How To Make Money With Bitcoin & 10 Easy Ways for Beginners to Profit

1 de noviembre de 2024

Author: Bitcoin Magazine Pro Team

Bitcoin’s price is notoriously volatile. One minute, it’s soaring. The next, it’s crashing. This wild price action can be intimidating if you’ve just started hearing about Bitcoin and want to make money with it. What if you buy a Bitcoin only to see its price crash a few days later? Will you lose all your money? These are legitimate questions. After all, you want to make money with Bitcoin, not lose it. This article will help you tackle your fears and confidently understand effective strategies for investing in Bitcoin to enable you to generate profits and navigate the BTC market successfully as a newcomer. 

Bitcoin Magazine Pro’s Bitcoin Analysis is a valuable tool for achieving your objectives. This resource breaks down the latest Bitcoin market trends to help you make informed decisions as you learn how to make money with Bitcoin by understanding bitcoin supply and demand.

Bitcoin Nears Historic Highs but Huge Growth Is Still Ahead

historic high - How to Make Money With Bitcoin

Bitcoin’s recent price action has been impressive, with the asset approaching its all-time high. As of this writing, Bitcoin is trading around $72k, showing strong momentum in the market. Bitcoin rose about 6% to as high as $73,544 at about 3pm EDT, or 7 p.m. Greenwich Mean Time, Tuesday, the highest price for the token since March 14 (price movements in the 24/7 Bitcoin market is most commonly measured in GMT). While the current short-term price action is exciting, it’s critical to remember that no matter what happens over the next weeks and months, over the long term Bitcoin is going much, much higher. How high? Let’s walk through it. 

That moves Bitcoin’s October gain to 13%, outstripping the leading American stock index S&P 500’s 1% advance this month. Over the past decade, Bitcoin has been the best-performing asset. With an astounding average annual growth rate of 59%, it has far outpaced traditional investments: 

  • Stocks: 15% average annual growth
  • Commodities: 12%
  • Gold: 9.4%
  • Real Estate: 5.6%
  • Emerging Markets: 2.6%
  • Bonds: 0.78%

Institutional Adoption Is Driving Bitcoin Demand

Several key factors contribute to Bitcoin’s sustained strength: 

Institutional demand for Bitcoin continues to grow. The Bitcoin exchange-traded funds (ETFs) have attracted substantial interest from major financial institutions. The U.S. Bitcoin ETF is the most successful launch of an ETF in history, with over $20 billion in inflows this year. This demand will increase as all institutions incorporate BTC and Bitcoin into new products, such as the monstrously large options complex.

Bitcoin’s Scarcity Creates Long-Term Value

The scarcity of Bitcoin is another critical factor, with a fixed supply of 21 million coins and a decreasing rate of new coin issuance through halving events. The halving event that occurred earlier in the year is undoubtedly partially responsible for the current upward pressure on Bitcoin’s price. Historically, halvings have been followed by significant price increases with a 100+ day time lag.

Macroeconomic Trends Are Favorable for Bitcoin

Macroeconomic factors also play a significant role. Central banks worldwide have engaged in unprecedented money printing, leading to inflation. Governments, businesses, and people are all seeking assets that can serve as a hedge against currency debasement, and Bitcoin fits this role better than the gold. The Fed, the U.S. central bank, had been in a tightening cycle but recently started cutting interest rates, signaling the beginning of an easing cycle. Now that the U.S. has signaled easing, governments worldwide will trip over themselves to ease even more. 

Global Economic Stimulus and De-Dollarization

Don’t you believe me? One week after the U.S. announced its cut, China unleashed its most significant injection of money into its dying economy in 4 years. They promised more to come. China won’t be the only one doing this. Another macroeconomic factor is the trend of de-dollarization. While still the dominant global reserve currency, the U.S. dollar has seen its share slowly decline—a long-term trend averaging a 0.52 percentage point drop per year since 1999. 

