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Can You Really Make Money Mining Bitcoins?
Profits are not easy to come by. Expensive hardware and risky cloud mining deals are the main challenges.
If you want to join in the bitcoin frenzy without simply buying the digital currency at today’s inflated prices, then bitcoin mining is another way to get involved. However, mining bitcoins does come with expenses — and risks — of its own. And the more popular bitcoins become, the harder it is to mine them profitably.
What is bitcoin mining?
Unlike paper currency, which is printed by governments and issued by banks, bitcoins do not come in any physical form. That creates a major risk, as hackers could theoretically create bitcoins from nothing. Bitcoin mining is how the bitcoin network keeps its transactions secure.
Bitcoin transactions are secured by blockchains , which make up a public ledger of transactions. Because of how blockchain transactions are structured, they’re extremely difficult to alter or compromise, even by the best hackers. But in order to secure these transactions, someone needs to dedicate computing power to verifying the activity and packaging the details in a block that goes into the bitcoin ledger. And that’s precisely what bitcoin miners do. As a reward for doing the work to track and secure transactions, miners earn bitcoins for each block they successfully process.
The bitcoin founders have set a limit of 21 million bitcoins available for mining. Once that total is reached, miners will still be able to benefit from transaction fees, but they won’t be granted bitcoins as a reward for their work. As of mid-January 2020, approximately 16.8 million of those 21 million bitcoins have already been mined. Assuming the bitcoin mining industry doesn’t change dramatically, it looks like we won’t hit the 21 million-bitcoin limit until the year 2140.
Image source: Getty Images.
How to mine bitcoins
During the early days of bitcoin mining, miners would often download a software package designed to allow their computers to process bitcoin transactions in the background. Unfortunately, that’s no longer practical, because solving bitcoin transactions has become too difficult for your average computer to manage.
The bitcoin network is designed to produce a certain number of new bitcoins every 10 minutes. If only a few people are bitcoin mining at any given time, then the network will be generous and share bitcoins readily in order to reach the predetermined number. But now that bitcoin mining has become so widespread, the network has become much stingier about handing out bitcoins to miners. In order to control how frequently bitcoins are generated, the network requires miners to solve more and more difficult problems to confirm transactions — which means that miners must have more and more powerful equipment just to keep up. These days, in order to have a chance at being profitable, miners need to adopt one of two approaches: 1) buy specialized hardware (aka a bitcoin mining rig) or 2) join a cloud mining pool.
Bitcoin mining hardware
To get started with your own mining rig, you buy hardware designed for mining bitcoin (or some other virtual currency), set it up, and let it run 24/7 solving bitcoin transactions. Ideally, this will result in a steady flow of payments without your needing to get involved.
While it’s fairly easy to set up and use a bitcoin mining rig, actually making money on the process is something of a challenge. Because more and more people are signing up to mine bitcoins, the mining process continues to get more difficult and will likely keep doing so for some time. That means the hardware you bought last year to mine bitcoins probably won’t be up to the job a year from now. And because bitcoin mining rigs aren’t cheap — expect to pay at least $1,000 for the hardware, or several times that for a top-quality rig — having to replace it every year or two takes a huge bite out of any profits you make from mining. Plus, most mining rigs consume enormous amounts of electricity, so you also have to subtract that expense from the bitcoins you earn to determine your profits.
If buying and maintaining your own mining hardware doesn’t appeal to you, then cloud mining may be the way to go. Cloud mining companies invest in huge mining rigs, often filling entire data centers with the hardware, and then sell subscriptions to individuals interested in dipping a toe into bitcoin mining. Your subscription to a cloud mining company earns you a small percentage of the bitcoins that those mining rigs yield.
The biggest challenge facing cloud mining subscribers is avoiding fraud. The field is rife with pseudo-companies that sell thousands of multiyear subscriptions, pay out for a few months, and then disappear into the sunset. If you decide to try cloud mining, do your homework in advance and confirm that the company you’re dealing with is a real cloud miner and not a scheme. Preferably, you’d pick a cloud mining company that’s been around for several years and has a decent reputation. Avoid companies with anonymous domain registration (you can look up their registration info at Network Solutions), as well as any mining company that “guarantees” profits or offers huge incentives for referring new customers; anything above a 10% referral commission is deeply suspicious, because legitimate mining pools simply don’t generate a high enough profit margin to pay big commissions.
If you find a legitimate cloud mining company, you’ll still lose out on a portion of the bitcoins the company generates, as said company will take its cut from whatever profits it generates. Many cloud mining companies also charge a fee or deduct a percentage of your take to pay for maintenance, electricity, and other costs of doing business. And as bitcoin mining becomes more and more competitive, the returns you make from that multiyear subscription may sink to an unprofitable level.
