Simply reading about bitcoins would not be enough to appreciate the benefits of using the bitcoin cryptocurrency. So that you can have a better understanding of bitcoins and to enable you to make money with this famous digital currency Bitcoin, you need to have your own bitcoins. The good news is that there are many ways to earn bitcoins. The following are the best ways to earn bitcoins:
Free faucet
There are many websites online that will give you free bitcoins from what is called a bitcoin faucet. However, do not expect to get a big amount from a faucet. The amount of free bitcoins that a faucet gives out varies. Some faucets may give you up to 0.00002 BTC, while others will only release up t0 0.0000001 BTC. If you go to bitcoin casinos, you might be able to claim up to 0.000005 BTC from the casino faucet every time you do not have money in your account. Take note that there are conditions before you can withdraw your bitcoins to your wallet. For example, a site may require you to meet a minimum withdrawal of 0.001 BTC before you can withdraw the bitcoins including any winnings that you may have.
One of the most famous faucet sites is “freebitco.in“. There are many faucet sites online. But then again, do not expect to make lots of bitcoins if you just rely on online faucets. It may take you more than a month before you can even reach a significant amount if you just depend on these free faucets. However, for beginners, it is good to try out these free bitcoin faucets, so that you can earn your first bitcoin without spending any real money.
It is also worth noting that there are people who get so lucky that they are able to grow the bitcoin that they get from the free bitcoin faucet. How do they do this? They gamble. Many bitcoin gambling sites, especially those that have a bitcoin dice game, offer a free bitcoin faucet. On average, you can get around 200 satoshis up to 1,000 satoshis per claim. If you are one of the lucky ones, then you might be able to earn a significant amount of bitcoin just from the free faucet. Since this is something that you can try over and over again for free, then it would not hurt to try your luck.
Buy bitcoins
Buying bitcoin is still considered the best way to earn bitcoins. If you just rely on free faucets, it will most probably take you days or even weeks just to earn a dollar’s worth of bitcoin. So, if you want to get a significant amount of bitcoins quickly, then you should buy bitcoins. And, no, you do not need to buy one whole bitcoin. Many people, especially those who are just testing the water, only buy a part of a bitcoin by spending some money. For example, 0.05 bitcoins. After all, the price of one bitcoin these days is already quite expensive.
Bitcoin mining
Mining bitcoin used to be one of the best ways to earn bitcoins. However, today, this is no longer a recommended option. The problem with mining bitcoin is that it is too costly. First, you need to buy hardware that you will use for mining. Of course, you also need your computer in order to mine. Mining also takes hours to do. Therefore, you will have to spend more expenses on electricity. Not only that, the real problem is that mining for hours using hardware usually causes overheating, which is not good for both your hardware and your computer. In the long run, your computer might just break down. It is just too complicated to mine bitcoin on your own.
Due to the said complications and hassle of mining bitcoin all by yourself, there is now what is called cloud mining. With cloud mining, you no longer have to buy and use hardware for mining. In fact, you do not even have to use your computer just to mine for bitcoins. Instead, you can just use the mining efforts of a company that mines bitcoins for a fee.
Now, the price varies depending on how many bitcoins you want to receive. Of course, the higher is your payment, the higher will be the potential return. Here, mining happens online. You can buy and upgrade your miners. By upgrading your miners or buying more miners, you can receive a higher return. Of course, there is always a fee involved. After all, this is an investment. Now, this may seem like a good investment.
However, the problem here is that most (if not all) of these companies that offer cloud mining are unable to give the expected return. For example, they may tell you to upgrade your miners for a fee and, in exchange, you can earn 0.07 BTC per month. However, after paying and upgrading your miner, you will only receive less than 0.07 BTC per month. This is one of the common problems with cloud mining.
Another red signal is that some sites out there that offer cloud bitcoin mining are just hacks and scams that want to rip you off of your money. So, be careful. It is good that you are aware of bitcoin mining because this is something that you will surely encounter when you do research on bitcoin. Who knows, maybe a cloud mining company that can really be trusted might just pop up in the future. It is still a good practice to keep an eye on opportunities. Still, it is worth noting that this article only recommends that you become aware of bitcoin mining, but it does not encourage anyone to actually participate in mining bitcoin.
As payment
Another way to earn bitcoins is simply to request your customers to pay you with bitcoins. This is a good thing to do when you manage a business, especially an online business. There are many people these days who use bitcoins. In fact, there are many known businesses that accept not only real money but also bitcoin as payment, such as Dell and Microsoft. You can even book a hotel or a flight using bitcoins.
