And yes, cryptocurrency can be a volatile investment, but the long-term potential for it could make the losses you experience seem insignificant. Sometimes all it takes is a few years of growth to make money, especially if you shop smart and invest early.
For instance, following the recent price crash, experts and academics revised their predictions for bitcoin prices but still forecast record prices in 2022.
Still, 33 fintech experts predict a $93,717 peak in 2022 – a significant jump compared to the previous record of $68,000 – before the average price drops back to $76,360 by the end of the year. It is forecast that BTC will be worth $192,800 by the end of 2025 and will climb to $406,400 by the end of 2030.
Since Bitcoin will get stronger, you might be wondering how you can make money with Bitcoin in 2022. Well, you are in the right place. This article will give you different bitcoin money-making strategies.
First, let’s understand the journey of Bitcoin so far.
A Brief History of Bitcoin
Bitcoin is the world’s premier cryptocurrency and one of the most innovative financial ideas. The system is a peer-to-peer and currency and transaction system based on a decentralized public ledger called blockchain, where all transactions are recorded.
This means central agencies cannot control the supplies of Bitcoin as opposed to fiat currencies. Bitcoin is virtually untraceable, making it an attractive and desirable dream for borderless trade worldwide.
This digital currency was first envisioned in 2008 by the pseudonym Satoshi Nakamoto. It became the first cryptocurrency deployed on a consensus-based blockchain network for 8 cents in 2009, which attracted significant attention and traction over time.
After a healthy increase to $13 in December 2012, the price exploded and rose to $266 in April 2013. This sudden price increase boosted Bitcoin’s stardom for the first time, leading to speculation about Bitcoin’s actual potential in the real world.
Bitcoin first reached the magical figure of $1000 in January 2017 and became an increasingly popular subject for computer science programs with the development of the first programmable blockchain (Ethereum) and other alternative coins.
While conventional economists argue that the whole crypto world is a bubble ready to explode, observable facts (increasing value of the cryptocurrency) show that Bitcoin has exhibited a truly remarkable achievement for a coin worth 8 cents 13 years ago.
Why is Bitcoin Valuable?
Bitcoin is arguably used as a benchmark for other cryptocurrencies and a trade measure, earning the tag “digital gold.” Gold, a precious metal that shares many characteristics with Bitcoin, is often used to argue its value.
What makes Bitcoin so valuable is mainly its finite amount in existence. There will only ever be a maximum of 21 million Bitcoin in existence.
It also possesses the potential to be a significant force in the financial sector. Since there are relatively few available Bitcoin, a surge in demand to buy rather than to sell will lead to the increasing value of Bitcoin.
How to Make Money with Bitcoin
Now that you understand the value of Bitcoin and how it works, it is time to explore and milk this money-making strategy for all its worth while it lasts. Are you skeptical about how to get your slice of the virtual gold rush? Here are eight ways to make money with Bitcoin:
1. Mining Bitcoin
Mining involves the addition of a new block to the blockchain network by solving complex algorithm puzzles.
The Bitcoin network is secured by some persons called miners. If you can take the time to understand the technical know-how of mining, you can earn rewards for all new transactions you verify.
One major constraint to becoming a miner is that it involves a lot of money procuring hardware required for the setup.
Nowadays, mining can be done effortlessly using a cloud mining service. By using cloud mining, you can invest money in third-party websites; these sites provide all the required infrastructure, reducing hardware and energy consumption expenses.
2. Trading
Bitcoin investments are becoming increasingly popular, with large sums of money invested each day. Trading Bitcoin is arguably one of the common answers to- how can you make money from Bitcoin? The best way to succeed faster when trading bitcoins is to learn the technicalities.
You can chart and record marketing trends to make investment decisions. Even as a beginner, learning to use charting tools and read charts can go a long way.
Despite this, keep in mind that the market is volatile, and if you don’t do your homework well, you could suffer a significant loss.
You have to sign up to a trading platform such as Binance or Coinbase Exchange to get started. Then exchange your local currency for the desired cryptocurrency to begin trading and enjoying your rewards.
