5 x Earning money with Bitcoin

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make money with bitcoin

Bitcoin is no longer a hype .

This digital currency has become indispensable and will only become more important as the financial world becomes increasingly digital.

Everyone knows the stories of people who have become rich with it.

Can you also earn money with it ?

Yes, and we are going to tell you how this can be done, because there are several options.

In this article:

1. Buy and sell

The classic way to make money with Bitcoins is to buy them and get rid of them later at a (much) higher price. For example, the legendary story goes when Bitcoin just existed that someone once used 20 of these coins to pay for a pizza. Expensive joke, because at the current exchange rate that has been a pizza of 1 million dollars!

If this method is your choice, we recommend that you do this via Litebit . A Dutch broker where you can buy crypto and store it for free in an online wallet. The best crypto broker in our opinion .

The price of this currency has risen and will continue to rise, expect many experts and analysts from leading investment banks. The reason for this lies in the technical design of the coin itself.

There will only be a maximum of 21 million Bitcoins. Since the coin was founded in 2009 by an anonymous software developer who invented the coin and wrote the code for it, coins have been released, which can be found through a process called mining. More on that later.

However, the rate at which new coins could be found is decreasing, to be precise this halves about every 4 years with the so-called 'Halving'. Almost 19 million have already been discovered, leaving only 2 million more.

All this creates an enormous scarcity . There are more and more people and companies who want to buy the currency. The price is therefore growing exponentially. The forecasts for the future range from 300,000 to more than 1 million dollars as early as 2025 and now in 2021, it is also expected to be 75,000 to 288,000 dollars.

Note that these are not guarantees, but the past has shown that the predictions came true every time. If only we had known about this coin before!

litebit.eu

2. Trading / day trading

Another characteristic of Bitcoin, but actually all cryptocurrencies, is that the prices are very erratic . Where stocks move by a few percentages, a Bitcoin can shoot up 100% in a few weeks and just as well again 60% down.

As an investor you have to be able to handle that. Especially if you want to hold them for the long term like the previous option. However, you can also try to take advantage of the exchange rate fluctuations and make a profit on it.

That is real trading, even day trading. However, this is much more difficult and requires a lot of luck in addition to a lot of technical investment knowledge. Because you do take the necessary risk with your money. And remember that every transaction costs money.

Therefore, with this method you can best use the cheapest crypto / Bitcoin broker , and that is Bitvavo . This is not for novice crypto investors, but also a good reliable Dutch broker & exchange.

Bitvavo benefits

3. Strike / strike of coins

Via Bitvavo you can also stake some of the crypto coins that you can buy there. Including Bitcoin. This technically means that you make your coins work more in the blockchain to validate transactions, but that simply means that you get interest on them.

With Bitcoin that is not very much, namely 1.22% (still more than your savings account ), but on other coins you can get up to more than 10%! That is quite nice passive money.

Read more about this in our article crypto strike , because there are some snags and also some risks that you should be aware of.

bitcoin strike

Strike proceeds at Bitvavo on Bitcoin, among others

4. CFH trade

For the aforementioned three methods, you actually need Bitcoin to get started. For some, however, this may be just a step too far or difficult. Either way, with CFD Trading you don't have to.

With this way of investing you can bet on prices without owning the underlying value. So you can trade CFDs on Bitcoin but also on other instruments such as indices, oil, gold, exchange rates and so on.

And that is not the only unique thing about this way of investing. You can also use leverage . This means that with a bet of, for example, 100 US dollars, you can make a profit as if you had bet 3000 US dollars!

The fact that you can make much faster and more profit means that you can just as well suffer harder losses. You must not forget that . However, you can first practice this way of investing for free with an account that uses fake money before you actually have to throw in your own savings.

5. Mining of coins

We talked about mining before. That you can discover coins when they are newly issued. That is called mining after the old-fashioned digging for gold and precious metals in a physical mine.

Bitcoins are digital, however, and to mine them you have to solve difficult math puzzles. And don't think: "yes - I'm good at rebusing." because that's not how it works, you really need super computers to be able to do this.

In the early days this could still be done on a very good PC or laptop from home, but currently large companies have set up entire factories for this in deserts to do this. Filled to the brim with the latest computers and solar panels on the roof. It also takes a lot of energy.

This is certainly no longer an option for an average private individual or consumer, unfortunately. Then you can better focus on the first four ways.

5. Mining for new coins

Okay, we are also going to try to explain this easily: where some coins make their blockchain work by staking, is the original concept of Bitcoin mining. This works with PoW (Proof-of-Work) instead of PoS (Proof of Stake). Slightly safer, but much more difficult. And it takes a lot more energy.

PoS is actually also an improvement of PoW to solve this energy problem. You have to see it this way: there are companies that build entire power plants or install solar energy fields in deserts to generate enough electricity to mine for Bitcoins.

The reward is that you get new coins that you can sell again. But as you will understand, this is technically very difficult , a very large investment is needed to even start and the chance that you can get between the established parties is very small.