What is Bitcoin? Bitcoin is a decentralized, crypto-based digital currency created by a group of enthusiasts. It is completely transparent and nobody owns it.
How to make money with Bitcoin?: There are different ways to make money with Bitcoin. You can trade Bitcoins on currency exchanges or if you have a company that you want to promote then consider accepting payments in Bitcoins for your services or products. Also, there are some small businesses that pay their employees partially in Bitcoins.
Here is a list of some ways how to make money with Bitcoin:
Buying and Selling Bitcoins for FIAT: You decide to buy or sell bitcoins when the price fluctuates on currency exchanges. Sellers can expect a higher price when their Bitcoins are sold at a time when the price of cryptocurrency is at its peak.
Accepting Bitcoins as Payment: There are many businesses that allow their customers to pay for goods or services via Bitcoin. It is important to list the price of your product in both FIAT and Bitcoins so you can show your customers how much they will actually pay with Bitcoins. On the other hand, when you sell your product in Bitcoins, then this will increase the demand for Bitcoin.
Mining Bitcoin: This is one way how to make money with Bitcoin, but it’s beginning to be less profitable due to rise of mining difficulty. The main idea behind bitcoins is that every four years the reward for proving a block of transactions is halved. When Bitcoin started the reward was 50 bitcoins per block, in 2012 this was decreased to 25 BTC per block and at the moment it is 12.5 BTC per block. Also, the more people mining the currency means lesser chances for you getting a larger slice of that pie because there are only so many Bitcoins available which leads to price increases.
Day Trading: You can make a profit with Bitcoins by buying them when their price is low and selling them when the price has risen. You need to constantly monitor the exchanges as cryptocurrency rates change quite frequently. It is wise to compare the prices from different exchanges before making a purchase.
Transaction Fees: In order to make transactions more secure, anonymous and faster it is important that all Bitcoin users record their activity on a public ledger. The public ledger called Blockchain is where all transactions with bitcoins are recorded. The process of approving transactions and adding them to the blockchain involves solving complex mathematical puzzles which in turn requires significant computing power from computers, which in turn results in high energy costs. To cover these costs, when you transfer your Bitcoins into another currency or you send money for shopping then there is a small fee charged for this transaction which is claimed by the miners as a reward. In conclusion, there are many ways how to make money with Bitcoin and it’s up to you which option suits you best!
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** Note: we do not provide any investment advice and all opinions in the following article. Consult a financial advisor before investing in any cryptocurrency. **