The Short Version of Bitcoin History
Bitcoin was created back in 2009 by someone (or some group of people) known by the pseudonym of Satoshi Nakamoto. At the time that it saw the light of day, nobody had even heard of cryptocurrencies, let alone encountered one.
Bitcoin’s infant and teenage years were really unpleasant – it neglected to pick up huge footing and consideration, despite the fact that its costs changed for what (around then) appeared to be a lot. Nobody was all the while considering how to bring in cash with Bitcoin.
At last, toward the start of 2017 Bitcoin penetrated the benchmark of $1000. In simply a question of a year, it figured out how to nearly come to the $20,000 checkmark.
Obviously, this was tremendous – everyone either remained with their jaws arriving at the floor or emptied all that they had into Bitcoin – it appeared to be a relentless power that continued expanding its force each and every day. On the off chance that you’ve as of late checked the Bitcoin value graphs, notwithstanding, you realize that things went in a new direction.
The Fall of Bitcoin(?)
At the beginning of 2018, Bitcoin’s price was around $11,000, then reached a shocking low of almost $6000. At the time of writing this guide, Bitcoin is currently worth $6400.
UPDATE 2021: Two years later we can see that Bitcoin is performing pretty well. The current pricing of the cryptocurrency is $27,170 and, while there are some noticeable ups and downs, the price seems to remain pretty high, just like at the beginning of 2018.
If HODLing is long-term investing, trading Bitcoin is its fast-paced equivalent. Essentially, BTC trading means taking advantage of Bitcoin’s highly volatile nature. This method requires practice and knowledge of the market, so be sure to do your homework before you even think about giving it a shot.
Here are a few styles of trading to get you started:
- Day trading – Day trading entails short and quick trades, allowing opportunities for small and fast profits. Day traders don’t hold any open positions overnight, so the method consists of carefully analyzing the market, seeing small money-making opportunities, and capitalizing for a small profit. At the end of the session, day traders could have a significant cumulative gain.
- Swing trading – If HODLing is long-term and day trading is short-term, swing trading is kind of in the middle. Like HODLers, swing traders will buy low, wait long enough to see their holdings increase in price, and then sell high. However, their holding time isn’t as long as a HODLer and isn’t as short as a day trader.
- Arbitrage – Bitcoin arbitrage is similar to the styles above. However, instead of looking for money-making opportunities within the same exchange, traders who use arbitrage look for those opportunities across different platforms. In essence, they buy BTC from exchange A then sell it at exchange B for a higher price.
All these methods require a lot of practice, so don’t expect to get it right on the first try. Just do your own research, figure out which strategy is best for you, and trust that you’ll be on your own way.
No, we’re not talking about heading into a cave with a pickaxe and a hardhat—we’re talking about Bitcoin mining, one of the first ways to ever obtain BTC. This is the process in which miners use powerful computers to solve complex mathematical problems. When they crack the code, they’re rewarded with newly-minted BTC. It’s basically a race to see who can solve the block the fastest and those lucky enough to do so reap the rewards.
Back in the day, mining wasn’t as complicated. Some of the earliest miners were able to mine thousands of BTC using just their home computers. Now, it’s a very different scenario. To mine in today’s BTC scene, you’ll need top-tier equipment—which can set you back a few thousand bucks. Also, since Bitcoin has made a name for itself now, you’ll have a lot of competition.
To give yourself a fighting chance, you can join Bitcoin mining pools or mining clouds. A Bitcoin mining pool is a collaborative group of miners who combine their computing power to solve complex mathematical problems faster. A Bitcoin mining cloud is similar, but instead, they use the cloud to connect their computing power. That way, they won’t have to install and run the hardware and related software directly. In either case, the miners’ fees paid from transactions and the newly-minted coin are split among the people in the group.
As the competition gets fiercer, the better equipment you’ll need to profit. And as you spend more on equipment, your profit margin decreases. As a result, Bitcoin mining isn’t as profitable as it used to be. Do plenty of research before getting into mining because there are plenty of easier ways to earn money with Bitcoin.
3. Buying and holding
Buying and holding Bitcoin is one of the most straightforward and most beginner-friendly trading strategies out there. First, get a Bitcoin wallet, buy BTC, and then hope that the price spikes in the future—no matter how long that may take. It could be weeks, months, or even years before you decide to sell.
The term HODL was coined because of this. It started as a typo on a forum, then it became a full-time trading strategy. It also means to Hold On for Dear Life—so it’s essential to look at how Bitcoin is valued and go from there.
4. Taking advantage of affiliate marketing
A lot of companies use affiliate marketing to bring in new customers. This type of marketing incentivizes existing users to bring their friends and family to the business as well. You’ll see these types of incentives all over the market, but they differ from one another—so carefully study each one and choose which program you want to invest your time in.
