Making your money work for you and earning additional cash on your investment is quite possibly the most satisfying thing. And since Bitcoin has become more accessible than ever as you can buy some on PayPal for as little as $1, we have compiled a few ways for you to make money using Bitcoin, leveraging an existing investment and turning it into a lucrative one.
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1. Buy and HODL (Hold On for Dear Life)
Quite possibly the most popular way to earn money with Bitcoin, buying and HODL (an acronym that means holding on for dear life) is hands down the simplest way to start earning money with crypto. Investment through the various exchanges that are online is fairly straightforward.
First you sign up and purchase the amount of Bitcoin that you desire (or that your budget permits), then you sit back and wait for prices to rise. Considering the fact that Bitcoin and cryptocurrencies are currently generating massive waves of institutional interest and mainstream adoption,
it should only be a matter of time before Bitcoin soars in value, leaving you with a sizable chunk of earnings on your investment. Moreover, the limited number of bitcoins in existence dictates that its price will only go higher as it becomes more and more popular, due to its market cap.
This is largely a long-term investment, and should not be undertaken by anyone looking to make quick cash. This also requires quite a bit of steadiness behind the wheel, as becoming stressed and “panic selling” when the volatile crypto market ebbs and flows can cause more losses than gains.
2. Create an account on BlockFi and earn interest on your Bitcoin
With BlockFi Trading, you can earn money on existing investments! This popular crypto lending platform is a great way for you to make some passive income. If you are an existing Bitcoin owner, BlockFi will enable you to earn competitive interest rates on digital assets, all the while ensuring that your cryptocurrency deposits remain secure.
The interest rates that you can earn vary depending on how much you are lending, and how long you are planning on keeping it “frozen”, but this is a great way to earn capital.
This can be done by simply signing up for a BlockFi account, depositing the amount of crypto (or, Bitcoin in this case) that you would like to earn interest on, and determining how long it is to remain untouched. After that, it is all about sitting back and watching your capital gains roll in.
3. Incorporate Bitcoin into your day job
Many businesses have started accepting Bitcoin as part of their structure. If you offer a product or a service and would like to make more Bitcoin, you can begin accepting it as a form of payment. This can be done by simply setting up a wallet address and allowing customers to transfer you bitcoin in exchange for your products or services.
This simple change involves you or your staff asking, “will that be cash, credit, or crypto?” — then sitting back and watching as your digital wallet grows over time. Additionally, setting up your business to be progressive in embracing cryptocurrencies is a sure-fire way to make sure it is ahead of the curve when mainstream global adoption hits.
4. Mining
Crypto and Bitcoin mining is the most “old-school” way to make money using Bitcoin as it enables you to earn crypto through computing tasks. It is important to remember that while miners can generate a lot of money, the machinery and sheer energy it takes to mine Bitcoin is intensive and may significantly wipe out any potential earnings.
Weigh out your gains vs losses, and make the best decision suitable for you. Miners are often set up in regions around the world where electricity and networking bills are significantly lowered, and that is how they manage to make money.
5. Day Trading
Many people are trading Bitcoin and making a good deal of money by studying the market and analyzing its trends. Day Trading is a risky yet possibly lucrative way to make money with Bitcoin.
Investors buy and sell a position within one trading day (which is a 24-hour period for cryptocurrencies since the markets do not close), aiming to buy low and sell high. This, of course, requires investors to be very familiar with the crypto market and Bitcoin trends and can be very risky for beginners.
All in All
we find that some of these methods for making money with Bitcoin are straightforward and simple, while others require a little bit more legwork. It is up to each investor to assess the extent of the risk they are comfortable taking. With cryptocurrencies and Bitcoin becoming more mainstream than ever, there are bound to be countless new ways to earn money with crypto whether in passive or active ways.