4 Ways To Earn Bitcoins

by Trading 101     Jul 08, 2019

With bitcoin mining having become a huge thing, many people are wondering – how can you earn bitcoins? If digital currency becomes the future of finance and trading, then investing in getting said currencies today is a good idea – same for how people who invested in bitcoin in 2012 are likely to be millionaires now. Let’s investigate Trading 101 for bitcoins and how you can get a piece of the action. Some people are trading bitcoin day to day like a regular day trader would, while some are buying bitcoin to hold onto them for a few months or years to see what heights it can reach.

Buying.

The most obvious way to own a bitcoin is to buy one. There are several large and reputable cryptocurrency exchange sites where cash can get you bitcoins or any other cryptocurrency you’re into. Of course, trading 101 applies here too – don’t make bad trades by not knowing what you’re getting yourself into.

Mining.

The other big thing that’s been all over the internet and news is mine some bitcoins. Mining is the process which a lot of cryptocurrencies use to add more tokens of their currency into circulation. It’s done by having a computer solve an extremely complex mathematical puzzle or problem. Doing so discovers a new block which is added to the blockchain which makes cryptocurrency work so well – and adding said block is rewarded by receiving some bitcoins. When a computer solved a block to be added to the blockchain, the reward used to be 50 bitcoins. The reward threshold goes down every year and is currently at 25 bitcoins. As the rewards go down, the difficulty to receive them also goes up – this is intentional. 4 to 5 years ago, any regular computer would have been capable of mining a nice amount of bitcoins, especially if you’d let it run at the times you weren’t using it actively. Nowadays the mining process has reached levels where some expensive hardware is needed, often in the form of PC gaming equipment.

Form of payment.

Another way to receive bitcoin is to accept them as a mode of payment for services rendered or goods sold. If you are in a position where you sell some good or service and decide to accept bitcoin as a viable means of payment, you’re good to go. Of course, owning a small bodega is likely not the places people are looking to spend some bitcoins at, but there are plenty of other businesses, many of which run online, that can really make a good return by simply accepting bitcoins as payment. Of course, there’s also a big risk involved in allowing bitcoins as a replacement for cash – if someone bought a service from you with 1 BTC today which is worth north of $10,000 and you decided to sell that BTC the day after, chances are that the same token you just received for payment a day ago is now worth $8,000 instead of the $10,000 you were expecting.

Lending.

In the same vein as accepting them as a mode of payment, there are some employers looking to pay employees using cryptocurrencies, including bitcoin, Dogecoin or Litecoin. Obvious companies such as Coinbase, Bitpay and Ripple are among potential employers who’d pay their employees with cryptocurrencies as well.

If you’re already in the crypto game and have some bitcoins accumulated, an easy way to grow them is to lend them. Lending can be done directly to others or through websites which facilitate lending between parties. Some websites even act as banks that you can lend your crypto tokens to and will receive an interest on said lending.





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