Make profit with bitcoin

7 Legit Ways To Make Money With Bitcoin

Best Ways To Make Money With Bitcoin

Can you still make money with Bitcoin? Well, even after a decade of fluctuations and the unidentified Satoshi Nakamoto, Bitcoin still tops the chart. To be more precise, Bitcoin is the world’s largest cryptocurrency. So, the answer is a big yes, Bitcoin is a way to make money.

As now you seem sure-footed, the next default question is – How do you make money with Bitcoin? There is a long list of options, the most popular being Bitcoin mining, trading, investing, affiliate earnings, and micro earnings.

Nevertheless, there is no one-fit-for-all method of making money with Bitcoin. The amount of money you will generate depends on your risk appetite and the method you choose.

This post will discuss seven of the best ways to make money with Bitcoin. Whether you are an institutional investor or a complete crypto beginner, this article has you covered. (We have some bonus methods too).

How Do I Make Money With Bitcoin?

Here are the best seven ways of learning how to earn bitcoins:

• Trading
• Investing
• Mining
• Micro earnings
• Accepting Bitcoin as a payment
• Lending
• Affiliate earnings

Method 1 – Trading

Trading Bitcoin for banking profits is one of the most popular answers to – how do you make money with Bitcoin?

If you have a knack in analysing trading charts and you are ready to take risks, this option is for you. Sign up to Zipmex and exchange your local currency for the digital currency, BTC. Now, you have to wear a crypto trader’s cap. As soon as you see the best profit spike, trade your Bitcoins and enjoy the gain.

The icing on the cake is Bitcoin trading is available 24×7 so that you can trade at your convenience (obviously when profits soar high). Talking about convenience, our crypto trading platform – Zipmex, is available on both Android and iOS devices. You no longer need to force your eyeballs at the desktop as we bring the entire exchange in your pocket.

If you are less risk-averse, intra-day trading and arbitrage opportunities are made for you. Arbitrage means buying the same asset at a lower price and selling it at another platform while banking profits. Once you have a Zipmex account, chalk out a research-based trading plan while keeping a tab on the charts, considering the vitality of the Bitcoin world, trade the amount you can afford to lose.

Your profit margins in Bitcoin trading completely depend upon your dexterity of analysing charts and reading market situations. You can leverage Zipmex trading tools to gain more clarity about your trades. Zipmex trading tools ensure a frictionless trading experience.

Method 2 – Investing

Investing in Bitcoins is holding BTC until the iron becomes hot. HODL (Hold On for Dear Life) is the crypto lingo for long-term investments. If you believe in the positive future Bitcoin and are sure of its price surge, you must opt for investing. However, HODL investment must not be tied with fancy expectations.

You must know when is the right time to sell. If you are eyeing for long-term investments, you must keep your Bitcoins in a hardware wallet.

Are there some different options apart from buying-Bitcoin-and-then-selling-it kind of investments?

Yes, you can also make money with Bitcoin by investing in startups, companies, blockchain development, etc. These are research-intensive investments. You have to gauge the potential of a startup by analysing white papers, expert opinions, market demand, and whatnot. However, if you get this investment right, you will not just make some dollars with BTC; instead, you might hit a treasure chest.

The downside of investing is you have to hop between different exchanges to find the right investment opportunities. To your relief, Zipmex offers a wide range of investment options. No need to hop between exchanges, you find the top cryptocurrencies under one roof.

Method 3 – Mining

Bitcoin mining is the process of adding new blocks to the Bitcoin blockchain network by solving cryptographic puzzles.

If you have the technical know-how of mining and the luxury of high computing power, then mining is worth your effort. Bitcoin miners earned huge fortunes in the initial stages of this crypto revolution. However, today individual miners can hardly compensate for their electricity bills by mining Bitcoins.

Does this mean you can’t earn money with BTC mining? Not at all, there are cloud mining services where you have to pay once, and that’s about it. You don’t need to mine, nor you have to worry about your rising electricity bills.

Cloud mining services involve renting mining equipment for other miners so that they can mine for you. You have to invest once, and you will keep receiving your share of the cake. Before pouring your hard earned coin in a cloud mining company, verify it’s credibility as spam is at an all-time high in the crypto space.

To put it all together, mining is still profitable if you know how to do it the right way.