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Bitcoin may or may not be at the top of a bubble , but bitcoin mining has definitely become much less profitable as more and more people get involved. You can help predict your profitability by using a bitcoin mining calculator to crunch the numbers, but even the best calculator can’t tell you what the situation will be like in a few months or years. In short, getting involved in bitcoin mining today is a risky business. You might be able to make a fortune, but you’re more likely to lose big.
How to Earn and Make Money with Bitcoin
By: Ofir Beigel | Last updated: 11/12/19
A lot of people are into Bitcoin and cryptocurrencies in order to make a quick buck. Today’s post is dedicated exclusively to ways you can earn Bitcoins for free or make money with Bitcoin.
Earning Bitcoins Summary
While there are many ways you can make money with Bitcoin in the end there are no free meals. Earning Bitcoins online take time and money and most methods promising free Bitcoins will not be worth the time wasted on them.
How can I earn Bitcoins for free?
- Micro earnings
- Owning a faucet
- Signature campaigns
- Trading Bitcoin
- Affiliate programs
- Writing about Bitcoin
- Bitcoin related services
- Bitcoin Mining
- Bitcoin Lending
- HYIPs / Coin doublers
- Bitcoin forks
If you want a detailed explanation about all the methods out there keep on reading. Here’s what I’ll cover:
Don’t like to read? Watch out video guide instead
1. How Can I Earn Bitcoins Online for Free?
People tend to think that because Bitcoin is a new form of currency, there is some magical way you can earn Bitcoins or make money from it easily. I’m sorry to burst the bubble, but Bitcoin is just like any other currency out there.
Just like there’s no easy, risk free way to make a quick buck there’s no magical way to earn Bitcoin.
While cryptocurrencies in general may hold some new possibilities for generating income the basics are the same – you’ll need to invest time, or money in order to make money.
I’m going to cover 12 different ways you can earn Bitcoins in this post. Each method I’ll cover will be graded according to the following factors:
How much effort does it take to use this method?
How much money can be made through this method?
How risky is this method?
All of the methods I’ll go over are things I’ve actually tested myself, so rest assured I’m talking from experience.
2. Micro earnings – Faucets, PTC, Micro jobs
Effort – High
Income – Low
Risk – Low
One of the cheapest, easiest but also most time consuming ways to actually earn Bitcoin is through micro earnings. This means that you’ll basically be doing small tasks and earning fractions of a coin for the time you spend.
Some of the more well-known micro earnings sites are Bitcoin faucets – sites which you repeatedly visit every few minutes in order to claim a very small amount of coins.
Faucets are actually a subcategory of PTC websites, PTC meaning “Pay to Click”. PTC websites will usually have you click on an ad or on a button on the site in order to make money from ad sales. In return you’ll get a small amount of coins.
From my calculations, if you work non stop at clicking buttons you’ll average anywhere between 5-40 cents an hour. Not sure that’s worth your time or even the electricity for running your computer.
3. Owning a faucet
Effort – Medium to high
Income – Low to medium
Risk – Medium
While participating as a faucet user might not earn you a lot of money, owning your own faucet is a whole different story. Today, you can build a cryptocurrency faucet relatively easily and earn money from selling ads on your site.
At 99Bitcoins I ran my own faucet for almost 3 years until I decided to focus on other things. Depending on the advertisers you’re using and the amount of traffic you have you can make up to $1000/month running a faucet.
However, running a faucet requires a reasonable amount of time and effort. You’ll need to set up your own website, manage users, prevent fraud and also bring some initial capital to fund the faucet when starting out. Here’s my beginner’s guide to running a faucet.
4. Running a signature campaign
Effort – Medium
Income – Low
Risk – Low
Somewhere around mid-2020, BitcoinTalk, a leading Bitcoin forum, started running signature campaigns. Simply put, you could use your BitcoinTalk signature to advertise a product and get paid for every post you write. The complete list of campaigns can be seen on the forum itself.
With a signature campaign You get paid according to your membership level on BitcoinTalk. Usually, anyone with a status less than ‘full member’ won’t get paid that much, if at all.
To become a full member, you’ll need at least 120 posts under your belt. There are also limitations on posts; such as length, original content, and more. Sometimes, there’s also a minimum post requirement per week.
From my experience you can make up to $5 an hour depending no how much you write and your membership level. This, of course, does not include the number of posts you need to write in order to earn the required membership level on BitcoinTalk.
5. Become a crypto trader
Effort – Medium to high
Income – High
Risk – High
One of the fastest, easiest but also riskiest ways you can make money with Bitcoin is by trading it. Basically you’re trying to buy Bitcoin when the price is low and sell it when the price rises.
