Last updated on January 14th, 2018 at 05:54 am
Table of Contents
- Introduction – Bitcoin’s History
- How does Bitcoin Works?
- Top 10 Ways to Make Money with Bitcoin
- There are various ways in which money can be made from Bitcoin. They are;
- 1) Make Money With Bitcoin via Buying and Holding Bitcoins
- 2) Make Money with Bitcoin via Bitcoin Mining
- 3) Make Money With Bitcoin Cloud Mining
- 4. Make Money with Bitcoin via Day-Trading
- 5) Make Money With Bitcoin via Bitcoin Affiliates
- 6) Completing Certain Bitcoin Task to Make Money with Bitcoin
- 7) Sell Goods and Services In Exchange For Bitcoins to Make Money with Bitcoin
- 8) Investing in Bitcoin Peer-to-Peer Loans to Make Money with Bitcoin
- 9) Make Money with Bitcoin via Gambling
- 10) Become a Market Maker to make money with bitcoin
- Expert’s Opinion
- ICO Guides by Prooworld
Introduction – Bitcoin’s History
In this post, we are going to talk about ” how to Make Money With Bitcoin in 2018″. The recent demand for Bitcoin has brought about the interest in the media, supervisors, and investors. The increase has led to a positive reputation for Bitcoin as investors are beginning to invest in this decentralized system that has proven to be somewhat genuine. Despite the growth in its demand, the cryptocurrency remains a mystery to some people who have heard about it but do not know what this digital currency is all about or what it entails. Bitcoin is an online digital currency that allows the transfer of funds and the purchase of digital items. Bitcoin was founded in 2009, and it stands as the world’s first global digital currency. It is a decentralized currency that allows its users send money from one person to another without involving an intermediary. The system is built on a technology called ‘blockchain’ which makes it accurate and secure. It has led to the birth of other currencies such as; Litecoin, Ethereum, Ripple, Dogecoin and so on. The increase in digital currencies has brought more opportunities for job seekers, traders, and miners. These opportunities have made ways in which users can earn through the peer-to-peer system. Here is how you can Make Money Online With Bitcoin.
How does Bitcoin Works?
Bitcoins are virtual coins that tend to represent physical gold coins. They possess value and are traded as physical gold. Bitcoins are used to purchase goods and services online. A ledger known as the blockchain keeps records of all digital transactions that are processed. Instead of it having a central administrator, data is organized in batches. These batches make use of cryptographic validation to connect. This helps each block to identify the previous block by using a hash value. Bitcoins are traded from a person’s wallet to another wallet. This wallet is a personal database that is stored on the owner’s computer drive or phone.
Bitcoin is one of the easiest ways to invest in cryptocurrency. Hence, a user tends to make lots of profit on his investment. Using Bitcoin, there is a possibility that the coins will have a continual increase in its demand and value which could lead to a very profitable investment for users who buy and hold their cryptocurrency.
Top 10 Ways to Make Money with Bitcoin
There are various ways in which money can be made from Bitcoin. They are;
The ten various ways in which an individual can make money through Bitcoin are listed below. These are proven ways that are used by Bitcoin users to make money for themselves. However, to get the maximum result, it is expected that a user makes good use of it.
1) Make Money With Bitcoin via Buying and Holding Bitcoins
Buying and holding Bitcoin is one good way to make money. Last year reports showed that people who owned Bitcoins made huge profits by simply holding their coins in their wallets. Research has also shown that in the coming years, the value of the coins will increase, if not faster than usual. If it happens, a Bitcoin owner will likely make more profit by just buying and holding his coins in the wallet. More so, it is advisable to hold one’s coins on an exchange rather than holding it in a wallet stored on your computer. You may decide to hold your money in certain exchange that gives interest on every deposit.
So How Do You Make Money By Buying And Holding Your Coins?
Setting up a Bitcoin Wallet
To start earning Bitcoin the first thing to do is have a Bitcoin wallet. This is used to store a person’s Bitcoin, and it can also be used for sending and receiving purposes. It is important to know that we have two types of wallets which are;
- The Online Wallet
- The Offline Wallet
A person can get an online wallet by using the Bitcoin online service such as; Greenbits, Coinbase, Copay, Breadwallet, Blockchain and lots more. Online Bitcoin wallets such as Coinbase comes with an online and mobile version for its users. So after you get your wallet, you are expected to store your coins.
Bitcoin Wallet Guides:
- Best Bitcoin Wallet (10 Online, Hardware & Software Wallets)
- Top 5 Bitcoin desktop wallets (reviewed)
- 4 Best Bitcoin Wallets for Android Mobile Device (Reviewed)
- Best Bitcoin wallets for IOS device
It has been said that the offline wallets are the best to use for storing one’s Bitcoins. Nevertheless, wallets like Trezo can be considered. After you get your preferred wallet (whether offline or online), the next thing to do is to establish your Bitcoin address. While establishing your Bitcoin address, it is possible to establish more than one thus, creating multiple Bitcoin addresses. This will allow you to receive Bitcoins from other users. A person doesn’t necessarily need a real address; the Bitcoin address is okay for all forms of digital transfer that you may want to carry out. To view your transactions, you can do that by visiting the blockchain which is located at blockchain.info. Due to the way transactions are linked to Bitcoin addresses (not physical addresses), Bitcoin has been termed a semi-anonymous digital currency. Overall, buying and holding your Bitcoin coins in your wallet is the easiest way to make money.
