Earn Passive Income With Bitcoin In 7 Easy Steps
Earn Passive Income With Bitcoin In 7 Easy Steps
Imagine yourself making money while having a good night’s sleep—it seems like a dream, right? Well, the good news is this: you can turn that dream into reality with Bitcoin. Today, most crypto holders use BTC to make cheaper and faster payments, while others buy Bitcoin to earn profits through trading and investing.
If you’re looking for ways to earn extra cash but are already overwhelmed with the amount of work you have to do, Bitcoin will come to your rescue! Here are seven ways you can passively make money with BTC.
Let’s get started.
1. Joining affiliate programs
Joining an affiliate program is one of the easiest ways to earn income with Bitcoin. You can find lots of online cryptocurrency platforms that will allow you to make money by buying and selling Bitcoin and other digital currencies. But apart from trading, you can also earn extra income on these platforms by joining their profitable affiliate programs.
Affiliate programs work differently depending on the platform. But ideally, you can get amounts of money by introducing the platform to others, bringing in new affiliates in the program, and getting them to trade. Since affiliate programs are open for everyone on the platform, anyone can join and eventually earn profits.
While this approach won’t require you immense crypto experience, it’s important to note that joining affiliate programs doesn’t promise you fast and significant revenue right away. These programs usually come with tiers where you can earn percentages of fees from every referred user, so your earnings will vary depending on your affiliates’ trading performance and referrals.
2. Buying and holding
This approach is known as one of the best strategies for investing in Bitcoin. Buying and holding means purchasing fractions of Bitcoin and keeping them for quite some time, hoping that their price will rise later on. This leading virtual currency is known for its extreme upward and downward price shifts brought about by its volatile nature, making it an ideal asset for market investors.
However, Bitcoin’s volatility can also be considered a double-edged sword. Because of BTC’s unpredictable price shifts, you can’t surely tell how much the coin will cost in the next few hours or days. On the flip side, you can try checking and monitoring the market to understand the price movements and make the most of these cryptocurrencies.
3. Mining Bitcoin
This process requires expensive operation resources. If you want to acquire Bitcoin directly, you can try digging into BTC’s cyber cave. Bitcoin mining is the process of generating this dominant cryptocurrency through powerful and high-tech equipment specially designed to run Bitcoin’s complex operations. It also requires high levels of electricity, a stable Internet connection, and large data storage.
The individuals, called miners, run the process and verify transactions through solving difficult mathematical problems using specialized equipment. After setting up all the equipment needed, the process can run independently and go on autopilot.
These miners gain profits through the transaction fees from the verification process they’re running. However, because of the industry’s growing competition, it has become more challenging to generate income by mining BTC alone.
Since more high-powered computers are competing to solve complex mathematical problems to mine Bitcoin, the mining difficulty—the measure or standard in identifying how hard it is to gain rewards in mining Bitcoin—also increases.
Today, it’s not advisable to go solo mining. Doing so will only waste your efforts and costly resources. If you want to mine BTC, you can try joining other miners in crypto mining pools, where you can earn a certain profit percentage based on the amount of processing power you shared.
4. Accepting Bitcoin payments
For business owners and individuals such as freelancers who want to explore and adopt cryptocurrencies, accepting Bitcoin payments is another way of passively earning income. But can you make money with Bitcoin through this method? With Bitcoin’s growing adoption, getting paid in Bitcoin in exchange for certain goods, products, and services is almost acceptable in significant areas worldwide. Like buying and holding cryptocurrencies, you can earn profits by accepting Bitcoin payments, holding it, and waiting for its price to gradually rise before converting it to the fiat currency of choice.
5. Playing cryptocurrency games
If you’re a crypto geek who also happens to be a gamer, you might want to try some mobile and video games that allow you to earn rewards in Bitcoin. Some games require a minimal amount of BTC payout, while others can be downloaded, installed, and played for free.
Other games also have a required minimum amount of BTC rewards before converting them to cash. Some games allow you to trade cryptocurrencies through counterparties, tradeable blockchain cards, weekly payments, faucet options, and others, so be sure to check what best fits your needs and interest.
6. Trying Bitcoin faucets
Bitcoin faucets were initially created to increase Bitcoin’s adoption around cyberspace. These faucets dispense Satoshis—the smallest unit of Bitcoin, with an equivalent of one hundred millionths of a Bitcoin or 0.00000001—after completing specific tasks.
Some companies use Bitcoin faucets for business purposes. There are tasks to be completed in various Bitcoin faucets, such as watching advertisements of varying time durations, creating an account on certain websites, and even just waiting for the bonuses on faucets to replenish after a few minutes or hours.
Here’s a reminder: These faucets are giving out only small fractions of Bitcoin, so it’s not advisable if you’re looking to gain massive amounts of profit.
7. Cryptocurrency arbitrage
The most common way of acquiring profit with Bitcoin is through trading. There are thousands of online cryptocurrency exchange platforms available today, and the prices of Bitcoin and other cryptos vary from one exchange to another.
This is what some crypto holders and users take advantage of. The varying range of prices released by different crypto marketplaces allows them to engage in Bitcoin arbitrage. In this approach, you buy amounts of BTC on a crypto exchange at a lower price and sell them on another platform where Bitcoin’s price is higher.
Arbitrage is widely used in the cryptocurrency world because it allows instant profit through the discrepancy of Bitcoin’s price on different platforms. So be sure to do your research and create the best strategies to get the best out of it.
Which suits you best?
There are many other ways of passively gaining income with Bitcoin and these are just a few examples. Before fully immersing yourself in one of the approaches we’ve listed, be sure to get yourself familiar with Bitcoin and its uses. Some of the ways we’ve provided are simpler than the others, but it will depend on how much time and resources you’re willing to invest and understanding which ones will suit your needs.
Choose your income-generating approach and start making passive income with Bitcoin today!
Sponsored by Paxful
This article has been contributed on behalf of Paxful. However, the information provided herein is not and is not intended to be, investment, financial, or other advice.