Here at Paxful, we’ve got our very own affiliate program. It’s one of the best on the market as it gives users the best opportunity to make money with Bitcoin. Look into it and see if you’d be down to try it.
5. Accepting Bitcoin as payment
As it continues to mature, we’re starting to see more and more businesses that accept Bitcoin as payment for their goods and services. So if you’re already running a business, why not consider taking BTC as payment?
It’ll widen your global reach, make payments secure, and speed up the entire payment process. The best part is that it’s incredibly easy to start accepting Bitcoin. If you’re running a physical establishment, it’s a matter of putting up a small sign at your storefront and beside your cash register. If your business is online, you can put a banner on your home page or use a payment intermediary like Pay with Paxful to fully integrate it into your website. At those points, customers can just send funds directly to your Bitcoin wallet.
Once you start raking in the BTC payments, you can then use those funds for investment—and who knows? It may just grow in the future.
6. Microjobs and Pay-to-Click (PTC) websites
Several websites will pay you in Bitcoin if you watch an ad or click on a link to a particular page containing ads. Bear in mind, to make any significant money is still very hard work and a tedious task. If you’re immune to that, these sites are an excellent way for you to earn a quick buck. Coinpayu and adBTC are good sites to check out if you’re interested in making money with cryptocurrency.
Similarly, Microworkers and Cloudfactory are sites that pay you a small fee to complete very simple tasks like watching a YouTube video or completing someone’s survey. These sites have Bitcoin counterparts like Bitcoinget and Cointasker, where members can choose thousands of tasks to complete to earn Bitcoin.
7. Writing about Bitcoin
In general, cryptocurrency is a new niche, and only a handful of writers genuinely know this niche. This means the market is flooded with newbie copywriters who rehash the content over and over again.
So, if you really know this niche and have decent writing skills, why not try your hand at educating the masses with your craft? Crypto Currency News and Blockchain Aliens are among several websites that can pay you for writing about Bitcoin. You can also use a lot of freelance websites like Upwork and Freelancer.
8. Gambling Bitcoin
If you’re self-aware enough, the Bitcoin gambling market can be a good source of income. In most cases of gambling, the house always wins. However, Bitcoin gambling is a special case since it’s a very niche market—allowing you to earn huge bonuses or even several rounds of your stake to start with.
Sites like Bitstarz and mBit are significant players in this space, so be sure to check them out if you’re interested.
9. Binary trading
Binary trading has existed in the financial world for a very long time. It was only a matter of time before it made its way into the world of crypto. Binary, as the name suggests, has just two options: a trader purchases an option and an expiration time. The trade is either “in the money” or “out of the money.” Basically, you’re betting on where the price is going.
For example, the price of BTC is 3,000 USD at 10 AM. You can either bet that the price will be more or less than that by 6 PM. If you bet that the price will increase and that happens, you earn the payout of a certain percentage of your investment. However, if it’s lower, you lose the investment. On the other hand, if you bet that the price will go down and it indeed happens, you earn the option’s payout.
Instead of making money with bitcoin, why not let bitcoin make money for you?
By lending bitcoins to other people, you can earn interest on your bitcoins. Holding bitcoins will not make any money. Instead, if you lend them to someone, your bitcoins will earn for you. This is indeed better than holding bitcoins as holding could prove no less of a gamble.
You would not want to lose your bitcoins, would you? To avoid spam, trust your bitcoins with a credible lending platform. Unchained Capital, Bitbond, and BTCpop are amongst the trusted lend-and-borrow platforms. These platforms offer interests of up to 15%.
Be a smart earner and let your bitcoin make some extra for you. You can also sign up to Earn on Zipmex and get 6% on your BTC!
Even following a time of its dispatch and the way that it isn’t ‘new’ Bitcoin stays an expected venture. You can bring in cash with bitcoin through different roads, including exchanging, contributing, mining, member programs, miniature profit, and some more. The measure of cash that you will bring home with bitcoin relies upon the technique you pick and the sum you hazard. It is constantly encouraged to do your examination before you empty your interests into bitcoin.
Bitcoin is unstable; its worth can increment or diminishing in no time. Thinking about this as a primary concern, finding the best purchase cost is troublesome. Likewise, these changes can hamper your exchange. Envision you sold some bitcoins just to know the cost of bitcoin expanded the following moment. Also, discussing your speculations, you will burn through enough time jumping between various trades to find various ventures.
Zipmex viably tackles every one of these issues under one rooftop. You will locate the least purchase cost on Zipmex. Additionally, you can finish exchanges at lightning speeds. To be more exact, you can purchase and sell bitcoins rapidly. Truly, you heard it right!