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How does Bitcoin make money?

How to make money with Bitcoin's help and grow your wealth in cryptocurrency? Here are all the possible options

In 1999, Professor Milton Friedman, a Nobel Prize winner for economics, said:

"I think the Internet will be one of the most important forces to reduce the role of the government – the only thing that is missing but that will soon be developed is a reliable e-cash."

Nine years later Bitcoin was created.

To appear on the horizon, Bitcoin has turned the cards into digital investment. Only a lazy trader has not tried to make wealth with crypto. In fact, there are a myriad of ways in which Bitcoin can generate income for you, both humble and grandiose. So, exactly how does Bitcoin make money? We will look at the most common ways of earning good.

What is Bitcoin?

Bitcoin is the first decentralized currency in the world – it means that there is no central authority controlling it (for example, a bank or a government). The idea behind Bitcoin was explosive: it was the first financial resource that could not be harnessed by any organization or person. In addition, the Bitcoin blockchain, the underlying fundamental technology, ensures transaction transparency – operations are impossible to manipulate. This makes data fraud simply impossible.

Thanks to the blockchain, every transaction can be verified without a central bank involved: it is processed with the help of the computing power donated by the users. They help to process transactions and generate blocks that form the "blockchain" and are rewarded for that in the BTC token.

Where does it come from? The father of the cryptocurrency is the mysterious Satoshi Nakamoto – until today, nobody knows who this person or group of people is. In any case, Bitcoin and cryptocurrency itself have become a revolutionary way to make investments and make transactions: digital money has the potential to change the global economic landscape in a serious and irreversible way.

Here's what Peter Diamandis, founder and president of the X Prize Foundation, said on Bitcoin:

"In the middle, Bitcoin is a smart currency designed by far-sighted engineers, eliminating the need for banks, eliminating credit card fees, currency exchange fees, money transfer fees and reducing the need for lawyers in transitions … all good things. "

Why Bitcoin has a value?

OK, if Bitcoin is a digital currency that has appeared out of nowhere, why does it have a value? Many meditate on this same question. The core of Bitcoin's success is blockchain technology and the possibilities it offers us. Here are some points to consider:

  1. Bitcoin can be used both as a medium of exchange and as a store of value (the latter depends on the former).

  2. Bitcoin supply is limited: it is limited to 21 million and not all coins are still issued. As we know, the shortage is added to the price. So, when all Bitcoins are extracted, its value will only increase.

  3. Although volatile, Bitcoin contains legitimacy, investors and broad adoption: the more people are involved, the more Bitcoin hype determines the price.

  4. It should also be said that the current value of Bitcoin is influenced by speculative interests. Although some believe it to be a bubble, high and low prices do not discourage traders.

  5. Bitcoin will never use fractional reserve reserves, which means that Bitcoin money is only supported by Bitcoin money.

All in all, it's us, people, making a fuss around Bitcoin and increasing its price. In 2017, the cryptic community pushed the roar on the roof: that's why prices have fallen.

"When the value increases, the heads begin to rotate and the skeptics begin to soften up.Starting a new currency is easy, anyone can do it.The trick is to get people to accept it because it is their use that gives the value" money " – Adam B. Levine

Now that the stage is ready, let's find out how you can reap financial benefits from Bitcoin.

1000 and 1 model of making money with Bitcoin cryptocurrency

Digital money is an exhausted ground full of opportunities and people looking for them. We will discuss the most common ways to generate profit or gain Bitcoin with the help of cryptographic resources.

1. Crypto trading

One of the fastest, simplest and most risky ways to make BTC trading in an exchange. In other words, buy Bitcoin when its price is low and sell it when the price goes up. It works in the same way as legal currencies.

However, if you do this by relying on luck or guesswork, your efforts are condemned from the beginning. Professional traders spend a lot of time learning how to avoid risks and predict price trends. Really successful investors know that they could lose money in the short term, but win in the long run while investing in their experience and education.

So make sure you keep improving your trading skills – not just buying money blindly believing in "signs" and forecasts.

2. Investment in ICO

This is a long and relatively risky way that will not necessarily make you rich. We all know that cryptocurrency draws on unchecked markets; the number of projects led by blockchain is enormous. Some focus on health care and genetics, while others rely on encryption payments to pay for the services of lawyers and financial advisors.

Each project develops its own token and launches an ICO – a crowdfunding campaign for the first contributors to donate fiat / BTC / ETH and other currencies to invest in the development of the project. Using their money, contributors buy proprietary tokens. If the project succeeds and arrives at the cryptographic exchange market, you can sell those tokens for Bitcoin. Moreover, the value of coins can increase exponentially.

