DeutschMany people, not just since the rising inflation rates, have been looking for simple ways to earn money seriously with Bitcoin. It’s not primarily about getting rich with Bitcoin. Instead, many people want an additional income or hope to build a financial cushion for the future with a little luck. In the past, it was possible to make profits in the millions with Bitcoin. For this, one would only have had to invest early. The question that many are now asking is whether you can still make money with Bitcoin. We can answer this question with a clear yes, but there is no guarantee of profits.
Make Money with Bitcoin: Top 5 Ways (Reputable)
In the following, we will show you 5 ways how you can earn money with Bitcoin.
Option 1: Make Money through Bitcoin Trading / Commerce (Physical Coins)
The first way to make money with Bitcoins is to buy the cryptocurrency or trade with Bitcoins. This is possible via so-called crypto exchanges (comparison of crypto exchanges), via which you can buy and sell Bitcoin. The profit from trading Bitcoins results from the fact that the price at the planned sale is higher than at the purchase. Here, we are only referring to normal trading with Bitcoins, without using risky leverage or investing in Bitcoin via derivatives.
Option 2: Make Money through Bitcoin HODLN & DCA
Bitcoin trading is about making money with short-term positions. Another way to make money with Bitcoin is the HODL strategy via a savings plan. In this case, it is also referred to as a Dollar-Cost-Average strategy (DCA). It is about investing low sums monthly and holding them until the next bull market begins and Bitcoin reaches new highs. In this case, it can take several years for the investment to pay off. In addition, it can of course happen that Bitcoin no longer reaches a new all-time high. This method is therefore more suitable for investors who intend to hold their coins even if the Bitcoin price continues to rise.
Option 3: Trade Bitcoins via CFDs
A second way you can also make money with Bitcoins is by trading the cryptocurrency via so-called Contracts For Difference (CFDs). In this case, you do not buy real Bitcoins, but speculate on rising or falling Bitcoin prices using the difference contracts. This option is currently very popular with numerous traders, because CFDs work with leverage, so only a small part of the trading value has to be raised by the trader. You can also make money with Bitcoin even though the price falls. CFD trading also involves a higher risk due to the leverage effect. You also cannot use Bitcoin technically then.
Option 4: Binary Options on Bitcoin
The third option, which is also suitable for earning money with Bitcoins, is trading binary options. Some binary options brokers are currently already providing cryptocurrencies as underlying assets, especially Bitcoin. When trading binary options, however, you should note that these always have a limited term and you usually have to decide whether the price of Bitcoin at the time of expiry is higher or lower than at the time of purchase.
Option 5: Make Money with Bitcoin Mining
The third way you can make money with Bitcoin is a little different. This is not about buying the leading cryptocurrency or speculating on its rising price, but instead the mining involves you producing Bitcoins yourself. With so-called solo mining, you are on your own and must therefore observe all the requirements for mining the coins. This includes, for example, that you have a powerful computer with the appropriate hardware, software for mining is necessary, and you should also not disregard that high electricity costs must be included for mining. Nowadays, however, this is no longer worthwhile for private individuals to earn money with Bitcoin due to the high costs. The mining profitability has further decreased in recent years in countries with high electricity costs.
In recent weeks, a new type has become established: Masternodes – Passive income through securing the network.
Another way to make money with Bitcoins is so-called cloud mining. This has been chosen as a real trend within the last 24 months, because it gives almost every interested party the opportunity to participate in Bitcoin mining. In this case, you do not have to use hardware and software yourself and there are no electricity costs. Instead, you transfer any amount to the cloud mining provider and are then rewarded at regular intervals proportionally with mined Bitcoins.
These are the Risks You Take when You Want to Make Money with Bitcoin
And another difficulty in trading Bitcoin is the safe custody of your coins. Because if you buy real Bitcoins, it is important to keep them in a secure wallet. In general, you run the risk of losing your coins with a Bitcoin invention if you do not store them correctly.
When trading options or CFDs, you should also note that these options are not worthwhile for beginners. With CFDs, you at least have the advantage that you do not have to worry about keeping your Bitcoins safe.
Conclusion: Making Money with Bitcoin is not Easy
In this article, we have presented five ways to earn money with Bitcoin, but it is anything but easy. In particular, coping with the high price fluctuations is a very demanding task. Because not infrequently, the largest and oldest cryptocurrency in the world loses over 20 percent of its value.
Therefore, despite the hope of high profits, you should never invest more money than you are willing to lose. Then you only take a moderate risk overall and can still make profits. If you are convinced of the cryptocurrency Bitcoin, the profit should not be in the foreground anyway.
