If you have been following the financial news lately then you probably already know that bitcoin is on the rise again. The decentralized currency is receiving investment from some major players and the future looks good for the cryptocurrency and those that are associated with it. However, if you are not exactly associated with bitcoin or if you don’t properly understand it yet, there are still ways in which you can use bitcoin to make a profit and we are here to tell you how to do that today.
Open a Bitcoin Wallet
This is the very first step, so make sure that you sign up for a reputed and reliable service. This is the place where all your bitcoin transactions will take place, which will include receiving, sending and storing the coins. It will also help you set up your bitcoin addresses which are completely anonymous.
Start with Bitcoin Faucets
Before we move on to bigger, better and more complex ways to earn bitcoins, let’s start things out with “faucets.” This is a simple, very real but limited way to earn money with bitcoins; all it requires is for you to click on ads, install apps, play a few games, watch a few videos, fill out some surveys, etc. Do this and you will be earning a steady supply of dollars every day. There are literally hundreds of active bitcoin faucets and most of them make dependable payouts to the user’s bitcoin addresses.
This is basically the same as trading in the stock market, but instead of trading shares, you will be trading bitcoins. Buy them at a low price and sell them when the value rises high enough for you to make a substantial profit. Of course, this will make it necessary for you to follow bitcoin news closely and regularly. If you are willing to give this the time it takes, day-trading could turn out to be a very profitable way to earn money with bitcoin.
One can lend money to other members of the bitcoin community and in return, the lender will enjoy a fixed rate of interest. The fact that your investment is not totally dependent on the variable stock value of the small business that is taking the money from you, speaks well for the possibility of a steady rate of return. This is a risky venture nevertheless and therefore, it is recommended that you lend small amounts of money to different parties and not just one.
The last option on this list is also the most complicated one. Unfortunately, bitcoin mining isn’t as rewarding or as popular as it used to be. Nevertheless, you can still opt for either regular mining or cloud mining; both of which will basically involve solving complex mathematical problems with the help of bitcoin-mining hardware and software. In return for solving those problems, you will be paid out in bitcoins. Cloud mining cuts out some of the heavy investments necessary for mining bitcoins. You can use a cloud service and avail their resources in solving the problems, but you will be charged significantly for using those services. Mining is indeed a complex process and if it interests you, do make sure that you understand everything well enough before making sizable investments.
This isn’t an exhaustive list and there are other ways to earn with bitcoins as well, but these will get you started on the right path all the same. Experience counts big time here, so getting started with even something as simple as faucet mining is important.