When Bitcoin was introduced 7 years ago, most people were skeptical about its ability to meet their online money exchange requirement, but today, online payment companies like PayPal are feeling the heat of this invention. Bitcoin is basically a virtual currency that among other things can be used as a means of payment online, just like a normal currency. In this post, the focus is on how to make money with bitcoin.
Bitcoin mining was one of the first ways adopted to make bitcoin. This mining is a process in which people solve complicated math problems and get rewarded with bitcoins. Solving the math problems is not just for the fun of it, but to be able to keep track of all the transactions made during a specific time period and put them into a block. Miners then write the transaction to the general ledger and get rewarded with bitcoin. This mining process is long and hectic, and in most cases, it requires a computer with a powerful CPU which limit most people, thus exploring other ways to make bitcoins.
Bitcoin trading is another good strategy in way to making money with bitcoin. Like stock and shares, this involves buying the bitcoins when the price is low and selling them when price is high. In 2013, most people made millions of dollars when the price of a coin rocketed from $60 to about $1000 in just a few months. Although bitcoin prices have since stabilized, there is still an opportunity for anyone to make money by speculating the prices and taking advantage of arbitrage, or simply put, buying when price is low and selling when it rises.
Bitcoin lending is another good option in making money with bitcoin. As the demand for bitcoin increases, there is an opportunity for you to lend someone to earn interests. You can either lend directly to someone you know and trust, or through peer-to-peer lending websites like xCoins.io. Just like a normal loan, there is a default risk, thus you need to reduce this risk by diversifying or lending small bitcoin amounts to many people rather than lending a lump sum to one person.
Creating and selling bitcoin products is another way to create a passive income stream through bitcoin. People have started designing bitcoin protocol chips to do bitcoin mining and making thousands from these machines. Leading example of such bitcoin mining machine is the Knc miner Neptune which is currently retailing at $10,000. Other products can include starting your own website or blog and posting content related to bitcoin, or joining a bitcoin affiliate program.
Gambling is another unique way to earn money with bitcoin. Like a normal casino, the risks are quite high since you might end up losing all of your bitcoins. However, if you are lucky, and skilled, you might hit the jackpot and make some good money. The trick with gambling is to risk what you can afford to lose, because in the end, there is a 50% chance of either winning or losing.