The Weakening Dollar 

Factors driving this shift include the idiotic weaponization of the dollar (e.g., as a tool for sanctions), which motivates countries to seek alternative reserves, and the rise of other currencies like China’s renminbi in international trade. The net result is that the U.S. dollar will weaken, and assets such as gold and Bitcoin will strengthen. This will only accelerate in the future.

Bitcoin’s Market Cap Can Support Massive Future Growth

These factors combine to ensure Bitcoin’s value will rise significantly. Bitcoin’s market capitalization is around $1.2 trillion and growing, making it comparable to significant corporations and some commodities. To put this into perspective, if Bitcoin’s market cap were to match that of silver (approximately $1.8 trillion), one Bitcoin could be worth around $108,020.

  • Silver: $108,020
  • Gold: $873,534
  • USD M2: $1,085,641
  • Global M2: $4,359,238
  • Global equities $5,641,026
  • Global bonds: $6,666,667
  • Global real estate: $32,307,692

While these figures may seem extraordinary, they show Bitcoin's realistic potential for growth. As adoption increases and the factors driving its value strengthen, Bitcoin is not just resilient—it’s laying the groundwork for unprecedented growth.

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How to Make Money With Bitcoin As a Beginner

how to make money - How to Make Money With Bitcoin

HODL: The Simplest Way to Make Money with Bitcoin

HODLing is a great way to make money with Bitcoin. There are huge groups of people who “invest” in Bitcoin by simply buying it and holding it for dear life. Some people buy a certain quantity of the coin and forget about it for a year or ten. These people usually have no real intention of profiting short-term. They often believe in Bitcoin's successful future and hope that their investment now will one day bring them a tenfold profit. 

Another type of Bitcoin investor is one who does loads of research, reads all the available predictions on making money, and spends weeks analyzing data and statistics. These people tend to have a particular time frame in mind, most of the time, they’re looking to invest short-term and need to know when to do it. Also, these investments tend to be smaller than the long-term ones. After all, people invest having done a ton of research beforehand, but if their investment fails, they could move on to the next time frame. 

If you’re thinking about how to make money with Bitcoin or how to make money in general, buying Bitcoin can be a great starter or a disastrous one. It all depends on one single factor, the amount of research you’ve done beforehand.

Tip: You shouldn’t invest the money you cannot handle to lose.

Difficulty: 

Easy

Return depends on how much Bitcoin you buy, how long you hold it, and whether its price changes. For example, during Bitcoin's peak price in 2021, its price increased sixfold.

Bitcoin Trading: The Fastest Way to Make Money with Bitcoin

So, you bought Bitcoin but don’t want to hold onto it for 10 years because you want to "make millions" with it now. Remember the short-term investors I mentioned in the previous chapter? That’s who you would be if, instead of holding onto Bitcoin, you decided to trade it. How does it work? Essentially, you analyze the market, inspect charts, and evaluate external factors to find the right time to buy and sell Bitcoin within short windows. This way of making money with BTC is probably the fastest, but also one with the highest risks. 

There are a variety of trading methods.

  • Day trading, which is by far one of the most popular (and probably one of the hardest). With this type of trading, you buy and sell Bitcoin whenever its price (or the prices of assets around it) changes. To find the perfect moment, you must monitor the market non-stop. 
  • Trend trading. This type of trading is based on making decisions according to the market trend. How does it work? In a nutshell, you would open long-term positions during a bullish market trend, while during a bearish market trend, you would opt for short-term positions. 
  • Bitcoin hedging. It’s a method in which you open trades strategically to hedge risks on your owned positions. You seek that a gain or loss in one position gets offset by changes in the value of the other position. Trading of this kind is typically done when the market is moving against you.
  • Leverage trading. It includes borrowing funds to trade in higher sums than your funds allow. Some platforms allow up to 200x leverage for Bitcoin trading (for example, Huobi).

Remember that leverage trading is hazardous (the higher the leverage, the more dangerous it gets). Of course, there are many more trading techniques. The one thing that applies to all of them is that you must do extensive research and always stay up to date with the: 

  • Market
  • Trends
  • External factors

Difficulty: 

Hard

Return: 

Depends on many factors, including: 

  • The method of trading
  • The amount of funds invested
  • Market fluctuations, and so on

It could either bring excellent returns or significant losses.

