Bitcoin is a cryptocurrency and worldwide payment system. It is the first decentralized digital currency – the system works without a central repository or single administrator. It’s very easy to earn money using Bitcoin through many different methods. The average person can earn about $100 to $1,000 a month by simply buying and selling bitcoins or other cryptocurrency such as Ethereum or Litecoin.
Some people have reported to have made millions using bitcoins. Just earlier in 2017, Bitcoin was at around $950 and since then it’s broken the $17,000 mark. It has grown exponentially and those who bough bitcoin at $1,000 have easily made $16,000 with just owning 1 bitcoin. Even those who invested in October at around $8500 have made over $700.
Ultimately Bitcoin is a virtual currency and can be used to buy and sell equipment, property, homes, or just about anything. Before earning money using Bitcoins you have to have a way of buying bitcoins.
How Do Buy Bitcoin?
The easiest way is to download the Coinbase App which is the most popular in buying and selling bitcoins. After downloading the app, you must create an account and transfer money by either a credit card or bank account into the Coinbase Wallet. This will allow you to use dollars to purchase bitcoins. Many people simply buy the bitcoin in anticipation of a rise in value and sell it at a reasonable profit while others look for short term gains.
How to earn money using Bitcoins:
The simplest way to earn money is buy using Coinbase and buying bitcoins, ethereums, or litecoin. After getting bitcoin into your account you can then monitor the market and figure out when is a good time to sell. It’s always better to make short term gains rather than waiting for a substantial gain because there is always a risk factor. Cryptocurrencies are very volatile and can see an increase or decrease by over 100% in one day.
It’s easy to buy and sell at short profits since the fees are pretty low relative to stock trading. At the end of day, it is a gamble but given Bitcoins popularity and according to many market experts it expected to cross the $20,000 mark and possible much higher.
How to cash in the profits?
You can simply withdraw the money from Coinbase into your bank account by going to accounts and using the USD Wallet option to withdraw money.
Mining Bitcoin is considered among the oldest way to make money using bitcoin. Mining explained in simple terms is to build public ledgers so that Bitcoin system functions properly and efficiently. The miners essentially tweak out or identify problems in the system by creating new blocks. After the new blocks are created they get rewarded with new bitcoins. This causes many people to mine bitcoins causing the overall community to grow. The increase in the members within in the community causes the system to function properly. Mining maybe difficult for some people as it involves creating algorithms and now days there are many complex algorithms in the system.
The best to get into mining is by joining a mining group that way the work to build a block gets split and everyone gets rewarded equally.
Payment for services
As cryptocurrencies are becoming popular many are turning to being rewarded in bitcoins. There are many businesses that have switched to accepting bitcoin as a form of payment. So when a service is rendered a bitcoin payment is a great option and it’s easy to transfer bitcoins from one account to another by simply using the coinbase app.