How to Make Money with Bitcoin (Your All-In-One Guide)

Luxury, lambos, and insane profits leave people wondering how to make money with Bitcoin. All you need is a basic understanding of where to look (and where not to), what to learn, and how to manage your time. In this article, we will explain different approaches that will have you earning Bitcoin today. We will begin with simple, low-cost methods and move our way up to more complicated, higher cost ones. If you’re ready to put money on the table, we advise you skip to the paragraph “How to Make More Money with Your Bitcoins.”

By the end, you will be well equipped to start your journey to the moon.

  • Make Money With Bitcoin (Without Spending One Dollar)

    Yes, you read that correctly. You can start earning Bitcoin immediately, with zero Bitcoin to your name. Sounds crazy, but it’s true. The only cost is some time and effort.

    Here are two ways for beginners to get their hands on that sweet, sweet Bitcoin:

    • Bitcoin Faucets
    • Bitcoin Jobs

    How to Make Money with Bitcoin Faucets

    Imagine a sink that pours money instead of water. Bitcoin faucets pour Bitcoin right into your wallet. Faucets are websites which require visitors to watch paid advertisements in return for small amounts of Bitcoin. Some faucets require users to be on the site for a certain amount of time and often limit users to 10,000 or 100,000 satoshi per day.

    Popular faucet examples are BonusBitcoin, Bitcoinker, and Eloot. The only cost here is some of your time. So if you are bored scrolling through Facebook, why not earn with a Bitcoin faucet instead?

    The beauty to all of this is that your bankroll can snowball from here. Once you have Bitcoin, you can leverage it to gain some big returns, which will be discussed later in this article. For now, let’s continue with more free ways to earn Bitcoin.

     

    Working in the Bitcoin Industry

    Coming in at number two: Bitcoin jobs. This is one of our favorite methods. Not only is it the most consistent method, but the payoff goes beyond just monetary value. There is no better way to make money with Bitcoin than by working with Bitcoin. The cost here is time and discipline.

    If you take the time to understand crypto or can translate your current expertise to the cryptocurrency industry, then you will be in high demand amongst the financial and technology worlds. Most people have zero understanding of blockchain technology, crypto economics, mining, or how to think critically about its implications. Given the lack of understanding coupled with rising demand, cryptocurrency experts can easily make upwards of $90,000, $150,000, $200,000 or more depending on experience.

    Let’s first explore some possible career opportunities that don’t require much technical knowledge and can get you making money with Bitcoin sooner than later. Two popular ones are content writers and community managers.

    And you know what?

    These jobs can often be done remotely, from anywhere in the world, and pay anywhere between $40,000-90,000 per year.

    Let’s take a closer look.
     

    Community Managers

    Don’t underestimate the importance of an excellent community manager. Many crypto projects have Facebook groups, not just pages, or Telegram groups, not just announcement channels, which means that there is high demand for real-time support and engagement between the company and client. Many of these groups can have 15,000+ members chatting live which requires prioritizing support requests, keeping clients happy, and fostering ongoing discussions with users.

    Content writers

    Content creators, on the other hand, must be professional wordsmiths who understand how to communicate to the cryptocurrency market and adequately use the correct lingo in web copy, white papers, and blog posts. If you gain some experience as a content writer or community manager, then you are well on your way to making money with Bitcoin.
     

    Bitcoin Developer

    We wanted to give this its own heading because developing software is arguably the most in demand and lucrative niche in the space. Software engineers who understand how to practically build, debug, and improve upon blockchain networks are tough to find and as a result, are paid handsomely. To be a developer in the space requires not only knowing software development but specifically blockchain protocols and decentralized networks. Blockgeeks.com is a great place to learn the basics and get your foot in the door. Use our exclusive coupon codes CryptoManiaksPRO and CryptoManiaksACC for 20% discounts on their premium products. They offer the best resources available online for this purpose and have already trained an incredible number of blockchain professionals.

    Next, let’s explore how you can take advantage of simply owning Bitcoin.

