So you're probably wondering how you can make money with Bitcoin?
Well, you're not alone. I too was very curious about how best to go about making money with Bitcoins. after all, it is the number one digital currency in the world right now.
I simply had to learn more about this exciting phenomenon that everyone is talking about! And let me tell you – It's far easier than anyone initially thinks.
There are a few basic requirements that you will need to before you start making money with Bitcoins, but after that, it's smooth sailing all the way.
Let me show you how easy it is!
What is Cryptocurrency?
Cryptocurrency is powering ahead like never before. Overall market cap exceeded $3 trillion, on November 9, for the first time!
The tide started changing rapidly in recent years with more and more mainstream players feverishly entering the digital assets space, for example, Mastercard, JP Morgan Chase, and of course, Elon Musk, the world’s richest person.
While it all started with just one crypto, Bitcoin, back in 2009, there are now over 14,000 different coins and tokens to choose from, tradeable at more than 400 crypto exchanges.
Through all the market upheaval and turbulence of the past decade, yes, many feared the total demise of crypto, Bitcoin has proved its resilience and agility over and over again.
Today it’s still number one. Bitcoin’s market cap represents 43% of the entire industry, with its closest competitor Ethereum at 19%. It’s perhaps safe to say, Bitcoin is here to stay so let's learn how to make money from it.
Legitimate Ways To Make Money from Bitcoin
There are several methods to get free Bitcoin, but you must also realize that it will require your time and money in order for you to profit from it.
Just like you can make money from investing, making money with Bitcoin is no different.
It will require your time and effort to learn about it and then apply that knowledge, but the only significant cost you'll incur is your internet connection and an electricity bill.
Ready to start making money from Bitcoins? Let's dig in.
The first method of making money with Bitcoin I want to tell you about is mining.
Bitcoin mining, which has evolved exponentially over the years, is of course the activity that verifies and authenticates all Bitcoin transactions.
Miners compete for the awards, paid in Bitcoin, by racing to complete the required tasks first. They typically employ banks of computers (‘rigs’) for this purpose.
By mining, you can earn cryptocurrency without having to pay for it. Minors receive BTC as a reward for completing “blocks” of verified transactions that are added to the blockchain.
Miners are rewarded based on who solves complex hashing puzzles first. You will definitely need a GPU (graphics processing unit) or an application-specific integrated circuit (ASIC) in order to get started with a mining rig.
The best Bitcoin mining software is CG Miner, BFG Miner, MultiMiner, and Easy Miner.
2. Interest Method
This is a technique in which your Bitcoins are kept in a crypto savings account allowing you to generate interest on your holdings.
There are a few crypto interest accounts that offer this, with the most popular one being Coinbase.
Coinbase is widely recognized as a digital wallet, but it also offers a crypto savings account feature for eligible US customers. With this option, you can earn up to 1.50% APY on US Dollar Coins (USDC) simply by holding them in your Coinbase account.
Unlike other companies, Coinbase does not lend out its USDC, making this a convenient and secure way to earn interest on your cryptocurrency holdings while waiting to make trades.
Additionally, if you're a new customer and open an account, you can get up to $200 in free crypto through its Coinbase Learn section.
3. Bitcoin Credit Cards
Making money through Bitcoins is also possible through credit cards that offer BTC rewards for your purchases in the form of free Bitcoin. Bitcoin credit cards offer rewards programs where you can earn a small percentage of Bitcoin based on your spending. Some cards provide points or cashback in Bitcoin instead of traditional rewards like miles or cash.
While it's not a significant amount, it's a nice bonus for using the card regularly. However, keep in mind that these rewards are typically small fractions of a percent of your spending, so don't expect to get rich from them.
4. Learn about Cryptocurrencies
Another way to make money off Bitcoin is simply by learning about different cryptocurrencies on platforms like Coinbase.
Coinbase is the world’s largest cryptocurrency exchange, with over 25 million users across 32 countries worldwide. Coinbase allows you to securely buy, store and sell cryptocurrencies like Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Litecoin, Dogecoin, Shiba Inu and many more on its easy, user-friendly app and web platform.
Coinbase offers two different ways for you to earn free Bitcoin and other cryptocurrencies. First, you can use the referral program to refer your friends and each new member gets you $10 in free Bitcoin.
You can get $10 in BTC for simply opening a Coinbase account and they’ll pay you to learn about different cryptocurrencies with Coinbase Earn. I’ve earned over $50 in XLM in Coinbase Earn just for watching a few short videos about the coin. There’s no catch and you can trade these earned cryptos for BTC in seconds.
5. Crypto Trading
This is extremely risky for most investors, but with crypto trading, you can invest and make money daily.
If you buy Bitcoin low and sell it higher, you can make easy profits just in a day because of its swings.
You'll only want to do this by using legitimate cryptocurrency exchanges. A cryptocurrency exchange is a platform where you can buy and sell cryptocurrencies.
Creating an account with an exchange is the first step if you want to buy cryptocurrencies like Bitcoin. You need to find a reliable and registered exchange that works in your country.
