In a recent article, we explored what cryptocurrencies were: what they are, how they work, and why they are valuable. We honed in on Bitcoin, the most popular and most valuable cryptocurrency on the market right now. If you haven’t checked that post out but you’re interested in investing in Bitcoin, we recommend you start there.
Never invest in something you don’t understand. That goes for Bitcoin just as much as it does for Real Estate or Mutual Funds.
But if you’re familiar with Bitcoin and are wondering how you can make money with Bitcoin in 2020, then this article is for you. Before we begin it’s always worth noting that, like any investment, investing in Bitcoin comes with risks. We always recommend you sit down with a certified professional before investing in anything.
With that out of the way, let’s dive in. Here are 3 simple ways to make money with Bitcoin.
1.) Invest in a Bitcoin Mining Farm
Mining Bitcoin is the most straightforward way of making some income from Bitcoin. In the late 00’s and early 10’s, many people were able to acquire tons of Bitcoin using their home office computer. But those days are long gone.
Competition has increased dramatically since those days and an internal process, baked into the development of Bitcoin referred to as “halving” has greatly reduced the chances any one person strikes it rich with Bitcoin using their machine at home – even if it’s a high powered Workstation or Gaming PC.
So how can someone stand a chance at making a profit with Bitcoin in 2020?
Many people are turning to Cloud Computing as a cost-efficient way of entering the Bitcoin mining business. Companies like Genesis Mining have created massive warehouses full of machines, specially designed to mine Bitcoin. Genesis Mining then rents out these machines for individuals like you and me to use. Think of paying for storage space on Google or Apple Cloud, but instead, you get a certain amount of Bitcoin mining.
How much mining power do you get? That depends.
Just like Google and Apple offer tiered plans, based on the amount of storage you need in their cloud systems, cloud mining companies have tiered plans. You can get started mining for about a $200/30mo contract.
There is no guarantee you will strike Bitcoin gold, but if you do, you’d be in line for a great payoff.
2.) Buy Bitcoins and Hold Them
In December of 2017, Bitcoin reached its highest value to date at ~$20,000. Many people who started mining or investing in Bitcoin early became fast millionaires as the value per coin soared in 2017. Now some people are projecting another rise in the value of Bitcoin. One article in Forbes projects a huge swing in value up to $50,000 this year.
For this reason, many people are looking to purchase Bitcoin now, while the price is hovering around ~$19,000. If those forecasts still hold up, there’s a chance for a very large payout this year for investors or buy and hold Bitcoin until another peak occurs.
What if I don’t have $19,000?
You might be thinking, “Well that’s great for people with $9,000 laying around in a checking account, but that’s not me! Can I buy part of Bitcoin?” The answer is a resounding, “Yes!”
A single Bitcoin can be divided to the 8th decimal point (0.00000001). This is called a “satoshi” which might ring a bell – that’s the pseudonym for the anonymous creator of Bitcoin. That means that for $90 you can own 10% of a Bitcoin (numbers accurate as of 06/27/2020).
If those investors are right, you’ll turn your $90 into $450 by the end of the year. That’s an insane ROI!
But before you go out and empty your accounts and invest it all into Bitcoin, remember, no one really knows what Bitcoin will be valued. Bitcoin is still relatively new and volatile. All we have to go on right now is a short history and some educated guesses.
That’s why our final suggested way of making money with Bitcoin comes with little to no initial financial investment.
3.) Complete Tasks or Jobs in Exchange for Bitcoin
Maybe you’ve heard of websites like TaskRabbit, Upwork, or Fiverr? If not, you should definitely become familiar with at least one of these sites. These are great websites for people who have extra time on their hands and are looking to start a side hustle. As one of our readers, you should definitely be working a side hustle. It’s one of the easiest ways to quickly gain some traction with your personal finances and build wealth.
These websites act as mediators between people with time and skills and businesses or individuals who need services done. This protects the interests of both parties. In exchange for the convenience and financial security, these companies take a little cut of all earned income.
While these sites don’t accept Bitcoin as a form of payment, there are a growing number of websites that do. Sites like Cryptogrind allow you to trade your expertise and time for some satoshis or Bitcoin.
Each job is listed with both the USD and BTC (Bitcoin) offered. This is awesome because it allows you to properly price your time. A satoshi is a really small number and working out your rates every day (or hour) would be a huge pain.
This is a super convenient and low-cost way to begin investing in Bitcoin without pulling from any of your current savings or investments. Just remember you’ll need some kind of Bitcoin wallet to store those coins or else you can’t get paid.
If you need help choosing the Bitcoin wallet that best fits your life check out this awesome resource from Bitcoin.com.
Many Ways to Invest – What Will You Choose?
Investing in Bitcoin isn’t complicated and it doesn’t even have to be costly. You can get started today even if you’re not prepared to invest financially. As Bitcoin continues to grow in popularity there will be a growing number of businesses built around Bitcoin and the opportunities to invest will grow right along with them.
With so many ways to invest, what will you choose?
Or do you think Bitcoin is a fad that will be here today and gone tomorrow?
Let us know on social media.
We’d love to hear from you!