However, trading Bitcoin successfully is not a matter of luck or guesswork. Profitable traders spend a substantial amount of time learning how to trade and how to overcome the many risks involved with trading. Successful traders know they might lose money in the short term but they look at it as an investment in their education, since they are aiming for the long term.
If you want to become a trader make sure you have the time and capital to invest in good trading education.
6. Bitcoin affiliate programs
Effort – High
Income – Medium to high
Risk – Low to medium
Perhaps one of the most overlooked ways to make money with Bitcoin is through promoting various affiliate programs. Affiliates are people who promote a certain business for free but receive a commission if they manage to bring in paying customers.
Many Bitcoin exchanges, products and services have an affiliate program in which you can sign up for. You then get your own unique affiliate link in order to promote that product or service.
Of course there are many ways you can promote your affiliate link – you can share it on Facebook, run ad campaigns on different websites or even set up your own information site and promote your links within the content.
This is actually how 99Bitcoins got started, and I’ve even published a book about it called “My Dirty Little Bitcoin Secrets” which you can download for free. If you want to know more about this method make sure to download the book and read it from start to finish – only then will you understand the amount of work needed in order to become a successful affiliate marketer.
Also, here’s a list of highly profitable Bitcoin affiliate programs which I have already field tested myself.
7. Gambling in Bitcoin casinos
Effort – Low
Income – Medium to high
Risk – Extremely high
A very obvious way of trying to increase your crypto wealth would be to gamble on it using one of the various Bitcoin casinos out there. Of course there’s not much to elaborate on this method but if you do decide to risk your money and try your luck, please make sure the casino you’re using is provably fair.
A trustworthy Bitcoin casino will know that their “house edge” is enough to make a profit and therefore will want to prove to their players that they are not manipulating any results. They do this through a mathematical algorithm involving cryptography.
Bottom line, a provably fair casino will show you how to check that the results of the game you play are completely random. You can find a list of provably fair Bitcoin casinos on our site as well.
8. Write about Bitcoin
Effort – Medium
Income – Medium
Risk – Low
If you’re into cryptocurrencies and have a knack for words you might want to consider becoming a crypto journalist or article writer.
As the crypto industry evolves, more and more news and information websites are popping up. In many cases these sites are in need for writers as they are publishing dozens of articles each week.
Since good writers are hard to find, if you can submit quality work you may be able to earn a nice revenue stream by writing about Bitcoin and cryptocurrencies from the comfort of your own home.
The best ways to find work as a writer would be to look for the “jobs” section in your favorite crypto publications. You can also email specific sites you’d like to write for, or you can create a writer profile on Upwork – an international freelance marketplace.
It’s best if you have some sample articles on hand before applying for a writing job as many publications would request previous work before hiring you.
9. Sell a related product or service
Effort – Varies
Income – Varies
Risk – Varies
If you’re not good with words perhaps there’s a different service you can offer. The BitcoinTalk services thread offers a wide variety of services you can provide in exchange for Bitcoin. Some of these include developing a website, marketing an online product or even becoming an Escrow agent for Bitcoin transactions.
10. Mine Bitcoin
Effort – Medium to high
Income – Medium to high
Many people that start out with Bitcoin are instantly drawn to the concept of Bitcoin mining. I mean, creating magical Internet money from your home computer? What could be better?
The fact is, that today Bitcoin mining has become more of a profession than a hobby. It requires extremely expensive mining equipment, high electricity costs, hardware configuration knowledge and physical space to actually store your miners.
Mining altcoins (e.g. Ethereum mining) is cheaper than what you’d need in order to mine Bitcoin. But this only means that the hardware will cost less. The other hassles of electricity costs, configurations, maintenance and so on are basically the same.
Sometimes you’ll encounter a website or mobile app that tells you they will mine coins for you. Most of these services are pretty much useless and will usually consume your device’s computing power and battery just to give you a few cents in return.
Another option is cloud mining – paying someone else to handle the mining equipment for you while sharing the profits. While this sounds ideal, most of the cloud mining sites today are just pretending to use your money for mining operations, they are in fact scams.
Furthermore, while there are a few legit sites out there, the money you’d pay them to mine Bitcoin is probably better invested just buying Bitcoin (as can be seen with my Genesis Mining analysis).
Of course I urge you to do your own market research since in the end, it’s your money.
11. Bitcoin Lending
Effort – Low
Income – Medium to high
Risk – Extremely risky
A very popular way of growing your Bitcoin wealth is through Bitcoin lending platforms. These sites connect borrowers that need crypto with crypto owners who lend their coins for an interest rate. Because these loans are ultra risky the interest rates are pretty high which initially seems like a good thing.
I mean I can make 15% a year on my coins, what’s not to love about that?
Well, since there is no actual collateral that holds the borrower liable for the loan more often than not these loans default and lenders are left without their money.
