A blockchain can have over 20 million Bitcoins on it, and these can be divided into smaller units, with the smallest ‘Satoshi’ having a value of 0.00000001 of a Bitcoin. Digital currency, like normal currency, also has exchange platforms, and over 5,000 cryptos are traded on them. The best of the lot are Bitcoin, Binance and Ethereum. Several other cryptocurrencies like Litecoin, Ripple-XRP, EOS, Bitcoin Cash, Chainlink and more are also traded with. Many early investors in Bitcoin are super rich today. But, how to earn with Bitcoin?
Electronic currency is a modern-day need. The cryptocurrency known as Bitcoin was established in 2009. It is an electronic currency with an exchange and payment network created by ‘Satoshi Nakamoto’. It works on a cryptography-based electronic gateway and is a decentralised currency that you can sell, buy or exchange without any intervention from the intermediaries or the government. So, let's understand how to make money from bitcoin.
Did you know? Between 2012 to 2020, Bitcoin grew by 193,639.36% and by 2026, the cryptocurrency market and money-making apps size is expected to grow to a whopping 1087.7 million.
What is Bitcoin?
Let’s understand Bitcoin and how to earn through Bitcoin. Bitcoins are stored in Cryptocurrency apps having a digital wallet for sending or receiving payments in Bitcoins, a completely secure and private transaction process. There is no physical asset attached to it. Bitcoins can be bought, held, sold, and exchanged for other cryptos and currencies.
How does Bitcoin work?
Bitcoins are made of blockchains, and these transactions are recorded in a public ledger. Each transaction/record needs the parties transacting to form the unique blockchains consecutive links using their code and thus a blockchain makes the transaction secure, decentralized and transparent. This eliminates all intermediaries, including the government, from the transaction. Cryptocurrencies are normally used in financial transactions involving the exchange of online services and goods spread over the nodes and are encrypted transactions that are completely secure from hackers and impossible to counterfeit. And thus, since the value of a bitcoin has grown tremendously, it makes a great investment.
How to make money using Bitcoin?
Here are the top ways to make money with Bitcoins.
Mining means to solve a cryptographic puzzle that adds a new block to the blockchain of the Bitcoin Network. It’s a great way to earn big money with Bitcoins and real money earning apps. To allow every new transaction to enter the public ledger, the public users on various nodes of the network mine and ratify the transaction in a process called mining.There are two ways of mining. They are
- Cloud Mining- Cloud Mining is used by individuals who pay a one-time contract fee. It does not have any other recurring charges and huge electric bills. You also do not buy any additional hardware or software.
- Personal Mining- This method is for individual mining of Bitcoins, which is an extremely tough job as the supply of Bitcoins is negligible compared to its demand. Here you have to pay the electric bills and cost of mining and maintenance charges which reduces your profits substantially.
Since your net profit is based on paying the rather big electric bills and other expenses, cloud mining companies are preferred. However, always verify the company's genuineness before entering into the contract or investing in a mining venture.
Long-term investors generally buy at lower prices, hold the Bitcoins and sell at a huge profit when the prices are high. Since the approach to this method is speculative, you should have good knowledge of the cryptocurrency stock market to gauge when to sell at a profit. Another Bitcoin investment approach is investing in startups, blockchain companies, or developmental projects involving the technology to make the big league in profits. You could research the potential for your investments by reading up on money earning apps, white papers, market demand analysis reports, expert opinions etc.
Bitcoin payment acceptance:
Businesses globally accept Bitcoin as a mode of payment for services and goods bought. You will need to have the best app to earn money, i.e., a Bitcoin wallet to accept Bitcoin payments. Then, it would be a good decision if you put up a board accepting Bitcoins on your online web store. This saves you from using a 3rd party payments vendor while ensuring rapid and secure payments across the globe.
Become a Bitcoin Affiliate:
Affiliates leverage the internet and social media platforms to promote and boost companies' sales. By becoming a Bitcoin or any other crypto affiliate, you promote the services and products of the company. You increase the traffic to their websites and get paid a commission on the sale value or increased customer base. You can use your social media effectively by recommending products to your followers and influencing them to buy a particular service or product. You can also venture into affiliate programs where you teach people to make money using cryptocurrencies.
Being an acceptor of Bitcoin payments ensures you seamlessly receive and send any sum of money without the need for validation by the authorities. You can also consider lending Bitcoins at a reasonable rate with Bitcoin money transactions on the money earning apps in India. Several lending services websites like BTCpop, Unchained Capital, Bitbond, etc., can be used as the best apps to earn money. They charge 15% per annum interest on such lending transactions. Ensure you choose a reliable and credible lending platform by doing proper research.
How to earn Bitcoins? Some money earning apps and websites like Coinadder, BTC4ADS, Coinpayu, and adBTC, pay you in Bitcoins for filling and completing online surveys. The payments are small and micro earnings may be insufficient to create big wealth. However, it is a great way to earn Bitcoins. Like the paid-to-click (PTC) websites, several legitimate websites pay in bitcoins when you click on ads, open specific links, play games, watch videos, etc.
Trading in Bitcoins is a sure-shot way of making a lot of money. Proficient traders study the market, analyse trading charts, evaluate all external factors affecting the trade and take speculative risks when trading. They close the deal when the trade is profitable to them. Some of the trading strategies of Bitcoin investments and trading include
- Buy and Hold- This Bitcoin strategy called HODL (hold on for dear life) is to buy cheap and sell high and involves holding the Bitcoins in long-term investments till the prices are right.
- Hedging- This strategy is adopted when the market moves contrary to your position and helps minimise the risks through taking a contra or opposition position on your Bitcoin purchases.
- Day Trading– This method is also known as intraday trading. The investors sell and buy Bitcoins only during the trading day to avoid overnight funding charges payments on closed positions.
- Trend Trading- This strategy is used when the trading trends suggest you take a matching trend position. If the market is bullish, you are investing long term, and if it is bearish, you invest short-term.
Earn Bitcoins as a tip:
Helping other people with their tasks can earn you a tip. When you use money apps and platforms like Bitfortip, you get a tip with Bitcoins. The task types vary from promoting services or products, answering technical questions, helping find a style or trend in clothing, streaming video games, etc. Several payment platforms also have tipping services in cryptocurrencies integrated into them.
Bitcointalk founded by Satoshi Nakamoto is a forum or platform. This forum encourages its tenured followers to participate in its forums and post on it to get paid through sponsorships from Bitcointalk.
Finding the bugs:
Developers and organisations offer incentives to find vulnerabilities and technical glitches in their systems and can prove to be profitable as a way of earning Bitcoins.
Also Read: Legit Ways to Become Rich in India
No matter which method you choose, Bitcoins have the potential to make you extremely wealthy provided you have the confidence, risk-taking ability and are great at trading. In all businesses related to the stock market, it is essential to track your trading, profits, taxes, GST, inventory etc. Therefore, we hope you have a clear understanding of how Bitcoin works and how to make money using Bitcoin.
Follow Khatabook for the latest updates, news blogs, and articles related to micro, small and medium businesses (MSMEs), business tips, income tax, GST, salary, and accounting.