Cryptocurrency is an improved version of a currency; that’s good money. Everyone who invests in cryptocurrency wants to make money, but not everyone succeeds!
As you can imagine, there is money in the crypto space. And to get them out of there and direct the flow into your pocket, you just need to master a few tricks. In this article, I will tell you how you can make real money on cryptocurrency.
Mining
One of the first ways to mine bitcoins is, of course, mining. Miners use powerful computers to solve complex math problems. When they find a solution, they get bitcoins. This is a competition: whoever generates a block first will get a reward.
Mining used to be not that hard. The first miners could receive thousands of bitcoins using their home computers. Now things are different. Today for mining, you need high-end hardware that can cost several thousand dollars. Also, as Bitcoin has gained more prominence, you will have many competitors.
If you want a chance to win, you can join a Bitcoin pool or try cloud mining. A mining pool is a group of miners who combine their computing power to solve math problems faster. Cloud mining works in much the same way, only cloud storage is used to combine computing power. This way miners don’t have to install hardware and run programs directly. In both cases, miners’ commissions and received coins are distributed among all members of the group.
As competition intensifies, more and more advanced equipment is required. The more you spend on this equipment, the less your profit. As a result, Bitcoin mining is not as worthwhile as it used to be. Therefore, before you start mining, find out all the details, because there are many other, easier ways to make money on Bitcoin.
Holding
Buying and holding bitcoins is one of the simplest and most accessible strategies for beginners. Create a bitcoin wallet, buy bitcoins, and then just wait for the price of BTC to rise – although sometimes it takes a long time to wait. It can take weeks, months, or even years before you finally decide to sell your bitcoins.
This is how the term “hodling” was coined. It all started with a typo on the forum, and then a full-fledged trading strategy appeared. Also, this word stands for “Hold On for Dear Life”.
Trade
If “hodling” implies long-term investment, then bitcoin trading is its short-term counterpart. The essence of BTC trading is to exploit its volatility. To do this, you need to know the market well, so before you start trading, study all the available information.
Here are some trading strategies you can start with:
Day trading. This is the conclusion of short-term transactions to quickly make a small profit. Day traders do not leave open positions at the end of the day, therefore, to use this method, you need to carefully analyze the market, notice opportunities for small earnings, and focus on small profits. At the end of the day, traders can generate significant cumulative profits.
Swing trading. If hodling is a long-term strategy and day trading is short-term, swing trading is somewhere in between. Like hodlers, swing traders buy bitcoin at a low price, wait for it to rise, and then sell it at a higher price. However, they do not hold bitcoins for as long as hodlers, and do not get rid of them as quickly as day traders.
Arbitration. Bitcoin arbitrage is similar to the previous strategies, however, instead of making deals on one exchange, traders are looking for opportunities to make money on several different platforms. They buy BTC on one exchange and sell it at a higher price on another exchange.
All of these methods require some experience, so don’t expect to get it right the first time. Gather information, choose the most suitable strategy and go for it!
Affiliate programs
Many companies use affiliate marketing to attract new customers. They encourage their users to invite their friends and family to participate. There are a lot of such programs, and they all differ from each other, so you should compare them and decide which one is worth your attention.
Paxful has its affiliate program. It is very popular, as it allows users to profitably make money on Bitcoin. Examine it – it might work for you too!
Bitcoins as a payment method
As bitcoin develops, more and more companies are starting to accept it as payment for goods and services. If you have your own business, maybe you should also accept bitcoins?
This will allow you to expand your customer network, secure transactions, and speed up the payment process. Plus, it doesn’t take any effort. If you have your store, you just need to stick a small sign on the shop window and at the checkout. If you are online, you can place a banner on the home page or use a site-integrated service such as Paxful Checkout. Your clients will be able to send funds directly to your bitcoin wallet.
Once you start receiving payments in bitcoins, you can use them to invest – who knows, maybe you’re in luck? The bitcoin rate may rise in the future, and then you will receive a significant profit from such an investment.