If you are familiar with Fiverr, then you should know that it also accepts bitcoins for payment. What is Fiverr? Fiverr is a site online where people offer different kinds of gigs (services). You can find almost all kinds of gigs on this site. The point here is that many businesses accept to be paid with bitcoin. Therefore, it would not be strange if you also do the same. After all, bitcoin seems to be the new trend these days, and more people and businesses are learning to accept bitcoins as a medium of payment.
It is easy to receive bitcoin payments. In fact, its transaction fee is much lower than that of PayPal or Neteller. Simply give your bitcoin wallet address to your customer, and he can send the payment to the said address at any time. There is no need to leave your home and meet up somewhere; everything happens quickly online. And, what is more, you get to save time, ensure convenience, and lower down the cost. A simple way to do this is by posting your bitcoin wallet address on your website or simply email it to your customers or clients.
Many people use bitcoin because of the profit that they can earn. After all, why would anyone exchange their hard-earned cash for a mere cryptocurrency? The good news is that bitcoin appears to be a viable investment. Did you know that if you only invested even just $400 in bitcoin back in 2010, then you would have made money enough to be a multimillionaire by now? The high volatility of bitcoin beats the potential profit that you can make money by investing in stocks, even in penny stocks. So, if you want to make money, investing in bitcoin may the best decision that you can ever make. Here are the recommended ways to make money with bitcoin:
Bitcoin trading
Sites like Bitfinex and Kraken will allow you to trade bitcoins. Take note that you are not limited to trading cryptocurrencies. Most trading platforms will allow you to exchange cryptocurrencies for real currencies like the US dollar, and vice versa. If you want, you may simply focus on buying and selling bitcoin. Of course, the rule remains the same: buy when the price is low, and sell when the price is high.
It is worth noting that there is no guarantee that you can make any money by trading bitcoin. In fact, there is even a possibility that you might lose all your bitcoins in the process, so be careful. In order to increase your success, you should utilize effective bitcoin trading strategies or even develop your own strategy to turn the odds in your favor. Do not worry; we will enlighten you about some of the well-tested and effective strategies to make money with Bitcoin.
Why trade bitcoins?
Why would you want to trade bitcoin and not other currencies or cryptocurrencies? Take note that the key to profit when trading is for one of the assets to increase in value. This increase in value isn’t where your profit will come from. Bitcoin’s price in real money, despite its fluctuation, shows a consistent growth through the years.
Therefore, when you trade with bitcoin, you are already one step ahead of earning a profit since the cryptocurrency that you have in hand is already increasing in value. In fact, there are many traders who end up just investing in bitcoin using the basic buy and hold strategy. After all, the massive price fluctuations of bitcoin allow one to make a good amount of profit within a short period of time.
Bitcoin investing
Okay, you might think that trading bitcoin is the same as investing in bitcoins. We would not blame you. After all, so many people usually interchange both terms (investing and trading). However, you should understand that they are not completely the same. On the one hand, trading bitcoins entails a more active approach.
It is common for bitcoin traders to make multiple trades in one trading day. On the other hand, investing in bitcoins has a more passive nature. Usually, when you invest in bitcoin, you simply buy some bitcoin, keep them for some time and wait for their value to increase. Once you are satisfied with the increase in value (if any), you can then sell them for a profit.
Just like trading bitcoin, investing in bitcoin is also risky. You should not underestimate the high volatility of bitcoin. Although it is not unusual for the price of bitcoin to increase by more than 30% in a few hours, it is also possible that the opposite may happen. Therefore, before you even make any investment, be sure that you back up your every action with research and analysis.
Why invest?
Before investing your money in anything, you might be wondering why it is a good idea to make an investment. After all, it is true that by investing your hard-earned money you expose yourself to the risk of losing your money. So, why invest? Investing your money is a good way to make money work for you. Usually, people work to have money.
By investing your money in bitcoin or anywhere else, you can turn the table the other way around and earn a profit even while you are sleeping. But, of course, an important part of this is to make the right investment. You should invest in those things that will increase in value so that you can earn a good profit. Of course, you are free to just keep your money in your bank. However, if you want to earn more, if you won’t get a higher rate of return, then you need to place your money somewhere else.
Yes, it is true that investing also exposes you to the risk of losing your money. This is the reason why you need to study and analyze the market, as well as every data that may be related to the object of your investment. By studying the different factors that can affect the value of your investment, you can come up with a sound investment decision and increase your chances of making a profit.
