Over the last decade, Bitcoin emerged as a leading digital currency. The blockchain-based currency invented by the anonymous Satoshi Nakamoto paved the way for the new era of decentralized cryptocurrencies. There are several strategies to make a profit from the growing crypto market. However, before you jump into the Bitcoin wagon, you may want to familiarize yourself with the concept of blockchain technology. Here are four ways beginners can make money with Bitcoin.
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1. Open a Bitcoin interest account
When you open a crypto interest account with Youhodler.com and deposit Bitcoins into your wallet, you could earn interest on your account. Crypto lending platforms allow you to earn a decent amount of interest if you lend your Bitcoin to them for both the long and short term. As decentralized crypto, BTC guarantees seamless transactions, so you don’t need any central authority to validate your transactions. This decentralization also allows you to loan your Bitcoin to loanees at a cool interest rate. Think of this as a way to generate income from your bitcoin account even as you HODL it. Get wealthier lending your crypto rather than only keeping it.
2. Bitcoin trading
Bitcoin trading is one of the most common and easy ways to earn money with Bitcoin. Investors are encouraged to learn more about Bitcoin and crypto market fluctuations to help them to make sound investments. When you have a fair knowledge about digital currency, you can choose a trusted exchange like Localbitcoins and Paxful to start trading Bitcoin. Buy Bitcoins from reputable exchanges when the price is low, and only resell it at a higher price. BTC investors earn money by the margin.
3. BTC Mining
Bitcoin mining is a technical process through which people use powerful computers to solve complex math problems, leading to the creation of new Bitcoins. When a miner can crack the code, they are rewarded some amount of Bitcoin. This is a competition to see who can solve a block (on the blockchain) faster. In the early days of Bitcoin, when the currency wasn’t that valuable, mining was pretty easy, and people could earn thousands of Bitcoins using their regular computers at home.
Fast-forwarding to today, mining requires you to use top-tier machines due to tight competition in the industry. Beginners can join Bitcoin mining pools or clouds to give themselves a better chance of earning Bitcoin. Mining pools combine the computing power of their members through the cloud. This way, they can solve complex problems faster and share the profits paid to them as mining fees.
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4. Buying and holding
Buying and keeping or “HODLing” is another strategy to make money with Bitcoin. HODLers buy Bitcoins and store them long-term, hoping for the price to rise significantly before they sell. This beginner-friendly crypto investment idea requires you to get a Bitcoin wallet to get started. Whether you want to hold your Bitcoins for weeks, months, or several years, the decision is yours.