Can you make money with Bitcoin (BTC), or is it too late now? The crypto market has already provided us with profitable opportunities that have earned us large sums of money in an incredibly short time. Inexperienced investors believe that the hype is over, but is that really the case?
The real truth is that we’re nowhere near the end of a bull run. Euphoric users will continue joining the market, and newcomers still have a chance to make it big. Moreover, there are no serious signs that the crypto market is slowing down. If you believe that this is merely the start for cryptocurrencies, you have come to the right place. To help you in your crypto journey, we have compiled a list of 16 easy ways of how to make money with Bitcoin.
1. Day Trading
Have you ever traded stocks? Then day trading is the perfect method for you! Investing might be a more secure way to make it in crypto, but for most, it is too slow. With the right mindset and enough experience, you can turn into a profitable trader that can live off Bitcoin alone. Beware, day trading is incredibly risky, and you are bound to lose money for the very first few trades. This is a method that should only be utilized by those who have a background in economics. Alternatively, those who are a bit rich can play around and trade with a small account. Here is a pro tip: start learning technical analysis as soon as possible. Find a traditional trading path (like Ichimoku Clouds trading) and stick with it. With enough time, you’ll finally understand how the market works. Even if this venture does not work out, you’ll only waste a few hundred bucks. The risk/reward ratio is simply too great to bother with caring about losses.
2. Mining
Mining is the first and original way of how to make money off Bitcoin. Back in the day, when the blockchain network was still small, users interested in crypto could use their computers to mine and earn money. How does this magical process work? It is simple! The Bitcoin network financially incentivizes its users to verify transactions by the act of mining. When mining, you essentially solve complex mathematical problems. In return for powering the Bitcoin network, you are rewarded with Bitcoins. However, the process is quite different today. Home computers are no longer a useful solution for mining since they are quite weak. You would have to own dozens of powerful computers in order to even stay competitive and profitable. Cloud mining is the solution that most suggest in this case. But we’re going to be honest. A majority of cloud mining platforms are scams. The healthier alternative would be to join a mining pool and work with thousands of other miners.
3. Investing
Investing is a far safer option compared to any possible version of trading. By investing and holding for a long time period, you can make money with Bitcoins without doing anything at all. Buy once and sell once, simple as that. But you know what? It is possible to make money with other cryptocurrencies as well. Crypto assets with a smaller market cap tend to rise faster. But as you can guess, they are riskier as well. Do you wish to invest in assets other than Bitcoin? Search for the following three crypto categories:
- Altcoins – Altcoins are alternative currencies, basically anything other than Bitcoin. They come in all shapes and sizes and often fare far better than Bitcoin. A list of popular altcoins includes Litecoin, Polkadot, Cardano, Bitcoin Cash, and many others.
- DeFi Tokens – DeFi tokens are also altcoins, except that they focus on the decentralized finance market segment. DeFi tokens have the same hype that altcoins once had in 2017. Why? Because decentralized finance is the new narrative and all developers focus on DeFi today!
- Ethereum – Ethereum is the biggest altcoin in the entire market. In the last weeks, ETH finally managed to reach its old all-time high of $1,392. If Ethereum reaches a new ATH just like Bitcoin did, what price ranges can we expect?
4. Sell items for Bitcoin
This method is probably the simplest one in the entire list. Do you have a lot of old items collecting dust for years? You can sell them on any marketplace and demand that the buyer pays with Bitcoin. You will surely encounter a buyer that already owns Bitcoin. For the best results, we recommend that you post an ad on either Craigslist or Facebook Marketplace.
5. Lending
Websites like Blockfi, Coinloan, and Bitcoin.com allow you to earn Bitcoin by lending your existing assets. Just like with a normal loan, you earn interest for temporarily lending money to other individuals. This is a guaranteed way to earn money since there is no risk involved. As long as the platform is safe and managed by a reputable team, there is nothing that can lead to losses. Interest rates vary between 5% and 20%, so make sure to pick the most profitable platform.
6. Bitcoin Faucets
If you were here before the average joe heard about Bitcoin, you probably know what Bitcoin faucets are. They are rare now and often give worse rewards compared to the other methods mentioned in this article. But hey, it is still a viable option if you have extra time. After all, you only have to complete tasks that take a few minutes at most! Certain websites that host Bitcoin faucets enable you to make money by watching ads or completing surveys. At the end of each task, you’ll receive a small amount of BTC that you can instantly sell. Interested in earning money by completing simple tasks? Check out the following Bitcoin faucets:
7. Yield Farming (DeFi)
Decentralized Finance is a brand new subsegment of the cryptocurrency market. It works by turning traditional financial instruments into decentralized financial instruments. One can create loans without ever coming in contact with a bank. How crazy is that? DeFi’s biggest product is yield farming. Otherwise known as liquidity providing, yield farming is a process similar to mining. Here is how it works: Decentralized exchanges rely on other investors and their contributions. In return for providing liquidity, an investor receives a portion of the exchange’s fees. These fees are paid for by every trader that wants to swap tokens. Yield farming is a passive process that earns you money over time. However, there are a couple of issues that make yield farming impractical and unsafe:
- Impermanent Loss – Yield farmers experience impermanent loss every time an asset massively increases or decreases in value. When the market is incredibly volatile, it is better not to provide liquidity to exchanges.
