Cryptocurrency earnings have become something of a hype and many wonder how to get on the train. This article will explain how to make money with Bitcoin and altcoins from the most accepted and widespread ways to some a bit more obscure but not less profitable ones.
Q: Is hodling Bitcoin profitable?
A: While the bear market is still going strong at the end of 2017 hodling is still a very popular way of making a potential digital buck. Hodling is a typo that became popular and refers to the practice of buying and keeping, or hodling, the coins you bought until the price rises. This buy low sell high has proven popular and very successful for some as many crypto millionaires, if not billionaires, surfaced these last few years.
This method relies on the preconception that prices will rise and that bear markets are just an occasion to buy the dip. Caution be advised, while not recommended this method can prove valid but necessitates intensive research, knowledge of the subject, and a good measure of luck.
Q: How to make money trading Bitcoin?
A: Cryptocurrencies markets have gone from a hodling only mentality to an acceptance of a more diverse way or earning the digital currency as the markets matured. Trading is becoming increasingly popular as cryptocurrency derivatives exchanges like Bybit offer the ability to earn from both bull and bear markets as long as the correct position was entered.
Trading may refer to either the act of buying and selling coins directly against fiat, in which case one speculates on the price of said coins against that of a particular fiat currency on the spot. Coin-to-coin exchanges, on the other hand, allows for the speculation on the price of a coin against that of another coin.
The third means of making trading cryptocurrencies is through the use of derivatives and most particularly futures and perpetual contracts. Futures and perpetuals work on the speculation of a future price of an asset. As such, when entering a short position a trader would profit from the price going down and would instead suffer a loss should the price rise. A very handy tool in the current year-long bear market. Long position work in reverse with bull markets being the profiting situation.
While more recommended than a hodling only strategy, trading is a risky business and trades should only be entered after sufficient research was made and only in amounts that one can afford losing.
Q: How to make money with Bitcoin mining?
A: Cryptocurrency mining and more particularly Bitcoin mining have since the appearance of blockchain technology been a popular choice of earning digital currencies. One thing to note is that proof-of-work requires an increasing amount of work and energy making it less and less profitable as time goes on unless the price goes up.
Bitcoin mining farms have long since taken over the mining of the precious crypto making it unlikely individuals can earn an income from participating but other altcoins remain a popular choice as they have algorithms favoring individual computer mining and hindering farm mining.
Q: Can I work for Bitcoin?
A: You can absolutely work for Bitcoin and other altcoins. In fact, cryptocurrencies were first intended to work as peer-to-peer electronic cash with low transaction fees and border-less transfers. As such, an increasing number of employees, freelancers, and international workers are asking to be paid in crypto.
Q: How to earn Cryptocurrency?
A: Outside of those four mainstream means of making money with cryptocurrency, there remain many other ways of earning from cryptocurrencies. Below is a short list of other ways you can earn from cryptocurrencies:
Casinos and other luck based games
In conclusion, while hodling Bitcoin, trading cryptocurrency derivatives, mining cryptocurrency, and working for Bitcoins are and will remain the most popular choices or making money from cryptocurrency, there exist a number of other options such as completing surveys for cryptocurrencies, playing videos games for crypto, and cryptocurrency airdrops.