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Bitcoin:

How to Gain Bitcoin?

how to gain bitcoin

Bitcoins are similar to cash but they are not acquired in the same way. Bitcoins are mined like you do with gold. In this article, we are going to focus on gaining Bitcoin by using different methods.

Popular Ways to Earn Bitcoins

The single most used method to earn bitcoins is most definitely by mining it. The primary draw for mining is the potential of being rewarded with Bitcoins. Of course, you don’t really need to be a miner in order to be able to own crypto tokens. There is always the option to buy some Bitcoins with fiat currency. It is also possible to trade another cryptocurrency token (such as Ethereum or NEO) for Bitcoin. You may even earn some coins by shopping, setting up interest earning crypto accounts and even publish blog posts on such platforms that pay the users in crypto assets.

A good example of these crypto blog platforms is Steemit. It acts somewhat like Medium with the distinct difference that users have the ability to reward their favourite bloggers by paying them in STEEM which is a proprietary cryptocurrency. You can then exchange the acquired STEEM for Bitcoin elsewhere.

What is Bitcoin Mining?

Bitcoin mining is in fact the process that makes new bitcoins enter the circulation; though, it is also a critical part of the development and maintenance of the blockchain ledger. Mining is performed by utilizing some very complicated computer systems that are able to solve extremely complex and highly sophisticated computational math problems.

what is bitcoin mining

Usually, Bitcoin mining is quite costly and painstaking and besides, it is only occasionally rewarding. Anyways, mining has a certain magnetic appeal for a lot of investors who are intrigued by cryptocurrencies due to the fact that miners get rewarded for working with crypto assets. Of course, this could be the result of the way entrepreneurial types see mining. They see this process as pennies from heaven just like how the gold prospectors in California thought in 1849. Besides, there is no harm in it; so, if you are inclined with technology, then why not give it a try?

With that said, you should read the following explainer before you actually invest your time and hardware into mining bitcoin to see if this is really for your type.

How do you mine Bitcoins?

how do you mine bitcoins

Miners are getting rewarded for the work they do as auditors. Put simply, they basically verify the legitimacy of each Bitcoin transaction being created. Now, the reason behind this convention is to keep Bitcoin users honest. This was conceived by Satoshi Nakamoto, also known as Bitcoin’s creator. Miners are in fact helping to prevent the problem of double spending by verifying the exchanges occurring.

What is double spending?

Double spending is when a Bitcoin owner tries to spend the same Bitcoin they used in one transaction in another transaction as well. Of course, this is an illegal exploit and should not be done. This problem never happens with real, physical money. When you buy something with the money, you have already given the money to the seller and no longer have that money, so there is no way to also give it to another person. While it is possible to counterfeit cash, it is not really the same concept as double spending. With digital money, however, there is always the risk that the money holder makes a similar copy of the digital token and sends the copy to another party and keeps the original for themself.

Why mining Bitcoin?

The bitcoin that the miners receive as reward for their work is an incentive which motivates people to try to assist in the primary process of mining. The process includes monitoring Bitcoin transactions and validating the exchanges, and making sure that they are legitimate. Now, since the aforementioned responsibilities are spread among a lot of people from all around the world, Bitcoin is considered a cryptocurrency of the decentralized type or at least one that is not dependant on any central authority such as a government or a bank in order to oversee its regulation (which is the main criteria for decentralized platforms).

Work for Pay with Bitcoin

As we have already established this, one of the easiest methods among the users is working to earn Bitcoin and thankfully, this is totally legal. Whether you are an online designer, singer, marketer, engineer or any other profession actually, you may identify some websites that let you work for earning bitcoins.

work for pay with bitcoin

A lot of enterprises are accepting Bitcoin as their preferred method of payment since the transactions are fast, cheap, and anonymous. For instance, a marketing website which works with a lot of marketers all over the world would suffer from sustaining heavy bills when going to pay the said marketer via wire transfers.

With that said, Bitcoin is a peer to peer cryptocurrency. What that means is the fee for transactions is quite small. The only thing needed for both sides of the transaction (the payer and the receiver) is to be on the Bitcoin network. Simple as that. Some examples of websites that pay for their users’ services in Bitcoin are XBTFreelancer, Angle.Co, Coinality, and 21.CO.

Interest Payment

interes payment

There is an easier method for earning Bitcoins for people who already own some coins. It is possible to lend the said coins as a to earning loan and make more from the profit. The safest way for this method is to lend the Bitcoins to someone you are already familiar with. Also, please make sure you both agree on the duration of payment and the amount of interest.

Although Bitcoin loans are one the best ways to earn Bitcoins fast, you still have to be vigilant about the borrowers. The problem is that cryptocurrencies are not under protection from law like normal money is; so, it would be much harder to go after defaulters by seeking redress in a courtroom.

Promote Bitcoin Affiliate Programs

These programs were designed to help promote some products in exchange for a commission. In this method, you are in fact working for a business that pays the said commission in Bitcoin.

The main thing you need to remember to be able to get more affiliate programs is to become an expert in your field of work. This way you can command authority and a lot of people. As the leader in your niche, you are able to have followers that will take suggestions for products that you review. By doing this you will be getting your pay-check in Bitcoins.

Trading

This is probably the fastest method to gain bitcoins today. Trading is when you buy bitcoins when the price is low and when the prices shoot up, you simply sell them for some interest. In order to get bitcoins in the trading market, you need to first understand how markets work and be aware of the risks. After that, you should look for the proper platform and right trading pair. Examples of these platforms are Binance and CEX.io.

Even though it might seem to be straightforward and easy, the metrics involved in the process are quite complicated; therefore, you have to first understand the factors and get a total understanding of the market and its shifts to be able to make the proper predictions.

Bitcoin Margin Trading

Margin trading is basically when someone uses borrowed funds from a broker in order to trade a financial asset. This will form the collateral for the loan from the broker. Margin is the money that is borrowed from the broker that will be used to purchase an investment. It is also the difference between the loan amount and the total of investment.

bitcoin margin trading

In general, this is how margin trading works. Imagine a person with $1000 she is going to invest. They choose an exchange on Bitcoin leveraged at a ratio of 10:1. This means their trade is going to be worth $10,000 considering the initial $1000 they had. This person burrows the rest of the $9000 that she needs from a broker who expects interest on top of this.

Now, in the best case scenario, Bitcoin’s value is going to be raised by a huge 30 percent. If the person invested the initial $1000, then they would end up with $300 of profit but since they utilized the Bitcoin margin trading strategies, their profit got raised to $3000 instead which is a lot more (of course, they will end up with less, once we take into account the fees and interest). While margin trading can be a huge profit, it still poses high risks as Bitcoin, like other cryptocurrencies, Is highly volatile.

Buying Bitcoins

buying bitcoins

Last but not least, you can always buy some bitcoins. You need to sign up for an exchange which enables you to purchase coins, hold or sell them. Generally speaking, it is better to go for an exchange that lets you withdraw the cryptocurrency into your own personal wallet. Right now, popular exchanges you can use are Coinbase, Gemini, Kraken and Binance. Then you need to connect a payment method to your exchange which involves providing some of the required details about yourself such as personal information. Once done, you can place an order and make a purchase.

Final Words

While there are a lot of methods that you can make use of to earn Bitcoin in a short amount of time, it is of utmost importance to be aware of their unique risks as well. The single most important thing is to make sure you understand each method completely and to take all the precautions so that you don’t get scammed. So once again, remember that whichever method you use is going to have a set of risks follow it. In this article we looked at some viable methods to earn bitcoins. We hope it helped you get your answers and good luck earning Bitcoins out there!

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