How to Make Money with Bitcoin in 2022
Over the last few years, Bitcoin (BTC) has gained popularity as the number one form of decentralized currency. Its creator might remain a mystery to this day, but one thing’s for sure: there are lots of opportunities for you to make money with Bitcoin today.
There are many options to choose from and deciding the best route isn’t always easy. To make things a bit simpler for you, we’ve compiled a list of ways how to make money with Bitcoin:
1. Buy and hold Bitcoin
If you’re wondering how to make money with Bitcoin without putting in too much effort, the buy-and-hold strategy is among your best options. Buying and holding BTC is one of the most straightforward and beginner-friendly ways to earn money with crypto. Here’s how it works:
- Create a Paxful account—you’ll receive a free Bitcoin wallet upon signing up!
- Buy Bitcoin with bank transfer or choose from nearly 400 payment options.
- Hold on to your BTC and wait for spikes in price—no matter how long that may take.
You could wait weeks, months, or even years before you decide to sell. That’s the beauty of buying and holding. This technique has become so popular; there’s even an internet name for it—HODL. It started as a typo on a forum and became an acronym for Hold On for Dear Life. So if you decide to buy and hold, remember to hold on to the BTC for dear life.
If you want a systematic approach to HODLing, why not try Dollar Cost Averaging? Also known as constant dollar plan, DCA is an approach where you invest the total sum of your money in small increments throughout a specific period instead of handing out a lump sum in one go. This is especially useful for investors looking to back particular assets for the long term.
Difficulty: Very Easy
Speed: Slow
2. Earn interest on your crypto
If you’re looking to use your Bitcoin to preserve wealth or simply HODL for a certain period, our new helpful tool might be your best bet. Paxful Earn allows you to earn even more money by gaining interest on your crypto weekly—every Tuesday, to be exact. It works like a savings account where you keep your money but with more opportunities to make extra cash. The product is already available in the Nigerian region and soon, in different parts of the world.
Difficulty: Easy
Speed: Fast
3. Earn Bitcoin cashback on credit card purchases
Many payment giants worldwide have also started to dip their toes into the crypto waters. Interestingly, this paved the way for many crypto users to unlock and enjoy new financial opportunities with their Bitcoin while using their credit cards.
The BlockFi Rewards Visa® Signature Credit Card, for example, rewards its users with cryptocurrency instead of the usual miles or points. Cardholders can also earn 1.5% up to 3.5% cashback, which will be converted to BTC automatically and placed into a BlockFi account monthly. Apart from giving you a different financial experience, the next best thing is that it has no foreign transaction fees.
Difficulty: Easy
Speed: Medium
4. Monetize your website
Another effective way to make money with Bitcoin is by monetizing a website. If you’re operating a website and you don’t know where or how to begin monetizing it, you may want to take a look at the Paxful Bitcoin Kiosk.
The Paxful Bitcoin Kiosk is a tool you can use to boost your Bitcoin earnings while helping others discover and understand the potential of cryptocurrencies. By setting up the Kiosk on your website, you’re helping your customers or website visitors buy Bitcoin easily and securely. Simply put, it’s a great way to help others get started on crypto.
Paxful Kiosk is customizable and easy to set up. It also offers no chargebacks and allows your customers to use nearly 400 payment methods it supports. On top of that, you’ll earn automatic affiliate revenue on all purchases made by new users you bring to Paxful.
Difficulty: Easy
Speed: Medium
5. Lend fractions of Bitcoin
The decentralized nature of Bitcoin and other cryptocurrencies makes it simpler to make transactions. No authorities are required to validate it.
Because of this decentralization, you can loan BTC and earn some cash through interest. Think of it as a way to make your money flow even when you’re HODLing—you’re actually using your wealth instead of keeping it unmoved in your wallet.
Unchained Capital, Bitbond, and BTCpop are some websites you can use to help you with your lending services. So, if you’re still wondering how to make money with Bitcoin, give lending a try.
Difficulty: Easy
Speed: Slow
6. Trade Bitcoin
If HODLing is long-term investing, Bitcoin trading is its fast-paced equivalent. Essentially, BTC trading means taking advantage of its highly volatile nature. This method requires practice and knowledge of the market, so be sure to do your homework before giving it a shot.
Here are a few trading strategies you can try out to make money with Bitcoin:
- Day trading – This approach entails short and quick trades, allowing opportunities for small and fast profits. Day traders don’t hold open positions overnight, so this method carefully analyzes the market, sees small money-making opportunities, and capitalizes for a small profit. At the end of the session, day traders could have a significant cumulative gain.
