Cryptocurrency is growing despite the issue of volatility which has seen the prices of crypto assets fluctuate. Bitcoin has been far off its all-time high of 2021, it is however still a sure way of making money.
Bitcoin (BTC) is the largest and most popular cryptocurrency which has attracted several investors. Many became overnight millionaires with BTC in its early days and is still a good option to make ‘good’ money today.
In this article, we’ll see the top 5 ways to make money with Bitcoin. Before going into that, let’s look at what bitcoin is briefly.
What is Bitcoin?
Bitcoin is a digital or virtual currency created as a solution to the global financial crisis of 2008. It is created to be used in a peer-to-peer transaction by an unknown individual or group who goes by the pseudonym, Satoshi Nakamoto.
Asides from being a virtual currency, bitcoin is different from fiat currency as it is not backed by any government. As a type of money, bitcoin exists mainly as computer code—that has no central issuing authority.
Bitcoin is a type of cryptocurrency which is known to have a fluctuating value linked in part to a mathematically predetermined scarcity. It is the first of its kind which led to the creation of others alike which are known as Altcoins.
Bitcoin trades in the crypto market by the symbol BTC. It is ranked first with a market cap of $378 billion (as of writing).
Top 5 Ways of Making Money with Bitcoin
Bitcoin provides many opportunities for its holders to make money and several ways of doing this are emerging. The proven methods of making money with BTC are discussed below.
1. Trading Bitcoin
This is the most popular method of making money with crypto assets such as bitcoin. You can buy and sell bitcoin to make a profit quickly. Crypto traders go into the market to buy low and sell high.
Binance, Coinbase, Kraken, and other crypto exchanges allow you to buy and sell bitcoin. To be profitable in bitcoin trading, you will need to use a platform that buys/sells at good rates. Prestmit is one of the best sites to sell bitcoin in Nigeria and Ghana.
Whether day trading, swing trading, or arbitrage trading, you can make profits from your crypto asset.
2. Buy & Hold Bitcoin
Buying and holding bitcoin is the easiest way of making money with bitcoin. It is the best method to apply during a market downturn. You can simply buy bitcoin on the exchange that meets your needs and then hold onto your assets till another bull run.
Today, many crypto investors are ”buying the dip” to make huge profits later. Bitcoin as well as Ethereum are the best crypto assets to buy & hodl because of their high liquidity. The number of people owning cryptocurrencies is increasing daily.
3. Bitcoin Lending
Another important way of making money with your bitcoin holding is to lend to borrowers to earn interest. Instead of holding onto your bitcoin holdings, you can give them out as a loan.
There are several platforms to borrow and lend your tokenized bitcoin. This includes BlockFi, Aave, Compound, MakerDAO, Binance, etc. It is however important to note that there are risks attached to crypto lending.
4. Play-to-Earn Gaming
One of the new ways of making money in the crypto space today is through gaming. You can simply make money by playing crypto games in the comfort of your home. Here, you simply earn by playing games that are interesting right?
In these games, you play to earn in-game currency which can be exchanged for popular cryptocurrencies such as bitcoin. Getting a reward in bitcoin for playing gaming is no doubt an impressive way of making money in the crypto space.
Axie Infinity, Sandbox, Decentraland, and so on are examples of the top platforms for play-to-earn gaming.
5. Staking
Staking is a strategy that is common with cryptocurrencies that uses proof-of-stake (PoS) consensus mechanisms such as Ethereum. Bitcoin uses a proof-of-work (PoW) consensus mechanism so can’t be staked directly but mined. BTC can be staked by first converting to Wrapped Bitcoin (WBTC). This can be done on platforms such as Binance to earn.
You can also sell bitcoin in exchange for the best gift cards to buy other items online and then sell to make profits. Another way is to run a lightning node, earn cashback on credit card purchases, and so on.
Closing Thoughts
There are several ways of making money with cryptocurrency, especially the number one crypto asset, bitcoin. The real-world use cases of BTC and its advantage over the traditional money system make it a very good option for making money in the world today.
Cryptocurrency is still in its infancy stage, which means that the opportunity to make money will still be more than it is now. You can get the latest bitcoin news in Nigeria to stay updated about the happenings in the crypto space.