Method 4 – Micro Earnings

Save and Earn From Bitcoin

As the name suggests, micro earnings will not yield a fortune; however, it is a decent way to make a profit if you know what you are doing.

If you do not hit the skip ad button, micro-earnings will seem appealing to you. Pay to Click (PTC) websites like BTC4ADS, Coinadder will pay you in Bitcoins to watch ads. Other micro-jobs include watching youtube videos or completing online surveys. Bitcoinget is one of the leading micro-jobs websites.

Micro earnings sites reward you with very tiny amounts of Bitcoins – Satoshis. To put things in perspective, one Satoshi is equivalent to 100 millionth of a Bitcoin. Thus, watching an hour-long ad will earn you anywhere between 0.04 USD to 0.05 USD. If you want to earn some easy money while killing your free time, micro earnings faucets are the go-to place.

Bonus method: This method could be against the terms of service of the ad program so make sure you read their TOS before attempting this. You could invest in some low cost android phones and have them run on your wifi 24 hours a day. The ads will continuously play, while you rack up earnings. Before taking a crack at this, be sure to look into the initial costs of the phones, the electricity to keep them powered and the automation required to run them. If the numbers make sense you could earn a nice little side income.

Method 5 – Accepting Bitcoin as a Payment Option

You can earn money with BTC by accepting it as a payment option. Be it a small vendor or behemoths like Starbucks; everyone is embracing bitcoin as their payment option. So, if you are a seller or planning to be one, it would be wise to integrate bitcoin into your payment ecosystem.

Accepting bitcoin as your payment option opens the world for you. You can accept payments from every corner of the world and that too with lightning speed. You don’t need to depend on third-party services for processing your payments; all you need is a bitcoin wallet – it could be a new one or an existing Bitcoin wallet you own.

Also, to avoid losses, set your prices, keeping the bitcoin volatility in mind.

Method 6 – Lending

Instead of making money with bitcoin, why not let bitcoin make money for you?

By lending bitcoins to other people, you can earn interest on your bitcoins. Holding bitcoins will not make any money. Instead, if you lend them to someone, your bitcoins will earn for you. This is indeed better than holding bitcoins as holding could prove no less of a gamble.

You would not want to lose your bitcoins, would you? To avoid spam, trust your bitcoins with a credible lending platform. Unchained Capital, Bitbond, and BTCpop are amongst the trusted lend-and-borrow platforms. These platforms offer interests of up to 15%.

Be a smart earner and let your bitcoin make some extra for you. You can also sign up to Earn on Zipmex and get 6% on your BTC!

Method 7 – Become an Affiliate – Earn Bitcoin

It’s time to leverage your social media followers and earn. By being an affiliate to a cryptocurrency company, you can make large sums of money.

You have to sign up for a cryptocurrency affiliate program and promote their products for a commission. You will be receiving commissions depending on the customers you create for that particular company. The affiliate programs will provide you with a specialised affiliate link; this will track your performance. For every customer buying (signing, depending on the program) through your link, you will receive a decent commission.

If you have a good network and can convince people, you can earn a fortune with the affiliate programs by telling people how to earn a bitcoin. All you need to do is share the link on your social media handles and websites while promoting the product.

Also, it is necessary to sign up with a reputed affiliate program as you wouldn’t wish to sell spammy products.

Bonus methods: If you have enough knowledge about the blockchain world, you can make money by writing sponsored posts on the most coveted cryptocurrency blogging platform – Bitcoin talk forum. There are other platforms too, where you can show off your bitcoin skills and earn bitcoin.

Also, if you are ready to invest in computational power, you can become a master node and power bitcoin blockchain. Think of this as a server that is always on and helps the network run. You can make an impressive amount of money by being a master mode.

Is It Worth Investing Into Bitcoin?

Bitcoin is the leading cryptocurrency.

The profitability of any investment is gauged by its usefulness in the real world. Ask yourself – Is Bitcoin useful? Does it solve a real-world problem? Has it disrupted the current outdated solutions?

Well, the single answer to all such questions is a resounding yes. Bitcoin changed the financial ecosystem by introducing a decentralised, secure, and fast medium of exchange.

Just as the internet brought a revolution in the way we use technology, similarly, Bitcoin is revolutionising the financial space. Bitcoin is not a pop-and-drop technology; it is here to dominate the world. There is no denying that it is extremely volatile. However, it’s usage has only increased since its launch in 2009.