  • How to Make More Money with Your Bitcoins

    Now that you understand how to earn Bitcoin at no cost, let’s explore how to make money with Bitcoin by leveraging the Bitcoin you have. A common adage is that you need money to make money - and when it comes to making the big bucks, it’s true. Owning Bitcoin opens up many more possibilities.

    The approaches we will cover next are:

    • Bitcoin Hard Forks
    • Bitcoin Airdrops
    • Bitcoin Trading
    • Bitcoin Lending

    Let’s dive in.
     

    What is a Bitcoin Fork?

    In this section, things will get a bit technical, but we’ll do what we do best and explain this so even your flip-phone using grandma will understand. We will overlook some of the finer details, but as long as you understand the basics and can make money from it, then you are good to go.

    Bitcoin can undergo what is called a hard fork, and aside from being an opportunity for free money, can be quite controversial. A hard fork is when a significant change is made to Bitcoin’s protocol and thus an entire new blockchain is created. The network is essentially split into two. At this point, miners and nodes, who make up Bitcoin’s decentralized network, can choose to contribute to the original Bitcoin network, or the new, forked version.

    Decentralized networks are democratic by nature - meaning that there is no best or worst blockchain - there is only the blockchain which has the most contributors. So, if I present a Bitcoin fork called Bitcoin-Mike, then any node can individually choose to point their computing power at Bitcoin or Bitcoin-Mike, which are two different blockchains and coins. This is the most basic answer to “what” a hard-fork is, but there are many more factors to it that we recommend reading about if you are interested. Replay protection, double-spend attacks, and understanding the changes being made are all concerns and worth understanding if you want to dive deep into the crypto world.

    For now, just understand that a hard fork is when a blockchain splits into two, and when this happens, you can make some free money. Here is how.

    How to Make Money with Bitcoin Forks

    Hard forks happen at a certain time. By time, we mean at a specific block on the blockchain. So, if I plan to implement my Bitcoin-Mike fork, at block number 1,232,426,392, then at this particular block on the blockchain the split will occur and nodes can begin contributing to the Bitcoin-Mike chain if they so choose.

    But something else will happen at this time. If you are holding Bitcoin in your wallet at the time of the fork, then you will receive a specified proportion of Bitcoin-Mike coins. If I announce that all Bitcoin holders will receive an equal amount of Bitcoin-Mike, then if you are holding two Bitcoins in your wallet, you will also receive 2 Bitcoin-Mike, as long as your wallet supports it.


    Let that soak in. This means that as long as you are holding Bitcoin in a supported wallet at the time of the fork, you get free coins - boom. Simple as that. This only cost here is having some Bitcoin, being aware of the fork, and confirming that your wallet supports the fork. Let’s explore some popular Bitcoin hard forks.
     

    Popular Hard Forks

    There are several popular hard forks that come to mind such as Bitcoin Cash (BCH), Bitcoin SV (BSV), Bitcoin Private (BTCP), Bitcoin Gold, Bitcoin Diamond, and others, but for right now, we will focus on Bitcoin Cash.

    Bitcoin Cash was a fork which occurred on August 1, 2017. The team behind Bitcoin Cash has the prominent figurehead Roger Ver behind it, and they believe that all transactions should occur on-chain and none should occur off-chain. So, they made some technical changes which involved increasing the block size limit and created their own version of Bitcoin. Everyone who held Bitcoin in a Bitcoin Cash supported wallet received an equal number of Bitcoin Cash at the time of the fork.

    For your piece of mind, Bitcoin Cash hit a high of ~$2,900 per coin! Bitcoin SV is currently worth ~$100, and the others are not worth as much, but hey, not bad for free money. So next time your girlfriend wants to go on a fancy dinner, tell her to wait until next week when a hard fork happens - she’ll thank you later.  
     

    How to Make Money with Bitcoin Airdrops

    Concerning free money, airdrops are similar to hard forks. As long as you have coins in a wallet, then you will receive the airdrops, but technically and politically speaking, they are very different. Airdrops are not as contentious as hard forks because they do not require miners and nodes to contribute to a new network. In other words, airdrops are not nearly as decisive - they are not splitting the network.