Accept Bitcoin Payments for Your Services or Goods

Have you heard of Fiverr? It’s a site where people pay $5 for some service done by other freelancers. Now, take this same concept, but imagine Bitcoin coming into the place of USD. All you need to do to work with this method is think of a skill you’re good at. This can be anything,  from copywriting and digital marketing to painting or singing. Pick your most vital qualities (or qualities) and think of ways you could monetize them. 

Create a wallet. If you’re reading a guide on how to make money with Bitcoin, chances are this step seems obvious, and you’ve done it long ago. But just in case, let this serve as a reminder - a wallet holds your BTC safe and ready to use, just like a wallet for your physical money. If you still haven’t got one, research and create one.

An excellent place to start is to offer your services on online forums and marketplaces, stating that you only take payments in Bitcoins. Do this long enough; you should create a designated website for this exact purpose and teach others how to make money with Bitcoin. Doing research will be unavoidable if you’re considering profiting from Bitcoin (and if you’re serious about it). Without it, it’s like driving a car at night with the headlights off. Sure, you MIGHT make it, but the chances are not worth the risk.

Difficulty: 

Medium      

Return: 

It depends on the price of your services and the price of Bitcoin at the time of payment. If you get paid in BTC when its price is lower but then rises, your funds will increase without needing more work.

Participate in Bitcoin Mining

One of the most popular ways to make money with Bitcoin is mining. There can be two forms of mining:

  • Personal mining. If you want to mine individually (meaning with your mining rig), there might be better ways to make money with Bitcoin. Besides, Bitcoin is considered stricter to mine since it’s a subject of mainstream success, and many people want to pitch into the hype, yet there’s a limited supply of it. A single rig, as good as it could be, might struggle to produce significant profits, especially considering the electricity and maintenance prices. So, it’s not the best way to make millions with Bitcoin.
  • Cloud mining. Cloud mining, has become very popular over the last few years. It’s a great alternative to mining because you don’t need to buy any hardware or software, assemble, or even do anything. All you need to do is pay a one-time fee for a contract, and that’s it! Usually, at the end of every month, you’ll receive your earnings. The amount will be based on your plan of choice and the electricity bill at the facility where the cloud mining service is established. 

Mining is a prevalent method for people searching to make money with Bitcoin. It does require some knowledge and expertise in the field to perform it successfully (especially if you want to build your rig), but the results are worth the effort.

Difficulty: 

Easy

Return: 

Easy (cloud mining) / Hard (personal mining) As of October 2024, a miner has been rewarded 3.125 BTC since the April halving. Also, consider your: 

  • Electricity bills
  • The price of your mining rig
  • The fee you paid for your cloud mining plan

Invest in Bitcoin-Related Startups

So, I won’t be talking about the buying-Bitcoin-and-then-selling-it type of investing. You have quite a few choices when it comes to investing in Bitcoin. You could make money with Bitcoin by investing in: 

  • Startups
  • Companies
  • Stocks

Some notable startups have already become mainstream success. You’d have to do some digging and find out the next best thing, but if you’d be right and invest in the startup while it’s still in its infancy, you might just hit the jackpot and grow your profits to the roof. Companies dealing with Bitcoin is also a good investment option. 

You’d have to look over their info:

  • Whitepaper
  • Goals and work ethics
  • Results
  • Statistics, etc.

If their view seems attractive, consider investing in their projects or the company. It would be best to be careful with investments, especially regarding Bitcoin. It is no secret that the market is a very unpredictable place. Always do your homework and research the objects that you plan to invest in, or else the question of “how to make money with Bitcoin?” might turn into “how to get out of debt (no Bitcoin)?”.

Difficulty: 

Medium

Return: 

Like any investment, the returns depend on the project and how much you invest in it. If the project is successful, your funds could skyrocket. If not, however, your investment could be useless.

