You may be one of the adventurous people who dive headlong into everything they find interesting only to abandon their occupation in a month or two, perhaps earlier. Hold on, with enough patience and perseverance your newly found bitcoin passion will turn into a profitable endeavor – if you follow the best practices, of course.
We will cover the mainstream ways of using bitcoin for profit: how to make money with bitcoin mining and trading, including bitcoin futures and options; we will also mention the path of the least resistance: bitcoin long-term investments.
So let us skip the basics and get right into it!
How to make money with bitcoin mining
We are past the point where it was still possible to answer the question, ‘How to make money with bitcoin with zero investments’. One could receive a block reward of 50 BTC mining on the ordinary home PC back in the old days.
Today, the recipe of bitcoin mining is to join a mining pool unless you are willing to assemble an ASIC mining rig and put it into a separate refrigerator (because it heats up crazily) in a separate room (because it’s noisy).
A single ASIC costs from $2,500 to $10,000 and outputs 100 TH/s. Check the exact payouts per one TH/s that a certain mining pool offers. The final subtraction of the electricity costs in your region should give an idea whether or not bitcoin mining is profitable enough for you. Oh, and don’t forget that the mining profits are taxable in the US. Even if you are not a US citizen, appropriate taxation rules may apply to you, too.When it comes to the choice of cryptocurrencies to mine, mind that bitcoin does not rank as #1 giving in to Ethereum, RavenCoin, and a bunch of other altcoins. It is a viable option but definitely not the best one.
How to make money with bitcoin mining, and should you? If the necessity of initial investments of money and effort did not scare you off and the potential profit is okay for you then give it a shot.
Finally, you can invest money into mining companies. Basically, it is giving away the money in hopes that the said company is not going to expropriate them any time soon, so this method requires extra caution.
How to make money with bitcoin trading
Trading is a sort of short term investment with subsequent profit gains. This simplified definition of trading fits perfectly; it also implies the obligatory skills that will be involved.
An investor is a trader and vice versa. The knowledge of economics, technical proficiency, keen intuition, and analytical mind are most useful here.
How to make money with bitcoin trading daily
One is free to buy bitcoin now and sell it in two years thus making profits. What is going to be, 700% of the initial investment or 1000? Is the price ever going to fall down to the amusement of skeptics who predict the fall of Bitcoin since its inception?
Day traders are too impatient to wait and see. Losing or gaining $2,000 per coin price is normal for Bitcoin. This is how to make fast money with bitcoin. All you need is an online exchange account and an initial sum of money to start with. Day trading can make you rich with lightning speed, or it can as well be a way to lose everything as quickly.
How to make money with bitcoin trading futures and options
Two kinds of deals that decrease the risks of day trading are futures and options contracts.
The former binds two parties—a buyer and a seller—to trade an asset at the set price when the deal expires. Obviously, both parties anticipate profits from the deal, and it will become clear which one of them was right only at the moment of expiration.
Options, on the other hand, leave the right to seal the deal to a buyer. When the difference between the market price and the price stated in the contract is known. Then, what is the point for sellers to engage in it? Sellers benefit from premium payouts upfront in hopes that the market declines. If a buyer still hopes to make profit from the deal in future, they may prolong the deal for a lower premium.
Deribit, LedgerX, and FTX are some of the services that facilitate bitcoin options and futures trading.
How to make money with bitcoin easy
Although to make money one usually has first to spend money (unless we are talking about some kind of employment), it is worth the trouble when the return-of-investment is high enough. Let us recall how high the ROI on bitcoin be. In 2017 it cost $700 per coin according to coinconvert24.com. Since January 2021 to April 2021, the price had spiked from $29,000 to a new all-time high of $63,000. How good is that as proof of bitcoin profitability?
So when it comes to the question,
How to make money with bitcoin easy?
there is just no other answer: buy and hold. It will take a while until the price goes up again, but so far the dynamics of growth did not disappoint. The price predictions settle around $100,000-150,000 this summer with the most optimistic traders setting the mark of $300,000 this year or even this summer.
If you are going for the buy-and-hold approach, Trustee bitcoin wallet is a convenient mobile app to store bitcoin and many other coins. It allows to exchange the digital assets or sell them for fiat money at will, too.
The cryptocurrency market is volatile. It is very susceptible to the swings of public opinion, media coverage, moves of whales, legal landscape, and technical advancements… There are a lot of factors in play, as you can see. For this reason, it is important to constantly monitor the crypto news.
In order to learn how to make money with bitcoin online, you should pick multiple information sources based on personal preference and usefulness.
- The Twitter of successful cryptocurrency traders, like Rager or PlanB.
- YouTube. For example, CryptoStache. They also have a website.
- Monitoring generally useful web sources will never hurt: Investopedia, Coindesk, or, literally, Cryptonews are just a few examples.
By the way, lots of cryptocurrency bloggers use multiple channels of communication. Telegram, Instagram, Discord, THETA, or Mastodon – any social media can be on the list.
There are dozens—if not hundreds—more of worthy trading experts, so find those who appeal to you. This way, you’ll build up a community and likely get some pleasant perks: cold wallet discounts, free tokens, or the ability to buy large shares of coins during ICOs, you name it.
It’s time to wrap up our guide on how to make money with bitcoin! Follow it, stay safe, and join the crypto revolution.