$57,636 that’s how much worth of bitcoin you’d have if you invested in one coin in January 2019.
And how much profit would you have made from those gross earnings?
Converted to KES, that’s like 5,942,561.79 Kenyan Shilling worth of bitcoin earnings in under 3 years.
If you ask me, that’s a lot of money.
It’s more than what most people working 8 am. – 5 pm. jobs earn in 10 years.
Yet it’s also a risky business that can bankrupt the same honest and working man in the shortest time possible.
Before we dismiss Bitcoin for another risky business though, let’s first understand it, try to demystify any myths around it, and if time allows, reason out if it’s too risky an investment to pursue in 2021 or not.
Be sure to read this post to the end to learn all the fundamentals of trading bitcoin too.
Ready for the ride? Let’s go.
Understanding the Bitcoin Business.
To understand the Bitcoin business, we must first be clear of these questions.
- What is bitcoin?
- Where do bitcoins come from?
- Who can trade in bitcoins?
- What is the bitcoin business?
- Where can you start your bitcoin business?
- Can Bitcoin Business make you rich?
What is bitcoin?
Bitcoin is a cryptocurrency or other, a digital asset designed to work as a medium of exchange that uses cryptography to control its creation and management.
Bitcoin was invented and implemented by the presumed pseudonymous Satoshi Nakamoto, who integrated many existing ideas from the cypherpunk community to make the coin.
Over time, it has undergone rapid growth to become a significant currency used both on- and offline. Just about for anything.
2. Where do bitcoins come from?
Bitcoins are created as a reward for a process known as mining.
And bitcoin mining is the process by which bitcoins are released into circulation.
In perspective, mining requires the solving of computationally difficult puzzles in order to discover a new block, which is added to the blockchain.
And what might a block be?
How about blockchain technology?
Blocks are files where Bitcoin network data are permanently recorded and once entered, can not be removed.
In essence, a block is like a page of a ledger or record book for mined bitcoins.
Blockchain technology on the other hand is a specific type of database used to store blocks.
The blocks stored with blockchain technology are then chained together – the current data to the previous data thus the system ending up with data chained together in chronological order.
In Bitcoin, blockchain is used in a decentralized way so that no single person or group of people have control—rather, all users collectively retain control.
3. Who can trade in bitcoin?
In 2021 anyone can trade in Bitcoin.
Despite there being a few differences in how Bitcoin and other traditional currencies are traded, the fundamentals are more or less the same.
Whether in Forex or Bitcoin trading, the prices of both currencies are based on global supply and demand metrics.
When demand for bitcoins rises, the price increases. When demand falls, it falls.
It’s that simple.
If there is a slight difference to note though, bitcoin is not subject to the supply uncertainty created by international central banks. They are mined at a predictable rate.
All else, trading bitcoin is like trading anything else on your broker platform.
Meaning, you only need some basic trading skills in Forex, Stocks, ETF’s… Get trading skills on any exchange and you can so well trade bitcoin.
4. What is the bitcoin business?
At the beginning of this post, I hinted that if you had bought one bitcoin in 2019 when it traded for $3,717 you’d now be worth $57,636 earning $54,195.73 in profits over a period of 2 years 2 months.
If that’s not good business then I wonder what is.
But for someone who’s never heard about the bitcoin business and is just reading about it for the first time on this blog, what is bitcoin business and how can you make money from it as a beginner?
A business is defined as an organization or enterprising entity engaged in commercial, industrial, or professional activities.
In the case of the bitcoin business, it would be the engagement in a professional activity.
And if you ask me, there are very many ways in which you could make money with your bitcoin business.
To name but a few: –
How to Make Money with bitcoin.
- Buying and holding bitcoin.
- Bitcoin Affiliate marketing.
- Using Bitcoin Faucets
- Writing about bitcoin.
- Microjobs and Pay-to-Click (PTC) websites
- Lending bitcoin
Did I already mention what bitcoin mining is?
If you missed it, mining is the process through which bitcoins are created.
It is the process in which miners use powerful computers to solve complex mathematical problems.
The person who cracks these complex mathematical problems the fastest gets rewarded with the newly mined bitcoins.
I must warn you though, mining bitcoins is not child’s play.
It requires some very sophisticated equipment which cost so much money.
For someone just starting out in the bitcoin business and not willing to spend so much money at the onset, mining would be very difficult.
If you are a team player though and are willing to work with other like-minded people who’re interested in making money in BTC via mining; then you may want to join Bitcoin mining pools or mining clouds.
These are collaborative groups of miners who combine their computing power to solve complex mathematical problems faster thus reducing the cost of startup.
Either way, you’ll make smaller margins.
Cut short by either the cost of mining equipment or smaller share profits from larger bitcoin mining pools.
Is mining still a viable bitcoin business though, yes.
2. Buying and holding bitcoin.
If you want to start a bitcoin business that makes money, then this would be it.
Do you remember how I said, ”if you had bought one bitcoin in 2019 when it traded for $3,717 you’d now be worth $57,636 earning $54,195.73 in profits over a period of 2 years 2 months?”
Well, gaining that much profit would only be possible if you bought and held bitcoin over time and its value spiked.
The advantage of this method of engaging in the bitcoin business is, it’s straightforward and easy to begin.
You just need to calculate how much you need, over what period of time then invest.
You could decide to buy $50,000 worth of bitcoin, hold for a day, 2 days, a month, or more then sell later for profits.
Is there a downside to this method of doing business in bitcoin?
Yes, much as you will maintain the amount of BTC you have on hold, its overall value can decrease if there is a downward spike.