So, is it worth putting your hard-earned dollars into Bitcoin? If you strategically invest in Bitcoin, yes, it is worth it. If you are a smart investor who will not shy away from doing extensive research, Bitcoin investment is still lucrative for you.

Some people have witnessed huge losses in bitcoin investments, and some earned millions in bitcoin. It’s up to you to decide which category you want to fall into? The latter, right?

If you want to be sure-footed in this unprecedented world of bitcoins, follow these basic pointers:

• Do your research.
• Analyse the market.
• Do not put all your eggs in one basket.
• Measure the risks and choose the method that appeals to you the most.
• Do not follow the noise; always take expert advice.

To sum it up, Bitcoin is worth your time and investment. However, it would be best if you were extra careful as you are venturing into a highly volatile space.

Can you make a lot of money with BTC?

Make money with Bitcoin

Now that we understand how to make some extra cash, the next default question is, how much can you make?

Let’s answer it straight away. Yes, you can earn a lot of money with BTC. However, the more you want to make, the more you have to risk.

As discussed above, there is a whole spectrum of bitcoin earning – you can start small with micro earnings and advance towards high income by trading, investing, lending, etc.

There is no one-fit-for-all method to earn dollars in the bitcoin world. You have to glance through every method and opt for the one that you feel (obviously after extensive research) is the most lucrative. Or if you want to take advice from this post, you can diversify your investments.

Bitcoin investments are indeed volatile; however, the chances of every investment taking a steep dive simultaneously are impossible. Also, there is no formula to be a bitcoin millionaire overnight. You have to be patient with your investments.

Yes, you can make a lot of money if you invest in the right avenues while diversifying your investments.

Final Thoughts

Even after a decade of its launch and the fact that it isn’t ‘new’ Bitcoin remains a potential investment. You can make money with bitcoin through various avenues, including trading, investing, mining, affiliate programs, micro earnings, and many more. The amount of money that you will take home with bitcoin depends on the method you choose and the amount you risk. It is always advised to do your research before you pour your investments into bitcoin.

Bitcoin is volatile; its value can increase or decrease within hours. Considering this in mind, finding the best buy price is difficult. Also, these fluctuations can hamper your trade. Imagine you sold some bitcoins just to know the price of bitcoin increased the next minute. And talking about your investments, you will waste enough time hopping between different exchanges to locate different investments.

Zipmex effectively solves all these issues under one roof. You will find the lowest buy price on Zipmex. Also, you can complete trades at lightning speeds. To be more accurate, you can buy and sell bitcoins quickly. Yes, you heard it right!

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Is Bitcoin Mining Profitable or Worth it in 2021?

The short answer is yes. The long answer… it’s complicated.

Bitcoin mining began as a well paid hobby for early adopters who had the chance to earn 50 BTC every 10 minutes, mining from their bedrooms.

Successfully mining just one Bitcoin block, and holding onto it since 2010 would mean you have $450,000 worth of bitcoin in your wallet in 2020.

If you’re motivated to learn, and you want to get a semi-passive income of bitcoin, then there are a few basics to get your head round, before working out if it’s even possible for you to profit from bitcoin mining.

Mining is the backbone of all proof-of-work blockchains and can be described with three key concepts:

Bitcoin Block Reward

Miners are rewarded with 6.25 bitcoins. This number will reduce to 3.125 bitcoins after the halving in 2024. The reward (plus transaction fees) are paid to the miner who solved the puzzle first.

This process repeats approximately every 10 minutes for every mining machine on the network. The difficulty of the puzzle (Network Difficulty) adjusts every 2016 blocks (

14 days) to ensure that on average one machine will solve the puzzle in a 10 minute period.

Network difficulty is calculated by the amount of hashrate contributing to the Bitcoin network.

What is Mining Hardware?

Mining hardware is specialized computers, created solely for the purpose of mining bitcoins. The more powerful your hardware is–and the more energy efficient–the more profitable it will be to mine bitcoins.

