In this article, I am going to tell you exactly how to make money with bitcoin. Almost everyone that’s heard about bitcoin has been asked or have asked themselves: is this a good investment? When taking this question seriously, they start googling this phrase and see several articles about the price tanking and losing over 80% of it’s value in the past 18 months and so on. One of the things they probably don’t realize is what the year-over-year gains are, when looking at where it was vs. where it’s going. Yes, at it’s all-time-high it reached upwards of $20,000 in December of 2017 and have been wildly volatile ever since.
What most people don’t realize is that after that so-called “crash” is that the price of bitcoin in the first week of January of 2018 was $16,477.59, according to CoinMarketCap.com. That is still significantly higher than the price of Bitcoin in January of 2017, which was under $1,000. I can provide numerous examples of what the price was in January of every year since the inception of this wondrous invention.
However, I understand that the average person who does not understand the technological advantages of this coin over the current legacy financial system, can remain skeptical in terms of it being a safe investment.
Although, I very strongly believe in the fundamentals of this project, I want to provide some uses that will help you generate more money from your existing bitcoin and accrue a calculated percentage increase month of over month, as well as acquire bitcoin without directly buying it from a company, like Coinbase. Here are the top 3 ways I’ve personally found success, and with a little research and understanding of this market, you can easily find a way to generate passive income (or actively) if you’re so inclined. Below are my 3 favorite methods.
How To Make Money With Bitcoin
METHOD #1 FOR GENERATING PASSIVE INCOME – DAY TRADING ALTCOINS
If you are new to the scene or making money with bitcoin, you may not be aware that there are hundreds, if not thousands, cryptocurrency exchanges worldwide. Some are very sketchy and some have been around and been trusted, and even regulated and insured, to give you a little extra piece of mind. I have used some that have locked up and stolen my coins, and I’ve used several that I know and trust (to a degree) for several years with no problems.
***SIDE NOTE: Exchanges are a crucial component for new people onboarding into the cryptocurrency ecosystem and I understand why they are needed. However, under no circumstances do I recommend you store you private keys on exchanges for long periods of time. The best general rule of thumb is once a trade is completed, pull your private keys onto your own hardware wallet (which can be recommended and purchased through this site) and keep them there until you decide to exit a trade or re-enter into a new one.***
The above disclaimer is not meant to scare you, but more as a reminder to be vigilant of your private keys, as there have been several exchange hacks in the past 10 years. There are some “best practices” I’ve covered in a previous post, and I will be posting an updated version very soon.
Having said that, the exchange that I use very often and that I trust is called Binance. This exchange is currently the largest exchange by volume and has been trusted for several years and I feel safe using them with my trades.
I will include a link that will make it easy for you to sign up and receive some discounts on trading fees at no cost to you. Although this is my number one used exchange, there are other trusted exchanges I use such as Kucoin, Bittrex, and even Kraken (since they worked out a lot of their kinks over the past year).
The basic strategy here is to transfer your bitcoin to the exchange wallet, select an altcoin that you’ve researched, and enter a trade with an amount that you’re comfortable with. From there, set a target to you want to hit and then exit the trade back into Bitcoin. Hopefully, you will have a much larger amount than you started with. Rinse and repeat as necessary. Of course, once you complete this process, I strongly recommend you transfer your newly found Bitcoin profits onto your personal hardware wallet for safe keeping.
METHOD #2 FOR GENERATING PASSIVE INCOME – CLOUD MINING
This one is pretty straightforward. If you are unfamiliar with what bitcoin mining is, I will leave a link right here to a post that will explain this in depth. The concept of cloud mining is that instead of buying your own hardware, graphics cards, and various components needed to assemble a rig, (not to mention the “know how” of how to properly set this up correctly) you can rent or lease a company’s hardware that will mine for you..
By doing this, you can avoid all the hassle of setup, additional costs, noise, and excessive electricity. I am currently doing this myself and have done it for several years. There is one company in particular that I use and trust and they are called Hashflare.
This company has been very responsive, trustworthy, and an otherwise pleasure to work. This has been very profitable endeavor for me over the years.
There are several other cloud mining services out there. I will not mention or suggest them in this post, because I have not personally used them. However, if you google it, you will find several references for this kind of service.
This will allow you to be apart of the “Bitcoin Minting” process, which allows you to not only contribute to securing the already unbreakable network, (which is a very noble cause) but also continues to strengthen bitcoin’s position in the marketplace with your help.
METHOD #3 FOR GENERATING PASSIVE INCOME – BITCOIN LENDING & INTEREST PROGRAMS
This feature is fairly new and I will be posting a review on the featured program here shortly, but this is a new niche that I think is going to be huge in 2019. The company in question here is known as Blockfi. You may have heard of some companies that allow you to invest your own money into crowd-funded loans with the promise of large interest payments month over month in return, such as Lending Club or Prosper.
Blockfi is one of the first (if not the first) commercially viable ways to get a cryptocurrency backed loan (using your cryptocurrency as collateral) to help you pay off credit card debt, get a new car, fix up your house, etc… This is significant, for 2 reasons: 1. Most people who invest in Bitcoin or any other cryptocurrency typically want to “HODL” (or hold) onto it for dear life. This gives people a way to leverage their assets while being able to get fiat money for other purposes.
They receive a fair interest rate to pay it back over a pre-specified period of time, and it typically isn’t subject to a comprehensive background check. 2. In most cases, if you have enough collateral, the approval process can be approved and issued in as little as 2 days, which for some people is a HUGE selling feature.
The second, and most interesting feature in my opinion, is the ability to earn compound interest on your cryptocurrency over a specific period of time, compounded monthly. This is very intriguing for a number of reasons, but I will leave a link to all the benefits and features right here, as this post has gone on pretty long so far.
The bottom line is, if you are holding bitcoin or ether for a longer period of time, this allows you to earn up to a 6.2% annual yield, just by allowing them to hold it for you and put it into an interesting bearing account. It is always a good idea to diversify your cryptocurrency and NEVER put all of your eggs in one basket. However, this is a calculated risk I have personally entered into for a portion of my holdings because I plan to hold it for a very long time anyways.
Well there you have it! These are 3 ways to make money with bitcoin and earn passive income. Please let me know what you think and if you have found any other methods that work well by commenting below!
***Disclaimer: None of the information above is intended as financial advice. I am not a financial advisor. These are just my personal opinions and experiences during my own crypto journey and recommend you consult a professional before considering taking any of these actions***
The Crypto Renegade
NOTE: This post may contain affiliate links. This adds no cost to you but it helps me focus on giving as much value as possible in every single post by being compensated for recommending products that help people succeed.