I’ve tested out several loans here at 99Bitcoins, and they all eventually defaulted. That’s why I recommend to stay away from this specific method.
One site that seems to be working for a relatively long time which I haven’t tested thoroughly is xCoins. While I can’t vouch for it personally it seems to be getting decent reviews.
As always, please do your own research before investing money anywhere.
12. HYIPs and coin doublers
Effort – Low
Income – Medium to high
Risk – Extremely risky
Another method I suggest you avoid are coin doublers and High Yield Investment Programs also known as HYIPs. These are sites that claim to double your coins every few days or give you unreal interest rates.
What these sites actually do is take money from new users and use that money to pay off old users. This process creates a lot of buzz around the site that seems to be legit and solvent.
On top of that, they almost always have some sort of referral program so that users can bring their friends on board.
This is how a Ponzi scheme works. This will go on for around 3-4 months until one day the website will just go offline and the money will be gone. No more payments will be made and a lot of people will get mad that they got scammed.
I have reviewed several Bitcoin investment sites in the past 3 years and have yet to find a site that I can say is safe to invest in. Any site that promises you something that is too good to be true is probably just a facade for scammers trying to steal your coins.
How can you find out if a site is a scam for yourself? Easy, use the Bitcoin scam test tool to get a fair assumption about a site’s legitimacy.
13. Claiming Bitcoin forks and airdrops
Effort – Medium
Income – Varies
Risk – High (especially for non technical users)
Starting around August 2020 Bitcoin began “forking” into other coins. In a nutshell, forking means a new “Bitcoin clone” emerges from the existing Bitcoin. Every person who held Bitcoin before the fork can now also claim the new coin as well.
The first popular fork was Bitcoin Cash, but soon after followed Bitcoin Gold, Bitcoin Diamond and more. The process for claiming forked coins (aka forkcoins) is standard but requires an above basic understanding of how Bitcoin works. You can view my fork claiming guide here.
Keep in mind that if you’re not sure what you’re doing when claiming a forkcoin you could end up losing your Bitcoins. So for most non technical users it would better to pass on a fork and keep your Bitcoins safe.
Other alternatives include companies that claim the coins for you and take a commission – but this could easily turn into a scam that runs away with you money.
Once you claimed a forkcoin you can sell it on an exchange for Bitcoin or other cryptocurrencies assuming it has a market.
Airdrops are similar to forks in the sense that you “get coins out of thin air”. Airdrops are usually used to spread the word about a certain cryptocurrency. The currency is distributed freely to the public, although in some cases some conditions can apply.
For example, Byteball was distributed freely to Bitcoin users depending on the amount of Bitcoins they owned.
To conclude, forks and airdrops may be the highest value for time method you can use to make money from your Bitcoins but they can be SUPER risky. Additionally you’ll probably need to have an initial amount of Bitcoins to claim them.
I would advise you to use these methods only after ample research and a good understanding of the claiming process.
I’ve covered a lot of ways you can earn Bitcoins or make money with cryptocurrencies. In the end each method has its pros and cons, some are more risky while others take a greater amount of effort.
In order to make it easier for you to review what I’ve just covered I created a table that illustrates the different methods.
As you can see – there’s no easy, risk free way to make money with Bitcoin. The good news is that it is possible, and if you put some effort into it you can find a lot of creative ways to create new income streams.
You may still have some questions. If so, just leave them in the comment section below. And if you’ve tried out one of the methods above and want to share your experience with it I’d love to hear it as well.
How To Make Money With Bitcoin: 17 Ways That Work Fast
Last Updated on January 27, 2020
Imagine if instead of having to buy Bitcoin, you could easily make money with Bitcoin.
That’s exactly what you will learn in this guide.
Back in the day, people used to earn OVER 5 BTC with just 1 click in so-called “Bitcoin faucets”.
If you want to learn about Bitcoin faucets and 16 additional ways to earn Bitcoin, t hen you’re in the right place.
We purposefully omitted Bitcoin business ideas that require a high upfront investment, because we believe that you will be more interested in ways to make money with Bitcoin without any high initial costs, or even ways to earn Bitcoin for free.
Some of the best ways to earn Bitcoin are:
- Selling Bitcoin Merchandise
- Writing articles
- Bitcoin mining
- Affiliate marketing
- Creating a review site
- Bitcoin investing
- Bitcoin trading
Let’s now dive into each of the above 7 methods, and 10 additional ones.
1. Make money with Bitcoin merchandise
The simplest and often most effective way to make money with Bitcoin is to create merchandise related to the cryptocurrency and to sell it either on online marketplaces or on your own website.
There are countless products that fit into this category that you can easily create.