Miner	Hash Power	Price*	Buy
	Antminer S19	95.0 TH/s	$6k-8.5k
	Antminer S19 Pro	110.0 TH/s	$8k-10k
	WhatsMiner M30S+	100.0 TH/s	$2,550
	WhatsMiner M30S++	112.0 TH/s	$2,850
	AvalonMiner 1246	90.0 TH/s	$5,500

*BuyBitcoinWorldwide.com averages prices from various online sources. Actual prices may vary depending on seller.

What is Hashrate?

Hashrate is a measure of a miner’s computational power.

In other words, the more miners (and therefore computing power) mining bitcoin and hoping for a reward, the harder it becomes to solve the puzzle. It is a computational arms race, where the individuals or organizations with the most computing power (hashrate) will be able to mine the most bitcoin.

The more computing power a machine has, the more solutions (and hence, block rewards) a miner is likely to find.

In 2009, hashrate was initially measured in hash per second (H/s) — Due to the exponential growth of mining, H/s was soon commonly pre-fixed with the following SI units:

Kilohash	KH/s (thousands of Hashes/second)
Megahash	MH/s (millions of Hashes/second)
Gigahash	GH/s (billions of Hashes/second)
Terahash	TH/s (trillions of Hashes/second)
Petahash	PH/s (quadrillions of Hashes/second)

To try and put this into perspective, let’s look at how much revenue 1 TH of power can earn mining bitcoin. As the global hashrate is usually growing the revenue per TH for each miner is usually falling, — and the revenue chart for 1 TH/s looks like this:

When you consider how many TH/s there are in the entire Bitcoin network though, you get a true sense of the scale of the industry:

85 Exahash = 85,000,000 Terahash

That means in May 2020 the daily revenue, globally, for Bitcoin mining is: $8.45M

How do Bitcoin miners calculate their earnings?

You’ve probably heard the scare stories about Bitcoin mining’s energy consumption.

Regardless of whether the impact is overblown by the media, it’s a fact that the underlying cost of mining is the energy consumed. The revenue from mining has to outweigh those costs, plus the original investment into mining hardware, in order to be profitable.

Mining Revenue

In 2020, one modern Bitcoin mining machine (commonly known as an ASIC), like the Whatsminer M20S, generates around $8 in Bitcoin revenue every day. If you compare this to the revenue of mining a different crypto currency, like Ethereum, which is mined with graphics cards, you can see that the revenue from Bitcoin mining is twice that of mining with the same amount GPUs you could buy for one ASIC. Thirteen AMD RX graphics cards cost around the same as one Whatsminer M20s.

WARNING

This graph shows you the daily revenue of mining Bitcoin. It does not take into account the daily electricity costs of running a mining machine. Your baseline costs will be the difference between mining profitably or losing money. GPU mining for Ethereum is more efficient than mining with Bitcoin with an ASIC machine

You can think of it as though the miners are a decentralized Paypal. Allowing all the transactions to be recorded accurately and making a bit of money for running the system.

Bitcoin miners earn bitcoin by collecting something called the block reward plus the fees bitcoin users pay the miners for safely and securely recording their bitcoin transactions onto the blockchain.

What is the Block Reward?

Roughly every ten minutes a specific number of newly-minted bitcoin is awarded to the person with a mining machine that is quickest to discover the new block.

Originally, in 2009, Satoshi Nakamoto set the mining reward at 50 BTC, as well as encoding the future reductions to the reward.

The Bitcoin code is predetermined to halve this payout roughly every four years. It was reduced to 25 BTC in late-2012, and halved again to 12.5 BTC in the middle of 2016.

Most recently, in May 2020, the third Bitcoin halving reduced the block reward to 6.25 BTC.

What about transaction fees?

The second source of revenue for Bitcoin miners is the transaction fees that Bitcoiners have to pay when they transfer BTC to one another.

This is the beauty of Bitcoin. Every transaction is recorded in an unchangeable blockchain that is copied to every mining machine.

Bitcoin doesn’t rely on a central bank to keep records, it’s the miners themselves that keep the records, and they get to keep a share of the transaction fees as well.

Taxes on Bitcoin Mining Profits

Of course, while profiting on Bitcoin mining isn’t certain, paying taxes on your mining rewards is. Every miner needs to know the relevant tax laws for Bitcoin mining in his area, which is why it is so important to use a crypto tax software that helps you keep track of everything and make sure you are still making enough money after you account for taxes.

Here is a great guide on how that software works to pay taxes on Coinbase buys.

