25 Apr, 2023

How to Make Money with Bitcoin: Profit from the Digital Revolution

how to make money with bitcoin

TLDR

There are several ways for beginners to make money with Bitcoin, including investing, trading, scalping, staking, mining, working for Bitcoin startups, and accepting crypto as a form of payment. Investing and trading are closely related but differ on the time horizon that one holds their crypto assets before selling them for a profit. However, the outcome is the same: buying low and selling high.

People who want indirect exposure to Bitcoin can buy crypto-related stocks such as Coinbase (NQ: COIN). Staking provides another avenue for making money with crypto. Holders earn interest by holding their Bitcoin on staking platforms.

Those with marketing, programming, designing, etc. skills can work for crypto startups. We recommend finding the method that suits you best before trying them all.

Introduction

The cryptocurrency market took a beating in 2022 as a series of internal and external factors contributed to its demise. For some time, those in the crypto industry have known that Bitcoin and its cousins tend to bounce back harder and stronger. With that in mind, this article discusses how to make money with Bitcoin in 2024.

We will cover several ideas and how best you can make money with Bitcoin. Some methods will require you to have specific skills, while others are straightforward.

Before diving in, let’s recap what Bitcoin is.

What is Bitcoin?

Bitcoin is a cryptocurrency introduced to the world in 2008 as an open-source, peer-to-peer network for a trustless payment system.

It was created by Satoshi Nakamoto, who remains anonymous to this day. Bitcoin refers to its native blockchain network as well as the digital currency.

Bitcoin went live on 3. January 2009 served as a currency free from government or anyone’s control. It is the most successful application of blockchain technology, and as a result, it has led to the creation of similar cryptocurrencies known as altcoins.

Bitcoin is the grand-daddy of the crypto industry, and it is befitting that it has the lion’s share of the cryptocurrency market.

With this in mind, let’s utilize Bitcoin to make money.

How to make money with Bitcoin in 2024

It has already been highlighted that there are several ways to make money with Bitcoin.

The most important thing is to know your knowledge and skills before starting your journey.

Every activity will take time, skill, and sometimes dedication.

Making money with Bitcoin is not a get-rich-quick scheme where you get money doing nothing. However, if you can master the game well, you can be passive and active streams.

Here are some ways you can leverage to make money with Bitcoin.

How to make money with Bitcoin investing

Let’s first define what investing is. Investing is buying and holding an asset for an extended period. It could be years or even decades.

Investing works if you do your due diligence and pick cryptocurrencies with good fundamentals.

As for Bitcoin, it enjoys the first-mover advantage and will likely remain a crypto blue-chip for a long time.

For reference’s sake, Bitcoin traded for less than $100 in July 2013. Its price garnered global attention in December 2017, peaking at nearly $20,000 before cratering.

Our experts recommend eToro as the go-to exchange for buying Bitcoin.

Investing needs a solid plan

A bear market followed in 2018, as the COVID-19 pandemic struck in 2020, the cryptocurrency industry turned bullish again, and Bitcoin’s price reached a price above $60,000.

The first lesson here is that the crypto market always bounces back. What is essential for you is to buy and hold Bitcoin. At the same time, you need the skill to know when to buy, hold, and sell.

It will not help you buy at the bull market’s peak and hold throughout a bear market.

There is no way that market cycles will not occur. The crypto market is a game of highs and lows.

[Currentyear] presents a perfect opportunity for investors to start thinking about holding Bitcoin for a long time. There is a chance that the cryptocurrency market has reached the bottom or is close to doing so.

Bitcoin has already lost more than 60% of its value from its peak in late 2021.

Bitcoin is down more than 60% from its 2021 peak. |Source: Coinmarketcap.com
Bitcoin is down more than 60% from its 2021 peak | Source: Coinmarketcap.com.

If you are going to have a view on long-term investing, the strategy is to start buying the dips as much as possible. You will also have to do what is known as dollar cost averaging. This means accepting your Bitcoin regularly so your average entry point is low.

Keep your ear on the ground. Sometimes, you may need to stick to or change your investing strategy.

The next most important stage is to know how to safeguard your investment.

How to store your Bitcoin

You can buy your Bitcoin from reputable crypto exchanges. However, it would be best never to store your cryptocurrency on exchanges unless you plan to trade.

You need to store your Bitcoin offline or in cold storage. This means that your Bitcoin cannot be accessed online unless you choose. You can buy a hardware wallet to store your Bitcoin to make your investment safe.

If you plan to invest long-term, you may buy several hardware wallets to store your Bitcoin. Most investors already do this.

It’s easy to invest in Bitcoin. All you need is a strategy and the discipline to see it through. There is no minimum amount that is set. Simply invest the money you can afford to lose and won’t need shortly.

Your Bitcoin wallet is very important to you. You must not share the private keys to your Bitcoin wallet with anyone.

After investing, you can also look at how to make money trading Bitcoin or other crypto assets. Make your Bitcoin a safe investment.


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How to make money with Bitcoin trading

Bitcoin trading is one of the most lucrative ways to make money.

Trading is not easy as the bitcoin industry is known for being volatile. The wild price fluctuations can be a blessing for experienced traders and a curse for the inexperienced.

The most important thing is to have a trading formula. You may need to backtest your strategy to see if it works.

As the crypto space is very dynamic, you may also need to change your strategy based on how the market reacts.

There are many ways that you can trade in the digital asset industry.

Day Trading

Day trading requires you to open and close positions within a day. This is mainly done during your trading session. You will need to use fast and reliable trading platforms for this.

Your Bitcoin holdings are held on your crypto exchange if you are a day trader. You will likely lose your crypto assets if your crypto exchange goes under.

The best way to hedge against this is to use several cryptocurrency exchanges.

