How to earn bitcoin: 3 simple methods
Learn how people who own bitcoin make money, pay for and invest in cryptocurrencies. For most of the public, however, cryptocurrencies are still abstract, not real. Investing one’s savings in cryptocurrencies, especially larger sums, is a psychologically bold move for newcomers to the industry. Therefore, in this article, we show how to earn bitcoin or generate bitcoin even with little or no investment. Let’s check which bitcoin websites are worth checking out. Here.
1. Earn bitcoin by trading
There are several trading strategies that can be transferred from traditional financial markets to the cryptocurrency market. We discussed three of these bitcoin trading strategies in a separate article. Instead of quietly leaving his cryptocurrencies in the back office, you can actively trade them. For example, if you make an average portfolio profit of 1 percent per day, multiply your portfolio share by 37.78 over the course of a year!
When it comes to cryptocurrency exchanges like Avatrade or Libertex are the winners in our test. In this case, you can trade with leverage that exceeds its committed capital by a certain multiplier. So, in theory, for example, with a deposit of 250 euros and a leverage of 10, you can trade with a capital of 2,500 euros. However, it is important to keep in mind that with extreme price fluctuations these thresholds can be reached, in which case the position can be liquidated and you can quickly lose money. Such cryptocurrency trading strategies are in the interest of those who wish to quickly multiply their capital while taking appropriate risks.
2. Mining: how to earn bitcoin?
To earn Bitcoin in a conservative manner, consider participating in the process of mining. This process, known as Proof-of-Work (PoW), involves using computing power to create new cryptocurrencies such as Bitcoin.
In the past, it was possible to earn Bitcoin through mining with a personal computer, but today the process is much more intensive and the chances of success are low unless you join a mining pool. By combining your computing power with that of a large group, your probability of finding a block and receiving a reward, currently 6.25 Bitcoin, increases significantly. Keep in mind that the size of your reward will depend on the size of your contribution to the pool.
3. Earn Bitcoin through Staking
An alternative to the proof-of-work process for earning Bitcoin is the proof-of-stake (PoS) process, which involves holding a certain amount of cryptocurrency in a “pledge node” for a specific period of time in exchange for an interest return in that same cryptocurrency.
The returns on this type of investment can range widely, from 2% to 200% or more, although returns above 30% are generally considered unrealistic in the medium to long term.
The higher the market capitalization of the cryptocurrency, the lower the potential return. For example, the annual return on the well-known cryptocurrency Dash is around 7%, while the return on Tezos is typically in the 6-7% range. If you prefer a less risky approach, you can invest in a cryptocurrency exchange, which will handle the storage and organization of your investments in exchange for a passive income.
There are a number of exchanges that allow you to bet on cryptocurrencies such as Ethereum.