Make Money With Bitcoin Lending

Another way to earn money from Bitcoin is to lend it to others. Bitcoin lending works similarly to traditional lending. It is quite a new and profitable way of earning, but it also carries high risks. But how does it work? 

You choose a lending platform (of which there is a huge variety) and deposit your Bitcoin into lending pools. As users borrow your funds, you generate interest. Most lending platforms offer even up to 15% APY. Note that borrowers usually have to use collateral to borrow. On some lending platforms, they don’t have to do that. This makes lending extremely risky. So, always check out how lending on the platform in question works. Some popular lending platforms include: 

  • Binance
  • Aave
  • Compound

Difficulty: 

Medium

Return: 

Up to 15% APY

Bitcoin Affiliate Marketing

In recent years, affiliate marketing has become a prevalent technique, mainly due to the rise of social media. While it’s widely used for various products and services, it is popular in Bitcoin. The concept is straightforward: you join an affiliate program for Bitcoin, promote its products or services, and if you successfully attract new visitors, you can earn commissions for each converted sale. 

This method is perfect for you if you have social media channels like: 

  • YouTube
  • Instagram
  • TikTok or others

If you’re not into the whole social media bubble, you can still participate in affiliate marketing by referring your friends and family to the platform. Please note that you must choose a legitimate affiliate program. So, do good research beforehand. Some of the most popular platforms offering affiliate programs include: 

  • Binance
  • Coinbase
  • Ledger
  • KuCoin

Difficulty: 

Medium

Return: 

Returns depend on the affiliate program's rules and commission regulations. They can be 5% or as high as 45%.

Earn Rewards Through Bitcoin Faucets

Faucets are a great way to earn Bitcoin or other assets without investing money. That’s right. You don’t have to spend any money! I’ll tell you what you must do in a few seconds, but first, let me tell you what a faucet is. It is a reward distribution program on a website or application that rewards users for completing activities like watching videos or doing other simple tasks. 

The way of earning Bitcoin through a faucet resembles airdrops or bounties. These also provide users with free tokens for completing specific tasks. They are not the same thing! Of course, you surely won’t make millions with this way of earning Bitcoin. Who doesn’t like freebies? 

Difficulty: 

Easy        

Returns: 

As always, returns depend on the project. People usually earn only a fraction of Bitcoin through faucets.

Network Marketing Opportunities

When you say “networking” and “Bitcoin” in the same sentence, most people hear alarm bells going off. Many network marketing schemes promised Bitcoin for nothing at the height of the Bitcoin bubble. These network marketing scams typically offered people an investment shareholding in a Bitcoin mining farm. As more investors come into the system, the farm buys more equipment, and the hash rate of the farm improves. 

Many of these farms were scams. They would operate for four to six months, bring in thousands of suckers through network marketing schemes, and then disappear with everyone’s money. Since most farms are registered as businesses in China, the investors lose everything overnight. In the wake of the bubble and the economic destruction of network marketing scams, newly developed companies fill in the gaps. 

Now, there are legitimate network marketing opportunities in cloud mining. Researching and finding a reputable Bitcoin network marketing company offers you a foothold in the industry. It typically doesn’t cost much to enter into network marketing organizations, and the returns are fantastic if you work hard to build your downline.

Become a Bitcoin Consultant

People who get involved with Bitcoin learn a lot quickly. For some people, the information overload is too much to handle, and they can’t grasp the topic. Others find the hot and cold wallets fascinating, soaking up all the technicalities around the industry. If you start learning about Bitcoin 6-months later, you’ll find yourself an expert about everything to do with BTC. If you put in the time to study how the markets work, that’s valuable knowledge, and how to: 

  • Trade
  • Sell
  • Buy 

Some people will pay you to learn what you know. You could put together information courses on trading, buying, and selling Bitcoin and then promote it through social media. Selling a virtual product means you keep no physical inventory, reducing your business overhead costs. Bitcoin consultants are in high demand, even in a falling market. If you build your reputation as an expert, you’ll eventually start to obtain a client base. When the next Bitcoin bull run comes around, you’ll be in the perfect position to benefit from the next bubble.