    There are two main forms of airdrops: effortless ones and task-based ones. Effortless airdrops are exactly what they sound like. As long as you have Bitcoin in your wallet, then you will receive a proportionate amount of the airdropped coin.

    The task-based ones may require you to like their social media pages, or refer a friend. In return, they will airdrop coins to your wallet address. Ultimately, airdrops are seen as an excellent marketing tool. A project can promote the awareness of their brand to every Bitcoin holder - that’s powerful stuff. Airdrops also occur often with other cryptocurrencies such as Ethereum.
     

    Popular Airdrops

    Airdrops are super underrated. Think you can’t make a profit from airdrops? Think again. One example is XEM, which gave away 2.25 million coins to users who expressed interest in their project. Those 2.25 million XEM is worth around $135,000 at the time of this writing. Not too shabby! Another example is Ontology who gave away 1,000 ONT to airdrop participants worth around $650 right now. On some exchanges, the coin even reached an all time high of $10.90! While it’s easy to dismiss airdrops and hard forks, we recommend keeping up with these. You might hit a goldmine.

     

    How to Make Money with Bitcoin Trading

    Trading. The approach that everyone thinks will get them rich. While this can be true, it requires lots of work, capital, and dedication to become a pro. In general, traders can be classified into the three main categories of HODLers, day traders, and swing traders.

    HODL is a crypto specific term that began from a viral forum post. To this day it is used instead of the word “hold” and HODLers are the ones who buy Bitcoin or any other cryptocurrency and simply hold...forever. The returns can be high over a long period of time, but it is not reliable if you are seeking consistent income.

     

    Swing traders are those who make a trade once a week, or once a month. They enter positions and then exit them after longer time-frames. Daily fluctuations in price and general market volatility shouldn’t bother a swing trader.

    Then there are day traders - who receive a lot of the glory and is what most people envision traders to be. They enter and exit positions intraday, flipping coins for profits hoping to make hundreds or thousands each day. This requires understanding technical analysis, fundamental analysis, and all of the trading tools at your disposal. While on the topic of trading, let’s discuss a couple of basic trading strategies.
     

    Shorting Bitcoin

    In a bear market, day traders will often short the market, which allows them to profit from downtrends. Shorting is commonly referred to as short selling or selling on margin.

    Trading on leverage, trading futures contracts, options trading or virtually any other financial instrument is a simple deal you make with an exchange or bank. The deal with shorting is that you borrow a quantity of Bitcoin, and have to pay back that same quantity you borrowed. Seems simple enough - now let’s examine how to profit from this deal. Many time, traders use leverage to borrow than they have. They also have a certain amount of collateral in their margin account - I’ll explain with an example.
     

    Shorting in Practice

    You are an expert day trader. You notice that Bitcoin is severely over-valued and the market is due for a downturn. To profit on the downtrend you decide to short Bitcoin with leverage - borrowing more than you have. You decide to open a short position by creating a margin sell order with 2.5x leverage. This means that you are able to margin sell 250% worth of Bitcoin collateral in your margin account.

    Here is what happens when you open a short:

    1. You take a loan of Bitcoin
    2. The Bitcoin is automatically sold on the market
    3. You receive the proceeds in USD

    Please note that you did not do this action. This is done automatically the moment you open a short position. I am simply explaining what is functionally happening. You receive USD when you borrow Bitcoin to open a short position. If Bitcoin is trading for $1,000 and you opened a short position of 10 Bitcoin, you then have $10,000 USD, at a base price of $1,000 USD per Bitcoin.

    And now comes the best part. Profit time.

    The price of Bitcoin drops to $500! This is your opportunity to strike. Remember that the deal is you borrowed a quantity of Bitcoin and have to pay back that quantity of Bitcoin. Using the $10,000 you borrowed, you can buy back $10,000 worth of Bitcoin with a margin buy order which closes your position. In the end, you get 20 Bitcoin, can pay back the 10 Bitcoin you owe to the exchange and have 10 Bitcoin worth of profit! In some cases, you can also buy back only 10 Bitcoin and keep the remaining proceeds. In summary, shorting is when you borrow an asset at a certain price and promise to pay back the same quantity of the asset. If the price drops, you can take advantage of the lesser price by keeping the difference.