The most popular exchanges include:
- TradeStation: TradeStation is a leading cryptocurrency platform that is suitable for experienced traders. It offers a wide range of cryptocurrencies, stocks, options, and futures so you’ll have multiple trading options to choose from. It has sophisticated software that comes in both web and mobile app formats.
- Public: If you are a beginner and looking for an easy-to-use cryptocurrency exchange app, go with Public. It doesn’t have any minimum investment requirement so you can test it with a small investment.
- eToro: eToro is one of the oldest cryptocurrency exchanges that was founded in 2007. It is a safe, low-risk, and regulated exchange. It comes with a user-friendly web and mobile app that makes trading a piece of cake for beginners. Social trading is a key feature that lets you copy the moves of top traders.
- Gemini: Gemini is another beginner-friendly crypto exchange platform where you can trade more than 50 cryptocurrencies. It is available in all the US states and there is no minimum deposit requirement.
- Coinbase: Coinbase is a leading cryptocurrency exchange in the world that supports all the leading cryptocurrencies (100+). It is equally good for beginners and professional traders. The best thing about Coinbase is that your digital currency is insured.
- Kraken: Kraken is a big name when it comes to cryptocurrency exchanges. It is user-friendly, supports more than 50 currencies, and is available globally.
6. Affiliate Marketing
Affiliate marketing is when you promote other companies' products. When someone buys or signs up for a service or downloads an app through your affiliate link, you get paid. You can do affiliate marketing by starting your own blog or just by building a following on social media or posting your affiliate ads online like on Reddit or other message boards. It's a way that many people use to make money online without a website or blog.
Coinbase has the best affiliate program if you want to earn Bitcoins through affiliate marketing. When one of your referrals buys or sells $100 or more of Bitcoin within 180 days of opening an account, you earn the bitcoin equivalent of $10 in Bitcoin.
You can join Coinbase here which will give you access to your unique referral link.
How to Secure Your Bitcoins
When you sign up with a cryptocurrency exchange platform, you need a cryptocurrency wallet. If you mine Bitcoin, you'll also want to use one. Your wallet stores private keys for cryptocurrency transactions. It allows you to send, receive, and spend digital currencies. You must have a cryptocurrency wallet if you want to buy and sell virtual currencies.
Here are the best cryptocurrency wallet apps:
1. Ledger Nano X
Ledger Nano X is a hardware wallet that helps you manage your digital currencies. It is a mobile-friendly wallet that connects with your device via Bluetooth. It can store more than 1800 different tokens and over 100 apps.
2. Trezor T
Trezor T is another hardware crypto wallet that stores your digital currencies, passwords, and digital keys. It has a USB-C connector that lets you connect it seamlessly with your mobile and computer.
Jaxx is a leading software wallet that manages and secures your currencies digitally without any hardware device. You can use it on desktop, chrome, android, and iOS.
ZenGo is a perfect software cryptocurrency wallet for beginners. It supports all the leading digital currencies with no minimum or maximum caps. You can buy and sell currencies with a single tap from your mobile app.
How to Track Your Bitcoin Profits
Once you start trading cryptocurrency or making money with Bitcoins, you need to use a portfolio tracker app. It is a platform that helps you keep track of all the currencies and assets you own. It helps you make better investment decisions. As a beginner, you might need a portfolio tracker app but once your business grows, you'll definitely need a reliable portfolio tracker app.
Here are the best portfolio tracker apps to choose from:
CoinMarketCap is the best tracking platform that provides you with all the details about cryptocurrencies, exchanges, news, trends, charts, and more. The portfolio tracker app by CoinMarketCap is available for Android and iOS. It is free to use and tracks your portfolio in real-time for profit and loss.
CoinStats is a premium portfolio tracker app that is available for Mac, Android, and iOS. It supports more than 8000 coin analyses. You can use it to buy and sell cryptocurrencies on leading exchanges.
Beware of Using Cryptocurrency Apps
So, how do you choose the right cryptocurrency app?
You can’t just pick any app, you have to make the right decision by comparing the pros and cons of different apps. But what do you actually compare?
Here are the key factors that you must look for when choosing a cryptocurrency app:
- Purpose: Why do you need a cryptocurrency app? Do you need a digital wallet to occasionally buy and sell cryptocurrencies or do you want to become an investor and need a cryptocurrency exchange app with a portfolio tracker? Clearly define your purpose and then look for the apps in the right category.
- Price: Not all apps are free. The best ones are rarely free. You need to look at the two types of fees when comparing cryptocurrency apps. First, the monthly subscription of the app. Second, transaction fees and taxes.
- Features: Don’t ignore app features such as mobile app, ease-of-use, customer support, etc. If an app requires intensive training before you can use it, there isn’t any need to go for it.
- Legality: This one is a serious concern. Not all exchanges, wallets, and platforms work in all countries. The first thing you need to do is check if the cryptocurrency app supports your country. If it doesn’t, you can’t use it. You won’t be able to deposit and withdraw funds. And the app must be regulated and legally allowed to work in your country. Not all countries allow all cryptocurrency apps. A little research can save you from getting your account frozen.
Making Money with Bitcoins
There are many ways to earn money off Bitcoins, and this guide covers all the important ones. From mining to trading, you will find that working with cryptocurrencies give you great freedom in how you live your life.