How to Make Money on Bitcoin in 2020? On the difference and exchange of cryptocurrencies

How to Make Money on Bitcoin in 2020? On the difference and exchange of cryptocurrencies

Do you feel like making money from bitcoin should be easy and straightforward? By now, you should have heard of cryptocurrency and various ways to make money online from it. If not, at least you are curious about the various investment opportunities available in digital currency or even how you can get yourself some free bitcoins. This coin is a digital currency that enables safe transactions worldwide and securely through encryption.

How to Make Money on Bitcoin in 2020? On the difference and exchange of cryptocurrencies
How to Make Money on Bitcoin in 2020? On the difference and exchange of cryptocurrencies

The currency is also not regulated by any association or government, and its control is by the investors and users of the money. Contrary to popular opinion, there are many easy ways you can get earnings from bitcoin. Most of the techniques, if followed correctly, will make you rich in the short or long term. Below are some of the best ways to make money from bitcoin and other digital currency.

1. Bitcoin Mining

Bitcoin Mining

In this approach, you don’t have to do any physical mining to get the coins. So why then is it called mining? The reason is, the currency miners have to bring the coin to the surface using special software’s. The procedure of mining bitcoins used to be relatively straightforward. However, nowadays, miners have to purchase sophisticated machines whose processors are not readily available to the typical person.

These expensive and powerful computer accessories have the power to solve the complex algorithms required in the process of mining. One of the ways miners try to bypass the issue is by teaming up in mining pools where they leverage their processing power. It may look like a very complicated way of making money from cryptocurrencies, but it is my favorite since I use cloud mining and do not have to pay lots of money for specialized mining equipment.

What Does Cloud Mining Entail

This method is an approach where you delegate your mining processes to a specialized company. At this stage, you select your computing capacity according to your mining needs and budget, then the company’s support sets it up for you. This facility makes your work very easy since you don’t need a graphics processing unit (GPU) and that any person with zero technical skills can embark on their mining journey almost straight away and start receiving earnings.

Using Cloud Mining to Make Money

Once you are satisfied with the cloud computing facility to use, the next steps are elementary. The standard rule is, the bigger the processor capability you can rent, the more coins you can mine. Next is deciding on the contractual period you want to rent the service. Most facilities go for a minimum of a year, although you can choose a continuous period. To bring you to perspective, working with minimum capacity computing can earn you up to 150% of your outlay.

So, if you consider the fact that digital currency has the likelihood to grow tremendously, the value of your annual coins can make you a rich investor. You can also pre-calculate average daily income using specific calculators before selecting a cloud mining facility. Here you define the amount of investment you want to put in, the processor capability, and the digital currency you wish to purchase. From there, the cloud mining service then gives you the estimated average daily revenue.

2. Using Bitcoin Faucets and Pay to Click (PTC) Sites

Using Bitcoin Faucets and Pay to Click (PTC) Sites

In this method, if you are the individual that does not mind opening ad websites and answering a few questions, then this is not for you. In a typical sense, these sites make cash from ad revenue in their site. The visitors that visit their website and write captchas get a small fraction of their annual income generated. On the other hand, PTC sites will pay you a percentage of revenue if you can sit and watch an ad to completion. Be warned that this is a very tedious process, and to get a significant amount of money is arduous work.

3. Long Term Investment of Bitcoin (Purchasing and Holding)

Long Term Investment of Bitcoin (Purchasing and Holding)

This approach is one of the easiest ways to invest in digital currency. The first step is ensuring that you have a cryptocurrency wallet where you store your coins. Most sites will give you a free one once you create an account with them, for instance, Paxful. Although, you should be careful to ensure that the site you intend to use is very secure to avoid losing your coins. This method relies on your investment skills, speculative talents, and patience. You should ensure you do your research and make proper conclusions since you don’t know when the bear market is beginning. There are many factors to be considered before determining the value of bitcoin, and you should not trust one person’s opinion.

4. Cryptocurrency Day trading

Cryptocurrency Day trading

Just like buying and holding, there is a lot of potential in day trading bitcoins. The difference is that unlike holding, trading is mainly short term. It can range from 5 minutes trading to daily trading. In this method, you buy low in the hope that in an hour or a day, the price will be higher, and then you can cash in on the profit. Also, in trading, you can take advantage of both the upward and downward movement of the coin.

Therefore, you can make money in not only the bull market, but also a bear market by going short. Caution should, however, be exercised in day trading because of significant fluctuations in price. Day trading has a lower risk as compared to long term investment if done with proper risk management. If you are prepared to invest time in understanding the fundamental economics that drives the digital market, then trading can make you a significant amount of money in both the short and long run.

General Tips in Digital Currency

It is essential to be vigilant when exploring the digital currency space. Ensure the safety of your wallet by making sure you have updated antivirus and also by backing up your coins. These measures are because of the digital threats that are lurking all over the web. Similarly, know that just like any other financial market, the digital world is prone to fluctuations. Therefore, there is an inherent risk of loss of coin value. On the upside, the market is growing steadily, and there will be a new creation that will have demand hence more opportunities in cryptocurrency.

Written by: PaisleyEV

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