Why invest in bitcoins?
Let us go back to the classic, real-life example: If only you invested even just $500 in bitcoins in 2010, you would have been a multimillionaire by now (in case you are not yet a multimillionaire. So, going back, why should you consider investing in bitcoin? Take note that whenever you invest, the value of the thing where you invest must increase in order for you to earn a profit.
It is also important that the increase in value or price should be significant enough, which should be much higher than keeping your money in the bank and have it earn annual interest. Therefore, you need to invest in something that has the potential to significantly increase in value. Of course, for this to happen, it should be something that performs well in the market in relation to its competitors. The good news is that bitcoin satisfies these two points.
Not only is bitcoin the number one cryptocurrency in the world, but its price also has the potential to increase by even more than ten times its current value, according to analysts. This already happened in the past, and the present trend of bitcoin still shows a promising future.
Binary options trading using bitcoins
It would not be a surprise if you ever encounter binary options with bitcoins once you enter those trading or bitcoin investing sites online. So, what is binary trading? Binary trading, also known as binary options trading or simply options trading, is where you predict if the current price of an underlying asset will experience an increase or decrease upon expiry time.
This is like a mixture of stock trading and gambling at the same time. The potential profit is high, but the risk is also high. Also, take note that you do not claim any ownership over the underlying asset being traded. You merely have to predict if its price will increase or decrease upon expiry time. Now, the length of the said expiry time varies, depending on your choice. It can take as long as a week to several weeks, or be as fast as an hour or just a minute, or even less. This is as close to casino gambling as you can get.
The question is: Should you even consider trading options? It depends. Some people claim that this can be a profitable opportunity, while others say that this is simply too speculative and that you will only end up with less amount of bitcoins than what you have started with. This is the choice that you must make. To be sure, you can test the water and invest a small amount. Or, if you want, you can simply try a demo account and see how it works for you. Take note, however, that binary options trading is a high-risk activity similar to gambling.
A note before you buy and/or sell bitcoin
It is important to remember that the price of bitcoin fluctuates even within a single day. So, before buying or selling bitcoins, it is a good practice to first examine the behavior of bitcoin’s price to ensure that you get the most out of your money or bitcoin. Also, make sure that the platform that you use does not charge a high amount.
Some people may recommend that you use Virwox to buy bitcoins — but do not listen to them. The price is just too expensive if you purchase your bitcoins using Virwox. Look for a platform that offers the best deal for your money. This is important, especially if you intend to buy a high amount of bitcoin. And, again, do not forget that proper timing is essential.
Gambling with bitcoin
Another reason why so many people are attracted to Bitcoin is because of gambling. Yes, you can gamble with bitcoin as you can do with money. In fact, there are many bitcoin gambling websites online, and they also have live gambling.
Why would you want to gamble using bitcoin? There are several reasons why gamblers choose to use bitcoin instead of their Visa or MasterCard. For one, gambling with bitcoin will allow you to withdraw your winnings quickly. Unlike gambling using your MasterCard or Visa card where you have to wait for more than three days on average just to get your withdrawal money, gambling with bitcoin will allow you to withdraw your winnings almost instantly. If you are going to withdraw a big amount, the processing of withdrawal may just take as fast as 24 hours or less.
Another reason why people love to gamble using bitcoins is the anonymity that they can enjoy. As you may already know, anonymity is one of the highlights of using bitcoin. Most bitcoin casinos will not even ask for your real name, address, etc. All that you need to do is provide your casino with your bitcoin wallet address. There are people who want to stay anonymous and keep it a secret that they play in the casino. This is the better way to protect your privacy.
If you want to gamble on a budget, then you should consider using bitcoins for gambling. Many gambling websites that accept bitcoins offer a lower minimum bet for those who gamble using bitcoin. Do not worry; there are also tables for high rollers that use bitcoin. What is more, you can also enjoy lower transaction and withdrawal fees. The amount charged when you use bitcoin is much lower than when you use PayPal, Neteller, or even your bank card.
Bitcoin casinos usually have a provably fair system. This means that you can verify that the outcome of a particular game is fair and completely random. When you gamble online, sometimes you cannot help but doubt if the game is rigged, especially when you lose a big bet. Through the provably fair system that is used in most bitcoin casinos, you can rest assured that the outcome of every game is fair.
