Bitcoin prices have reached the highest to $ 19,783 on Dec 17 2017. What kinds of ways are there for individuals to make money through a bitcoin? There are so many ways to approach business, but I have listed only 4 most common ways to make money with a bit of coin.
Mining is the most basic means of increasing your assets in the crypto market. Bitcoin miner is a device that is designed to compensate for the provision of computing power to network participants in order to maintain the core function of the bitcoin distributor. Therefore, when the bitcoin was first created, the compensation for the mining was 50 BTC, but the compensations gets smaller as more people mines. However, you could earn additional reward through transaction fee in the bitcoin network. The reward is available to the miners only for the transaction fee.
As the value of the bitcoin increased, the digger increased explosively, and the difficulty of mining increased. However, since the virtual money market is based on open source software, a variety of Altcoins have emerged that complemented Bitcoin’s weaknesses.
There is a way to obtain a steady profit through mining by purchasing a mining equipment that can recover the investment fund with the Bitcoin mining machine for around 6 months. However, the mining productivity will fall not even enough to maintain the electricity bill. You could also mine altcoins, which refers to all other types of coin except for Bitcoin. Altcoin is also a way to make a steady profit.
In recent years, there has been a method called “cloud mining” in which you could rent mining equipment and mine without purchasing the mining equipment.
When you are making profits from the mining method described above, there is risk that the profit varies depending on the price fluctuation bitcoin.
It takes quite a long time to mine and earn profit. In such a case, you could buy and hold the coin directly, and if the price rises, you will directly earn profits. This is a very basic way of generating profit and is just the same as stock trading.
Unlike the stock market, the price could rise and falls by a specific power in many cases because the crypto market small and has no legal surveillance. Additionally, there is no limit to the fluctuation, leading to a lot of cases where people earn or lose big money.
In order to trade safely, you need to keep up-to-date information from the cryptocurrency community or keeping in touch with foreign news.
3. Participate in ICO (Initial Coin Offering)
The disclosure of stocks in the stock market is called IPO (Initial Public Offering). In the cryptocurrency market, it is called Initial Coin Offering (ICO). You could buy coins very cheap in the launching stage of a new coin.
There are some differences between IPO and ICO. If you make an investment through IPO, you can exercise your authority as a shareholder, and you could also get dividends.
However, if you invest in ICO, you are only buying a coin, not shares. Most coins have an initial issue price that is much cheaper than when it gets listed on the coin market. When the coin gets listed on the market, the early investors sell the coins to monetize the coin, and prices often falls significantly. Therefore, if you invested coin through ICO, you should check the registration date and sell them quickly. On the other hand, you could expect higher profit if traded for a long time in the future.
4. Using bitcoin faucet
Mining, trading and ICO can be done through both small and large investment. Therefore, there is also risk of losing money. However, you do not need to have initial investment for bitcoin faucet. You just need to spend some time to watch advertisements. It is a service that pays you bitcoin for watching ads at a certain time interval of around 60 minutes. It might seem small but you could actually earn a lot more than through mining with a PC. However, this type of services has been created at the very beginning of the bitcoin. Because you need no investment, it is also a smart way to earn money, but there is a limitation that you can’t get big profit. It is recommended your patience and consistence.