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How Much Should I Invest in Bitcoin To Start?

how much should i invest - How to Make Money With Bitcoin

These are the risk factors that need to be considered before investing in Bitcoin:

Risk Tolerance

Bitcoin is notorious for its volatility. Therefore, when considering how much you should invest in Bitcoin, think of an amount you feel comfortable losing entirely. Visualize how much you want to invest. Picture this amount, and imagine yourself in the future: 

  • Will you feel comfortable losing your entire investment, say $12,000? 
  • Will you judge yourself severely because you decided to invest? 
  • Will I lose sleep or even consider suicide? 

If the answer to any of these questions is even “maybe yes,” I need to lower the amount I had in mind and ask myself the same questions again. I’ll ask my friends and family if I'm unsure of my answer. Investors who invest too much money will also be tempted to ‘panic sell’ at a loss. Selling at a loss can be the right decision sometimes, but only if the decision is rational and not emotional. Keep the amount I invest at a level that doesn’t affect my judgment.

Profit Tolerance

Although it can seem like stupid advice at first, think about it: if I invest an amount that can get me highly emotional when I lose it, what will happen if I x20 my money? This happened to many investors in late 2017 when Bitcoin was booming. They became millionaires because they made the (poor) decision to invest their life savings. But if they were too greedy to be reasonable about their investment, do you think they sold their positions and took their profits? There are better ways to invest in Bitcoin. 

Most of them returned to where they were during the 2018 market crash. Only reasonably-minded investors make profits with Bitcoin. So, once again, consider the amount I plan on investing. 

So, how do you invest in Bitcoin? Once again, investing an amount I’ll feel emotionally detached from is essential, whether my assets go up or down. It will make me a solid investor who will lose less money when the market goes down and profit more when it goes up.

Timing

I bet you’ve heard when Bitcoin’s price was booming, as opposed to when it declined or stabilized. This is because people and media alike naturally tend to follow existing trends. But do you know that the Bitcoin market is made of repeated market cycles? These market cycles often last for 1 to 2 years. 

Prices surge fast, creating bubbles. BIG bubbles. And then, these bubbles burst severely. This is why timing is crucial. It can completely change your journey and the way you look at it. As a result, when deciding how much I should invest in Bitcoin, I look at where we’re at now in these market cycles, and I will find the best way to invest in Bitcoin. To see this information, I opened the global market chart of CoinMarketCap. 

I look at it closely and answer the following questions: 

  • Are we close to the market's all-time high? 
  • How long since we experienced a market bull run? 

The closer we are to the market’s all-time high in terms of price and time, the less I want to invest. On the other hand, if the current price of Bitcoin is $5,000, and the highest cost was $20,000 two years ago, then it should be a better time to invest in Bitcoin. 

Don’t get me wrong: even though we’re in the middle of price surges, investing money in Bitcoin right now is not bad because it gets you started. The timing should only change my entry approach and lower/increase the amount I had in mind initially.

Change of Mind

I’ve never seen an investor say, “I’ll invest $X in BTC,” and stick to their words. People change their minds naturally, even more so when confronted with an ever-evolving market. So, before I decide how much to invest in Bitcoin, I leave room to change my mind in the future. The easiest way to do this is to divide my investment over time. I set the amount in mind and invest it within the next 3, 6, or 12 months. 

I want to invest $12,000 over the next 12 months, but the market is currently close to its all-time high. Instead of investing $1,000 monthly, I can adjust the amount to $400 and invest more to compensate when the prices go down, which is how I invest in Bitcoin.

Diversification

Diversification is a technique any mature investor uses to reduce the importance of luck. I will invest in BTC and allocate my capital to different investment vehicles, such as real estate, stocks, and gold. I can also leave some money at my bank to earn a small interest rate. However, I should put only some eggs in my basket. It would be like playing roulette martingales. I’ll win, win, and win, but I lose everything when I lose.

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