Unfortunately, the practice shows that 90% of projects do not reach the foreign exchange market even after the success of ICOs. Therefore, carefully monitor potential investment opportunities. See the following aspects:

  1. The team behind the project: their experience, previous projects.

  2. Consultants and sponsors.

  3. The idea and its technical implementation. It should be something exceptional and useful for the community.

  4. Roadmaps and plans for the nearest and long-term future.

Do your homework before buying some new coins. Otherwise, your money will disappear with the company.

3. Lending your Bitcoins for interest

If you already have some extra Bitcoin to spend, grow your wealth through Bitcoin loan platforms. These websites link owners and credit institutions for an interest rate. However, this is a risky venture: even if borrowing seems to be a foolproof way to earn money, there is the danger that you will not recover your coins. Since there are no guarantees that make the borrower responsible for the loan, sometimes the creditors no longer have anything in the outcome.

4. Organize a Signature campaign on Bitcoin Talk

BitcoinTalk is a website that combines content creators and their potential readers. You can use your account signature to advertise campaigns and get paid for the content you create. The list of signatures is on the site.

Sounds easy-ventilated? Do not rush to draw conclusions. To start earning money, you should become a full member of the website (because those who are not paid are paid less if they are not paid at all). Full members are those who have published at least 120 articles. Also, there are a large number of limitations on a post, such as length, original content and so on. There is also a minimal weekly limitation of the number of posts, which is why this method of earning is not the easiest. An average BitcoinTalk member gets around $ 5 an hour depending on what is written and the level of enrollment.

5. Be a writer of cryptocurrency

Do you have journalistic talent? Do you love to write? So why not try to create posts, interviews and analysis articles dedicated to Bitcoin and cryptography? Find a company to work for – there's a myriad of Upworks and platform offerings alike, and some of them can reward you with Bitcoin instead of the usual fiat currency. Even the forums are not to sniff: find specialized forums on Bitcoin and offer your services.

Alternatively, you can write for ICOs and cryptographic initiation for Bitcoin. Note that regular work is different from participating in the bounty programs – in the second case, you will be rewarded with other tokens.

6. Sell a product or service

If you're not interested in copywriting, maybe there's another service you can offer. The aforementioned BitcoinTalk offers a wide range of services that you can make in exchange for Bitcoin:

P.S .: Since Bitcoin allows anonymous transactions, digital payments have been widely adopted by e-commerce stores. But, on the flip side, Bitcoin's anonymous payments have begun to be accepted as payment for drugs, weapons and other illicit goods – transactions are done on the so-called "darknet". – Internet where user activity can not be traced so easily. We do NOT recommend selling illegal stuff and services through the darknet for at least two reasons: it is risky and unethical.

7. Alternative: introduce Bitcoin payments into your company

If you have a consolidated business but want to invest in Bitcoin, why not try to introduce Bitcoin payments for users? Some eCommerce stores and websites have already added these options, so keep up with the technological curve and also strengthen the exclusivity of your business.

It does not matter what you specialize in: food delivery (remember Papa John's pizzas bought for 10,000 Bitcoins eight years ago?), Clothes, consulting services or real estate – potential Bitcoin users are everywhere, so do not miss out. opportunity to attract them.

8. Paid websites

As you can imagine, these websites pay BTC users to visit some websites or view advertisements. There is a myriad of PTC websites and Ads4BTC is probably the most popular. You can choose from 5, 10 or 20 seconds of video and be rewarded for watching them. However, if you calculate your earnings, even if you watch ads for 20 seconds on Ads4BTC all day, you'll earn less than $ 10 a day, so it's not a profitable option and it's not worth your time and probably Electricity costs.

9. Own a faucet

While working for the faucets is a useless initiative (you can switch an hour by clicking on several ads and earning around 5-40 cents), having your faucet is a different story. You can build your cryptocurrency tap without supernatural efforts and start earning early. Such a website can earn Bitcoin worth $ 1,000 or more. However, you need to keep the website, protect it from attacks and malware and manage users. It requires a lot of time and effort, not to mention technical knowledge and initial capital.

10. Micro jobs

This option is similar to PTC websites, but in this case you can complete small tasks for some satoshis. Websites like Coinworker offer a wide variety of these tasks: they can start by simply testing a plug-in to check if it works properly or retweeting a post. It's little money, but there is the possibility of earning more than faucets and PTCs can offer.

