Best Ways to Earn Money with Bitcoin in 2023

Earn Money with Bitcoin

In today’s fast-paced world, introducing an electronic currency can be considered one of the best innovations of the past years. Back in 2009, Satoshi Nakamoto launched Bitcoin, a digital asset that rapidly gained the interest of many. The creator of Bitcoin acknowledged the need for an electronic payment gateway that relies on cryptography, which led him (or them) to develop this 

decentralized digital asset that requires no intermediaries and can be exchanged effortlessly.

While its infant years were rough, the Bitcoin price appreciated considerably in time, attracting more people who wanted to take advantage of the great money-making opportunities. 

Bitcoin: the pioneering cryptocurrency

Essentially, Bitcoin is a virtual currency you can store in a digital wallet and either send to someone else or hold until its price rises. All the Bitcoin transactions are recorded on the digital ledger, known as a blockchain – a decentralized technology that ensures the secure sharing of information related to transactions. There are 21 million Bitcoins on the blockchain, which can be subdivided into small units.

In total, crypto enthusiasts can choose among over 5000 digital assets for trading, with a market cap of more than $200 billion. But among these, three cryptos have gained the most recognition, namely Bitcoin, Ethereum and Binance coins. In other words, Bitcoin is the grandfather of all digital assets, and it is unlikely that the cryptocurrency will ever lose its reputation. Bitcoin has proven to be very reliable throughout time, with many people earning a lot of money by investing in it, which has played a crucial role in its worldwide recognition.

How to make gains with Bitcoin?

Now that we’ve discussed Bitcoin and its popularity, it’s time to move on to the most exciting part: how to make money with the top digital asset. Well, first, you need to know that there are several methods you can use, but because we can’t create a three-hundred page long guide, we will only list the main ones.

Buying and holding Bitcoin

It is a simple formula, but it works, as many long-term investors buy Bitcoin and hold them as a way to earn profits. All you need to get started is a Bitcoin wallet – once you do so, you can invest, hold until the right time comes and then sell your asset. 

Buying Bitcoin can have two possible outcomes: you will either make substantial gains in a relatively short amount of time or lose all your money. It all depends on whether you conduct comprehensive research before making any decision.

Mining

Mining remains one of the best ways to make money with Bitcoin – all it takes is to solve cryptographic puzzles and add new blocks to the network. There are two types of mining:

  • Personal mining. This is done individually, but because there’s a limited supply of Bitcoin, making big gains can be pretty difficult. Therefore, participating in personal mining may not be the best idea.
  • Cloud mining. On the other hand, this type of mining is pretty popular, as it doesn’t include rising electricity bills or recurring charges, nor do you have to purchase software or hardware. The only thing you have to do is pay an initial fee for a contract. Although some expertise and knowledge are necessary to succeed with cloud mining, the results are worth the effort.

Lending

You can make and accept payments with Bitcoin easily, as no authorities are required to validate them, ensuring a seamless process. So, you may want to consider lending as a way to make money with Bitcoin. This is similar to traditional lending and is indeed profitable, although it carries some significant risks. Simply put, you start by selecting a crypto lending platform and then deposit an amount of Bitcoin into lending pools. 

Once you do so, users will start borrowing your funds, and as a result, you will generate interest. However, it is worth noting that lending can be risky if borrowers don’t use collateral while borrowing funds. So, it’s essential to always check the platform before you get started with lending.

Trading

Trading Bitcoin is a proven method to make plentiful money. It involves analyzing trading charts and the market overall, evaluating external factors, and being prepared to take risks. There are four trading strategies, including:

  • Day Trading. Also known as intraday trading, this strategy involves buying and selling Bitcoin when its price changes. It takes significant commitment, as you must continuously monitor the market until you find the right moment. 
  • Bitcoin Hedging is about minimizing risks on the positions you own by strategically opening trades, and it is usually used when the market moves against you.
  • HODL. It involves buying and holding Bitcoins until there’s a price increase. This method requires a lot of patience and a long-term approach to your investments.
  • Trend trading. This trading strategy involves making decisions depending on what happens in the market. For instance, on a bullish market, you open long-term positions, while during a bearish trend, you choose a short-term position. 

Bitcoin affiliate marketing

In the digital world, affiliate marketing is a popular technique used for services and products. However, it also has great results in the crypto space and involves some simple steps, like joining an affiliate program for a cryptocurrency of your choice (Bitcoin, in this case) and then promoting its services and products.

The goal is to attract as many new visitors as possible, earning commissions for all converted sales. This method works well, especially for those who already have a lot of followers on social media platforms like Instagram, Facebook, and so on. 

But this doesn’t mean you can’t participate in affiliate marketing if you aren’t into the social media bubble – not at all! You can still do so by referring your family members and friends to the platform.

The bottom line

Now that you have learned the different ways to make money with Bitcoin, you should take the time to decide which strategy works best for you by analyzing the pros and cons of each of them. For instance, personal mining may not be a good option, given the limited number of Bitcoins and the difficulty of making gains. On the other hand, strategies like trading and affiliate marketing can help you generate substantial profits.

So, are you ready to enter the crypto realm?

Amie has a love for numbers and holds a master’s degree in finance. When she’s not playing with numbers or words or pottering in the garden, you can find her in the kitchen roasting her own coffee beans.

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