17 Easy Ways To Make Money With Bitcoin in 2021
Cryptocurrencies are all reaching all-time highs and this is now the season of having your friends ask you how to make money with Bitcoin. Investing, trading, and mining are the first methods that come to one’s mind, but is that really everything that you can do? Not really, the truth is that there are a total of 17 ways to build a great crypto portfolio.
Not an avid reader? That’s fine. You can also learn about how to make money with Bitcoin with our Youtube video.
As the number one cryptocurrency reaches a huge milestone this month, surpassing $50,000, newcomers wonder if making money with Bitcoin is still possible. Multiplying 14 times in size since last year’s March crash, the leading digital asset managed to outperform everyone’s expectations. After all that growth, is there really room for more?
Despite the fact that even the most experienced traders are now scared that Bitcoin is overextended, we are both fundamentally and technically in a good place. If we compare network statistics from 2017 (like fees, tx speed, network congestion, etc.) to what we have today, it becomes clear that the ongoing bull run is nowhere close to reaching the euphoric state from four years ago.
If you share our bullish sentiment, we urge you to read about the top 17 methods of how to make money with Bitcoin in 2021.
1. Trading
Let’s start with the hardest but the most profitable method. Experienced traders who engage with the market on a daily level make the most money with Bitcoin. However, their job is highly risky, and a streak of bad luck can liquidate anyone’s portfolio. It is not that rare to see even the best users from Crypto Twitter stubbornly trade against the market and not make a dime in months.
But hey, losing is a part of the game. There is not a single individual in the crypto universe that has a 100% win rate. Those who claim to rarely lose either paper trade or use their photoshop skills to make themselves look better.
Briefly put, trading takes a lot of time to master. However, once you are near the end of your journey, trading becomes an activity that can easily replace your job or at least bring in income from the side. We recommend that you conduct your due diligence and learn from the best before starting to trade. If interested, check out the following trading styles:
Day Trading. A day trader is a person who trades throughout the entire day. The person usually participates in one or two trading sessions during which he opens quick positions for consistent and small profits. The edge with this style is that one frequently takes profits and builds a portfolio over a longer period of time, even if it takes longer.
Scalping. Scalping is a more aggressive and incredibly active version of day trading. Positions are held for a short amount of time, and usually, the positions are riskier than usual. Scalpers also tend to use more leverage and snipe positions by targeting dips. However, the more popular version is to scalp an anticipated range that does not break.
Swing trading. Swing traders stay profitable by trading in both bullish and bearish directions. They do not care about long-term market movement. The only goal is quite literally to buy low and sell high. In the most straightforward words possible, swing traders ‘swing’ from one position to another.
Position trading. Position trading is a long-term game in which traders hold a position for multiple weeks, if not months. For example, if you have longed Bitcoin in December and closed the position in February, others would say that you are a position trader.
2. Investing
If trading sounds too complicated or time-consuming, then try to make money with Bitcoin purely by investing. HODL is a strategy that has not failed so far, and a majority of traders who bought tokens and coins at the lows are today sitting in profit.
Although buying and holding do not have the same capacity for profitability as trading, it is still a viable solution for those who want to participate in the market but stay relaxed. The only thing that you have to do is buy cryptocurrencies from an exchange, transfer it to a crypto wallet, and wait for the perfect moment to sell. Sounds easy, right?
If you are unsure about what to buy, we recommend that you research the following types of crypto assets:
Bitcoin. Bitcoin is the number one cryptocurrency in the market, and no other asset comes close to its size. If you prefer a stable and long-term position that has almost zero risks development-wise, then Bitcoin is the right choice.
Ethereum. Are you priced out of BTC? Then look no further than Ethereum. Ether is the leading crypto altcoin by market cap, and according to experts, it still has a long way to go until it ends its price discovery stage. Moreover, Ethereum 2.0 is a narrative that implies bullish future price action.
Altcoins. Ethereum is not the only altcoin, and you do not necessarily have to buy the most valuable one. There are plenty of other crypto assets to invest in other than Bitcoin and Ether. DYOR and research CoinMarketCap’s top 50 cryptocurrencies; you may find something that you like.
DeFi assets. Altcoins, specifically those from the ICO era, are definitely not as hyped as assets from the decentralized finance market. DeFi tokens promise a new paradigm, and because of that fact, they definitely experience more volatility compared to old altcoins.
3. Crypto Airdrops
Projects usually reward their loyal community by hosting crypto airdrops. Essentially, an airdrop is an event in which users receive tokens from a team. Those who have used the platform or follow the project on social media are usually the ones to be eligible for the airdrop.
