7 years of professional experience. I feel

passionate about blockchain, finance and technology. I have been working in different organizations from small start-ups to big corporations in the UK and overseas. My focus has always been on improvement processes of investing and trading, cryptocurrency, ETFs, and alternative investments. Previously was a reporter with Wilmington Business Journal and business producer for HelathCoin LLC in Hong Kong.

Straight talk business crypto executive with strong personal engagement, assertiveness and high energy.