Bitcoin has been available to buy and sell for over a decade now.
Bitcoin has been so successful that it’s spurred a collection of currencies that have come down the pike in its shadow.
If you are looking for ways to make money from Bitcoin, how do you look for the best ways to capitalize?
There is no definitive route to making money from Bitcoin, though there are several strategies to up one’s investment game. You can get the most from one’s crypto portfolio.
Here is how to make money from Bitcoin investments:
Understand Bitcoin Basics
Study if you have never traded or been exposed to Bitcoin or cryptocurrency. Learn about Bitcoin’s history and how it functions as a digital currency. Familiarize yourself with Bitcoin terms, such as wallets, miners, exchanges, and the underlying blockchain technology. Examine its price trends over the past few years to gather data on what is the best time to invest.
Buy and Sell Bitcoin
Buy and sell Bitcoin on a cryptocurrency exchange. You can also use a BTC ATM while weaponizing short-term volatility. Take advantage of price fluctuations by getting in and out at reasonable times, profiting when you do so. While cryptocurrency is risky and losses are possible even with Bitcoin if you’re willing to wait for the right moment, buying and selling crypto can be done without extensive knowledge to get it right. It’s a game of monitoring the market and executing strategy when right.
Invest in Bitcoin
Investing in individual Bitcoin assets or a cryptocurrency index fund is a major opportunity to earn what is often the biggest return on crypto. As with other assets, this is holding Bitcoin for long-term appreciation. If you already have an investment portfolio carrying investments elsewhere, diversify by putting some of your attention on Bitcoin and other cryptocurrency. For this to work, however, you must research and understand the still very prominent risks.
Bitcoin Staking
Staking is one of the best elements of Bitcoin. Crypto staking involves holding certain coins in your wallet for a specified period, rewarding you with interest on your investment. Although the interest is minimal, earning passive income on Bitcoin is easy. What you earn depends entirely on how much you’re staking and what coin it is. Each cryptocurrency offers its reward and may not be designed similarly to other coins.
Mine Bitcoin
Many people have made money from Bitcoin through mining, a process that verifies transactions on the blockchain. Mining requires specialized hardware and cloud mining service software. Consider joining mining pools to increase your likely profitability. In exchange for dedicating one’s resources to mining cryptocurrency, a miner is provided with Bitcoin in return. The rewards from mining Bitcoin, however, are fairly small. It’s not easy either and requires a lot of electricity to accomplish.
Lending Bitcoin
Another way to monetize Bitcoin is to lend it. Cryptocurrency lending involves lending it out to another party and collecting interest. The interest rate you receive ultimately depends on the amount of Bitcoin or cryptocurrency you are lending. Typically, crypto lending is done through a lending platform. As you lend out your Bitcoin amount to borrowers, payments from interest are deposited weekly or monthly into your account. This is another path to passive income.
Bitcoin As Payment
If you run a business or sell a service online, enable Bitcoin payments in your business. Employ secure payment processing software to collect Bitcoin and other applicable cryptocurrencies. Promote Bitcoin payment as an option for crypto-savvy customers. This is a way to accumulate Bitcoin without having to do any heavy lifting outside of what you already do when selling a product or service and building a business.
Buy or Sell NFTs with Bitcoin
NFT marketplaces often accept Bitcoin. If you do not run a standard business but are interested in selling art, music, and collectibles through NFTs, this may be a way to earn dramatic returns in Bitcoin. Create or invest in NFTs with growth potential and diversify. Withdraw your investment or resell NFTs at higher prices for profit using Bitcoin. Bitcoin and NFTs utilize the same underlying philosophies and tech, making them a natural fit for making money from each.
ICOs (Initial Coin Offerings)
This does not apply to Bitcoin per se, as the coin is actively traded, but there are always new ICOs being launched for cryptocurrency. This is a way to get a high return on investment fairly quickly. The risks, however, are high. Many ICOs end up as losses or scams. Ensure any ICO you intend to invest in is legit, and do your research. If you need more time to research and verify, it may be a far better approach to lean back on Bitcoin, Ethereum, and similar established coins.
About The Author