It is worth noting that there are people who still think that the said the provably fair system is not completely fair, and that it can still be manipulated. Do not worry; you can always gamble in bitcoin live casinos. These casinos have live, attractive, and professional dealers.
You would feel as if you were gambling in a real casino. You can also use the chat feature to talk with the dealer. This also shows that what you see on your computer screen is happening in real-time. Therefore, there is almost no way that you can be cheated. Some people think that these casinos use prerecorded videos, but that is not true. Otherwise, you would not be able to talk with the dealer.
Last but not least, by using bitcoin for gambling, you can enjoy the most famous bitcoin gambling game: the bitcoin dice game. Most bitcoin dice games have a house edge of only 1%, sometimes even less than 1%. Just a word of caution: This game can be very addicting.
It is worth noting that gambling using bitcoin is still gambling. You cannot change the fact that most people who gamble lose their money or bitcoin. Yes, some people win, but most of those people who gamble loose. In fact, many of those who win still lose in the long run. According to Albert Einstein, the only way to beat roulette (a casino game) is to steal chips from the casino. Of course, stealing is wrong, and it is impossible for you to steal chips or bitcoin from the dealer online.
What Einstein meant was the impossibility of continuously beating a casino game like roulette. As people always say: In the end, the house always wins. Therefore, if you choose to gamble, be careful. It is strongly recommended that you just use the bitcoin from the free faucet if you find it hard to control your gambling tendencies. The hard truth is that it is not easy to make money with Bitcoin gambling. On the contrary, gambling is a quick and easy way to lose money.
Manage your risk
Whether investing, trading, or gambling with bitcoins, you need to manage your risk. Take note that these options will give you a higher rate of return than keeping your money in a bank. However, in exchange for the potential high return, there is also a risk of losing your money. Such a risk is in the heart of any profitable investment. So, how do you manage this risk?
Have a plan
Even before you buy any bitcoin, you should have a complete plan on what you want to do with bitcoin. Part of this plan is to set your goals. What will you do with the bitcoin? How much profit do you want to make? How do you intend to reach your expected profit? Of course, you need to research the market and the viability of your strategy. Although plans always have a good objective, you must keep your plan as practical as possible.
Stay conservative
You must keep your computations as conservative as possible. Just because bitcoin experiences a massive surge in price does not automatically mean that the same thing will happen again. In fact, there is also the possibility that its price may drop down in the future. It is hard even to make an estimate of how bitcoin’s price will change.
When you do your own computations, it is strongly advised that you keep them as conservative as possible. For example, instead of assuming that bitcoin’s price will increase by 15% in one week, you should also be ready when its price only increases by 7% in the next two weeks. The key here is to be prepared for a worse scenario.
Get as much information as you can
When dealing with bitcoin, the thing that can leverage your position is the amount and quality of information that you have. The more information that you know about bitcoin, the better you will be able to predict its direction in the market. Of course, if you know the direction that the bitcoin will take, you can easily come up with the right investment decisions.
For example, if you know that the price of bitcoin will shoot up, then you can buy a bitcoin today so that you can sell it for real money with a good profit in the near future. If you are able to identify the time when the price of bitcoin will drop significantly, then you can sell your bitcoins before the price drop. By knowing how the bitcoin’s price will change, you will also know how to make a good profit from the changes.
Work on your strategy
The best way to manage your risk is to minimize possible losses. After all, your risk is only the amount of losses that you may experience. But, how do you do this? The best way to minimize your possible losses is by having a strategy. Regardless of whether you are an investor, trader, or gambler, you must develop a strategy that can minimize your risk and turn the odds in your favor.
Focus on small gains
It is true that those who invest in bitcoins are usually those who want more than a 200% return on investment. However, it is also true that any big success is composed of small successes or gains. Also, the amount of risk almost always corresponds to the amount of potential return. Now, instead of working your way to getting a 200% ROI within a short period of time, focus on getting even just a 2%-4% return.
By doing so, you get to be more focused on the details, which is essential to success. Sometimes investors and traders get too fond of looking at the big picture without realizing that the way to reach their goals is to focus on the details. By being more specific and working your way to get small yet continuous profits, you can reach the big amount of return that you have always wanted.
Psychology of trading
Whether you want to invest in or trade bitcoins, here are some trading psychology that you should be aware of:
Bandwagon
This is a trading instinct to just go with the flow. If people are buying bitcoins, then you do the same. When people start selling their bitcoins, then you also make a sell order. Take note that if you want to be a professional investor or trader, then this kind of behavior is something that you should avoid. This approach is only for beginners and those who know nothing about how to invest in or trade bitcoins effectively.