11. Promotion of Bitcoin affiliate programs

This method is often overlooked, which is a mistake, as Bitcoin affiliate programs are a great opportunity to create your riches. Affiliates pay users some fees to attract paying customers to their service.

A lot of Bitcoin exchanges, start-ups and companies have affiliate programs. You can sign up and get a personal link for people to click and get involved.

There are many ways you can share your affiliate link:

Being a successful affiliate is a difficult task: you need to have some experience and knowledge of how marketing works.

12. Playing in a Bitcoin casino

Gambling has always been a risky way to make money, and it is not an exception when it comes to Bitcoin. But in this case, blockchain will be the guarantee of a fair game.

Find reliable Bitcoin gambling gaming sites. As a rule, these casinos give players the opportunity to check the results and make sure they are random. Decent Bitcoin casinos have enough "edge" and are ready to show players that do not manipulate the results.

Although it is the easiest way to make money, it all depends on your luck, which, as you know, is unstable.

13. Mining is a matter of the past

If several years ago "mine and hodl" was the simplest and safest strategy to become a millionaire (you could also extract coins with your smartphone), today the situation has completely changed. The difficulty of the mathematical calculations required for mining continues to grow with time and the number of miners involved. The truth is that now the extraction of Bitcoin requires such sophisticated mathematical calculations that the usual crypto-miners have no chance: the home mining platforms can not do it. There's a 99% chance that your hardware investments will not be covered, even if you join a mining rig.

So if you have some GPUs and ASICs at your disposal, it's better to switch to another cryptocurrency.

14. Grow your Bitcoins through HYIP and coin acceptor

This is a very risky way to earn. What is a high-yield investment program? These are the sites that promise to double your coins in a few days or give you very high interest rates. What they really do is take money from the new subscribers and pay the old ones. Due to the increasing buzz, a website seems apparently legitimate. In addition, HYIPs always have reference programs – users are rewarded for attracting their friends.

The truth is that HYIPs implement typical Ponzi schemes. They exist for about 3-4 months before suddenly disappearing with the money of the disappearing users. No more payments are made and people realize they have been scammed. At the moment, there is no such reliable website: 100% of them seem to be just a cover for criminals who steal coins. If you still want to get on the investment train and give it a try, read the reviews and use the Bitcoin scam test tools to check the websites.

15. Claiming Bitcoin forks and heaters

Since 2017, Bitcoin has begun to form "forks" or other coins. In other words, a fork is a "clone of money" that emerges from the existing cryptocurrency. Anyone who has used Bitcoin before the module can also request a new currency. Bitcoin's first fork was Bitcoin Cash, but Bitcoin Diamond, Bitcoin Gold and other forks were soon introduced.

The process of claiming bifurcated coins is quite common, but it is necessary to have some basic notions about how Bitcoin works. Without technical knowledge, this method is not likely to work. Alternatively, you can work with companies that claim coins for you and take some fees. However, there is a threat that they can simply take your money and disappear. As soon as you claim a forkcoin, you can sell it in exchange for Bitcoin.

All in all, airdrops and forks can bring you the highest value in the short run, but they are too risky. We would recommend using these methods only after learning the angles and slots in the request process.

Tips to get the biggest hit for your dollar

Wait for these aspects before starting your investment experience and try to get Bitcoin:

  1. Do your homework. Prepare to make purchases and trading steps. Find information on the project / ICO / website, read reviews online and join groups to ask questions.

  2. Focus on security. Like physical money, Bitcoin should be completely protected. That means you need to keep your wallet protected, use antivirus solutions and two-pass authorization. Ideally, you should have an official cryptocurrency portfolio that you are about to make.

  3. Keep an eye on the fluctuations. Since Bitcoin and cryptocurrencies are still in the beginning, investing money does not guarantee success because the price is always fluctuating. While crypto is in the initial phase of its development, it is volatile. Therefore, you should be prepared for more gambling with regard to investment.

  4. Bet on the fundamentals. At the end of the day, the winners will be the cryptocurrencies that have the best basic technologies. So even if you do not buy Bitcoin directly, choose the altcoins that could get to the top. Look at the fundamentals, ideas and the technological implementation of blockchains.

Bottom line

Bitcoin and cryptocurrencies are introduced in different areas of our lives, constantly replacing the legal currencies and the traditional methods of investment: this is a spiral of development that has no way of reversing the trend. While digital money creates a new era for the global economy, you should keep up with time. Find the right ways to earn Bitcoins and enjoy long-term financial stability.

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