Luckily, there are no time-bound restrictions to trading as it is available at all times and can be done at your convenience. Several traders adopt a few trading strategies to minimize risk and scale profits. Some of which are:
- Day trading (quick and short trade for maximizing profit)
- Arbitrage (exchanging trade opportunities on different trading platforms)
As a new investor, the rules remain the same as investing with real cash.
If you don’t have a goal, do not invest more than you can afford to lose, and for every trade, keep certain milestones in mind.
3. Buy and Hold Bitcoin
This method involves purchasing Bitcoin at a lower rate and selling when the price increases. This approach is considered a long-term investment, and it is crucial to know when to hold or sell.
To buy any amount of Bitcoin, you must deal with a digital currency broker. When you purchase bitcoin through a currency broker, you must pay a commission. The price you will pay for every transaction will differ based on the market value at the time of purchase.
Before purchasing through a broker, it is a good idea to compare the rates of several brokers.
4. Bitcoin Faucet
Bitcoin faucets are websites that offer small incentives per page view, click, or conversion for viewers to watch videos or click on links.
Users earn from ad revenue paid in Satoshi (Bitcoin cents), and users can claim their rewards after making a certain amount of Satoshi.
It is essential to consider that bitcoin faucets frequently default on a payment due to underfunding or liquidity issues. The faucet owners do not receive their payments fast enough to pay a fast-growing user base, and they are usually targets for hackers.
5. Bitcoin Blog
Since making money from Bitcoin is relatively new to many, there’s a lot of room for you to create Bitcoin targeted content. New Bitcoin opportunities such as faucet programs, online shopping, Bitcoin exchange programs, etc., spring up each day.
You can easily create a Bitcoin blog and monetize. While this method is not a fast approach to make money, constant publishing of quality content will increase your engagement and prick the interest of advertisers in no time.
6. Become an Affiliate
Perhaps you haven’t been able to capitalize on your social media following to earn an extra buck, then this method is for you. You can easily leverage your social media to promote crypto products and earn a commission for each sale you make.
Firstly, you have to sign up for an affiliate program and secure a specialized affiliate link that you will use to track your overall performance. You need to share the link to your website and tell people about the products.
Do adequate research before joining affiliate programs to avoid selling products with a terrible reputation.
7. Create a Product and Accept Payment in Bitcoin
With Bitcoin, people hold power over their own money, removing it from the grasp of our financial systems. Buying goods and services with bitcoins is an excellent way of making something useful out of them, especially if you can then resell those goods and turn them into hard cash.
Alternatively, you can create a business and easily integrate Bitcoin as a payment option for a secure and hassle-free transaction. You can accept payments from clients anywhere globally since there are no restrictions and barriers.
8. Earning Through Tips
You can effortlessly earn small tokens by helping people perform little tasks such as providing answers to a question, searching for a song in a movie, promoting services, or even finding a dress for a client. Bitfortip is one of the most notable platforms for this event.
Several platforms, such as Twitch, have integrated crypto-tipping services for video game streamers. Why not accept a little tip in BTC for doing something you love?
The Future of Bitcoin
While the digital currency is a success, critics say its volatile nature makes it not suitable to be used by mainstream consumers. Also cited is the loss of several million dollars due to the hacking of Bitcoin exchanges in the past.
However, it appears that Bitcoin will remain valuable, even if the fiat currency of a weak central government suffers from hyperinflation, as many scenarios support.
And this is evident in the use of Bitcoin and alternative coins to mitigate the effect of high inflation that plagued Zimbabwe.
Takeaways
Like every transaction, Bitcoin transactions also have their drawbacks; the major drawback is the time required to complete a transaction and the inability to reverse a transaction when initiated.
In a fraud case, you may lose all your Bitcoin without feasible access to trace it; however, it is a significant investment when you follow the proper instructions.
A few of the benefits brought by Bitcoin are seen in effective markets. The transaction fee is usually a tiny percentage of your transaction (approximately a tenth of one percent).
The great thing about this attractive concept is that you don’t need to be a technical expert to effectively participate in the crypto economy.
There are a couple of services that you can employ to transition from a newbie to an experienced investor in no time. Explore the method discussed in this article to make your crypto-journey a success in 2022.