Bitcoin has been the biggest thing on the Internet nowadays. It has given individuals a new way of making money. Bitcoins have given investors a lucrative source of income. In 2010, Bitcoins were just at 3 cents per coin. Fast forward to 2017, one Bitcoin is now at a whopping $19,000 per coin. It is, therefore, not surprising that people will ride the Bitcoin bandwagon. In this article, we shall discuss 3 different ways to earn an income from Bitcoins.
This is one of the 3 ways to make money with cryptocurrency. Although there is a potential for risks, buying Bitcoins is one of the simplest ways to earn an income.
There are two types of Bitcoin buyers. Some investors buy a certain quantity and leave it for a year. These types of investors do not really intend to earn short-term profits. They are hoping that their current investment will earn them a tenfold profit in the future.
The second type of buyer performs tons of research, reads all the available predictions on making money with Bitcoins and spends weeks on data and statistical analysis. Unlike the first type of buyer, they are looking for short-term profit and just want to know the proper time to do it. After doing a lot of research and their investments fail, they will simply look forward to the next time frame.
Accept Payment in Bitcoins
If you are a freelancer being paid for rendering service, you can ask to be paid in Bitcoins instead of dollars. This method works well for any kind of skill from copywriting, digital marketing, painting or singing.
If you opt to be paid with Bitcoins, you need to create a wallet account that will store your Bitcoins safely and available when you need it just like a physical wallet. Work it out with the person that will hire you that you want to be paid with Bitcoins.
With this mode of payment, you have to do a little research. You cannot jump right in and opt for this payment method right away. There are a lot of risks involved so learn about it first.
Mining bitcoins is one of the most popular ways to make money from Bitcoins. There are two types of mining – personal and cloud mining. The former may not be the best way to make money with Bitcoins. It is one of the toughest cryptocurrencies to mine. Due to its popularity, a lot of people want to make money from it and join the hype.
If you have a single rig, you might struggle to generate significant profits especially if you take electricity and maintenance costs into consideration.
Cloud mining, on the other hand, has gained popularity over the last few years. Unlike personal mining, you do not need to invest in any hardware or software. All you have to do is pay a one-time fee for a contract and you can start doing free bitcoin mining online. At the end of every month, you will receive your earnings. Your total income will depend on your chosen plan and the electricity bill of the facility where the cloud mining services are based.
In mining, you can earn Bitcoins without shelling out money for it. The unit of measure for mined Bitcoins is called “blocks.” Completing a block earns you 12.5 Bitcoins. By 2020, the reward size will be reduced to 6.5 Bitcoins. As of February 2019, the price of a Bitcoin is $3,500. Potential earnings, therefore, is $42,000.
Back then, when Bitcoins were first mined in 2009, the reward prize was 50 BTC. It was halved to 25 BTC in 2012. The current reward prize was implemented in 2016.
Aside from giving miners the opportunity to make money, Bitcoin mining serves another purpose. It provides a way for new cryptos to be released into circulation. As of February 2019, there have been a total of more than 17.5 million Bitcoins in circulation. According to the Bitcoin Protocol, the number of Bitcoins in circulation will be capped at 21 million.
With Bitcoin mining, you need to have some knowledge and experience to become successful in the field especially if you are planning to build your rig. But once you gain some knowledge and start earning, your efforts will definitely pay off in the end.
These are just three of the popular ways you can make money from Bitcoins. Your choice will depend on your personal preference and style. Before choosing, do some research. There are many great avenues where you can do your research. There are forums and Facebook groups that you can start from. Don’t hesitate to ask questions.
It is worth noting that if none of the 3 methods mentioned here appeals to you, there are still other options that you can try out. When it comes to making money from Bitcoins, the options are endless. You can always experiment and try new things.