    Pretty neat, huh? We think so too. Let’s discuss one more common trading strategy, arbitrage.
     

    Arbitrage

    Arbitrage is when traders take advantage of price differences across different exchanges. For example, if Bitcoin is trading on exchange A for $4,000 and exchange B for $4,100, then there can be a $100 profit opportunity by quickly buying on A and selling exchange B. All of these tricks sound easy on paper, but in practice you will find that the market is unpredictable and requires serious discipline to create your own trading strategy.

    Still, there is no arguing that trading is the most popular approach that people use to make money with Bitcoin. We recommend getting started on Coinbase or Binance.

    If you want to be the next Wolf of Crypto Street, then trading may be for you. If you want to play it safe, then lending might be for you.

     

    How to Make Money with Bitcoin Lending

    Lending is a great way to earn passive income from your Bitcoin. Exchanges which offer leverage will often need users to lend Bitcoin, in return for a payout which can be 0.5%, 1%, or 2%+ per month on the amount you lend. While the profits here are not as substantial as the other methods, it requires virtually no effort and as long as you are hosting your Bitcoin on a trusted platform, then you have nothing to worry about. Outside of exchanges, there are peer-to-peer lending platforms specifically for Bitcoin. Lending is underutilized and we cannot stress enough how great of an opportunity it is to make money with Bitcoin.

     

    How to Make Money with Bitcoin Mining

    Miners are arguably the most integral part of any decentralized blockchain network. They validate transactions, keep the network secure, and ultimately keep transactions moving. Without miners, transactions would be stale and the Bitcoin network would be useless. As a result of contributing to the network, they receive coin rewards, more technically known as block rewards. To mine you do not need Bitcoin, just some upfront cash to invest.

    Mining has grown into a massive industry with giants such as Bitmain and other institutional sized mining farms. Big profits are to be made, but not without significant upfront cost. Most cryptocurrencies require mining rigs for the miner to reap any benefit as mining with your basic computer (CPU) won’t do anything besides maybe increase your electricity bill.

     

    How to Mine

    Mining requires buying a mining rig or creating your own. Generally, mining rigs are made of 2 or more graphics cards (GPUs) because GPUs are much more powerful than CPUs, generating more hash power. Once you have the hardware rig, you can then connect your rig to a mining pool, which allows you to more easily direct your hashing power towards Bitcoin’s network. Be aware that a mining rig can cost anywhere from $1,000 or more, and running these will also increase your electricity bill by $50 or more per month.

    Lots of people view mining as investing in the future, much like a futures contract. While you might be unprofitably mining Bitcoin today, Bitcoin may very well rise again in the future, which would pay off your current costs in addition to providing huge profits.

  • So, How Should I Make Money with Bitcoin?

    There is no “best” method. You have to find the method which suits you best. Are you looking to replace your current income entirely? Are you looking to supplement your income with passive efforts? If you are not sure, then take some time and explore each option - there are no rules. Try trading, try faucets, or try getting a job, you never know what will come of it.

    If you have no Bitcoin, I recommend heading over to a faucet. This way you don’t need to buy Bitcoin right now, can earn free money, and can then try trading Bitcoin on an exchange like Coinbase or Binance or using it for hard forks and airdrops. If you are nervous to try any of these approaches, then simply HODL your Bitcoin, do some research and don’t rush yourself. As long as you stay active and open-minded, you will find ways to make money with Bitcoin.   

     

    What is the Best Way to Learn about Bitcoin?

    If you don’t want to sit there tediously using a faucet, then come check out some of our free content to get started. If you (unsurprisingly) find yourself wanting to dive deeper to learn how to safely store your funds, transfer them to exchanges, and make more money, then check out our start investing guides. Our course was created by handpicked experts and we are so confident in the value our course provides that we offer a 100% money back guarantee - no questions asked. What are you waiting for? Join over 13,000 others and become a Cryptomaniak.

Posted by Michael R.

Michael is an entrepreneur who has been deeply involved in the cryptocurrency industry since early 2014. He joined Cryptomaniaks as a cryptoanalyst, helping to create accurate and digestible content.

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