By now I believe most of us have heard of this ground breaking and controversial new type of currency called the Bitcoin. And if you’re the kind of person who’s always keen on new ways to make money. Then you’re probably already thinking about how to make money from a Bitcoin.
As well as how to earn money from Altcoin including the upcoming Facebook Digital Currency that’s been named the Facebook Libra and others like the LiteCoin or Ethereum.
Ok just in case there’s one or two of my readers who genuinely have never heard of Bitcoin or any other form of Cryptocurrency let me do a bit of an intro.
What is Bitcoin and Cryptocurrency
In the simplest of terms Bitcoin is a new innovative medium of exchange that does not take physical form as paper bills or coins do, but instead takes the form of a digital currency.
In effect it is Virtual Currency that was created to be used as an alternative means of exchange to the long established physical payment method that is represented by dollars and cents.
Bitcoin itself is classified as a form of cryptocurrency. The term cryptocurrency refers to any form of digital or virtual currency that employs some form of cryptography to secure it.
This method of digital security makes it nearly impossible to counterfeit cryptocurrency or steal it.
At this time almost all cryptocurrencies have no centralized system of authority and instead rely on Blockchain technology. This is a digitized system of records ordered into blocks.
Each block contains records of crypto currency transactions and once a block is completed it cannot be changed in any way or deleted.
Upon completion of a block a new block is created and new transactions are stored on that block until it is also completed and another new block forms. In this way the Blockchain is continually growing and is like a safe, secure decentralized ledger of all transactions conducted using these crypto currencies.
How To Get Started with Crypto currency
If you feel like you’ve been bitten by the crypto bug and are ready to jump off into the digital currency waters. Then I’m going to quickly tell you how to get started with crypto currency.
The very first things that you have to do is decide on what is the best cryptocurrency for you. Then decide on which cryptocurrency exchange to use.
Choosing a Cryptocurrency
Choosing the right cryptocurrency for you can be quite a difficult task. So many things to consider. So many factors to look at. Here at some factors that can help you to decide on the one that’s right for you now.
How useful is the crypto to the real world. Does it actually solve some sort of problem and just how important is the problem itself and how beneficial is a solution to that particular problem. The bigger the problem, the better the utility of a cryptocurrency that addresses it.
How many competing digital currencies are out there? Which cryptocurrency types are better than others on the market?
Look at the market capitalization of a cryptocurrency you are trying to make a decision on. In crypto terms the market cap refers to the current price of 1 unit of the digital currency multiplied by the total number of units in the market.
Founders and team
If possible (and it should be possible in the name of transparency) look at the founders and the team that is behind the currency token. Examine what sort of background they have in the industry and the vision they have for the future of the token. Also take a good look at their current holdings in the digital currency.
Choosing a Cryptocurrency Exchange
When you attempt to choose an exchange you should take these factors into consideration
How secure is the exchange
This is a very important consideration as hackers have proven that it is possible to hack some of these exchanges and remove millions of dollars worth of cryptocurrencies by gaining access to users access tokens and using same tokens to get into the users accounts.
Another aspect of security is insurance for your crypto while in custody of the exchange. Make sure you are clear about what the company has in place in regards to this.
Therefore, security has to be a key consideration as you prepare to earn money with Bitcoin and other types of digital currencies.
Is information about the exchange readily available? Are the names of the management team made available for users? Do they make known the names of the owners and the physical address of the company.
Get to know all about the fees at your prospective exchange. Pay special attention to deposit and withdrawal fees as some exchanges tend to charge highly for these two types of transactions.
How to make money from a Bitcoin
Now that we’ve looked at choosing a virtual currency and a currency exchange. From here on in we’re going to stay with the most popular cryptocurrency, which happens to be the Bitcoin. It’s now time to buy some currency and look at how to make money from a Bitcoin.
The easiest way to purchase crypto is to just buy them at the exchange you selected. One of the best exchanges at this time is the CoinBase exchange. You can buy your crypto here using your credit card or using your bank account if you prefer.
Coinbase also supplies it’s customers with a cryptocurrency wallet in the form of an app. This crypto wallet is where you will be able to store your cryptocurrrency funds and operates much like the wallet we carry around for physical money. Only the currency you store in your crypto wallet are of the virtual currency variety. Not the physical kind,
So take a quick look at the Bitcoin Exchange Rate at Coinbase and go and Buy Bitcoin. Next we look at just how to make money from a Bitcoin.
Here are some of the methods we can use to achieve this.
Make money from buying Bitcoin
This is what i have been talking about so far all throughout this post. Just like with many other types of investments there are groups of people who come together to pool their funds in order to collectively buy a large amount of Bitcoins as an investment. This kind of group is called a Bitcoin Investment Group.
Sometime these investors will opt as a group to keep the digital currency they bought for a long term period. This kind of investment in cryptocurrencies requires a lot of faith, and the belief that the crypto will over time grow enough to provide them with a sizable return on investment.
One can also invest in Bitcoin for the short term. Here the premise is to purchase the crypto and then sell it back at the end of a certain time frame. This kind of Bitcoin investment involves a lot of research and future forecasting of Bitcoin price movement over the selected time frame and is much like Forex trading.
Make money with Bitcoin mining
Bitcoin mining sounds strange doesn’t it. I mean how the heck can you mine something that’s not physical to begin with 🙂
The truth is that Bitcoin mining is not mining in the traditional sense. Remember the Blockchain that i mentioned earlier? Well Bitcoin Mining refers to the process required to add transactional records to that Blockchain.
Mining requires lots of computational power to perform this processing which involves the calculation of complex cryptographic algorithms to confirm crypto transactions and add them to the Blockchain.
For their part in the process of securing the network and processing every transaction miners are rewarded with free Bitcoin and other crypto.
Make money trading with Bitcoin
Bitcoin trading involves buying at the lowest possible rates and trying to sell at the very highest rates that you can get. However this only involves short term trades, therefore traders will enter a Bitcoin spread trade looking for the price to rise so they are in a profit position. At which time they will sell their Bitcoin stake and take the profits.
The market for this crypto is very volatile, resulting in quick up and down movements in the value of the crypto. This can equate to huge profits for the Bitcoin Trader, but on the flip side it can also mean huge losses if the trade goes against the trader.
Get paid by your employer in Bitcoin
There are a lot of Blockchain companies today. Therefore if you have the required expertise to work with one of these companies, chances are you will be getting paid in crypto.
There are also quite a few regular companies and also freelance platforms online where one can earn Bitcoin for work done. I have compiled a listing of these companies that pay with Bitcoin and you can read my report here.
Make money with Bitcoin Faucets
A Bitcoin Faucet is a website that regularly dispenses Bitcoin for free. Usually as a reward for completing some sort of task. These tasks can be anything. Such as playing a game, or loading a page of ads.
You get a small reward for completing the task assigned.
Fiat currency vs cryptocurrency as payment for goods and services – The major difference between these two systems is the fact that Fiat currency. Which has been around in some shape or form for the last 325 years, is considered to be legal tender and is backed by the world’s governments.
Crypto on the other hand can boast none of these. However it has grown wildly for those very same reasons. Lots of people seem to be tired of the fiat version. Fiat money came on to the world stage in 1694 in the form of the British Pound Sterling. Thus making this the oldest form of this type of currency.
Crypto, was only just conceptualized and created not long ago. The first form of crypto, the Bitcoin came on stream in 2009. Just 10 years ago.
If you still prefer to be paid for your services in good old dollars and cents AKA Fiat currency instead of cryptocurrency. Then you have to see this listing of companies that you can work with wherever you are in the world. You will find some truly global opportunities there.
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