Just to name a few examples, you could, for example, create Bitcoin Mugs, Bitcoin T-Shirts, Bitcoin Hoodies, Bitcoin Phone cases, Bitcoin Socks, Bitcoin Stickers, etc.
Now, your concern may be: How can I create this Bitcoin merchandise without having to make a significant upfront investment?
The answer is simple, you can just use platforms like Zazzle or Spreadshirt that enable you to create merchandise on demand, meaning that you can design any merchandise you want, but you only actually need to pay for it when somebody buys it.
Furthermore, most of these sites will also be happy to handle shipping for you, which addresses another potential worry you may have.
2. Writing articles about Bitcoin
Individuals that can write about Bitcoin are in high demand, and since there are so few candidates, the pay for this job is very significant in most cases.
If you are a decent writer then you can expect to earn around $0.10 per word. That’s $100 for a 1,000-word article, which should take you less than 2 hours to write.
Excellent writers with at least 6 months of experience can easily earn north of $0.20 per word if employed by one of the top cryptocurrency blogs.
Usually, Bitcoin articles that are more complex in nature will pay significantly better than simple review-type articles. In order to earn as much Bitcoin as possible as a writer, you need to work hard on improving your writing skills.
This can be done by making a few guest contributions to blogs like HackerNoon or CoinDiligent (yep that’s us!), and by reading a lot about the topic on other cryptocurrency blogs .
After you have worked on your writing skills, you can now start applying for jobs either on micro-task sites like Bounty0x , or on regular job listing sites like Crypto Jobs List.
3. Bitcoin mining
Bitcoin mining is often described as one of the best ways to make money with Bitcoin because of how profitable it is. Large mining firms and mining pools, like BITMAIN, make hundreds of millions of $ per year .
While its true that there is a large cost involved in running such a large Bitcoin mining operation, your goal isn’t to make hundreds of millions of $ just yet, right?
There are countless people in countries with cheap electricity running miners from their home, the only two costs involved are the mining hardware and the electricity cost.
However, a cost is a cost, you won’t be able to start a professional Bitcoin mining operation for free and you should expect to have to put aside at least $2,000 before your mining business becomes profitable.
That being said, there is an alternative to professional Bitcoin mining.
Many people that don’t want to commit to having to purchase a lot of expensive hardware from the start, choose different options like Bitcoin cloud mining or Bitcoin browser mining .
The first one is essentially a way to “rent” Bitcoin miners online, often for as little as $50, and then receive monthly payments from the profits generated by the miner.
The latter is an even more novel concept that utilizes your PC or even smartphone as a Bitcoin miner in order to make money.
It’s important to note that both cloud mining and browser mining are not as profitable as professional Bitcoin mining, but it is certainly a good start an interesting way to make money with Bitcoin without any large investment.
4. Affiliate marketing
If you enjoy marketing and sales, or if you already have an existing avenue by which you could promote products then affiliate marketing might be the right fit for you.
Affiliate marketing essentially consists in promoting the products of a company and earning a commission every time you make a sale.
These sales are tracked with what is referred to as a “referral link”. This link tracks every click and also knows when a click resulted in a sale.
So the goal is to get the link in front of as many people as possible that might be interested in buying the product or service that you are promoting. Here are some potential platforms by which you can promote your referral link:
- Your own blog or website
- On your Twitter account
- In your Facebook page
- Via email to potential customers
- In YouTube videos if you own a channel
- In a Telegram group if you own one
Affiliate links can be a very profitable way to earn bitcoins online, and even better, the cost to start promoting these links is usually zero.
So if you own a medium by which you could promote affiliate links, or if you are planning to create one, then you should definitely give affiliate marketing a try.
99Bitcoins has put together a great list of some of the best Bitcoin affiliate systems out there, make sure to check it out if this is a business model that you want to give a try.
5. Start a review site
There are countless Bitcoin-related products out there. Some of the most popular ones include cryptocurrency exchanges, bitcoin wallets, bitcoin hardware wallets, Bitcoin mining equipment, and Bitcoin merchandise.
The vast offering available in the market can often make it hard for consumers to decide which product they should purchase. This is where review sites step in.
Bitcoin product review sites are essentially focused on analyzing a certain product line, and helping potential buyers in their decision to make a purchase. This is also one of our revenue streams at CoinDiligent.
These sites can be structured in the form on a simple static content website or a blog, and there are countless ways to monetize them.
Two of the most popular ways to monetize a review site are through affiliate links and through advertisements.
In the case of an affiliate link based business model, you would earn Bitcoin every time somebody buys a product after clicking on your referral link.
In the situation of an ad-based business model, you simply earn for every click and/or for every impression that your ad receives.
Starting a review site is a great way to make money with Bitcoin if you are not a very technical person, and don’t want to have any costs associated with your Bitcoin business.