As you join a legion of active traders across the globe, you need to pay attention to developments in the cryptocurrency space.

You may trade another cryptocurrency, such as Ethereum. The crypto space now has more than 20,000 crypto assets. All these volatile assets can help you make or lose money.

Swing trading

Swing trading is a strategy that allows making short-to-medium-term gains by holding your cryptocurrency for a few days, weeks, or months.

You will need good analytical skills and can start trading this way when you feel the market is going in the direction you favor.

You will maintain that position until it is time to take profits.

Technical analysis is important for swing trading because it informs you when to buy or sell your Bitcoin.

On the other hand, fundamental analysis tells you which assets to buy.

If you look at Bitcoin today, you will realize that it has come a long way, and traders are earning money through trading.

You can also look at other crypto projects you incorporate into your swing trading strategy. Other cryptocurrencies such as Solana, BNB, and more could be attractive for this trading strategy.

You can consider mining if you think trading cryptocurrency is not for you. You need some technical expertise to make money with Bitcoin mining.

How to make money with Bitcoin mining

Bitcoin mining is a complex process of validating and confirming transactions on the Bitcoin network. A blockchain is a decentralized or distributed ledger that records transactions in blocks.

The significant difference between Bitcoin and Ethereum is that the latter has a smart contract functionality.

The Bitcoin blockchain uses the proof-of-work (PoW) consensus mechanism to secure its network.

The people who are involved in this process are called miners. Miners earn new bitcoins and transactions for validating transactions.

To validate transactions on the Bitcoin protocol, you may need to buy expensive equipment to become a profitable miner. Bitcoin’s block rewards change with each halving event.

This is the reason why some people prefer to join mining pools. A mining pool is a group of miners who pool their resources together to have a better chance of minting new bitcoins. They usually share their profits based on how much computing power each member has contributed.

Several digital currencies are mined this way. You can join a mining pool and start earning Bitcoin right away. You can enter several mining pools to increase your chances of making money with Bitcoin mining.

However, you must be careful, as some mining pools cannot be trusted.

How to make money with Bitcoin staking

Staking is the process of locking up your digital currency to earn interest. Several cryptocurrencies can be staked.

You can continue to earn interest if you keep your asset staked for a long time.

It must be noted that staking is closely related to yield farming, a way of earning money or rewards by depositing your cryptocurrency in a pool with other users.

Lending can also help you make money with Bitcoin.

How to make money through crypto lending

Crypto lending is depositing your digital assets in platforms where they lend them and give you agreed-upon interest payments.

Earning interest this way can help you make money with Bitcoin while you hold it for the long term. Lending could be a part of your investment plan.

You need to use several lending platforms so that your assets are safe.

You can take out the interest you earn and deposit it in other lending platforms to earn more interest.

Bitcoin lending should be on your radar for several reasons. Bitcoin lending will likely compound your gains over time.

How to make money with lightning node

You can earn money by running a lightning node, a software program that links the main blockchain with the Lightning network.

You earn money through Bitcoin by forwarding transactions from other nodes through your nodes.

Other ways of making money include working for Bitcoin-related companies.

Make money working with Bitcoin companies

Many Bitcoin companies are being launched and need all kinds of skills. Here are some of them.

Crypto writers

You can become a crypto writer if you understand the industry and the nuances of writing. Besides, this is a skill that you can learn by doing.

You can find writing jobs on LinkedIn or freelance sites and then choose to accept Bitcoin payments. You can earn in other cryptocurrencies, such as Ether (ETH) or Tether (USDT).

Have a flexible payment method so that more companies can find it easy to work with you.

Developers

Crypto developers are in high demand. This will only work for you if you are an experienced programmer.

Bounty hunter

If you frequently follow crypto news, you will know that hacks and breaches are part of this young industry.

If you are cybersecurity, you can spend your time analyzing smart contracts for vulnerabilities and loopholes. You can also check other crypto-related software for possible exploits. You will be paid handsomely if you find them.

Marketing

This young space is about reaction and great marketing. You can easily work for marketing agencies or directly with crypto startups if you have great marketing skills.

Community-building

Cryptocurrencies are a perfect example of how communities can make or break a startup.

Bitcoin did not receive significant media coverage during its initial days. However, the Bitcoin community was vocal and made the cryptocurrency successful.

Upcoming projects want to replicate this feat; for this to happen, they want great community builders.

If you are good at bringing people together, you can make money by working for crypto startups.

Bitcoin is a new asset class

Many investors see Bitcoin and other cryptos as a new asset class. Bitcoin will grow with time and will be appreciated by a wider audience.

Who should be in Bitcoin?

Bitcoin was meant for everyone. It is different from the banking system, which excludes other people.

Some people use Bitcoin to earn money, while others use it for remittance. However, the majority want to invest and earn money. Investing is suitable for people with a risk appetite.

Before you start investing in crypto, you should have the following ready:

  • Crypto wallet, preferably cold storage
  • Exchange for trading or investing
  • A good investment or trading plan
  • A job or capital for your day-to-day expenses

Bitcoin has attracted people from all corners. Others are in it to preserve their wealth, while some want somewhere to start.

Conclusion

Bitcoin is more than a cryptocurrency. It is a decentralized currency that gives power to the people.

Bitcoin has been around for over 14 years and has always been online. It has been declared dead several times but continues growing and attracting people.

As time passes, it won’t just be an option but a requirement. Those who learn about Bitcoin today will have an advantage in the future.

This knowledge will become helpful if it can be used to make money. There are several ways that people can do this.

People can go into trading, investing, or staking. As the market tries to recover from disastrous 2022, this could be the opportunity for people to earn with Bitcoin.

There is no better time than the present to be in Bitcoin. Start your crypto journey right away.