Bitcoin is becoming more and more popular. As such, maybe you want to take a chance and jump on the financial bandwagon. If so, how do you get started? After you earn bitcoin, what do you use it?
Step 1: Understand What Bitcoin Is
The first thing you need to know when you want to start earning and investing in bitcoin is what it is. After all, you should never invest blindly – you need to know everything you can about the currency you are working with. For example, if you wanted to make a contactless payment, you would want to make sure you are making secure payments through this method.
Bitcoin is widely known partially because it was the first major form of cryptocurrency. It can be split into two definitions – bitcoin as a protocol and bitcoin tokens. For the sake of this article, we will be referring to bitcoin tokens.
Bitcoin tokens were made by Satoshi Nakamoto. This name, though, is a pseudonym and the real name of the creator is unknown.
The first thing to know about bitcoin is that it’s decentralized. While your cash makes its way to you through a bank, bitcoin is controlled by a central intermediary. This also means that there is a limited supply of bitcoin. Whereas federal governments can make sure that people get all the money they earn and are able to access the money they have, bitcoin is controlled by an algorithm that doesn’t create more as needed.
This also means that bitcoin transactions cannot be reversed once they are made. There is no system installed in which you can contact to request the currency you exchanged back. So, when you use bitcoin you should be sure to only make transactions you are confident in because you won’t be able to reverse it.
Step 2: Mine Bitcoins
It should be noted that this step and the following steps aren’t meant to be done in any order. They are simply steps that can be used to earn bitcoins on the internet.
The first way we will look at is a classic way to earn bitcoins – mining them. The truth is that mining isn’t as lucrative as it once was. The idea behind mining is that you would come upon a computing problem that, if solved, you earn a certain number of bitcoins.
The problem now is that it takes far more energy and computational power to earn bitcoins this way. Because of this, the cost here is usually greater than the reward. This method is now typically reserved for teams trying to earn bitcoin.
Step 3: Complete Micro-Tasks for Bitcoin
Have you ever watched an ad or completed a survey? Have you ever answered a question in an online forum? Maybe you helped answer a history question or found the product that the asker had been searching for. These tasks are usually done out of genuine altruism due in part to the fact that they take so little time.
What if you could earn a reward for completing these small tasks, though?
Websites such as CoinWorker allow you to do just this. You will only earn a small amount of bitcoin for each job but it is a good way to get your feet wet when you are starting out with bitcoin.
Step 4: Do Freelance Work for Bitcoin
Freelance workers lives’ are made particularly easier by the innovations of the internet. If you are a freelancer or interested in freelance work, it only makes sense that you can bring this area of the internet into cryptocurrency. The idea is that you complete the same jobs you would normally but instead of accepting traditional payment methods, you would get paid in bitcoin.
If you are worried about finding your own work and building a customer base, you could always look for a company to work with. As cryptocurrencies become more popular, you will see your options in this sector grow.
Step 5: Bitcoin Faucets
Like doing micro-tasks, bitcoin faucets also offer you a small amount of bitcoin for completing smaller objectives. Moon Bitcoin and FreeBitcoin are popular bitcoin faucets.
These usually only pay 1 Satoshi – a hundredth of a millionth BTC – for tasks such as clicking on an ad and they are usually limited in how much you can earn within a certain time period. Much like micro-tasks, though, these are a great way to get started with bitcoin.
Step 6: Run Ads for Bitcoin
For content creators on the internet, a large portion of income comes from running ads. This is why you see ads before many videos or framing blog posts.
When it comes to your own website or content, some creators have the privilege of choosing which advertisers they work with. This is particularly true for creators who own their own websites. As you gain popularity as a creator and advertisers want to work with you, you can choose to work with advertisers that will pay you in bitcoin.
Step 7: Offer a Good for Bitcoins
As a freelancer, you are offering a service in exchange for bitcoins. If your talents lie more in the field of producing goods, though, you can also accept bitcoin as a form of payment.
For instance, if you were selling handmade items, you could sell them just like you would if you were accepting credit cards. The only difference would be that you would accept bitcoin instead in exchange for the item.
Step 8: Trading
If you are interested in learning a more high-risk method of earning bitcoin, you can try trading. First, you have to buy cryptocurrency. Then, you use your knowledge of cryptocurrency to your advantage and trade for bitcoins at the lowest possible cost to you.
This method takes a lot of knowledge and you have to be willing to take a risk. Don’t forget – everyone you trade with is also looking for the best deal so you have to be careful which deals you agree to or you’ll find yourself on the losing side.
Step 9: Lending Bitcoin
After you get a little bitcoin, you can earn money by lending it out. Just like a bank lending standard currency to you, the earning here is played out with the interest accrued by the lender. Eventually, you get your money back with the extra interest as profit.
When you do this, you should make sure to use a bitcoin lending platform for security. It’s important to note, though, that due to bitcoin’s nature, it is still hard to control transactions. This means that you will have to take a significant risk for this reward.
Step 10: Playing Games
This last step might sound too good to be true but you can earn bitcoin by playing online games.
There are a variety of different options as far as the types of games you play. The most popular choice is gambling games on sites like mBit. Some of these games typically require a touch of skill and finesse to be lucrative. However, there are some options that are based more on luck. Bit-Bandit offers a slot machine, progressive jackpot and blackjack.
You can also earn bitcoins by playing other types of games. Tremor Games, for example, allows you to earn bitcoins by playing flash games.
How to Use Bitcoin
In using bitcoin, you have a few options. The main difference in these options is whether you want to use bitcoin or convert it into a more standard currency.
First off, you have the option of investing in bitcoin. This is a fairly novel way of earning money off of bitcoin and has only become popular as bitcoin itself has become more popular and well-known.
The idea behind this is that you have to spend money to make money. In other words, it all starts by you buying bitcoin. Then, you hold onto that bitcoin until the value of bitcoin goes up. Once that happens, you sell your bitcoin at the higher market value than you bought it at. The difference is your profit.
Alternatively, you can use your bitcoin as it is – as a form of currency. Just like you can earn bitcoin from completing tasks or providing a good, you can be on the other end of that transaction. You can purchase things from others who accept bitcoin as a form of payment.
About the Author
Annabelle Short is a writer and a seamstress of more than 5 years. She loves making crafts with her two children, Leo (age 9) and Michelle (age 11). Annabelle likes to write about business and technology.
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