2) Make Money with Bitcoin via Bitcoin Mining
To mine Bitcoins sometimes could be tedious and complex especially for Bitcoin starters. Due to its complexity, mining Bitcoins is not usually advisable for a beginner who is just starting. The process of mining Bitcoins involves the use of expensive machines that consume a lot of electricity. The electricity it consumes allows it to solve mathematical algorithms in exchange for Bitcoins. This allows the miners to enable their transactions in other to share their processing power.
How Do They Make Money?
The Bitcoin miners make money through the Bitcoin rewards they are given. They are given these rewards because of their contribution to the functioning of the Bitcoin network.
For some years now, individual mining of Bitcoins at home tends not to be lucrative due to the expensive mining hardware involved and the cost of mining the Bitcoin. This has led the coins to be produced on a large scale.
To mine Bitcoins, it is advisable to join a mining pool. This is a pool where miners pool their resources and share their hashing power. They do this in other to solve a block, and the reward they are given is shared among themselves. They share the reward based on some factors such as; the shares contributed by a person etc.
Bitcoin Mining Guides:
- BITCOIN MINING: WHAT YOU SHOULD KNOW ABOUT IT
- HOW TO CHOOSE A BITCOIN MINING POOL
- TOP 10 BITCOIN MINING POOLS
3) Make Money With Bitcoin Cloud Mining
Bitcoin cloud mining is another way to make money through mining. Cloud Mining is simply the process of mining Bitcoins, but this time, it involves using a remote data center and a shared processing power for your mining activities. Individuals benefit from cloud mining as they do not require an expensive mining hardware like the normal Bitcoin mining. It allows an individual make money without having the mining hardware, electricity, software and all other things. Using cloud mining also gives the user the opportunity to estimate one’s profits by using an online mining calculator.
4. Make Money with Bitcoin via Day-Trading
Another way to make money is through day trading your Bitcoins. It is important that a person knows about the Bitcoin financial market and keeps tab of the latest happenings in the market to know when to buy or sell one’s Bitcoin. For day-trading it is also important to understand the trends and dynamics of the market. Day-trading Bitcoins involves buying the Bitcoin when the currency is low and then the person waits for the price of the Bitcoin to rise before selling it. During this process, the seller sells the Bitcoin at a higher rate which in turns generates profits for the seller.
Bitcoin Trading Guides:
- Automated Bitcoin Trading Software: BTC Robot
- How to Trade Bitcoin (BTC) – Best Bitcoin Trading Strategy
- Bitcoin Trading Guide & Strategies for Beginners
5) Make Money With Bitcoin via Bitcoin Affiliates
This method may not be the way to get fast or many Bitcoins, but it is a sure way to get some Bitcoins in your wallet. Here, a person can make money by referring a friend to the Bitcoin world. You could also make money by playing games or watching some adverts. When you do this, they reward you for the games you played or the adverts you watched. The amount may be small, but at least it is a confirmed way to make some Bitcoins. Websites like Btcclicks.com or Moonbit.co can be used to make money through using the method above.
Related reading, see:
- HIGHEST PAYING BITCOIN FAUCET APPS (COMPARISON)
6) Completing Certain Bitcoin Task to Make Money with Bitcoin
This one is similar to the Bitcoin Affiliates, but it is slightly different from the website or app involved are created with the main aim of getting users to watch videos, play games, fill out surveys, test apps, complete online promotional offers and so on. You can make money by receiving rewards for each task you complete.
Related reading, see:
- 10 BEST BITCOIN EARNING SITES (FREE/ PAID – COMPARISON)
7) Sell Goods and Services In Exchange For Bitcoins to Make Money with Bitcoin
This method is quite simple, and it is one of the most popular ways to make money. To make money, all you need to do is to sell your goods and services, and in return, you get paid in Bitcoin. You can sell anything in exchange for Bitcoins. As Bitcoins are gradually becoming more popular, more online Bitcoin shops are coming up. For example; Bitify.com is one of the most popular online stores where you can sell your goods in exchange for Bitcoins.
8) Investing in Bitcoin Peer-to-Peer Loans to Make Money with Bitcoin
This simply means lending your money to startups or small-scale entrepreneurs without any intermediary. You lend your Bitcoins to entrepreneurs and small SMEs who in turn pays back based on your agreement. In cases like this, a lender gets profit, interest or returns on the money that was borrowed out.
Related reading, see:
- 10 BEST BITCOIN INVESTMENT SITES (VERIFIED SITES – COMPARISON)
9) Make Money with Bitcoin via Gambling
If you know and like gambling, then this option could be a person’s best bet. There are many Bitcoin casinos that a person could consider when trying to gamble. Making money here is based on winning. The more you win, the more money you get.
You may like to read about: THE DANGERS OF BITCOIN’S
10) Become a Market Maker to make money with bitcoin
If you are interested in trading your Bitcoins for fiat currencies, then this option is another one you should consider. This works by selling your Bitcoins in exchange for money. Many Bitcoin traders sell their Bitcoins to get more money.
Finally, making money through Bitcoin is not too hard. It only requires time and investments. The above-listed ways are methods a person could apply in other to make more money. The market is huge and so are the chances of making money from it.
Related reading, see: TOP 20 BITCOIN AND CRYPTOCURRENCY WEBSITES WORLDWIDE
ICO Guides by Prooworld
- Initial Coin Offering (ICO) – (Breaking Barriers in Cryptocurrency World)
- 9 Best ICO List to Invest at Beginning of 2018
- 6 Best Upcoming ICO’s List to Invest in 2018