So you want to get your hands on some free bitcoin, eh? By now, you might have heard of Bitcoin, magic internet money and a digital currency that can be traded or used to make purchases. This digital money uses an encryption to make safe and secure transactions instantly from anywhere in the world. Not regulated by any bank, government or Federal Reserve, this open network is managed by the users and investors themselves. This is Paxful‘s guide on 5 Ways to Earn Money with Bitcoin in 2018!
How do you earn money with bitcoin?
Contrary to people’s knowledge, there are a number of ways to earn bitcoin online- some more popular than the others. There are methods that involve a minimal effort with minimal return and others more lucrative that requires you to have better expertise in the industry.
Below are some ways to earn money with bitcoin.
No, you don’t have to raise the ground to get bitcoin. Not in that sense anyway.
So, why do you call it mining? Similar to gold miners, bitcoin miners have to bring out the gold, in this case, bitcoin into the surface.
You dared to ask how? While paper money has a government, who prints and distributes it, Bitcoin has miners who use a special software to solve math problems and are issued with bitcoins in exchange. This system is what makes the Bitcoin network go round.
Mining Bitcoin used to be relatively simple, and the earliest miners were able to mine thousands of Bitcoin using their home computers. However, in today’s very competitive and volatile market, miners buy expensive computer parts, that the high street customer has little access to, required for more processing power in order to mine more difficult algorithms. Since this is a race who can solve blocks faster, miners team up in what we call mining pools where they combine their processing power in order to solve each transaction first. The reward, mostly comes from several miners’ fees, is then split up by members of the pool.
2. Bitcoin Faucets
If you don’t mind looking at a few ads and answering surveys, you can visit a bitcoin faucet website. Generally, these websites generate revenue from advertisements placed on their pages. Those who visit their site and answer short questions or captchas will be paid from the small portion of their revenue. You can readily check one of the most popular faucet sites here: earn.com.
3. Buying and Holding
Start with creating a wallet to keep your bitcoins safe. There are many places that allow you to do so. Paxful, for example, provides a free digital wallet whenever you sign up for an account. This is the easiest way if you are planning on buying and holding bitcoins. Make sure that the website you’re using is a safe and reliable one.
“Hodl”, a term the Bitcoin community whenever they are holding their coin with the belief their coin will be profitable one day. The slang word earned the backronym “Hold On for Dear Life” in the cryptocurrency space.
Note that this method can be tricky so don’t take anyone’s advice about it. Research and learn about Bitcoin and come up to your own conclusion.
4. Bitcoin Trading
There is potential to make big money trading bitcoin. Unlike buying and holding, trading bitcoins means you buy at a low price and sell them back at a higher price. This requires practice and knowledge of the market and to some extent a crystal ball. Given that the cryptocurrency market is extremely volatile, this method can be very risky.
There are multiple services that allow you to sell bitcoin but only a handful of trustworthy ones. Be cautious.
5. Accepting Bitcoin as a means of payment
Bitcoin is, after all, a digital currency. So why not sell goods or services in exchange for bitcoins. This gives you the freedom to sell anything to anyone without going through any banks or financial institutions that may prevent you to do so. If you are already selling, why not accept bitcoin as payment.
These are some ways in which you can earn money with bitcoin. If you choose to mine or invest, it is important to do as much research as possible and be prepared for all possible outcomes.
Tips on how to earn bitcoin
Needed to say, here are a few tips before you start earning money through bitcoin.
Like having physical cash, keep your bitcoins safe and well protected as you can. This may mean enabling your Google 2FA, backing up your device or keeping your antivirus updated. There are a lot of digital threats waiting for you.
The industry is prone to fluctuations. This can be a good thing when you stay on top of it and learn the risk that comes with it.
Keep in mind that there is no free Bitcoin. Although there are several methods to earn from it. With the market always growing, there will always be a demand in expertise or a new product that will develop with time.