The Skeptics Guide To Crypto Profits & How To Make Money With Bitcoin In 2023

Make Money With Bitcoin

As with the stock market, cryptocurrency has attracted a lot of speculators, but that is not the purpose of either entity. The purpose of the stock market is to enable businesses to raise working capital. Similarly, Bitcoin, the first cryptocurrency, was intended to provide a medium of exchange directly from person to person, without middlemen like banks and governments.

Instead of a central authority, Bitcoins, and their value, are regulated by a decentralized network of “miners” using blockchain technology.

However, like the shares traded on the stock market, or indeed international currencies, cryptocurrencies rise and fall in value based on what traders are willing to pay for them.

Accept Cryptocurrency as Payment

The most obvious way of making money with cryptocurrency is to use it for its original purpose, which is, accepting it as payment for goods or services.

You should understand the value of your chosen cryptocurrency relative to dollars (or the currency of your country) and price your goods or services accordingly.

Once the bitcoins, or other cryptocurrencies, are in your digital wallet, you can either hold them and wait for their value to increase, or use them for lending or trading.

Crypto Loans

Lending is just as simple as it sounds. Just like a bank lends conventional currency in the expectation of earning interest from the borrower, cryptocurrency loans work the same way. 

There are some risks involved with lending your cryptocurrency so make sure to read all the fine print before going that route.  If you choose to lend your crypto, you are giving over the keys to your money. You have to be fully comfortable to lose your money completely if the lending company goes out of business. 

You might be able to generate recurring interest for a while but the second your money is gone, all that profit  and interest accumulated disappears with it. 

Who Pays in Cryptocurrency?

Maybe you are not a business owner. It is still possible to be paid for services in cryptocurrency by going through one of several freelancing platforms existing for the purpose. Jobs4Bitcoins and XBTFreelancer are just two examples.

These are especially suitable for software developers, testers, writers, and designers. Also, some websites, such as Steemit, will pay bloggers in cryptocurrency in proportion to how much readers like their blog content.

If you find a new cryptocurrency not yet on the market, it is likely to be in the stage of raising money before its Initial Exchange Offering.

If you offer your services as a blogger, translator, or commentator to make the new coin better known ahead of its debut, it is common for its creators to reward you with free coins. P2pb2b is one venue for discovering such up-and-coming currencies.

Exchanges, brokers, affiliate programs, trading robots, freelancing for Bitcoin and more. You can make money with any of these services but you need to make sure you are doing your homework and choosing the right one.

These are just a few of some of the most common ways I came across to earn an income with Bitcoin.  

Looking for specific Bitcoin affiliate programs?
See our extensive list of Bitcoin referral opportunities. 

Mining

Cryptocurrency mining is part of the back end of the cryptocurrency world. All cryptocurrencies rely on blockchain technology to keep a secure record of each transaction.

This is what keeps them independent of governments and central banks. Each transaction adds another block to the chain as a Proof of Work (PoW), which provides a safeguard against fraud because any attempt to alter the record after the fact will itself be added as a record in the blockchain.

Each block added to the chain has its own security key, which must be deciphered before the transaction can occur.

Miners must calculate the key for each block, and the first miner to do so gets the commission for that transaction. Mining is a serious business, requiring an initial outlay in equipment and knowledge, as the computing power required is more than a home computer can handle.

However, for those enterprising souls who want to make this their business, there is a solid future in it for as long as cryptocurrencies last, since the cryptocurrency model will always require this service.

Masternodes

Perhaps you do not have the resources to invest in the hardware needed to mine, but the idea of working on the back end appeals to you.

Hosting a masternode might be the approach for you. It requires less computing power than mining, and much of it is a passive income.

A masternode is a digital wallet that hosts a copy of the entire blockchain for a given cryptocurrency and is always up and running to update the blockchain as transactions occur anywhere in the world.

Although the up-front investment is less than mining, it can still be substantial, since a masternode requires a dedicated IP and a dedicated Virtual Private Server.

