It's 2022, everyone could be making money off of Bitcoin. In this guide, we're going to show you how to grab this opportunity and build your financial wealth through the use of this revolutionary digital currency.
In this article, before we get to the nitty-gritty of how to make money with Bitcoin we're going to give you a crash course in what Bitcoin is, because here at Tap we are firm believers that you must understand the asset before making any kind of investment.
What is bitcoin & how does it work?
Bitcoin was launched in 2009 by its mysterious and still-anonymous creator, Satoshi Nakamoto. The digital cash system was designed to provide the world with a decentralised peer-to-peer currency that does not require third parties like banks or governments to operate. In fact, Bitcoin was created as a response to the global financial crisis of 2007 which saw widespread financial losses at the hands of financial institutions.
So, how does it work? Using blockchain technology, Bitcoin is operated by a network of computers around the world that all follow the same protocol. These computers keep a digital public ledger of all the activity on the network, allowing anyone to view this at any time, however, it is entirely immutable and therefore cannot be edited. Updated in real-time, as transactions are executed the data is stored and updated, and the value is transferred to where it needs to be.
How to make money with bitcoin
As you can imagine, the possibilities of making profits with Bitcoin are endless. Below we've outlined the best options when it comes to making money with Bitcoin in 2022.
Buy & hold Bitcoin
The easiest and most common way to make money from Bitcoin is through buying the digital asset through a crypto exchange service and then holding it long term. Considering that Bitcoin was worth $10 in 2013 and is now close to $45,000, people have made a considerable amount of money from investing in the asset over the years.
Investors can either buy the digital asset and hodl, a term in the industry used to describe holding an asset for a long period of time, or buy when the price is low and sell when it gets high. Traders often move the funds to a stablecoin and repeat the cycle when the price decreases again, building up a substantial amount of BTC.
Trading is also a popular option when it comes to making money with Bitcoin, although it requires a significant amount of effort. Users might opt to engage in day trading, where positions are opened and closed within a 24 hour period, or long term trading, where positions are based on the current market trends.
As cryptocurrencies operate 24/7, the markets are always available.
Accept payments in Bitcoin
As crypto adoption increases, more and more merchants are accepting Bitcoin as a payment option. Integrating Bitcoin into your payment methods is simple as all you need is a Bitcoin wallet.
For physical stores, you can add a QR code at checkout and put an image in the window indicating that you accept Bitcoin. Alternatively, as an online store, you can incorporate a banner or icon on the homepage and integrate your wallet details in the payment section.
Check out Tap's business offering to learn more about leveraging Bitcoin's usability.
Mining is the process through which Bitcoin transactions are executed and new Bitcoin enters the system. While it requires considerably more effort than the options listed above, the rewards are also likely to be greater.
Mining essentially involves using hardware to solve complex cryptographic problems, executing transactions and then adding new blocks to the blockchain. Users can opt to mine individually, which is unlikely to be very lucrative as you are up against large corporations with substantially more resources, or engage in cloud mining, where everyone pools their resources and each member earns their share of the rewards.
Mining is a complex endeavour and requires a considerable amount of research. You will also need to consider the start-up costs for the hardware and the electricity costs in your area.
Staking Bitcoin involves locking away the funds in an Earn program that generates yield. Staking became popular with the rise in DeFi (decentralised finance) products and is becoming more mainstream by the day.
How To Get Started
In order to start earning money with Bitcoin, you will need to open a Bitcoin wallet. This can be done simply and with an added range of benefits through the Tap mobile app. Once you create an account you will need to complete an identity verification process (an essential requirement to trade on any cryptocurrency platform) and then you will have access to a number of cryptocurrencies and crypto wallets, including Bitcoin, as well as a range of useful products. Now cards are in your hands, you can start making money with Bitcoin today the way that fits you the most.
Disclaimer: This article is intended for communication purposes only, you should not consider any such information, opinions, or other material as financial advice.
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