How do you know if you can profit from Bitcoin mining?

First of all, Bitcoin mining has a lot of variables. This is why buying bitcoin on an exchange can be a simpler way to make a profit. However, when done efficiently it is possible to end up with more bitcoin from mining than from simply hodling.

One of the most important variables for miners is the price of Bitcoin itself. If, like most people, you are paying for your mining hardware, and your electricity,- in dollars, then you will need to earn enough bitcoin from mining to cover your ongoing costs; and make back your original investment into the machine itself.

Bitcoin price, naturally, impacts all miners. However, there are three factors that separate profitable miners from the rest: cheap electricity, low cost and efficient hardware and a good mining pool.

1. Efficient Hardware

So far in this article I’ve used the Whatsminer M20S as an example of the kind of machine you will need to mine bitcoin. These days there are several hardware manufacturers to choose from.

The price of hardware varies from manufacturer to manufacturer and depends largely on how low the energy use is for the machine vs the amount of computing power it produces. The more computing power, the more bitcoin you will mine. The lower the energy consumption the lower your monthly costs.

Miner	Hash Power	Price*	Buy
	Antminer S19	95.0 TH/s	$6k-8.5k
	Antminer S19 Pro	110.0 TH/s	$8k-10k
	WhatsMiner M30S+	100.0 TH/s	$2,550
	WhatsMiner M30S++	112.0 TH/s	$2,850
	AvalonMiner 1246	90.0 TH/s	$5,500

*BuyBitcoinWorldwide.com averages prices from various online sources. Actual prices may vary depending on seller.

When choosing which machine to invest in, miners should think about the machine’s profitability and longevity.

Profitability is determined by the machine’s price per TH, how many watts the machine uses per TH, and your hosting costs.
Longevity is determined by the production quality of the machine. It makes no sense to buy cheaper or seemingly more efficient machines if they break down after a few months of running.

If the hosting cost is low enough, it often makes sense to prioritize the ‘price per TH’ over ‘watts per TH’, as your lower operational expenses (OpEx) will make up for the loss in your machine’s efficiency — and vice versa if your hosting costs are high.

The manufacturer with the lowest failure rate right now is MicroBT, who make the Whatsminer M20S and other Whatsminer models.

Bitcoin Mining Hardware Turnoff Prices

One useful way to think about hardware is to consider what price BTC would have to fall to in order for the machines to stop being profitable. You want your machine to stay profitable for several years in order for you to earn more bitcoin from mining than you could have got by simply buying the cryptocurrency itself.

The following table shows that the majority of the most modern machines could remain profitable at a bitcoin price between $5000 and $6000. Some machines could handle a drop below $5k, if they are being run with electricity that costs under $0.05 kWh.

Unfortunately most older machines are now no longer profitable even in China. The Bitmain S9 has been operational since 2016 and interestingly enough they are still being used in Venezuela and Iran where electricity is so cheap that it outweighs the risk of confiscation. There may, eventually, be more reputable sources of sub 2 cents electricity as the access to solar and wind improves in North America.

Miner	Hash Power	Price*	Buy
	Antminer S19	95.0 TH/s	$6k-8.5k
	Antminer S19 Pro	110.0 TH/s	$8k-10k
	WhatsMiner M30S+	100.0 TH/s	$2,550
	WhatsMiner M30S++	112.0 TH/s	$2,850
	AvalonMiner 1246	90.0 TH/s	$5,500

*BuyBitcoinWorldwide.com averages prices from various online sources. Actual prices may vary depending on seller.

For the individual miner, the only hope of competing with operations that have access to such cheap electricity is to send your machines to those farms themselves. Not many farms offer this as a service though.

2. Cheap Electricity

Electricity prices vary from country to country. Many countries also charge a lower price for industrial electricity in order to encourage economic growth. This means that a mining farm in Russia will pay half as much for the electricity you would mining at home in the USA. In places like Germany, well as you can see from the chart, that’s another story…

In practical terms. Running a Whatsminer M20S for one month will cost around $110 a month if your electricity is $0.045 kWh in somewhere like China, Russia or Kazakhstan. You can see from the table below that you would make $45 a month in May 2020 with those electricity prices.

