How to Make Money With Bitcoin: 7 Ways That Actually Work
Most people who first hear about Bitcoin usually want to know how to make money with bitcoin. While bitcoin is a digital currency as well as a store of value asset, it also enables individuals to make money with it.
Read on to discover seven ways you can make money with bitcoin (that actually work).
Buy & Hold
Arguably the most popular way to (potentially) make money with bitcoin is to buy and hold (or HODL) it.
"HODLing" means buying bitcoin and holding onto it for the long term. But why would you want to do that? Well, bitcoin has been built in a way that the value of the digital currency will increase over time as more and more people and businesses adopt the digital currency because the increasing demand is met with a finite supply. As a result, bitcoin is poised to increase in value over time. At least, that is what has happened since the cryptocurrency's inception.
Though there's no guarantee that bitcoin's price will continue to go up, especially in the short term, hodling bitcoin in the long term in spite of the price changes probably makes sense.
Buying and hodling bitcoin can be done in a few ways. However, the easiest way is to buy some bitcoin on an exchange like Binance, Coinbase, or Kraken or through a bitcoin-only broker. Then, you store your coins safely in a personal wallet to which only you hold the private keys. After buying bitcoin, you can then hold on to it and wait for its price to go up.
Bitcoin trading is the process of buying and selling bitcoins in the crypto market.
What you need to do to trade bitcoin is to find a reputable bitcoin broker or exchange, deposit some money into your account, and start trading. However, there are a few things you need to know before you start trading bitcoin. First, you need to understand the basics of how the market works. Second, you need to know how to trade. Thirdly, you need a trading strategy and basic risk management controls in place to ensure that you maximize your chances of making steady trading revenues.
If you don't know what you're doing in terms of participating in trading, then you will be running the risk of losing your money. Therefore, before you start trading in bitcoin, you must first do some research and be aware of the potential risks related to bitcoin trading.
Bitcoin lending is another way to make money with bitcoin, allowing you to earn interest on your bitcoin holdings.
Though interest rates can vary from platform to platform, they are typically higher than traditional lending platforms.
To get started on bitcoin lending, you will need to create an account on a lending platform. Once you have created an account, you will need to buy or deposit your bitcoin into the platform. After your bitcoin is deposited, you will be able to start lending it out and earning interest on it.
The amount of interest you earn will depend on the platform you are using and the terms of the loan.
Once the loan period is up, you will receive your bitcoin back plus the interest earned. You can then withdraw your earnings or reinvest them into another loan to continue earning more interest. However, some platforms also pay the interest out regularly.
Lending platforms usually have a minimum amount that you can deposit and lend out. This minimum varies from platform to platform.
Bitcoin Cashback Rewards
Bitcoin cashback rewards offer yet another method of making money with bitcoin (BTC).
With Bitrefill, for instance, you can shop at any of their supported online stores and earn bitcoin cashback rewards. All you need to do is buy products and services linked to the platform and receive your cashback rewards in your Bitrefill account. Whenever you make a purchase, you'll automatically receive a certain percentage of that purchase back in bitcoin.
Lolli is a similar service, but it's specifically built for shopping at online retailers like Amazon, Walmart, and Best Buy. Again, you shop as normal, after which you'll earn a certain percentage of each purchase back in bitcoin, which you can then either keep or spend as you please.
There are other ways to earn bitcoin cashback rewards as well, such as through certain credit cards or other bitcoin cashback platforms. If you're looking to earn some extra money with your bitcoin, be sure to check out all available bitcoin cashback options available in your region.
Mining bitcoin is another way to potentially make money with bitcoin.
You can either choose to mine bitcoin on your own or by joining a mining pool. If you want to mine on your own, you can do so in the hope you will win the solo mining lottery and collect the block reward. The chances of that happening, however, are very slim. Therefore, most miners join mining pools.
Mining pools are a great way to increase your chances of success, as they allow you to pool resources with other miners and increase your chances of finding a block. There are many different mining pools available, so be sure to do some research before joining one. Some of the most popular bitcoin mining pools include Binance, Slushpool, and F2Pool.
Once you've joined a mining pool, you'll need to run special software to start mining. This software will connect you to the pool and start working on solving blocks. When you find a block, you'll earn a portion of the block reward.
Run a Lightning Network Node
By running a Lightning node, you will be helping to improve the Lightning Network by providing liquidity and routing payments for other users and earning bitcoin during the process.
The Lightning Network is a second-layer payment protocol that runs on top of the Bitcoin blockchain, allowing for near-instant, low-fee bitcoin transactions.
There are a few things to consider before setting up a node, such as the hardware requirements and the level of experience you have with running a Bitcoin node.
The first thing you need to do is download the Lightning Network Daemon (LND) software. LND is the most popular software for running a Lightning Network node and is available for Windows, macOS, and Linux. Once you have LND installed, you will need to connect it to your Bitcoin full node. This can be done using either the Bitcoin Core RPC interface or by using a third-party service like Blockcypher.
Once your LND node is up and running, you can start sending and receiving payments through the Lightning Network. To do this, you will need to connect to other nodes on the network. You can find other nodes to connect to by using one of the many public node lists available online.
Running a Lightning Network node can be a good way to earn bitcoin, but it does require some technical expertise. If you are not comfortable with running a full Bitcoin node, you may want to consider using a hosted service like Lightning In A Box.
Working in Bitcoin
Arguably, one of the easiest ways to make money with bitcoin is to find a job that pays in bitcoin.
There are several companies that now allow employees to be paid in bitcoin, and more and more businesses are starting to accept bitcoin as payment for goods and services. If you're looking for a job that pays in bitcoin, check out sites like BitcoinerJobs.
The different ways to make money with bitcoin are always evolving, with new methods popping up all the time. While some methods may become less profitable, others are arguably worth trying. In addition to investing in bitcoin, working in the Bitcoin industry is probably the best way to make money with bitcoin as you can earn the cryptocurrency for the type of work you would be doing even if you wouldn't be working in Bitcoin.
If working in Bitcoin is not a path you want to go down, however, you can always try out any of the methods listed in this article to increase the size of your bitcoin stack.