Uniswap held an airdrop after launching a governance model, and so did Tornado Cash. 1inch Exchange also frequently drops unannounced airdrops, so make sure to visit their platform. If you do not have the time to search for projects who do these rewards, we recommend that you visit any popular airdrop aggregator.
4. Mining Bitcoin
Mining is the easiest way to make money with Bitcoin without requiring stacks of cash. If you already have a powerful PC with a strong graphics card, there is no capital needed to start mining. Simply join a mining pool or host your own node on a network like Bitcoin, Ethereum, or ZCash and start mining right away.
Fees are high at the time of writing, and miners primarily earn their income from network fees. If you want to cash in on that, it would be wise to put your PC to good use. Moreover, you can also invest thousands of dollars into an ASIC machine or more graphics card to earn even more money by mining.
Be careful though. If electricity costs are high in your area, mining would not be that good of a decision. Head over to a website like NiceHash or CryptoCompare and calculate your profitability by inputting your power costs and your GPU’s hash power.
5. Lending
As the name implies, lending is a process in which an individual lends his crypto assets to another entity or person. The individual then accrues interest and earns money by merely locking tokens for a limited time.
Crypto platforms like Celsius Network reward you with more than 10% interest on an annual basis. However, the rewards that you earn entirely depend on the asset that is loaned. Some assets reward users with interest as large as 15%, while others only give a measly 6%.
It is essential to DYOR and figure out how each platform treats lending. Some have a fixed percentage, while others reward you with a variable rate that changes over time. Another crucial point is the lock-up period. While specific platforms ask that you lock up your assets for an entire year, others let you take back your crypto anytime that you want.
6. Staking
Staking functions pretty much the same as lending. However, there are no loans involved in this case. The purpose of staking is to strengthen the stability of a network. In return, the project rewards users who lock up their tokens.
For example, Ethereum 2.0 allows investors to stake 32 ETH and host a validator network. By doing so, investors earn money by validating transactions.
Popular cryptocurrency exchanges like Binance let users stake assets from their own platform for a seamless experience. Instead of continually moving assets and chasing the best yield rate, you can stake different projects all from one interface.
7. Yield Farming
Are you not satisfied with either staking or lending? In that case, you can try a third alternative: yield farming. In DeFi, yield farmers help decentralized exchanges and other liquidity protocols by providing liquidity in the form of crypto assets.
Think of it as a weird combination of staking and lending. Decentralized exchanges distribute your assets to a token swapper who wants to trade, and in return, the platform awards you the trader’s fees.
Yield farming is a perfect passive income strategy for those who already own cryptocurrencies. But for inexperienced crypto newcomers, farming might be too complicated. Users have to deal with impermanent loss and always have to chase the best liquidity pool across multiple platforms. If that sounds too tiresome, we recommend that you stick with staking and lending.
8. Post on the Bitcointalk forum
Do you consider yourself to be educated on topics like cryptocurrencies, blockchain technology, and decentralized finance? Put your boundless knowledge to work by participating and posting on the popular Bitcointalk forum. With enough posts, the forum will give you a special sponsored signature that enables you to earn BTC rewards by posting.
9. Bitcoin Tips
Influencers, bloggers, YouTubers, and all other content creators can make money with Bitcoin by creating a crypto tip jar! A majority of online figures have a Patreon account or a personal PayPal donation link. If fiat currency is not in your best interest, ask your followers to donate with cryptocurrencies instead.
Interested users can copy their wallet addresses or convert them into a scannable QR code. These can be added to any spot on your channel or website so that viewers can know how to tip you with Bitcoin.
10. Faucets
Bitcoin faucets are no longer as popular as they used to be. Nevertheless, you might still find a few platforms that run faucets. For doing simple tasks, like watching ads and completing surveys, the website rewards you with satoshis (the smallest BTC unit).
If you want to engage in the crypto market without having to invest, Bitcoin faucets are a great way to earn money. Do note that faucets do not award that much BTC and that you are likely better off with other options.
11. Write cryptocurrency content
Similar to Bitcointalk, educators can earn money by writing cryptocurrency content on plenty of blockchain-based websites. Those who work online or travel abroad can therefore create another source of income by writing about cryptocurrencies and getting paid for it.
For example, you could write an overview of a particular project or create a tutorial on how to use Uniswap. Websites like Publish0x will reward you ETH for each post that you make. If your post is successful and many viewers read it, you will earn more money.
