How to earn money with Bitcoin?

As soon as investors buy Bitcoin on paybis, there is only one thought on their minds: how to increase the value of their portfolio. Earning money with cryptocurrency is very common these days and the opportunities keep increasing.

In this article, we review our favorite methods and help you discover how you too can make a profit through Bitcoin. After reading this post, you should have a good overview of all the financial services you can implement to grow your portfolio.

Method #1 – Staking

One of the most popular ways to earn money through Bitcoin is gambling. In short, staking refers to the process of “locking” your coins, making them inaccessible for a short period. By staking it, you earn interest in the form of the same (or a different) cryptocurrency, which is then credited to your account.

There are two different types of bets:

  • Staking on an exchange: Staking services can be implemented for a wide range of cryptocurrencies that operate on a PoS consensus. The exchanges distribute the rewards to individual coin holders, and the barrier to entry is usually very low.
  • Stake in your Wallet – This process is more “old school” and relies on the mechanisms of a given blockchain. Users deposit their coins into any supported wallet and automatically receive rewards based on the size of their holdings. For example, users who stake NEO in their wallet receive GAS coins as a reward. Please note that for some coins, your minimum stake size is much larger than when staking on exchanges.
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Method #2: High Yield Savings Account

Savings accounts became popular in 2018-2019 when popular exchanges began offering more rewarding alternatives to bank accounts. The annual percentage return depends on the cryptocurrency staked and is known to be at least 10 times higher than keeping your money in a bank account.

To give a brief example, the Blockchain wallet currently offers savings accounts that yield an average of 5% APY for Bitcoin and up to 12% APY for stablecoins.

This is the least risky way to increase the value of your portfolio and one that many high net worth investors use to generate passive income.

Method #3 – Trade

Trading is obviously the most common way to (potentially) make a profit from your Bitcoin. Users trade cryptocurrency pairs on exchanges in the hope of outsmarting the markets and increasing the value of their portfolio in return.

There are, broadly speaking, two types of merchants:

  1. Swing Traders – These traders base their decisions on price charts and indicators and often use leverage to increase their profits. This method is considered useful for short-term traders and relies heavily on technical analysis (TA)
  2. Sentiment Traders – These people base their trading decisions on the general popularity and “sentiment” of the market as a whole. Commonly known as mid-term traders, these will generate a small number of traders annually, usually when a change in market cycles occurs or during major events affecting the markets. Sentiment traders use sentiment analysis (SA) to make their decisions.

The above options are further divided into several subsections, making trading a very broad and complex subject that requires ongoing education and practice. And even then, only a small percentage of traders end up being profitable in the long run.

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Method #4 – HODLing

“HODL” comes from the word “hold” and is an acronym commonly used among cryptocurrency investors to explain the long-term investment process. In other words, HODLers are those who do not sell their coins when volatility hits the market, but instead keep their coins stored in a wallet due to their unwavering belief in their fundamentals.

Bitcoin is the most commonly HODLed currency, and those who managed to control emotions and not sell over the years are now heavily rewarded. Obviously, this process comes with a lot of anxiety as the markets fluctuate a lot; however, those who have been through the process long enough are now immune to such feelings.

In order to make money buying Bitcoin through HODLing, it is important to research the fundamentals of a coin. For Bitcoin, this would be Satoshi Nakamoto’s 9-page whitepaper, outlining Bitcoin’s underlying technology and its future potential.


You should now have a better idea of ​​all the different methods you can use to increase the value of your portfolio. In summary, these are the methods we looked at:

  1. Stake Bitcoin on an exchange or a wallet (works for other cryptocurrencies too)
  2. High-yield savings accounts, which offer returns at least 10 times higher than the average bank.
  3. Trading your currencies, either through swing or sentiment trading practices.

HODL your Bitcoin for the long term and study its fundamentals. This is the least risky and potentially most rewarding option you can choose.

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