6. Long-term Bitcoin investing
If you are interested in making money with Bitcoin, then chances are that you are planning to invest in cryptocurrencies or just Bitcoin, or that you have already invested.
Many people first found out about Bitcoin after hearing some of the mind-blowing success stories of people that invested just pennies a few years back, and whose Bitcoins are now worth a fortune. This is the power of Bitcoin long-term investing.
In long-term Bitcoin investing the goal is to accumulate as many Bitcoins as possible at a cheap price, with the goal in mind to potentially sell some of them after the BTC price increased dramatically after a few years.
Most newcomers to the space choose to buy their first Bitcoins on a cryptocurrency exchange for beginners like Coinbase since these platforms make it incredibly easy to get started.
More elaborate investors sometimes use Kraken or Bitstamp, since the fees are slightly lower.
Long-term investing is a fairly simple strategy to make money with Bitcoin since it does not require you to actively manage your Bitcoins and you can just leave them sitting in a wallet for years. Many people refer to this as “Hodling”.
That being said, in order to maximize the returns with this strategy, it is crucial to stay up to date with news and events that could drastically impact the value of Bitcoin.
7. Bitcoin trading
It is totally possible to make money trading Bitcoin. In fact, fortunes are made every day by Bitcoin traders that truly know their game.
The insane volatility in Bitcoin markets is a trader’s paradise, and with the recent rise of platforms like Bitmex, traders can now also make money betting on Bitcoin’s price going down (not just up).
However, with great opportunity comes great risk, and that is something Bitcoin traders need to be aware of.
There are three main ways to earn Bitcoins by trading: swing trading, range trading, and momentum trading. Let’s now explore each one in more detail.
Bitcoin trend trading
In trend trading, traders aim to identify if Bitcoin is currently trending upwards or if it is trending downwards. You will often hear traders say “The trend is your friend”, which is a saying that aims to illustrate that trends will rarely let you down and that trends can last a long time and therefore be a profitable opportunity.
Although there are countless ways in which traders identify trends in Bitcoin prices, the simplest way is to simply have a look at the 200 candle and 50 candle moving averages.
The strategy is rather simple. You simply plot the 200 days moving average and the 50 days moving average on the same chart and look which moving average is currently on top.
If we see that the 50 days moving average is on top, as in the example above, then we’re in a market that is trending up (bull trend).
On the other hand, if we see that the 200 days moving average is on top (red), then we’re in a market that is trending down (bear trend).
Bitcoin range trading
When you look at the Bitcoin price, you will often see that the price seems to be moving in a range on certain time intervals.
Bitcoin range trading aims to exploit precisely that.
Range traders make the assumption that ranges are strong enough to support price movement for the foreseeable future, and therefore buy at the bottom of the range and sell at the top of the range for a profit.
Bitcoin momentum trading
In momentum trading, Bitcoin traders make the assumption that if the price makes a strong move in one direction, it will likely continue moving in that direction for a while.
Momentum traders usually make use of indicators like the RSI, or just trends in the Bitcoin trading volume.
On the above image we can see how the price and trading volume of Bitcoin were increasing, so a trader would enter a trade assuming that it will continue moving in an uptrend of a little while more.
Start trading Bitcoin
If you want to start trading Bitcoin then one of the best exchanges is BitMex, which enables you to trade with up to 100x leverage.
This means that if you have $1,000, you could make it worth $100,000 by using leverage, thus drastically increasing your potential profit margin.
Learn more about BitMex here .
8. Run cryptocurrency masternodes
Masternodes are nodes that store a copy of the entire coin’s blockchain history, in exchange for a monetary reward. For security purposes, most masternodes require its administrators to “lock-up” a certain number of coins in addition to providing the computing power of the node itself.
There are several masternode coins out there, but some of the most popular ones are:
Most legitimate masternodes offer a return of between 10 to 40% per year and usually cost an average of $2,500 to set-up. However, there are outliers: a Dash masternode costed close to $1 Million at one point.
That being said, masternodes are one of the few truly passive ways in which you can earn bitcoin online. The goal here is to identify strong masternode projects when they’re still unknown and cheap so that you can afford several nodes.
A great place to discover new masternodes is Masternodes.pro .
9. Start a Bitcoin YouTube Channel
YouTubers are some of the most influential individuals in the cryptocurrency space.
YouTube channels are so powerful in Bitcoin and cryptocurrency in general since this space is mostly composed of a younger audience, that often prefers content in the form of video rather than text.
There are several ways of approaching a Bitcoin or Cryptocurrency YouTube channel, and the one that suits you best entirely depends on your skills and interests.
The main categories are Trading channels, product review channels, News channels, Entertainment / Funny channels, and Mining / Technical channels.
It is important to note that many YouTubers, like for example Ivan On Tech , combine several of the above categories in order to speak to a larger audience.
