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How to Make Money with Bitcoin

How to Make Money with Bitcoin

 

Read also Best Ways to Buy Bitcoin Instantly. How to Make Money with Bitcoin

#1 – Completing tasks on websites

 

There are many websites which offer you to earn  Bitcoins. With most of these sites, the concept is that you visit the site and just for looking at it you get a small amount of Bitcoins. The concept has something in common with watching good old free TV. You watch a lot of ads and inbetween you get something you actually want to see, like a film or music clips.

While this is a legitimate concept, the return on your invested time is very little. So when you earn Bitcoins from these advertising sites, the Bitcoins actually come at the cost of your time. As the saying goes ‘there is no free lunch’. But see for yourself, here is a list of some of the sites that I find interesting

  • ads4btc :: Earn Bitcoins for watching websites or videos. You can click every advert once a day, you have to view it between 5 and 60 seconds. The reward might seem small but it can add up. You get up to 1,000 Satoshi per click. In any case this site helps you to earn you first bitcoins fast.
  • COINADDER :: This site has a similar concept to earn bitcoins as the one listed above. You can watch videos and websites to get your first couple of Satoshis. I haven’t tested this one but generally the payouts seem smaller. However, before you start to earn bictoins more seriously by watching ads, you should not just calculate the reward per view, but also how long a video view takes you. At the end of the day you want to maximize the bitcoins you earn per hour.
  • vidybit :: On this site you can earn bitcoins only from watching videos. Same hints as above apply. Calculate how many bitcoins you can get per hour in order to decide which is the best option for you.
  • freedigitalmoney.com :: Earn Bitcoins by getting rewards fo purchases made in Bitcoin. On this site you also don’t need a user account and just have to enter your Bitcoin address to earn Bitcoins.
  • CoinWorker :: Earn Bitcoins by completing analytical tasks. A user account is required here. I haven’t tried this service but payouts seem to be a bit higher than with the aforementioned sites.
  • Bitfortip :: Earn Bitcoins by answering forum questions. This is a nice service because it brings people together who are interested in Bitcoin and many other topics. At the same time it allows to pay rewards in bitcoin for answering questions. This is something that would not have been possible without a currency like Bitcoin that has low transaction fees and instant transfers

#2 Mining – How to Make Money with Bitcoin

Bitcoin mining is the process by which new Bitcoins are generated. When you perfom mining, your computer adds new Bitcoin transactions to the block chain (a public ledger where all Bitcoin transactions are stored) and searches for new blocks. A block is a file that has the most recent Bitcoin transactions recorded in it. When your computer discovers a new block, you receive a certain number of Bitcoins. Currently a block contains BTC 25. This number changes throughout time and gets smaller by the factor 0.5 every four years.

Since bitcoin mining has become a hardware intense and therefore expensive process, most individual miners join a so called mining pool. One of the mining pools you can conect to is BitMinter for example. By providing computing power to their pool you can earn Bitcoins from mining without the need to build your own big mining farm. There are entire communities around Bitcoin mining and besides the fact that you earn Bitcoins it’s also fun. You meet new people online and get in-depth knowledge about Bitcoin as a protocol and technology.

If you want to earn Bitcoins through mining, be aware that it is a costly and time consuming process. Read the respective introductions and manuals to learn more about it. This website is a good starting point. Unless you are mining just out of curiosity and want to get to know the technology, it is important to make a cost / benefit analysis. Hardware prices, electricity costs, bitcoin difficulty and the Bitcoin value influence the profitability of Bitcoin mining. If all this seems interesting to you and you want to earn Bitcoins from mining make your first calculations on the Mining Dashboard.

 

#3 Trading

Some people would say that trading is a form of gambling. While there these two things have something in common, there are also fundamental differences. When you gamble (and assuming that it’s a fair game) you have a certain probability of winning and losing. When you trade assets, this gets much more complex. I don’t want to go into too much detail here. I just want to outline the concept how you can earn Bitcoins with trading.

The safest way to make money with trading is through arbitrage. In short, this means that you see an opportunity to buy an asset in one place for a certain price and sell it immediately at another place for a higher price. It is important that you know you can sell the asset immediately at a certain price. If this does not hold, then we are talking of speculation – or gambling if you prefer. Real also Buy and Sell Bitcoin

 

#4 Gambling – not suitable for everyone

To be honest, I’m not a big friend of gambling. But it is a way to earn Bitcoins so in order to make this list complete it needs to be mentioned here. However, I won’t list any links to gambling sites here. It’s fairly easy to research them if you are interested. And if you clicked on some of the above links you probably already came across some Bitcoin gambling sites.

 

#5  Bitcoin Lending – How to Make Money with Bitcoin

Bitcoin lending works through a third party website and the idea is as simple as it sounds. You pose as a bank, lending your Bitcoin to another person at a particular interest rate. This interest rate is higher than what is obtainable in the standard bank rate. Thus, there is every opportunity for higher profits.

Although you can make significant profits from being a Bitcoin lender, there are significant risks involved. If the borrower does not pay back the Bitcoin to you, there is little you can do to get back your loan.

 

#6 Writing about Bitcoin – How to Make Money with Bitcoin

The number one requirement for writing about Bitcoin is your interest. Therefore, if you are really interested in the cryptocurrency industry and are willing to pen down your opinions and share your knowledge, then bitcoins can be yours. Writing about Bitcoin is one of the ways to earn huge income if you have what it takes to offer useful insight.

However, the amount of Bitcoin you can earn depends on the amount of effort you put in. Consequently, this route to making money from Bitcoin is very lucrative and highly rewarding depending on the level of your skill and the subject you are writing about.

 

#7 Affiliate Marketing

This is a marketing business model that pays you a certain amount of money (commission) for bringing or attracting referrals to an existing Bitcoin website. So, if a Bitcoin website engages in an affiliate program and many people read your blog, you gain to earn a lot of money. It all depends on the website traffic.

If eventually, those people connect to the website and buy the product you offered, your commission on each product goes into your account. The more people buy products, the more Bitcoin payments you receive.