There are many ways to get rich in life, such as investing in financial securities such as stocks, but another way to become rich is through crypto investment. Bitcoin is one crypto that has seemed promising over the years and is one of the most opulent ways to make money in the world today.
Becoming rich with Bitcoin isn’t instant. It takes time and serious effort. Erik Finman, after a $1000 investment in Bitcoin in 2012, became a Bitcoin millionaire at 21 years of age. Not trying to sound like a motivational speaker, but this is proof that if he could make money with Bitcoin, you can as well
We understand that making money with Bitcoin might get hard, and this is why, in this blog post, we will be showing you 5 practical ways to make money with the asset.
1. Bitcoin Mining
The first thing that comes to your head when you hear mining might be the traditional way of extracting minerals from the soil. Even though the meaning isn’t all that diferent, Bitcoin mining is the process of creating new Bitcoin in which miners use highly-powered computers to solve complex computational mathematical problems.
Miners earn rewards in BTC upon the completion of the task, which is often achieved with a proof of work mechanism (PoW). But because the computers used to mine Bitcoin are complicated, you can join Bitcoin mining pools or Bitcoin mining clouds to be able to mine Bitcoin and earn rewards.
2. Buying and holding
This one is very straightforward. You may need to start buying and holding if you are a newbie to Bitcoin. It is a process that involves you getting a Bitcoin wallet and purchasing Bitcoin to keep it for some time. You are keeping your asset with the hope that the price of Bitcoin rises later so you can sell and make profits.
For instance, if you buy Bitcoin that trades at $55,000 per coin, you can hold your BTC till, perhaps, it increases to $65,000 before selling it. Here, you can make a profit from the trade. But, it is important to note that Bitcoin is a volatile asset; hence, its price is unpredictable, which also applies to this method. This is because Bitcoin price can swing with market sentiment at times. The key here is patience.
3. Bitcoin Trading
It is common knowledge that crypto trading is one of the best ways to make money online. This is owed to the potential of crypto assets like Bitcoin for moonshot. As such, trading involves buying or receiving BTC to sell Bitcoin for cash. Remember that Bitcoin is the most expensive crypto asset, and there is always an avenue to make money when its price is bullish.
In addition, you can delve into Bitcoin day trading, which has to do with quick, short trades that bring small and fast profits. The goal is to capitalize on the fluctuations in the market within the day of purchase – meaning that you buy and sell your Bitcoin the same day.
One common strategy you can adopt in day trading is Bitcoin arbitrage. This is buying your Bitcoin at a low price on an exchange and selling it at a higher price on another exchange. However, this method requires you to know the Bitcoin market well, so if you’re looking into this, make your findings.
How To Sell Bitcoin On Prestmit
Here are the quick steps to sell Bitcoin:
- Visit the official Prestmit website or download the Prestmit app on the Google Play Store or Apple Store.
- Create a Prestmit account and log in.
- Click “Crypto” and choose “Sell Bitcoin.”
- Create a BTC wallet and follow the prompts.
- You will receive payment immediately upon the confirmation of your transactions.
4. Accept Bitcoin Payment
The growing popularity of Bitcoin has given room for companies to support Bitcoin payments across the world. This means businesses add Bitcoin to their payment methods to attract more customers. So, you can also make money from Bitcoin by accepting crypto payments and later converting it to other assets.
Notably, there are crypto payment gateways you can integrate into your business to facilitate your acceptance of Bitcoin. This method introduces you to the thriving crypto market, as it can also help you to make profits.
5. Bitcoin Lending
Bitcoin lending offers a way to earn passive income by lending your Bitcoin to borrowers in exchange for interest payments. This works similarly to the conventional lending method, which provides funds for borrowers who pledge collateral in exchange for the loan.
Here, the lender deposits their Bitcoin into crypto lending platforms where borrowers can request loans and offer collateral. Borrowers will get the loan when they provide collateral in the form of Bitcoin, which is held in an escrow until the loan is repaid. Lenders can earn interest on their Bitcoin holdings based on the loan terms, including interest rates, collateral requirements, and loan duration.
Frequently Asked Questions (FAQs) About Ways To Make Money With Bitcoin
What Is The Best Way To Make Money With Bitcoin For Beginners?
There are different lucrative ways to make money with Bitcoin. But as a beginner, Bitcoin trading has proven to be an excellent way to make money as you can buy your BTC low and sell it high on an exchange. This helps you to make profits.
Is Bitcoin Mining Profitable?
Bitcoin mining is one of the viable ways to make money with Bitcoin because of its high rate of profitability. But this endeavour requires many resources as Bitcoin halvings also reduce miners’ rewards by half. In essence, you must consider many factors before foraying into Bitcoin mining.
Where Can I Trade My Bitcoin To Make Money?
Prestmit is the best place to sell your Bitcoin to make profits. The platform offers excellent Bitcoin rates, lightning-fast payment, advanced security features, and multiple payment options for profitable and safe trading.
Conclusion
Bitcoin provides different ways to make money, as it has both short and long-term potential to create build for people. This innovative asset has created millionaires and billionaires across the world, and you can also make fortunes from the market.
However, it is essential to reiterate the highly volatile nature of the crypto market, which can fall at any time. As such, there is no promise that a trade will be profitable as this depends on market sentiments. That is why you need to study and understand the crypto market better before going into it.