Profitability with $0.045 kWh electricity

However, with the typical home electricity price in the USA, of $0.12 kWh, you would be running the machines at a loss from the start and it would not make sense to mine under these conditions:

Profitability with $0.12 kWh electricity

3. Reliable Mining Pool

These days, every miner needs to mine through a mining pool. Whether you are mining with one machine, or several thousand, the network of Bitcoin mining machines is so large that your chances of regularly finding a block (and therefore earning the block reward and transaction fees) is very low.

If the Bitcoin Network Hashrate is 100 EH/s (100,000,000 TH/s), a WhatsMiner M20S ASIC miner with 68 TH/s, has approximately a 1 in 1,470,588 chance of mining a Bitcoin block. With one block per 10 mins they may have to wait 16 years to mine that one block.

The oldest two pools are Slush Pool and F2Pool. F2Pool is now the largest Bitcoin mining pool and they support around 20% of the entire Bitcoin network.

F2Pool’s payout method is called PPS+. PPS+ pools take the risk away from miners, as they pay out block rewards and transaction fees to miners regardless of whether the pool itself successfully mines each block. Typically, PPS+ pools pay the miners at the end of each day.

This is how PPS+ pools calculate how much to pay out to miners in their pool. Here comes the science part…

If the Bitcoin Network Hashrate is at 85 EH/s (85,000,000 TH/s), a WhatsMiner M20S ASIC miner with 68 TH/s, will earn around 0.000702 BTC per day before pool fees.

0.000702 BTC is calculated by 68 (miner hashrate) ÷ 85,000,000 (network hashrate) × 144 (number of blocks per day) × 6.25 (block reward).

Pool fees are normally 2.50–4.00%, so let’s use 2.50% for the example; the net mining revenue is therefore 0.00068445 BTC.

If BTC is priced at $9,000, then this M20S has a daily revenue of $6.16.

Choosing the right mining pool is very important, as you will receive your mined bitcoin sent from the pool payouts every day. It’s important to choose a pool that is reliable, transparent and offers the right suite of tools and services to help you optimize your mining operation.

4. Fees When Selling Bitcoin

An often overlooked facet of mining profitability is the fees one pays to sell the Bitcoin one mines. If you are a small time miner, you may have to sell your coins on a retail exchange like kraken or Binance. Sometimes your fees are low but sometimes your fees are high — it really just depends on the fee structure of the exchange and the state of the orderbook at the moment.

However, if you are a professional miner like F2 or Bitmain, you likely have really advantageous deals with OTC desks to sell your coins at little to no fees — depending on the state of the market. Some miners are even paid above spot price for their coins. Either way, professional mining operations deal with Bitcoin at a large scale and so they have more leverage to get deals that are good for them, and this doesn’t just apply to electricity purchases.

If you think you have what it takes be mine profitably, we suggest you make sure first by using our mining profitability calculator.

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Unless you have access to very cheap electricity, and modern mining hardware then mining isn’t the most efficient way to stack sats. Buying bitcoin with a debit card is the simplest way, but we also recommend using a payment network like Skrill or Interac e-Transfer or use a bank transfer such as SEPA when available.

To buy bitcoin in your country or state, check our guides! A few of our most popular are listed below!

…or visit our exchange finder if your country is not listed above.

Professionals vs Amateurs

It’s common knowledge that it has become very difficult for individual miners to get access to the best machines and the cheapest electricity rates. Bitcoin farms that operate at scale use these advantages to maximize their returns.

As the difficulty of mining bitcoin increases, and the price lags behind, it is becoming harder and harder for small miners to make a profit.

It all comes down to scale and access to cheaper prices. When people enter the space, without prior relationships, they struggle to compete with established mining operations.

Bitcoin mining is starting to resemble similar industries as more money flows in and people start to suit up. With increased leverage, margins are lower across the whole sector. Soon, large scale miners will be able to hedge their operations with financial tooling to lock in profits, whilst bringing in USD denominated investments like loans or for equity.

As mining becomes more professional, it will make things even harder for DIY miners.

Can you Mine direct to an exchange?

If you have put in the effort to learn about mining, and you have found a location with low cost electricity for your machines, then you still need to consider where to store the bitcoin that you mine.

It is possible to mine direct from the pool to an exchange, but we recommend you keep your bitcoin in a wallet where you have access to the private keys.

Here are our top picks for Bitcoin wallets:

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