Ever since bitcoin hit it’s all-time high in December 2017 and again earlier in 2019 when bitcoin went on a bull run after the 2018 crypto winter, people have been wondering how they can make money with bitcoin. This guide will share 9 different ways that are used to make money with bitcoin.
The term HODL is perhaps the most original cryptocurrency term which came about when a trader named ‘GameKyuubi’ misspelled the word hold in a bitcoin forum when he meant to say he will hold his profits instead of selling. HODLing is a form of long term bitcoin investment where you buy now without the intention of selling in the short run as you may believe there is long term value in the asset.
Short term bitcoin trading
Buying and selling on advanced exchanges using trading charts similar to forex trading. Using techniques such as sentiment, technical and fundamental analysis to help with trading decisions.
Arbitrage trading is when one buys bitcoin for a low price at the cheapest place on the market and then sells it at a premium at the most expensive place/exchange on the market. The arbitrage trader takes advantage of price differences between different exchanges to make a quick low-risk profit.
Bitcoin futures trading
Bitcoin futures allow participants to speculate on the price of bitcoin without actually owning any bitcoin. It’s essentially betting for (long) or against (short) the price of bitcoin over a specified period. Bitcoin futures contract work in the same way as futures contracts for traditional financial assets.
You can be a solo-miner if you have set up your own bitcoin miner and be in consensus with the bitcoin network. This is a difficult way to mine as it may take longer to generate blocks depending on your equipment as you need massive hashrates.
Bitcoin mining pools
A bitcoin mining pool is when bitcoin miners join forces to increase hashing power so that they generate blocks quicker as difficulty increases. By pooling their resources they generate blocks at a more consistent rate and then rewards are proportionally divided according to contributions.
Bitcoin cloud mining investment
investment in bitcoin mining companies who have the expertise and the equipment. The mining happens remotely so you do not have to deal with buying hardware, setting up, running costs which include electricity costs, heat and noise generated by fans. By investing you get daily payouts that are based on your investment without actually mining directly.
NGS offers such an investment whereby your investment is used to mine the most profitable cryptocurrencies and you receive daily payouts. At the end of your contract (36 months) 100% of your initial investment is returned to you.
For beginners requiring time investment instead of money
Bitcoin affiliate programs
Cryptocurrency companies payout rewards in bitcoin for people who refer new customers to their businesses. This is very common in cryptocurrency exchanges to have affiliate programs that their customers share via social media to attract other users. E.g you join a bitcoin affiliate program and then create youtube videos about the product with the affiliate link in the description and you get paid for everyone who signs up through your link.
Bitcoin faucets are sites that pay you in Satoshis ( the smallest fraction of a bitcoin, 0.00000001 BTC) to complete simple tasks like watching videos, clicking ads, downloading apps and completing surveys.