As you can probably imagine, being a Bitcoin or Cryptocurrency YouTuber can be extremely profitable. While large channels do make a decent amount from display ads they show on their videos, most of the revenue is generated through sponsorships and paid videos.
Ivan On Tech, for example, has approximately 200,000 subscribers on YouTube and charges over $15,000 for a single interview video.
Of course, it is not easy to build such a large channel, but you don’t have to own a massive Bitcoin YouTube account in order to make a decent income out of it and the barrier of entry for starting a channel is pretty much zero.
10. Create a Bitcoin course
There are many ways to make money with Bitcoin, but if you actually want to make a big positive impact in the space then you might be interested in creating an educational product for people interested in learning about Bitcoin.
People like Suppoman have made millions of dollars selling courses on Udemy.
So the market is definitely there.
The first important task that needs to be addressed when creating a Bitcoin course is to find a highly interesting topic where you can add value, and that lots of people want to learn about.
This is not easy and will require some research from your side. One approach is to browse through existing courses on Udemy, and look for courses that are very popular and where you think you might be able to create a better one.
After you found an interesting topic or theme, the next step is to decide on a format to deliver the course in. Essentially, the three options that you can choose from are video, audio, and just simply plain text.
Last but not least, you will also have to figure out a way to market and distribute your course, this can either be done on dedicated platforms like Udemy or through your own website.
11. Write a Bitcoin book
Another viable option to make money is to write a book about Bitcoin.
With tens of thousands of people entering the crypto space every month, there definitely is a market of people wanting to learn more about Bitcoin.
However, creating books comes with its own set of challenges. Although the internet has made the process of distributing books magnitudes easier and faster, that still does not mean that it is a simple task.
Creating a book is definitely more time-consuming and challenging than creating a course, but the payout can also be magnitudes higher.
As you can see in the image below, the book “The Bitcoin Standard” has 150 reviews. Given that usually, about 2% of all buyers leave a review, that means that about 7,500 people purchased the book on Amazon US alone!
At a price per book of $14, that’s over $100k in revenue.
With that in mind, before trying to find a publisher to create printed copies, it is highly recommended to get started by offering it as an e-book on platforms like Amazon first in order to get a gauge of the demand.
If you need some inspiration of what a good Bitcoin book looks like then definitely check out our article on the best cryptocurrency books out there.
12. Start a Bitcoin podcast
Podcasts are one of the most underrated business models out there.
The barrier of entry to start one is not only very low, but the potential revenue that can be generated with one often exceed one’s wildest dreams.
Podcasts like the Joe Rogan Experience earn TENS OF MILLIONS of dollars per year. But of course, we all won’t be able to build one of the largest podcasts in the world.
One case study that you can look into is the What Bitcoin Did podcast, which publishes monthly income reports .
At the time of writing, the podcast was only 1 year old and is already generating $9k+ in revenue on a monthly basis.
This clearly shows how creating a podcast is definitely a viable option to make money with Bitcoin. Additionally, it’s also still an option that is not too competitive, which could make it easier for you to establish yourself.
If you need some inspiration then make sure to check out our list of the best cryptocurrency podcasts out there.
13. Play games
If you’re looking for a way to earn some Bitcoin fast then you might want to look into playing games. Yes, playing games.
One interesting app for this is Storm, which enables you to earn Bitcoin, Ethereum and STORM coins in exchange for testing new smartphone games.
The Storm app also has other tasks aside from playing games like surveys and social media tasks, so you might want to check out those as well.
14. Complete Bitcointalk bounty campaigns
Bitcointalk signature bounty campaigns are one of the oldest strategies to make money in the crypto space and have been used to earn Bitcoin for years.
Bitcointalk is a forum created by Satoshi Nakamoto , the founder of Bitcoin, in order to give a medium for people to discuss Bitcoin.
Nowadays the forum has millions of active users and is seen by many as a powerful marketing machine that can be used to market new products or digital assets.
This is precisely where Bitcointalk signatures step in. A Bitcointalk signature is essentially a widget that you can insert in your Bitcointalk profile, which will then show below every single message that you make on the forum.
If designed properly, a Bitcointalk signature can look similar to an advertisement.
In Bitcointalk signature bounties users are paid, usually on a weekly basis, for carrying the Bitcointalk signature of a sponsor and making as many posts on the forum as possible in order to maximize the exposure.
It is important to note that often users with a higher “rank” (users that have used Bitcointalk for a longer time), receive higher rewards for carrying a Bitcointalk signature, which makes their accounts highly valuable.
Bitcointalk signature bounties can be found here , there are literally hundreds to choose from so it won’t be a lack of choice what holds you back from giving this strategy to make money with Bitcoin a try.