- Swing trading – If HODLing is long-term and day trading is short-term, swing trading is kind of in the middle. Like HODLers, swing traders will buy low, wait long enough to see their holdings increase in price, and then sell high. However, their holding time isn’t as long as a HODLer and isn’t as short as a day trader.
- Arbitrage – Bitcoin arbitrage is similar to the styles above. However, instead of looking for money-making opportunities within the same exchange, traders who use arbitrage look for those opportunities across different platforms. In essence, they buy BTC from exchange A then sell it at exchange B for a higher price.
These methods require a lot of practice, so don’t expect to get it right on the first try. You can also try our simple strategy for earning money from Bitcoin trading on Paxful. This involves buying BTC and selling it for a profit. Note that on Paxful, you have nearly 400 payment options to choose from and bank transfer has the lowest fees among the payment groups. You can use it to buy Bitcoin and make a significant profit by taking advantage of the offer margins.
Difficulty: Medium
Speed: Fast
7. Play crypto and blockchain games
Yes, you can earn money and have fun at the same time! Bitcoin play-to-earn games like Bitcoin Alien Run and Sparkprofit give out Satoshis. Recently, non-fungible token (NFT) games have started to emerge. Some of the most popular blockchain games you can try are Axie Infinity, CryptoBlades, and My DeFi Pet, among others. Tokens from these blockchain games can then be converted into Bitcoin and sold for a decent profit.
While it takes more effort than micro jobs, we’ll say Bitcoin games are probably more fun than completing a survey.
Difficulty: Medium
Speed: Medium
8. Try out the binary trading approach
Binary trading has existed in the financial world for a very long time, so it only makes sense that it can also be applied in the world of crypto. This is a suitable option to make money with Bitcoin if you’re willing to take risks.
As the name suggests, Binary has just two options: a trader purchases an option and an expiration time. The trade is either “in the money” or “out of the money.” Basically, you’re betting on where the price is going.
For example, the price of BTC is 46,500 USD at 10 AM. You can either bet that the price will be more or less than that by 6 PM. If you bet that the price will increase and that happens, you earn the payout of a certain percentage of your investment. However, if it’s lower, you lose the investment.
On the other hand, you earn the option’s payout if you bet that the price will go down and it indeed happens. This can be a challenging way to earn BTC, but you can gain money quickly if you invest right.
Difficulty: Hard
Speed: Fast
9. Start your own dropshipping business
If you’re planning to put up your own online store, accepting Bitcoin isn’t only the way to incorporate cryptos into your business. Dropshipping, for example, is another approach you can try. Here, you can sell Bitcoin in exchange for gift cards from hundreds of global brands. This includes clothing, electronics, accessories, groceries, and a lot more.
On Paxful, you can buy gift cards at a lower price; some are even selling for up to half off! You can use these gift cards to purchase items for your online store. Then, you can sell the items at your online store at a suggested retail price. This is where you’ll get your profit.
Let’s say your customer ordered a limited edition pair of shoes. You can buy gift cards of the shoe brand on Paxful at a cheaper price and use them to buy the shoes at the online store. Once you have the item, you will ship it to your customer’s address. You’ll make a decent profit from the gift cards you used to buy the shoes.
This method may take more effort, but it’s an excellent way to earn money with Bitcoin.
Difficulty: Hard
Speed: Slow
10. Run a Lightning Node
Did you know that you can complete Bitcoin transactions in a blink of an eye? This is made possible by the Lightning Network, which facilitates lightning-fast Bitcoin transfers. Interestingly, you can also make extra income by running a Lightning Node. This enables users to set up payment channels powered by the Lightning Network.
By running a Lightning Node, you’ll operate a channel and get rewards through the transaction fees. However, it’s important to note that the amount of money you’ll make might not be as high compared to other ways on this list. On the flip side, the small rewards you’ll get will significantly contribute to the scalability of the network.
Difficulty: Hard
Speed: Slow
11. Become a masternode
A masternode is a dedicated role that keeps track of the blockchain in real-time. Much like Bitcoin’s full nodes, they’re always up and running.
In addition to saving, validating, and announcing valid transactions to other nodes, the master nodes also perform different tasks with the blockchain, including smooth protocol operations, governing voting events, and more. For their dedicated services, they are heavily incentivized.
Difficulty: Hard
Speed: Slow
The ways to make money with Bitcoin are ever-evolving
Now that you know how to make money with Bitcoin, why not give it a try? Who knows, your efforts could lead to some big profits.
As the crypto economy matures over time, we will see constant development and people will keep finding new ways to earn cash with BTC. Even beyond this list, there is an endless amount of earning opportunities offered by Paxful. Be sure to do your research and find out what works best for you. The sky’s the limit on how to make money with Bitcoin—all you have to do is be creative. Good luck!
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