Bitcoin is a digital currency that has taken the world by storm. It is a revolutionary new way to do business, and many people wonder how they can start using Bitcoin for their purposes. This blog post will discuss ten ways to make money with Bitcoin.
Let’s look at these ways.
1. Trading
This is a method to make money by trading Bitcoins with other currencies. As you may know, the value of Bitcoin rises and falls every day. Sometimes it falls a bit too much. If you think that the price will decrease in the coming days, then go ahead and sell your coins. If you think that the price will increase within a few hours or a day, buy some coins and keep them aside for later use.
It is advisable to do this on exchange websites like Bitcoin Prime since they follow strict “Know Your Customer” (KYC) policies, preventing illegal activities involving bitcoins in any form. Once KYC norms are met, buying and selling Bitcoins becomes extremely easy with these websites.
2. Mining
Bitcoin mining is the validation of transactions on each Bitcoin network. They prevent users from spending the same coins twice and stop creating fake bitcoins. They are rewarded with new bitcoins for this validation work as per reset rules. This is why mining is also called bitcoin generating; however, only a limited number of bitcoins are available (21 million).
So, it will be nearly impossible to mine all the bitcoins without joining a group of miners called a pool. The mining pools divide the work and reward, but you get a smaller reward. The current process of generating new bitcoins takes approximately 10 minutes for each block or 25 bitcoins – at present, it gets harder to find new ones as more are generated.
3. Lending
Bitcoin allows individuals to loan out their money and earn interest on it. The lending platforms usually allow you to lend Bitcoin or US dollars. Once the borrower repays your initial investment, plus the interest earned, they get the original capital back (plus what was originally promised for paying that interest).
This method is riskier than using Bitcoins but can provide more of a consistent return depending on how the market goes.
4. Acceptance as payment
The simplest way to make money with Bitcoin is by doing what you are probably already doing: accepting it as payment. When you do so, all your earnings become liquid in Bitcoins automatically. You can later use these coins to make more money. There are several ways to go about this, but the easiest is through an e-commerce merchant website.
Ecommerce platforms usually have built-in mechanisms that allow the businesses using their services to start accepting Bitcoins for payments right on their websites. The most popular platforms include Shopify, OpenCart, BigCommerce, etc.
The Bottom Line
Bitcoin is a new form of digital currency, created and held electronically. Unlike traditional currencies such as dollars, bitcoins are not issued by any central government agency. Instead, they are generated by computers worldwide that ‘mine’ for bitcoin by solving complex mathematical problems (and in the process verifying transactions made through the peer-to-peer network).
The most obvious way to make money with bitcoin is through speculation – it’s no secret that their value goes up and down like crazy.
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