In this guide, we explain how to make money using Bitcoin through 8 different methods that carry many ideas.
But first, let’s get to know what the famous currency is.
Investors are interested in assets, including Bitcoin, especially with more governments accepting cryptocurrency and believing in its investment potential.
A summary of Bitcoin
Bitcoin, the largest cryptocurrency, has seen several fluctuations over the past 15 years.
Investors and companies worldwide began to be interested in the currency and its potential.
The currency also continues to flourish and increase rapidly due to the large number of people and entities investing.
Speaking of price, investing in Bitcoin is beneficial and the average person can do this like buy and hold.
There are several ways to make money using cryptocurrency, including:
Ways to make money using Bitcoin
You can make money using Bitcoin whether you own it or not.
Once owned, it can be used for trading, earning interest (passive income), or performing several tasks to increase it. We will explain all the methods in detail.
1. Bitcoin trading
Trading means buying at a low price, then selling at a high price, and repeating the process several times.
But Bitcoin is intended to take advantage of the periods of volatility that exist in the cryptocurrency market and guess the direction of Bitcoin and other cryptocurrencies.
We mention some trading methods to make money using Bitcoin:
Daily trading
Day trading is one of the popular ways to make money instead of buying coins and holding them for a long time, as this generates profits from the market in a short period.
Trading means entering the crypto market daily to continuously achieve small profits from this volatile market.
Cryptocurrency market fluctuations and instability contribute to profit by speculating on the upward and downward movement.
Swing trading
A trading strategy that involves investors holding positions for a short to medium period and taking advantage of cryptocurrency market waves.
Where prices rise and then fall, and then profits result from these fluctuations.
Arbitrage
It means buying and selling the same crypto assets on two different exchanges at different prices to profit from cryptocurrencies, including Bitcoin.
2. Buy and hold Bitcoin
Buy and hold is the easiest way to make money with cryptocurrencies.
This represents holding for a day, a week, or a month, and then an increase in the amount of the currency without performing technical or analytical skills.
Buying occurs when the investor finds a decrease in the price of the currency and then sells it when its price increases.
This strategy does not require effort but the most stable and volatile assets should be purchased and accumulated.
Cryptocurrencies such as Bitcoin and Ethereum are highly liquid assets, so price movements are regular and these investments are safe.
Risk can be reduced by following a dollar-cost averaging strategy, which allows money to be invested in a specific time in small amounts rather than spending the entire amount at once.
3. Earn interest using Bitcoin
Bitcoin offers an advantage for purchasing many altcoins but cannot earn interest as Ethereum does.
So the way to make money using Bitcoin holdings is to open a savings account with a trusted crypto platform.
You’ll discover the world of decentralized finance like the WBTC token, which has amassed $5 billion in market capitalization.
This token represents the ERC-20 token found on the Ethereum network and is linked to the price of Bitcoin.
The token can be used in smart contracts on Ethereum and then earn interest on the WBTC token without custodianship of your funds.
4. Bitcoin Lending
Bitcoin lending is similar to the concept of staking where investors lend their currency to borrowers to earn interest like a mortgage or traditional loan.
By pledging crypto assets as collateral, the investor can obtain a loan and repay it within a period.
Popular crypto exchanges offer lending by opening a crypto savings account on Compound, or Binance.
However, the risks associated with lending such as the decline in the value of the cryptocurrency or the risks associated with smart contracts, networks, liquidation, and the risks associated with investment should be considered.
Therefore, it is necessary to research the benefits and risks before undertaking a Bitcoin lending strategy.
5. Cryptocurrency farming
Wrapped Bitcoin (WBTC)
Cryptocurrency farming (yield farming) provides the lending of crypto assets on a platform to earn interest in the form of a token and is a popular strategy in the world of DeFi.
To do this strategy in Bitcoin you must convert your BTC into a WBTC token.
Popular cryptocurrency farming platforms such as Balancer or Compound contain a pair of WBTC tokens.
Returns vary depending on market conditions, so the investor only has to search for these platforms and choose his preferred group.
6. Staking
Not all cryptocurrencies are subject to the concept of staking, so staking is only for coins that use the Proof of Stake consensus mechanism.
Therefore, Bitcoin cannot be subject to staking because it is based on the proof-of-work mechanism.
The solution is to convert Bitcoin into the WBTC token, then stack this token, and then obtain rewards. These profits vary depending on market conditions.
The Binance Exchange provides the service of obtaining the WBTC token, and you can choose the appropriate platform by searching on the Internet.
Make money using Bitcoin for free
We have explained different ways to make money using Bitcoin but what about the idea of making money without owning BTC? There are some ways to do this, including:
7. Pay-to-earn games
Cryptocurrency is involved in many industries, so investors began to get money in various ways, including games, as crypto games do not require much effort.
Among the crypto games are P2E games, which means earning cryptocurrencies through these games.
It is usually to explore the virtual world, obtain a set of cards, or perform some tasks in exchange for earning cryptocurrency.
Game currencies can also be exchanged for crypto assets like Bitcoin and Ethereum.
The currencies are transferred to the secure crypto wallet and then the money is obtained.
Some examples of pay-to-earn games include Axie Infinity, The Sandbox, Alien Worlds, and Gods Unchained.
8. Crypto Airdrops
Crypto Airdrop is one of the many marketing strategies startups use to gain followers and build a crypto community.
These companies send the token to the investor’s wallet as part of the initial offer of the token or as a gift to participate in the project.
This is a free win for a crypto token in exchange for participating in the new project.
Therefore, it is necessary to have a crypto wallet that stores Bitcoin, Ethereum, or other currencies and register with it on the project’s platform.
But you should make sure that the wallet runs on an advanced blockchain.
After filling out the data and completing the required tasks, the project will add the amount to your wallet if you are one of the winners on the list.
Make money using Bitcoin today
When we return to the history of the issuance of Bitcoin 15 years ago, we will find an amazing development in the crypto industry, which has now provided users with several ways to make money.
Whether with currency activity or in a negative way, especially with the emergence of many crypto projects, we expect more use of Bitcoin and crypto in the coming years.
There are many ways to make money using Bitcoin instead of keeping it in a wallet.
For more information, join the BitcoSAT group on Telegram to get tips from the collaborative crypto community.