15. Collect BTC from Bitcoin faucets
Collecting BTC from Bitcoin faucets is the only way in which you can actually make Bitcoins for free without any effort at all. There are countless stories of people earning 5 BTC for every click they made in these faucets.
BTC faucets are essentially websites that give away Bitcoin for free, this is either done to generate awareness and drive adoption or to monetize a website by forcing users to interact with an advertisement before claiming the BTC.
Furthermore, there are a few different ways of interacting with the faucets. In some cases, you literally only need to complete a captcha and click a button to claim your BTC, in others, the faucet is structured in the form of a game that you first need to complete before claiming your coins.
Two very popular Bitcoin faucets are Cointiply and BonusBitcoin.
The first gives users the option to complete games or tasks in order to claim larger amounts of Bitcoin, the latter has a slightly lower payout but is also much simpler by only asking users to sign-up and click a button to claim their coins.
When trying to make money with Bitcoin using BTC faucets, it is very important to watch out for scams or “dead faucets”. A good rule of thumb is to avoid faucets without an active social media presence.
16. Lend your Bitcoins
If you already own some Bitcoin and are open to taking some risk, then making money with Bitcoin lending might be interesting to you.
As in traditional lending also, Bitcoin lending consists in lending your Bitcoin to a third party, usually through a lending platform, at an interest.
This interest is usually magnitudes higher than in traditional banking since the market is unregulated, and risk is significantly higher. Some lending platforms pay up to 20% yearly interest.
That being said, you should never lend more Bitcoin than what you can afford to lose .
There have been several cases of Bitcoin lending platforms that defaulted or that were straight up ponzi schemes, and lenders ended up losing all of their money.
One notorious platform was Bitconnect, which promised guaranteed returns of up to 2% per day by supposedly using the money that you lent them to “trade digital currencies and make significant profits”. When Bitconnect collapsed in early 2020, lenders lost all their money and countless lives were permanently destroyed.
Unless you are playing around with money that you can lose, I recommend staying away for now from BTC lending platforms and to choose a different strategy to make money with Bitcoin instead.
17. Complete micro-tasks for Bitcoin
Finally, the last strategy on this list on how to make money with Bitcoin is to complete micro-tasks.
In the cryptocurrency space, these micro-tasks are often referred to as “Bounties” and can be found on dedicated platforms like Bounty0x , or forums like Bitcointalk .
They usually consist in writing short pieces of content, interacting on social media, making a translation, recording a video, or other basic tasks.
Although some of these micro-tasks are indeed paid directly in BTC, most are paid in a different coin or token that you would then have to swap for BTC on a cryptocurrency exchange.
Reportedly, several individuals are making a full-time salary just from completing these tasks, with some people claiming to make north of $50,000 per year .
If you enjoy working online and completing small tasks, then this might be the right fit for you to earn some money with Bitcoin.
BONUS: Shopping with Lolli
Lolli enables anyone to earn a Bitcoin by shopping at one of the 500+ merchants that the firm is partenred with.
The list of merchants include big names like Hotels.com, Walmart, Groupon, Priceline, BestBuy, and more.
Although each purchase is only rewarded with $1-3 in Bitcoin, it can add to a significant amount if you regularly use the stores that Lolli is partnered with.
Create a Lolli account here and earn $10 just for joining.
Bitcoin earning tricks
Alright, so those were the top ways to make money with Bitcoin!
But before we end this article and you start earning some coins, here are a few Bitcoin earning tips that will help you to get there faster.
Add a lot of value
You need to find a way in which you can add VALUE to your customer. A product or task that doesn’t add a lot of value, won’t earn you lots of Bitcoins.
To earn more, you need to stay at the top of the game. Read as much about cryptocurrency and blockchain as you can, this space evolves fast and there’s opportunity everywhere.
Keep taxes in mind
Keep in mind that even though you’re earning Bitcoin, you will likely still have to pay taxes on your earnings. Please check this with a tax advisor when you’re starting to make a considerable amount of yearly revenue.
Store your earnings safely
After you earned your first cryptocurrency, make sure that you know how to keep your coins safe . If you have earned more than $250, then you should consider investing $70 in a cryptocurrency hardware wallet like Ledger or Trezor to store them as safely as possible.
Is making money with Bitcoin legal everywhere?
Unfortunately, the answer to this question is no. There are some countries, like India, Morocco, Indonesia, or Cambodia, where Bitcoin is illegal. Hence, earning Bitcoins may be unlawful as well.
Before starting your Bitcoin money-making endeavor, please make sure that the digital currency is legal in the jurisdiction you are based in.
Did we miss an important way to make money with Bitcoin? Let us know in the comment section below! We’re also very curious to hear any success stories that you may have about earning some Bitcoin.
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