3. Bitcoin Trading.
If you are a risk-tolerant kind of investor, start trading bitcoins.
Just like the buying and holding method, trading bitcoin requires both practice and knowledge of the market.
The best thing, there are lots of technical tools on bitcoin trading platforms that you can use to gauge the volume, volatility, momentum, and general trend of bitcoin over time.
If the technical analysis bit of bitcoin trading doesn’t work for you, try fundamental analysis, it’s easier.
If you need a broker to get you started on the bitcoin trading business, try Olymp trade.
4. Bitcoin Affiliate marketing.
Affiliate marketing is the process of earning a commission by promoting other people’s (or company’s) products.
You find a product you like (in this case bitcoin), promote it to others, and earn a piece of the profit for each sale made.
In most cases you will be paid based on these metrics: –
- Pay-Per-Click – under this arrangement, your business will be rewarded based on how many readers click your affiliate link.
- Pay-Per-Action – This is where an affiliate is paid per new lead they bring in or when they secure a sale.
- Pay-Per-Impression – under the pay-per-impression arrangement, the merchant pays for clicks on their website ads. This method is common with bitcoin websites.
- Two-Tier Affiliate Programs – this is where the affiliate marketer controls an underlying affiliate network and receives commissions for both its referrals and network.
Should you want to engage in affiliate marketing, don’t hurry. Read this post first.
5. Using Bitcoin Faucets.
A Bitcoin faucet is a reward system from which small amounts of Bitcoin can be rewarded, known as Satoshi, the one-millionth unit of 1 Bitcoin (0.00000001 BTC).
The reward system offers you Satoshis in exchange for solving captchas, clicking links, or answering surveys online.
But easy as it is to earn bitcoins via the Satoshi reward system, the rewards are low hence it is very difficult to make a sustainable business out of it.
6. Writing about bitcoin.
If you are a good writer and you’d like to make money with your skill, you could niche down to writing about bitcoins,
Generally speaking, the yearly estimated salary of a good cryptocurrency writer should be between $68,000 and $88,000.
A freelancer on the other hand can charge up to $1,000 per post.
Out of all the bitcoin businesses on this list, this is the most rewarding, easy to start, and one that does not require any upfront investment.
7. Microjobs and Pay-to-Click (PTC) websites.
These are jobs that require you to watch and click on ads.
Just like bitcoin faucets, they pay peanuts and it is very difficult to make good money clicking ads.
But if all else seems impossible, try taking these jobs.
You won’t lose your arm clicking ads, will you? Especially if you are doing it on Coinpayu or adBTC websites.
8. Lending bitcoin.
Because bitcoin is a decentralized currency, it is easier to make transactions.
Unlike traditional currencies, bitcoin does not require verification by authorities to validate a transaction.
This makes it even easier to loan bitcoins and to gain interest on your BTC.
Remember how we said, you could let your BTC business revolve around and buying and holding bitcoin in anticipation of a price rise then selling?
Well, while you wait for the price of bitcoin to spike, you could use those BTC’s for your bitcoin lending business and earn more money on the side.
5. Where can you start your bitcoin business to earn money?
With all this bitcoin business knowledge, where would you start your bitcoin business if you needed to invest?
Well, there are thousands of sites where you could begin making money with bitcoin.
We have mentioned some above but there is more.
Below is a list of websites where you could do your bitcoin business.
a. Olymp Trade
If you want to trade bitcoin online, Olymp Trade is one of the best sites to register on.
You can create a free trading account and get $10,000 demo units to practice on real market conditions.
Note that if you are operating a demo account you can not withdraw the earnings you make with that free account.
To withdraw your earnings, deposit at least $10, trade to win, and withdraw your money.
The minimum trade amount is $1 and you can withdraw as little as $10.
Unlike the exchange trading done on Olymp Trade, with a Paxful account, you can trade by buying bitcoin with real cash and selling for real cash.
If you buy low and price your coins competitively on the platform, you could make money on the exchange differences.
The Paxful bitcoin wallet works with every other wallet.
With every bitcoin wallet comes a wallet address.
You can send your wallet address to people and they, in turn, can send bitcoin to your wallet.
With your very own wallet, you can send, receive, and store bitcoin.
If you want a good bitcoin affiliate program to engage with then Coinbase is it.
The Coinbase affiliate program offers a 50% commission for all trading fees during the first 3 months that the user you refer is on Coinbase.com.
How many people can you refer?
There is no limit to the number of people you can refer and this allows you to make as much money as you possibly can on the platform
If you want to earn by clicking on ads online, adBTC is the platform to go for.
You can earn up to 200 Satoshi per click on the adBTC platform and make withdrawals from 0.00005 BTC
You can also earn 10% from your referral surfing earnings and 5% from your referral advertisement spendings!
There are many other sites where you could make money with bitcoin just search on google and you’ll get thousands of results for what you are seeking.
6. Can Bitcoin Business make you rich?
According to bitinfocharts, a cryptocurrency data tracking site, there are now more than 100,000 people who have $1 Million dollars worth of bitcoin stashed.
Is there a chance that they all made $1 million dollars worth of deposit to bitcoin, or are some of them actually traders who earned money with different earning methods on varying crypto sites?
I believe the latter.
Try to see it with my eyes.
If you had bought one bitcoin in 2019 when it traded for $3,717 you’d now be worth $57,636 earning $54,195.73 in profits over a period of 2 years 2 months.
$54,195.73 is equivalent to 5,942,561.79 Kenyan Shilling. Wouldn’t you be a millionaire, but for what?
Just buying and holding bitcoin?