Bitcoin turned 12 years old in 2021 and this time has flown rather quickly. By now, almost everyone has at least heard of Bitcoin, even if they don’t have a clear understanding of exactly what it is. It is the most popular digital currency in the market and it has matured quite a lot over time, as have the money-making opportunities. More and more people are figuring out how they can make money with Bitcoin, but it can often be hard for others to keep up. 2020 proved to be a turning point for Bitcoin and the leading cryptocurrency continues to increase in value.
Therefore, it is not surprising that a greater number of people are now interested in figuring out how they can make money with Bitcoin in 2021. If you are in the same boat, here are some of the options that you can explore:
No, this doesn’t mean that you head into a cave with a hardhat and a pickaxe- this refers to Bitcoin mining, which was one of the first ways to obtain the cryptocurrency in the first place. It refers to the process in which powerful computers are used by miners for solving complex mathematical problems. When they are able to solve these problems, they are rewarded in the form of newly minted bitcoins. To put it simply, it is a race to see who will be able to solve the block the quickest, and those who are lucky enough to accomplish this goal can enjoy the rewards.
Previously, mining was not that difficult and some of the early miners were able to mint thousands of bitcoins using their home computers. But, the scenario has changed significantly, as you need top-tier equipment for mining Bitcoin and the rewards have also reduced. As there is a lot of competition, you can join Bitcoin mining clouds or mining pools for having a fighting chance. A mining pool is where a group of miners combine their computing power for solving complex mathematical problems quickly.
A Bitcoin mining cloud also runs along the same lines but uses the cloud for connecting computing power. This saves people from having to install and run any hardware. No matter which option you use, the mining fees and rewards are divided amongst the people in the group.
Buying and Holding
Every time anyone talks about investing in Bitcoin and making money, the answer is simply buying and holding or HODLing, as it has become known. It is one of the most straightforward and beginner-friendly trading strategies that can be found. First, you have to get a Bitcoin wallet, then you have to purchase BTC and then you have to wait in hope that the price of Bitcoin will increase in the future. It doesn’t matter how long this might take, which means it could be weeks, months, or even years before you may sell off your Bitcoin.
It is for this reason that the term HODL was coined and even though it was initially a typo, it became a full-fledged trading strategy.
It is important to understand that HODLing refers to long-term investing in Bitcoin, but if you are looking for a fast-paced trading equivalent, trading is the way to go. Essentially, trading BTC means that you will be taking advantage of the crypto’s highly volatile nature. This method requires knowledge of the market and practice, so you need to do your homework in order to be sure about giving it a shot. There are different types of trading that you can consider before getting started and these include:
Day Trading: This involves quick and short trades, which opens up opportunities for fast and small profits. Day traders don’t usually have any open positions overnight, so the method usually comprises of analyzing the market carefully, identifying money-making opportunities, and then capitalizing on them for making small profits. Day traders will have a significant cumulative profit at the end of the session.
Swing Trading: If day trading is short-term and HODLing is long-term, swing trading ends up somewhere in the middle. Similar to HODLers, swing traders purchase low, wait long enough to see their holdings go up in price, and then sell them at a high price. But, their holding time isn’t as short as a day trader or as long as HODLers.
Arbitrage: This involves identifying money-making opportunities across different platforms rather than the same ones. This means you buy bitcoin from exchange A and then sell it on exchange B to take advantage of the difference in prices.
Do you like answering surveys and looking at ads? This is where you can make money through Bitcoin faucets. These basically reward systems that provide BTC fractions to people who complete menial tasks, such as answering surveys or watching ads. As a matter of fact, some of them can even be found in the form of mini-games.
Accepting Bitcoin as a payment method
As Bitcoin is maturing quickly, more and more businesses have begun to accept it as a payment method for their goods and services. If you are already running a business, the easiest way to earn Bitcoin is to start accepting it as a payment option. This will expand your global reach, speed up the whole payment process and also secure payments. The best thing about it is that accepting Bitcoin payments is immensely easy nowadays. Once you have collected some BTC payments, you can now use these funds for the purpose of investment.
A number of organizations and software developers offer incentives known as bug bounties to people as a reward for finding vulnerabilities and exploits in their systems. Various peer-to-peer marketplaces and Bitcoin exchanges offer programs like these for improving their ecosystems for their clients. It is not very difficult to find such a program and it gives you the perfect opportunity to make money with Bitcoin.
Getting tipped in Bitcoin
Helping other people out can undoubtedly be one of the most fulfilling things in this world and it can get even better if you are tipped for it. Bitfortip is one of the most prominent platforms to do so. It gives Bitcoin as an incentive to help people out with a variety of tasks. These tasks range from providing people with answers to technical questions to helping them find a dress online. Furthermore, if you are a gamer who enjoys steaming video games, you can also get tips in BTC. There are a number of streaming platforms like Twitch, which have integrated crypto-tipping services.
Bitcointalk forum campaigns
One of the oldest forums out there is none other than Bitcointalk. As a matter of fact, it was set up by Satoshi Nakamoto, the founder of Bitcoin himself. Therefore, it is not surprising that it is the most well-known forum in the crypto space and it is used by millions of people.
You have to post consistently on the forum to gain some authority, as this will give them a sponsored signature. Eventually, you will be paid for posting on Bitcointalk, which is a great way of earning.
You can use any of these options to make money with Bitcoin in 2021.