12. Gamble with Bitcoin
It is not strange at all to see Bitcoin and other cryptocurrencies being used to power online gambling platforms. These so-called Bitcoin casinos host all kinds of games with which you can gamble your money away. For a lot of people, this will not work out. But for those who are experienced with games like Poker, gambling is more than a viable option.
13. Work in the industry
Are you a software developer? If you are knowledgeable in blockchain coding languages like Solidity, you can apply to work for a crypto project. Usually, they pay workers in cryptocurrencies like Bitcoin or stablecoins like USDT and USDC.
Not only is this a great way to earn cryptocurrencies, but you also have the chance to work in a booming industry that represents the future of finance. Take a bold step and be a pioneer. Who knows, you might end up with tons of crypto savings and land yourself a space mission to the moon.
14. Bug Bounties
For software developers who cannot bother with learning a new language, bug bounties might be a better option. Both regulated companies and anonymous crypto projects often host rewarding bug bounties that give away cryptocurrencies. If you find a critical bug or exploit, you can earn more than $10,000 in some cases.
It is a tough job and requires a lot of technical knowledge, especially regarding the field of cybersecurity, but if you already enjoy participating in bug bounties, you might as well join one that is related to cryptocurrencies.
15. Affiliate Marketing
Affiliate marketers traditionally create content that persuades retail consumers to buy a product or subscribe to a service. In the world of crypto, affiliate marketing is done to onboard new users to projects and communities.
Exchanges often reward you for bringing new users through their referral system. On some platforms, you can even earn money on every trade that they make. If you have friends who bug you about cryptocurrencies all the time, feel free to hand them your referral link.
16. Complete surveys and other simple tasks
Much like Bitcoin Faucets, Pay-To-Click platforms reward you via Bitcoin for completing surveys, watching ads, and completing menial tasks. These tasks are monotone, but if watching ads is the only option that you have, there is really no better alternative. Who knows, maybe you will have the chance to watch an interesting youtube video from time to time when completing tasks.
17. Sell old stuff online for Bitcoin
In the case that you have anything lying around in your house and collecting dust, it would be best if you get rid of it. Usually, people throw their old belongings in the trash or sell them online. If you really want to join the crypto sector, you can sell your items online…but for Bitcoin.
Anyone can easily buy Bitcoin these days. If this method interests you, create an ad on Facebook Marketplace and sell something like an old laptop for 0.01 BTC.
How to make money with Bitcoin when you don’t own BTC
Roughly eight items from our list require you to either own Bitcoin or to have some form of capital. The question is: how to make money with Bitcoin when you do not own it?
We have already mentioned quite a few options. For example, airdrops and writing content online are two amazing and profitable options. In the case that you are unsure where to start, we have created yet another list based on how easy each task is.
We have ranked the five best methods that do not require BTC capital in the following way:
Airdrops
Writing crypto content
Affiliate marketing
Writing posts on Bitcointalk
Selling items online
Airdrops are rare, but they often distribute more than thousands of dollars in rewards, which was the case with Uniswap. Writing crypto content takes time, but if you consider yourself a crypto enthusiast, you can regularly earn money and actually enjoy working.
Affiliate marketing requires a big network of followers or friends, but there is really no active work involved apart from sharing links. Writing posts on Bitcointalk is another way to earn money by writing, but you do not earn that much. Last but not least, selling boxes of old belongings can help you earn Bitcoin fast, but if there is nothing to sell, you are out of luck.
Which method would work best for you? Feel free to let us know in the comment section! Who knows, perhaps someone will profit from your own strategy.
Conclusion
Who says that cryptocurrencies are not inclusive? In this article, we have covered 17 unique methods for how to make money with Bitcoin, and only 8 of them require that you have a preexisting crypto portfolio.
Naturally, there are tougher and easier methods. While trading is the most profitable way to earn crypto, it is definitely complicated compared to everything else. But with the right mindset and disciple, you can change the course of your life forever.
We do not, of course, recommend that you get into trading if you have no previous experience. For those who are new, it would be best to build a small portfolio and expand it over time by yield farming, staking, or lending.
If you have a success story, make sure to share it with us. Not only will you show outsiders that cryptocurrencies have the ability to help people, but you will also show those who are reading this article how you achieved your goals.
Shrimpy is an account aggregating platform for cryptocurrency. It is designed for both professional and novice traders to come and learn about the growing crypto industry. Trade with ease, track your performance, and analyze the market. Shrimpy is the trusted platform for trading over $13B in digital assets.
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