In addition, each cryptocurrency requires that masternode owners invest a minimum amount of the virtual coins, usually between 1,000 and 25,000.

Buying & Hodling

The most successful Bitcoin investors buy when the prices are low and interest is minimal. This is how the investors of any market gain maximum returns.

I want you to keep in mind that none of the information you find on this page or site is to be construed as financial or investment advice. We are simply pointing out numerous examples of possible opportunities where you can earn an income in the crypto space. 

We have seen the Bitcoin market “die” a few times and every time it does, there are some people buying, waiting for the market to return which usually leads to largest profit gains. 

If you ever wanted to stumble upon lambo money, this might be one of the best ways I’ve seen. 

Buying Alt Coins

Bitcoin has climbed up a bit and not everyone has the extra capital to buy full Bitcoins right now.

Buying a partial Bitcoin is an option and the profit potential can still be highly rewarding but there are other ways to make money in cryptocurrency. You can hold alternative coins. 

Again, not financial advice.  That said, gains seen in prior alternative crypto market runs have been astronomically profitable for people that got in at the right time and sold during the top of the bull market. 

You need to be very careful and do you research before buying alternative cryptocurrency coins.  You can learn more about buying and trading cryptocurrency in the free Bitcoin trading guide for beginners. 

Trading

You can find key opportunities to jump in and out of the market and snap up a quick profit. Instead of buying and hodling, you learn how to read the market and make strategic trades. You can do this daily but it’s rarely recommended.

The most successful traders I have met are swing traders. They don’t need to get into every trade and they are very calculated about when they enter and exit.  

You can also look into how to short Bitcoin which is when you bet on the coin value declining. This is not recommended for beginners due to the asset being so volatile and it being a more advanced and complex strategy of trading. 

After long-winded bull runs, you will see many people short Bitcoin and other cryptos attempting to profit on the price pull back and retraction in the market. 

As mentioned above, the middle ground for a lot of people is to stick with swing trades. Sometimes the market is not going to be working in your favor and you may just want to stay out. Some of the best traders choose to make trades only a few times per month or even per year, to make big wins.

This is easier than taking tons of small trades because you can choose when to enter the market. 

Although it might be riskier and more stressful because you are usually trading larger amounts of capital, you are calculating a variety of factors that indicate optimum times to be trading.

If you do like to trade more frequently, then you may want to check out our next method of earning Bitcoin. 

NFT Gaming

NFT gaming is shaking up the entire gaming industry and this is a real opportunity for people to earn a real income for simply playing games. 

There are countless stories I have come across where children are playing NFT games and earning more money than their parents. 

See this story where a 14 year girl earns almost $150 a day playing TownStar. 

All you need to start earning is to setup your free account at Gala Games and choose which game you want to play to start earning extra income. 

Making Money Trading Cryptocurrency

When you first set out to learn how to make money with cryptocurrency, you will likely encounter unfamiliar jargon. One frequently seen term is “hodl.”

It was originally just a misspelling of the word “hold,” but quickly became an acronym meaning “Hold On for Dear Life.” As with the stock market, day trading cryptocurrency is riskier than a buy-and-hold strategy.

The investment firm Fundstrat found that each year from 2013 to 2018, most bitcoin gains came during the ten best days of the year.

A day trader unlucky enough to miss those ten days every year would lose 44% per year. Given such risk, why would anyone try to make money trading bitcoins?

The answer is that those who succeed in making the right trades at the right times can make far more money than those who buy and hold.

Learn How to Trade Wisely

Trading bitcoins have an important characteristic in common with trading stocks: knowing when to buy or sell requires an understanding of the market.

With stocks, the most successful traders are those who learn how to evaluate a company, figure out how much it should be worth, and buy stocks when they are undervalued.

Cryptocurrency is a bit different in that it does not represent the production of goods and services, but even so, over time, the ups and downs show cycles and patterns. This is when it helps to know how to work with data.

Look at the chart of your chosen cryptocurrency over a long period of time, try to figure out the statistical likelihood of its going up or down at a given moment.