- Competition – A yield farmer contributes liquidity to a liquidity pool. These pools are incredibly competitive as each one rewards the farmer with a different yield. To stay profitable, you must constantly switch back and forth between these pools.
8. Crypto Affiliate Marketing
Can you make money with Bitcoin as an affiliate marketer? Numerous businesses use this old marketing method to reach new users and convert them into customers. You’ll find out that most pay with fiat currencies, but that’s only because no one ever asks them about crypto! If you find the right company, you can market their product and demand Bitcoin payments. This might sound easy, but you’ll have to spend a long time searching for clients willing to pay with crypto.
9. Post on Bitcointalk
Do you know a lot about blockchain technology? You can make money with Bitcoin by using your extensive knowledge. Specifically, you do this by writing posts on the famous Bitcointalk forum. Once you have made enough posts, the forum will reward you with a sponsored signature. From that point on, every post that you create will reward your account with Bitcoin.
10. Work at a Blockchain company
Crypto and blockchain companies are the best businesses that one can work at. Apart from offering high salaries, these companies are also famous for paying employees with Bitcoin. You can have your boss send your salary and receive it only 30 minutes later, how nice does that sound? Blockchain firms usually hire programmers, marketing experts, writers, social media managers, and community managers. If you have experience with such positions, try working at a company from the blockchain industry and see if it is better compared to your previous jobs.
11. Write about Bitcoin
Writers of the world unite! If you are a freelancer or digital nomad who is not limited to a specific location, writing about Bitcoin might be the best option – especially if you are already a writer. The blockchain industry features several platforms that pay writers with cryptocurrencies. Write about any topic that you want and earn Bitcoin in return. How cool does that sound? If this interests you, head over to Publish0x and create an account.
12. Tips
Are you a content creator or an influencer? If people enjoy seeing your creative juices flow, ask them to tip you with Bitcoin. Do not think of this as begging. Most people will be happy to give you money if they truly enjoy what you share. Create a Bitcoin wallet and copy its address. Whether it is Instagram, TikTok, or YouTube, simply paste the address into a post’s description and wait for the first transactions to come. If people have already paid you in the past, they won’t be reluctant to use Bitcoin this time around.
13. Find exploits
It is the job of any company to make sure that their service or product cannot be exploited. However, most of them do not bother with hiring real and expensive experts. Instead, they hold bug bounty programs. But what is a bug bounty, and can you earn money with it? A bug bounty program essentially rewards users who discover exploits and vulnerabilities. These are usually security issues, so you’ll require a ton of technical knowledge. If cybersecurity is your area, join any bug bounty program that is currently available. Plenty of crypto projects host them.
14. Bitcoin Casino
The Bitcoin gambling industry is valued at $150 million as of 2020. Just like with trading and investing, you can gamble your money and make big profits with sheer luck. Beware, this can lead to serious problems if you have an addictive personality. A great thing about the Bitcoin Casino industry is that certain platforms offer provably fair games. Powered by blockchain technology, these platforms cryptographically ensure that each result is random and not tampered with.
15. Airdrops
Airdrops represent a marketing method that crypto projects employ to attract new users. These are usually quick and simple account registrations. The project that hosts the airdrop will distribute its tokens to your wallet after you complete the task. Airdrops.io is a platform that aggregates and shares all currently live crypto airdrops. With the help of this website, one can regularly keep track of all airdrops and collect tokens one project at a time.
16. Blockchain Social Media Platforms
Social media platforms based on blockchain technology emancipate the average internet user by offering decentralized platforms. Since there is no central entity that collects the profits that giants like Facebook and Twitter do, the money is redistributed back to the users. Community platforms like Steemit reward their users for regularly posting great content. Users earn the project’s native STEEM token, but you can convert it later to BTC.
Summary: How to make money with Bitcoin
Not everyone has to trade and invest to make money with cryptocurrencies in this day and age. As a matter of fact, there are a total of 16 profitable ways of how to make money with Bitcoin in 2021. Even after existing for more than ten years, the Bitcoin community still finds and creates ways to earn a living with decentralized cryptocurrencies. You can up your financial game either actively or passively. As we have seen, writing and working are two great ways of making money with Bitcoin actively. But you can utilize existing streams of passive revenue as well. Yield farming, lending, and affiliate marketing are only a few choices that pave the way towards financial independence. Despite growing parabolically for the last year, Bitcoin still offers a number of venues for growing your portfolio. To succeed in this market, all that you need is a strong will. With the motivation to enrich your life with crypto, there is nothing that can stop you in your tracks.