It is true that how the market behaves has a strong impact on the price of bitcoin. However, just because you see people buying bitcoin does not always mean that it is also the best time to make a buy order and spend money. Again, you need to make thorough research and study the bitcoin market. After all, market behavior is only one of the factors that affect the price of bitcoin.
Herd Mentality
This begins with a single cause. For example, imagine a group of people, then suddenly one of them starts to scream at another. Suddenly one or two people in the group will be affected and might even do the same. This continues until the whole or majority of the group is affected and saturated by the cause of one person. Here, an individual or a small group affects the entire group like a ripple affecting the whole surface of the water. Therefore, do not believe right away how people respond to things. As a professional, you need to analyze everything with a clear mind. Usually, people who fall for a herd mentality do not act strategically.
You can, however, take advantage of the herd mentality. Depending on the possible consequences, you will have an idea of how the bitcoin market will behave, which can have an impact on the price of bitcoin in terms of money. However, before you do so, you must know just how other people are affected by the “news.” A good way to measure this is by being updated on the news, as well as reading the comments on major bitcoin sites and forums.
Ostrich Effect
This is a case of self-denial. Usually, the people who commit this are the beginners who refuse to accept that they do not know anything yet about investing in or trading bitcoins, much less about gambling. They simply focus on what they want to happen without looking at their own foundation. Of course, the natural consequence of this behavior is that you can easily lose your bitcoins.
When you are a beginner, you need to admit that you still have a lot to learn. Also, you need to focus on the steps that you need to take, and not on the fruit of your action. Many people commit the mistake of simply focusing on growing their bitcoin funds when, in fact, they should focus on the details, such as exactly how they can grow their bitcoin.
Loss Aversion
This is a case of chasing after one’s losses by still keeping those that may not earn you any more income but only hope that the price will increase to give you profit. Now, this is not always a bad thing; however, just be sure that you do a good amount of research to back up your decision. Do not hold on to a losing option simply because you want to trust a miracle to make you a profit. Take note that the market does not care about you or how you think or feel. Be objective.
Focusing
This usually happens when you do not have enough information about something. What people do is to stick to even the smallest detail and use it as the basis of their investment decision. Now, you should be careful about this because sometimes the information that you have may not be enough to allow you to come up with any sound investing or trading decision.
Unfortunately, there are people who feel as if they are compelled to make a trade or investment simply because they have available bitcoins in their account. This is wrong. If you think that the information that you have is not enough to enable you to come up with a good investment decision, then the best thing to do is to wait for the right opportunity. Sometimes the best move is not to take any action.
Take note that when you work with bitcoin, having little information is almost as good as not having any information at all. Bitcoin is highly volatile, and it is sensitive to price changes due to many factors. Therefore, make it a point to get as much information as you can, and never take an action merely based on limited data.
Optimism Bias
This is where a person thinks too positively. Yes, it is nice to think positive, but you should also consider reality, as well as all the consequences of your actions. Take note that although bitcoin appears to be a good investment, it does not mean that it is a guaranteed goldmine that will make you a huge amount of profit in terms of money or bitcoin. Optimism is good, but do not forget to think practically. Do not let it blind you from reality.
Most investors who are too optimistic end up losing all their bitcoin and money. The reason is that the bitcoin market and economy do not care about anyone’s optimism. You must approach bitcoin objectively and rationally if you intend to make a continuous profit with it.
Take note that this does not mean that you should not be optimistic. But, you have to make sure that your optimistic ideas are also backed up with good reasons. Never be too optimistic about any investment that you make, including investment in bitcoin. Do not forget that risks are always involved and that it possible for you not to earn anything.
Overconfidence
Overconfidence usually happens when you encounter a series of positive outcomes. You then start to feel as if anything that you analyze will always result in a favorable outcome. Take note, that although having confidence in yourself is good, getting overconfident can be tragic. This has the same effect as being too optimistic.
Some people get too confident that they no longer spend the same amount of research and analysis as they used to. Never let your guard down, and keep on improving yourself as an investor or trader. Continue to learn as much as you can about bitcoin to help you come up with a sound investment decision.
Regret
This usually happens when you fail to sell your bitcoins before the value drops significantly. Some bitcoin traders regret it too much that they tend to sell their bitcoins afterward even when selling would not be a good idea. Do not let regret lead to how you invest or trade. What you should do is to learn from your mistakes and keep your focus on earning more profit.