There are certain technical indicators that experienced traders learn are likely to indicate an upcoming rise or fall in value.

Arbitrage: A Specialized Kind of Trading

Sometimes, different exchanges sell the same cryptocurrency at different prices. If you see that the same currency is being sold more cheaply on one exchange than another, you can buy it on the low-priced exchange and sell it on the high-priced one.

This can net you between 5% and 40% gain if done well.

Whatever You Do, Don’t Just Guess

Guesswork without any understanding is a losing proposition. With luck, you might be able to guess correctly 50% of the time and break even.

But that is a statistical average; in reality, an individual is unlikely to be right on the statistical average. You may end up guessing wrong most of the time, and lose a lot!

Before getting into cryptocurrency, you must learn as much as you can about how to make money on cryptocurrency. If learning all about charts and statistics is not for you, then trading is probably not your best approach.

In that case, you could take a longer-term strategy.

Watch it Grow

If the volatility of day trading is too risky for your liking, a buy-and-hold approach may be better. There are several cryptocurrencies.

Among them Bitcoin, Etherium, Monero, BNB Coin — which are solid enough that they are likely to appreciate against standard currencies.

Bitcoin, for example, remained flat for many years after its inception in 2013. Then, in the second half of 2017, it surged to its all-time high.

From there, it declined until 2019 but began to rise again in the first half of 2019.

In all these ups and downs, it never fell back to where it began, and an investor who rode it out will hold considerably more value today than at the beginning of 2017.

In addition, some cryptocurrencies (BNB among them) payout dividends just for holding on to them. Although cryptocurrencies have been in use for several years now, they are nowhere near saturation, which means that there is still ample room for them to appreciate in value if held for the long term.

Choose an Exchange

Whether you are a trader or a hodler you will need to find a suitable exchange. Cryptocurrency exchanges are similar to investment brokerage firms in that they are clearinghouses for the buying and selling of cryptocurrency.

Say you want to trade in bitcoin. You will first want to find the best US bitcoin exchange. Best Bitcoin Exchange lists bitcoin exchanges, with their ratings, minimum deposits, and why they were rated the way they are.

Currently, some of the top bitcoin exchanges include, Crypto.com, CEX, Binance, Bitpanda, and Coinmama.

Different analysts may list different exchanges, but the point is to go with a reputable one and try to understand why a given analyst gave it the ranking it has.

Crypto Trading Robots

An automated software that trades Bitcoin and other cryptos is designed to limit your exposure to risk and try to max out your profits. 

There are a range of crypto trading robots, both free and paid that will allow you to execute trades even if you are sleeping or happen to get distracted for a moment while the market is making moves.

The crypto robot is designed to never miss one of those opportunities and ensure you are making the best decisions with your money. 

See our reviews of crypto trading robots here. 

Bitcoin Loans

I understand you are on this page because you are looking for ways to make money with Bitcoin but if you need money right away, you can get a loan.  

The flip side to this is you can actually loan Bitcoin and get paid. 

If you currently have a reserve of Bitcoin and are financially able to loan some capital, you can become your own bank and earn a percentage back for every loan you hand out. 

Bitcoin Affiliate Program

You can promote a wide variety of Bitcoin and crypto related products and earn a commission for every sale or lead. There are multiple Bitcoin affiliate referral programs that can be a great way to boost your income.

You will find that most crypto exchanges and brokers give you a referral fee for every member who signs up and makes a transaction. There is also various crypto software, wallets, casinos, banks, and other Bitcoin affiliate programs that pay you simply by sending them through your link that they provide.

Bitcoin Network Marketing

Over the years, there have been numerous network marketing and mlm style programs that entered the Bitcoin space.

Many of them in the beginning were fraudulent and sadly duped the public out of millions of dollars. The industry has cleaned up a little but these Bitcoin scam programs still exist.  

It’s suggested to avoid the Bitcoin mlm programs that offer to double your money or multiply your earnings. You absolutely want to stay far away from any company that guarantees a certain percentage increase or amount of income you will receive.

