How can I make money from Bitcoin?
Bitcoin’s history may resemble a myth, made up of symbols and mysteries: a cyber-myth containing tons of diverse pseudonyms, emails, chat rooms, websites and hacks. The details of its creation already make for a kind of fantastic tale. The design date is highly symbolic: Bitcoin—a payment protocol aimed at replacing the banking system—first emerged in 2008—the same year as the global financial crisis following the subprime mortgage crisis.
Moreover, the identity of its creator—hidden under the pseudonym of Satoshi Nakamoto—is still not publicly known. And, what is even more intriguing, it has disappeared from the web since 2010.
So, after these quick facts, what do you think? Is it possible to make money from bitcoin using at least any methods? What are the methods of making money out of dealing with BTC? Which of them are really efficient and working? Which of them are nothing else but a bubble?
Let us cast a glance at all these questions, and we would love to start off the history of the first and essential crypto. Interested? Then, carry on reading now!
A Brief History of Bitcoin
The very idea of e-money specific to cyberspace had not been new by the creation time of BTC. In the late 1980s—early 1990s, with the emergence of the Internet and e-commerce, it seemed obvious.
Satoshi Nakamoto—a nicknamed person who created the first crypto—claims to have worked on Bitcoin since 2007.
As of August 2008, Satoshi Nakamoto had reserved the domain name of the official site: bitcoin.org.
The same year, on October 31, the Bitcoin White Paper was uploaded to the web. It presented a short 9-page document describing how the protocol works, titled Bitcoin. In short, it had been supposed to be a Peer-to-Peer (P2P) Electronic Cash System.
On November 9, 2008, Nakamoto registered the Bitcoin project on SourceForge, an open-source project hosting platform. In the next two months, he had set out to implement a working version of his idea.
Officially, Bitcoin had been launched as of January 3, 2009.
Is Bitcoin Money?
It is the so-called “alternative” money due to the fact that it has no legal tender or state support, unlike currencies issued by the countries’ major national banks.
Bitcoin is the primary virtual currency. However, at present, there are around 10,000 cryptocurrencies to circulate without any intermediaries or borders via the overpowered computer networks. In any case, they are largely unknown to non-specialists.
Bitcoin: Ways to Make Money Out of Bitcoin
Cryptocurrencies are created through a process called mining, BTC included. This consists of securing and verifying the transactions’ set validity.
Once a set of transactions is validated, it forms a block that complements the blockchain. The miner is then rewarded for their work through remuneration proportional to the work provided.
Validating transactions and making up a block are so complex from the viewpoint of calculations. It presupposes they require a lot of computing power and a lot of energy to run the servers.
If you want to get started in mining, it is better to start with Bitcoin and bet on the price of that crypto rather than mining cryptocurrencies that are already very expensive.
As for bitcoin, security is done by minors, and it is based on a Proof of Work blockchain.
The user, who will thus agree to leave their assets as a deposit, will receive a periodic reward in return. Interest in staking can go up to more than 25% per year depending on the cryptocurrency but beware of tempting offers.
Unlike mining, Bitcoin staking requires fewer resources and allows for more predictable earnings. There are also staking pools where investors come together.
Faucets are websites or mobile applications, which pay BTC tokens for the small missions or tasks to be carried out.
The tasks to be accomplished can be pretty varied, such as:
- Solving captchas
- Subscribing to a newsletter
- Downloading an application
- Playing a game
- Watching ads.
The user who performs these tasks then earns bitcoins—or more precisely tokens or satoshis—absolutely for free.
This is one of the best ways to earn bitcoin for free, without spending anything. There are a large number of faucets on the internet.
You can consult the video below to grab more ideas on what faucets are like.
Buy and #HODL
You can also make money online by investing in the stock market. Before getting started, it is essential to make sure that online trading is indeed your business.
The process is quite simple. Start by choosing a stockbroker who will allow you to buy or sell stock orders securely—or who would propose you to hodl, i.e. to hold the crypto for a particular time.
For this, you need to determine your trading style and practice the trading platforms offered.
Thereafter, you need to create a crypto wallet and a trading account to speculate on thousands of financial assets.
To buy, for example, the shares from a stockbroker, you need to fund the account. As a reminder, be aware that both buying, holding, and trading all possess some associated risks.
Some Alternative Ways to Make Money From BTC
Affiliation is a very effective way to earn some amounts of bitcoin in general on the web. But it is also one of the best ways to earn bitcoin for free on the internet.
The concept of affiliate is to advertise a product through a website or social media and attract new customers to earn commission earnings.
So, you can earn bitcoin right on some of the sites while also opening an affiliate program that will earn you bitcoin every time someone signs up on the site at your invitation.
Usually, you will also earn free bitcoins from your affiliates’ affiliates on a number of levels, which can increase the earnings exponentially.
One of the best ways to make money on the net is to trade cryptocurrencies. The question that then arises is how to succeed in crypto trading operations.
The first thing to do is to choose a secure, efficient and reliable online broker. Then, use technical analysis to determine crypto bullish and bearish trends.
For profitable crypto trading, you should first and foremost understand the crypto market.
We also suggest that you never invest the amount that you cannot bear the loss. There is no need to remember that the crypto market is essentially volatile.
Finally, you will benefit from choosing some trading sites for inspiration from professional traders.
Do you purchase any products online and fancy to earn free Bitcoin? This is possible with Bitcoin cashback services. Indeed, several companies now offer to receive cryptocurrency rebates when you make purchases from merchants.
Threats to the Future of Bitcoin
Many Bitcoin proponents believe the iconic Blockchain cryptocurrency is the future currency that will dominate trading around the world. Oppositely, critics of Bitcoin believe it to be a store of value.
So, let us swiftly cast a glance at the future threats BTC is likely to come across.
Excessive Energy Consumption
Recent studies on BTC show that each transaction on the Bitcoin Blockchain uses 236 kWh of electricity. This amount is enough to supply 8 American households with electricity for a day.
As a result, such a situation may negatively impact BTC and its mining.
Scalability that Poses a Problem
While it is a safe bet that Bitcoin’s excessive power consumption will pose problems for its mass use in the future, other equally important issues threaten its future.
Bitcoin mining through Proof of Work has a cost that is becoming more and more important. It is even becoming less and less interesting to mine Bitcoins.
An Uncertain Future
Bitcoin is by far the most widely used cryptocurrency, but its Blockchain is far from superior to others.
There are hundreds of faster, cheaper, and more valuable projects than Bitcoin.
The Bitcoin Blockchain dominates the market because it offers the first cryptocurrency but also because it is one of the best known to the general public.
Bitcoin Turns out to be Just a Speculative Bubble
The last point we are going to cover concerns Bitcoin and how crypto investors use it. For many, it is not bought as a store of value or as a bargaining chip.
Conversely, it is more of a speculative investment with investors hoping to make a fortune with something they have no control over.
The Bottom Line
We have enlisted the methods that we consider to be the most simple, effective and, what is important, safe. But there are also other ways to earn Bitcoin for free. This list is therefore not exhaustive and will undoubtedly be updated.
We can also mention the faucets as one of the most beneficial methods. These are the sites that pay you in satoshi against “clicks.” However, this type of service pays very little and many close their doors quickly. But also, there are some giveaways on Twitter, i.e. the contests, which influencers win cryptocurrency from.
Note that for people who already have some bitcoin amount, it is possible to place them in savings accounts to generate interest.