already heard of him . Our beloved digital currency continues to evolve, providing us with new opportunities to generate income. More and more people are starting to use bitcoin to earn money , and this creates serious competition.
15 ways to make money on bitcoin in 2021
To make it easier for you, we offer 15 ways that you can use to make money on Bitcoin in 2021.
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. In fact, 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, miner 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 profitable 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 .
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” (“Hold on with all your might”) .
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 in order 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 a short-term strategy, 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. Basically, 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!
4. 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 own affiliate program . It is very popular, as it gives users the opportunity to profitably make money on Bitcoin . Try it – it might work for you too!
5. 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 own 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 homepage 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.
6. Bitcoin faucets
Do you love watching ads and answering polls? What, do you really like it ?! Then why don’t you use bitcoin faucets?
Bitcoin faucets are services that give out shares of Bitcoin for completing basic tasks such as watching ads or taking surveys. By the way, some of them may be in the form of mini-games!
7. Remuneration for completing tasks
One of the nicest things in this world is helping others. And if at the same time you get money, then it’s even better!
On one of the most popular platforms of this kind – Bitfortip – you can get Bitcoins for completing certain tasks for other people. Assignments can be completely different: from searching for a dress on the Internet to answering technical questions.
If you are a gamer and stream your video games online, you can also accept Bitcoin donations. Twitch and several other streaming platforms have already integrated a service for sending crypto donations, so be sure to check out this opportunity.
8. Micro-work and pay-per-clicks
Some sites pay their users bitcoin to view ads or visit certain pages. Just remember that if you want to earn more in this way, it will take you a lot of time and effort. If this is not a problem for you, then you can choose this option for quick earnings. If you are really interested in cryptocurrency income , you can start by looking at sites like Coinpayu and adBTC.
On Microworkers and Cloudfactory sites, users receive a small reward for doing simple tasks (like watching a Youtube video or taking a survey). There are other similar sites – for example, Bitcoinget and Cointasker – where thousands of tasks are available, by completing which you get bitcoins.
9. Bitcoin content
Cryptocurrency is a fairly young phenomenon, and therefore there are not so many authors who have professional knowledge in this area yet. The market is filled with ine
xperienced copywriters who rewrite other people’s content over and over again.
If you are good at bitcoin and have a pen, why not share your knowledge with others? There are websites that will pay you for Bitcoin articles like Crypto Currency News or Blockchain Aliens. Plus, you can always try your luck on freelance exchanges like Upwork and Freelancer.
10. Bitcointalk Forum
Bitcointalk is one of the oldest Bitcoin forums. It was created by Satoshi Nakamoto himself and today is one of the most popular cryptocurrency forums.
If you are an authoritative participant in the discussions on this forum, then your posts on Bitcointalk will receive a sponsored signature. This means that for every post on the forum, you will receive payment from sponsors.
11. Bitcoins in debt
The decentralized nature of Bitcoin and other cryptocurrencies makes it quick and easy to complete any transaction. For this, you do not need confirmation from any organizations.
Thanks to this feature, you can lend bitcoins at interest. Thus, you make money work for you, even when you “go”, that is, your funds do not just lie on your wallet without moving, but generate income.
If you choose this option, check out sites like Unchained Capital, Bitbond, and BTCpop.
12. Bitcoin gambling
If you know how to control yourself, you can try your luck at bitcoin gambling. Usually, in gambling, money always goes to the casino. However, gambling with bitcoins is a different matter. You can get big bonuses or multiply your initial bet several times.
Sites like Bitstarz and mBit are popular in this area, so if you are interested in these games, check out what they have to offer you.
13. Binary options
Binary options have existed in the world of finance for a very long time. This scheme was quickly adopted for cryptocurrencies. A binary option assumes that a trader buys an option, and after a certain period, he either makes a profit or receives nothing. Basically, you are betting on a price rise or fall.
For example, the price of Bitcoin at 10 a.m. is 3000 USD. You can assume that by 6 pm its price will be more or less than this value. If you bet on the price increase and it really does go up, you will receive a certain premium. Otherwise, you will lose your funds. Likewise, if you bet that the price will go down and it falls, you will receive the option premium.
Masternodes are the nodes that are responsible for verifying the blockchain in real time. Like bitcoin nodes, they are always up and running.
In addition to storing, confirming and transmitting information about approved transactions to other nodes, masternodes also perform other tasks in the blockchain, including ensuring the smooth operation of the protocol, supporting voting, etc. Masternodes are rewarded for providing these services.
15. Bonus for found errors
Many software developers and organizations offer rewards to users for finding loopholes and vulnerabilities in their systems. On many bitcoin exchanges and P2P platforms, you will also find these bug reward programs.
If you would like to participate in such a program, please see the Paxful Bug Bounty Policy and contribute to improving our platform.
Bitcoin continues to evolve
Now you have 15 ways at your disposal with which you can make money on Bitcoin in 2021. Perhaps one of them will bring you big profits in the end !
As the crypto economy develops, there will be more and more new opportunities to generate income with Bitcoin . Even without this list, there are many other ways to make money with cryptocurrencies, some of which are available on Paxful and other crypto platforms. Gather information and decide what works best for you. Good luck!
Disclaimer: This information should not be construed as advice on legal, investment, financial or other matters.