There are some network marketing companies in the cryptocurrency space that are legitimate and have been around for a while but most of the reputable ones are struggling to get off the ground.

It’s the scam ones that offer opportunities that are too good to be true that fly. They are short lived most the time so be careful. 

How to get paid

The most important part is your commissions and the terms of payments. Depending on which affiliate program you promote, you get paid differently. Some companies pay only one time while others offer a residual payment monthly.  

Physical products pay smaller amounts while brokers and exchanges tend to offer higher signup commissions, along with residuals.  The lower end programs pay anywhere from $5 – $70 per signup.

This includes physical items and non-residual based products.  The brokers and exchanges have much higher commissions, as high as $800 per signup. 

The pricing structure can be complex as some Bitcoin referral programs give you the choice between one time CPA commission or monthly residuals or a combo of both.  You can also choose to be paid in Bitcoin or Fiat with most of the programs. 

The crypto industry is still at it’s inception and there are many people joining us everyday. This is a wonderful niche with loads of potential for anyone wants to make money as an affiliate. 

i have combed the internet and put together the biggest list of Bitcoin affiliate and referral programs all in one spot and the list keeps growing.

Check out my gigantic list of the most popular Bitcoin affiliate programs here. 

Other ways to make money with Bitcoin.

If you have a creative mind or technical expertise, there are a few other ways you can earn money with Bitcoin. Besides promoting Bitcoin products, you can create crypto related content or work for people that will pay you in crypto. 

Bitcoin Jobs

If you really love Bitcoin and crypto, you can find multiple ways to immerse yourself in the industry and get paid for it. You can freelance for Bitcoin and perform certain job tasks from anywhere in the world. 

We found a number of websites that will pay you in Bitcoin or be the middleman that connects with you employers that will pay you in Bitcoin or crypto of your choice. 

Some of these sites offer an escrow service so both parties are financially protected until job is complete and each group is satisfied. 

Write About Bitcoin

Writing about cryptocurrency can be a great way to earn some extra cash. Since it’s a specialty field and there is some required education needed, you can typically charge higher rates due the specific writing style required.  

You can find these writing jobs at freelance sites like upwork and fiverr but if you want to get paid in Bitcoin, you need to go to sites like CryptoGrind or Coinality . You could also post a listing on craiglist or other job directories and let people know about your writing talents.

Bitcoin Art Jobs

If you have other talents like graphic design, drawing or photo editing, you can find many website, social and digital media graphic jobs that pay well with the right employer. 

Bitcoin Video Jobs

Promotional video creators, motion graphic animators and video editors are in high demand in the Bitcoin niche and many others.  This is part of marketing and new content is always needed. 

Crypto Technologists and Software Engineer Jobs

You can go deep as you want down this rabbit hole. Do you know how to program and code a blockchain? You are a hot commodity right now as there are many big financial companies exploring crypto and blockchain financial instruments. 

The future of Bitcoin and blockchain is yours for the taking if you are skilled in any, or a combination of the above creative and technology industries. 

Closing out, you can see there are plenty of ways to make money with Bitcoin and cryptocurrency that doesn’t require trading or investing in Bitcoin.  This list will continue to be updated.

Keep It Legal

Now that you know how to make money in cryptocurrency, you know that every approach requires a certain amount of work, and carries certain risks. It might be tempting to look for an easier way.

Don’t.

The very thing that makes cryptocurrencies attractive to some — their independence from central bank oversight, also makes them a wide-open field for scams.

Bitconnect was just the most famous pyramid scheme involving cryptocurrencies; OneCoin was another recent one. Before getting involved with any cryptocurrency, make sure it is legitimate.

Research the team — look for its members on LinkedIn and other professional networking sites. Read the whitepaper — be sure it is well-written, and run it through a plagiarism checker.

Look at the project it is raising money for, and ask if it could really work. Bitcoin, and other solid cryptocurrencies, can be good ways to earn money. Just remember that honesty is the best policy.