Best Ways to Make Money with Bitcoin

Want to know how to make money with Bitcoin? You couldn't have chosen a better cryptocurrency. Bitcoin isn't just the oldest (now in its 12th year of existence) digital coin, but it is also the largest.

Historically, Bitcoin investors have experienced massive surges in the value of the digital currency, making huge gains within a short time.

Can I Make Money with Bitcoin?

Yes! You can make money with Bitcoin as long as you know how to go about it. Early adopters of Bitcoin made a lot of money during the peaks of 2011, 2013, and 2017. However, you don’t have to wait for the digital coin to reach another peak to benefit.

Today, money markets offer Bitcoin and other cryptocurrencies as part of their currency pairs. That presents multiple money-making opportunities for Bitcoin traders.

As its popularity grows, the value of Bitcoin can only keep rising. Also, Bitcoins have a limited supply, compared to the other cryptocurrencies. Because of that, its increasing demand across the world can only result in higher prices – and improved gains for investors. Why shouldn’t you be one of them?

Therefore, the right time to invest in Bitcoin is now – if the prediction of a $50,000 peak is anything to go by. When the bull-run finally happens, you will be one of the primary beneficiaries.

Besides, experts say it is not a question of “if” but “when” the next Bitcoin bubble will happen. So, you have to join the Bitcoin market and make money daily as you get ready for it.

How to Make Money with Bitcoin

You can make money with Bitcoin in several ways, depending on your technical skills. If Bitcoin mining doesn't work for you, then you can pick another method.

HODL Bitcoin – Bitcoin Investing

To HODL is to buy and hold onto the cryptocurrency instead of selling it immediately. If you choose that route, then you are a HODLer. And, HODL Bitcoin is the term the cryptocurrency community uses to refer to that form of investing.

You can buy Bitcoin with a broker like eToro or an exchange like CEX.io.

How does it work? Well, you buy Bitcoin, hold onto it, and sell when its value is substantially high. That means you should exercise patience at the highest levels possible. Also, you should be ready to ride the wave of emotions that comes when the value of Bitcoin goes down.

Bitcoin CFD Trading

You can also trade Bitcoin as a contract of difference (CFD), which means investing in the cryptocurrency without buying or owning it. The volatility of Bitcoin makes it perfect for investors looking to make money by hedging on risk. Thus, you can speculate on whether the value of Bitcoin shall rise or fall and make money in the process.

It works by a buyer and seller entering into a contract. When the contract expires, the seller pays the buyer when there is a positive change in the value of Bitcoin. An unfavorable change means the buyer has to pay the seller. Due to its speculative nature, Bitcoin CFD trading may result in gains or losses.

Brokers that offers offers Bitcoin CFD Trading are eToro and AxiTrader. At eToro you can either buy Bitcoin or trade Bitcoin through CFDs. AxiTrader does only offer Bitcoin CFD trading at the moment.

Bitcoin Futures Trading

Like CFD trading, Bitcoin futures allows traders to make money from Bitcoin without owning it. Investors can speculate on the future price of Bitcoin by trading the cryptocurrency via exchanges like Kraken or Coinbase. It works the same way as the stock exchange, where traders deposit money to trade.

As such, you are free to choose when to buy or sell your stake. You will pay a small fee to the exchange to access its services. However, you have to start by opening an account with a reputable Bitcoin Exchange. This method is also excellent for Bitcoin HODLers looking to insure their investment against future volatility of the cryptocurrency.

Binary Trading with Bitcoin

If you want to know how to make money with Bitcoin, then you should try Binary trading. In this case, Bitcoin Binary Options refer to speculating on the rise or fall of the value of the digital coin by a given amount. If your prediction is correct, you will earn from the trade.

However, making the wrong prediction leads to automatic losses. Generally, trading in Bitcoin binary options is a safe way of making money. First, the risk is known and limited. Second, it has high and fast returns. And, third, it is simple and easy to understand. However, you need to do your homework on the provider so that you don’t fall prey to scamming.

Bitcoin Arbitrage

To make money with Bitcoin, you don’t have to trade on only one exchange. Bitcoin arbitrageenables you to buy Bitcoins from one exchange and sell them on another at a higher price. It involves taking advantage of price differences on two exchanges. Thus, you buy Bitcoins at a lower price and sell it at a higher price, making a profit in the process.

To succeed in Bitcoin arbitrage, you need to be fast in executing your trades. That’s because the price differences (spreads) on two exchanges may exist only for a few seconds. Any delay would result in losses. That may mean holding Bitcoins on two parallel exchanges at the same time. Buying from one before selling will create some delay time, which you don’t want to risk.

Bitcoin Mining

Bitcoin mining is the traditional way of making money with Bitcoin. It involves solving complex mathematical problems online. For that, you need a powerful computer capable of cracking challenging cryptographic puzzles. Bitcoin mining consists of adding new blocks of transactions to the blockchain.

Because of that, you get a reward in terms of Bitcoins. In the beginning, mining bitcoin was a lucrative adventure, mainly because of minimal competition. Today, it is more challenging and competitive. Besides, you need powerful computers that consume lots of electricity.

However, if you can afford the cost of power, then it should be the way you make money with Bitcoin. Once you get your Bitcoins, you can sell them or keep them for use in the future.

Make Money Being a Bitcoin Masternode

A master node is a Bitcoin full-node or a wallet keeping the blockchain’s full copy in real-time. As such, the master node is continuously running on big servers. Having one of these allows you to earn a passive income. An excellent example of a Bitcoin master node is the platform called Dash.

Masternodes work in two ways – accelerating transaction verification and placing a vote on a project. As a newbie, you require a substantial amount of Bitcoins to establish a master node, and that may mean spending a fortune. For instance, obtaining a Dash master node will cost you $100,000 or more. That’s for an expected return on investment (ROI) of less than 7 percent.

However, if you hold onto your investment for longer, you could earn millions annually.

Bitcoin Faucets

A Bitcoin faucet is a website that offers free coins in exchange for a particular action. If you open one, then you would be dishing out Bitcoins to visitors to your site. So, how do you make money from that? Most Bitcoin Faucet owners rely on ad revenue. They place a lot of advertisements on the site for visitors to click and enable them to earn income.

Therefore, they give away small amounts of BTC so that they can collect lots of money in terms of clicks on the advertisements. They also make money from affiliate links on the site.

If you are not a Faucet owner, you can still make money by going to existing sites. As a visitor, you can earn Bitcoins by referring your friends and family to the site. However, the money isn’t as much as that the faucet owner makes.

Make Money as Bitcoin Writer

Are you a good writer? If so, then you should think of writing about Bitcoin and other cryptocurrencies. As a new and popular niche, cryptocurrency has a lot of potentials. Yet, very few writers can write a good copy of digital currency content.

So, if you understand the niche and write well, this could be an excellent way for you to make some money. For instance, you could start your website and create Bitcoin-related content. When people visit your site and click on ads, you will earn some cash.

Also, you could include affiliate links in your content to earn commissions by referring paying clients to other websites.

Alternatively, you could write for other websites and organizations. As a freelancer, you can find work on Fiverr, Legiit, READ.CASH, and so on. If you are an above-average writer, you could also seek opportunities with significant news websites like CNN. So, writing about Bitcoin is a great way to utilize your talent and make some money.