Bitcoin has proven to be one of the most stable cryptocurrencies, and it’s the most integrated into traditional finances. Therefore, most investors, regardless of the size of their portfolio, think of Bitcoin as the best investment in the world of crypto.
There are more ways of making money with Bitcoin than just buying low and selling high. In this article, we’ll go over some of the ways to earn from Bitcoin. They range in terms of risk and complexity, but all of them are accessible to everyone willing to learn.
Trading
Trading Bitcoin on crypto exchanges as featured in this list, is the easiest and most common way to earn. Investors buy Bitcoin during a dip and sell it when the prices get higher. On the technical side, the process is simple, and investors can easily create an exchange account and deposit their assets into it.
However, the difficult part comes from following, understanding, and predicting market trends. That way, the investor knows how to choose the right time to make a sell and earn on the difference. Many investors make this decision based on the advice of experts, which is the most expensive investment needed to profit.
Holding
Holding the assets in Bitcoin or other cryptocurrencies is somewhat similar to trading but even simpler on the face of it. Investors simply buy Bitcoin and hold it until it increases in value. Over the years, Bitcoin has risen and dropped several times, but in the long run, it has shown steady growth.
The assets the investors accrue in this way can then be sold or used to make all kinds of passive income. The key to earning by holding the asset is not to get scared by the temporary changes and to have trust in the process.
Staking
Some platforms allow investors to stake their Bitcoin assets as a way to earn interest. All that the investor needs to do is provide the Bitcoin, and the platform will use it to keep its operations active and smooth. The investor then earns out of each transaction the platform makes.
What makes this approach to earning from Bitcoin truly passive? The investor doesn’t need to do anything else with the platform, nor do they need to be familiar with their inner working. Most platforms have a low barrier to entry, as they allow investors to stake a very small amount in order to start earning.
Lending
Lending is also a way of earning passively from Bitcoin. It works similarly to lending fiat money. The investors use their assets to earn interest by lending Bitcoin. The payments are made on a regular schedule, as is the case with fiat money, but they can be more easily and safely automated using blockchain.
There are some downsides to lending Bitcoin as well. One of these is that the value of the assets you’ve borrowed can change, and the investors may lose a portion of their assets even if they are paid on time.
Bitcoin Faucets
Bitcoin faucets are websites or apps that give out small amounts of Bitcoin to complete simple tasks. There are similar sites that offer rewards using fiat money. The tasks are usually about data mining or administrative work. There are also sites that offer such rewards for completing surveys.
Before using Bitcoin faucets, the users should carefully research their background and customer experience. It’s also important to know what kind of personal data they need to disclose in order to use the platform. The only information needed to transfer Bitcoin is an email address.
Earning Bitcoin Rewards
Some sites offer Bitcoin as a reward to some of their users. In most cases, these are referral rewards, and Bitcoin is earned by referring customers and users to a site. The amounts can vary depending on the number of users you refer to and the site’s policy.
This method of earning Bitcoin is best suited to those who already have an existing base of followers. Creating such a base organically takes time and effort, especially so if the base needs to trust you enough to follow your lead and actually sign up for the sites that offer Bitcoin rewards. It takes time to create a funnel of users, but it pays off after a while.
Bitcoin ETFs
Investing in ETFs is the latest addition to potential Bitcoin investments. ETF stands for Exchange-Traded Funds. It’s a financial product that’s tied to the value of Bitcoin. That way, the investors can earn based on how well Bitcoin is doing in the markets, but without actually buying Bitcoin.
Since ETFs can be bought and sold on the stock market, their creation was a monumental landmark for crypto. It was its biggest venture into the traditional financial markets, and it shows how the public attitude toward crypto has changed.
Freelancing
Freelancing platforms predate Bitcoin, and they’ve long provided an opportunity for experts to provide their services online without entering into traditional employment. Cryptos have somewhat changed this field as well, and there are plenty of platforms used to offer online services and skills and get paid in Bitcoin exclusively.
The usual advantages of using Bitcoin apply to freelancers as well. These include fast and secure payments, anonymity, the ability to get paid anywhere in the world, and lower fees since Bitcoin doesn’t require a centralized structure. This method of earning Bitcoin has a bit higher barrier to entry, as it’s available to professional freelancers only and is very competitive.
To Sum Up
In conclusion, there are many ways to earn with Bitcoin, from simple trading to more advanced methods like freelancing and investing in ETFs. Whether you’re looking for active or passive income, Bitcoin offers opportunities that suit different risk levels and skills.
Some methods, like staking and lending, require minimal effort, while others, such as freelancing or using referral rewards, may take more time and expertise. Ultimately, success with Bitcoin comes from staying informed, being patient, and choosing the method that best fits your financial goals and risk tolerance.