As Bitcoin turns 12 in 2021, it’s enjoyed a ton of success as more people are learning about and using digital currencies, and it’s quickly becoming the go-to form of payment across the world.
There are now plenty of money-making opportunities using Bitcoin, each with its pros and cons. Most of these methods will require some time and money, but our guide will make sure neither go to waste. We’ll go over how much effort the method needs and how much money you can expect back.
1. Mining
Although it was coined after the rewarding California gold rush opportunities, we’re not talking about going into a cave and mining with a hardhat on – we’re referring to Bitcoin mining. As a miner, your primary role is to legitimize and monitor Bitcoin transactions to make sure they’re correct. You do so by solving complex mathematical problems for 1MB of transactions, and if you’re the first miner to provide the right answer, or at least the closest to correct solution, you’ll be rewarded with BTC.
You’re allowed to collaborate by joining mining pools where you combine computing power to solve the mathematical problems or mining clouds where you instead use the cloud to combine computing power.
Effort
Tons. You used to be able to mine thousands of BTC using your home laptop, but you now require thousands of dollars’ worth in equipment to crack the increasingly tricky problems while racing to be the first to do so.
Result
If you successfully mine one block, you can earn 6.25BTC. As of Mar 2021, the price of Bitcoin is about $57,600 per Bitcoin, which means you’ll earn $360,000 (6.25 x 57,600) for being the first to complete a block. If you collaborated with anyone else, this amount will be split amongst your team but is still not a bad incentive.
2. Trading
Here’s another high effort, high result method. There are many trading styles out there:
- Day trading: you trade throughout the entire day, akin to a full-time job and more. You usually need to participate in at least two trading sessions where you open quick positions for small but consistent profits
- Scalping: a more active version of day trading. Again, positions are held for a short period, but these positions are also riskier
- Swing trading: As the name implies, swing traders quickly “swing” from one position to another instead of playing the long game. They buy low and sell high at every opportunity
- Position trading: This method plays a long-term game where traders hold a position for many weeks or months
Effort
Each trading style can take a long time to master, and once you do so, it can take the whole day of watching market fluctuations to trade at an opportune moment. There are many platforms to trade on. Some, like Bitcoin Code, are especially useful when trading BTC (you can read Bitcoin Code review here).
Result
Completely depends on the market and your trades. It’s not uncommon to face a streak of bad luck and not make a dime for months. However, once you have experience under your belt, it is possible to profit off your trading style and replace your full-time job.
3. Bitcoin Faucets
You know those ads that pop up in the middle of the screen, sometimes with a survey? Some of them pay you BTC fractions after you answer them.
Effort
Super low effort, and if you enjoy surveys, you’ll have fun with this one.
Result
Each survey will return a small amount of Bitcoin, but they quickly add up once you do more surveys.
4. Tips
Similar to the offline world, you can receive tips for helping people online. One of the platforms that allow you to tip someone in BTC is Bitfortip. You can sign up for a range of tasks like helping someone find a dress or answering technical questions, and they’ll tip you at the end of it.
Alternatively, if you’re a gamer or content creator who streams, why not accept tips in BTC? Twitch and many other streaming services have begun integrating crypto-tipping services so remember to check them out.
Effort
If you already stream or assist people online, this is a low effort way to earn BTC.
Result
Like the surveys, each task will provide you with a few BTC but can add up quickly.
5. Lending
Thanks to its utterly decentralized nature, it’s easy to make transactions since you don’t need to go through a lengthy process to validate it. You can also loan BTC at an interest rate, so you’re making use of the BTC and ensure that it’s growing.
Effort
With plenty of websites like BTCpop, Bitbond, and Unchained Capital to help you out, this is a low-effort method.
Result
The return can take time but depend on your interest rates, lending can be profitable.
The cryptocurrency world is ever-changing, and so is the way to make a profit in it. Now that you have five great ways to earn Bitcoin in 2021, why not give them a try? Who knows, it may lead to massive profits.
