2021 has been an exciting year for bitcoin thus far. The biggest cryptocurrency has peaked in price, passing 40,000 USD. The increase in price and the hype cycle that comes with it has brought more people to bitcoin.
One of the biggest questions on many people’s minds is how to earn money with bitcoin. In this article, we explore the best ways to earn money with bitcoin in 2021.
Earning Money With Bitcoin
The cryptocurrency industry has grown exponentially over the years. The asset has moved from an era where people could earn from doing simple tasks online to more options that are similar to methods of making money in traditional finance. Bitcoin savings products, trading, affiliate marketing, lending, and mining are all ways to earn bitcoin.
One popular way of investing in bitcoin is by ‘saving’ it. The regular method includes people buying bitcoin and holding it for a long period. This method has been effective over the years since bitcoin bought and held has been profitable.
As the bitcoin ecosystem develops, more savings options have become available. There are several platforms that provide interest for saving bitcoin.
Savings providers lend your bitcoin to cryptocurrency marketplaces and brokers. These marketplaces usually lend the bitcoin to traders as margins for leverage trading. Traders are then charged interest for the bitcoin lent them.
Due to how volatile Bitcoin is, savings providers use a dynamic interest model. Usually, you begin to receive interest from the day you deposit bitcoin.
AAX has a bitcoin savings product. This allows you to earn passive income while holding bitcoin.
Another way to earn bitcoin is to lend your bitcoin and earn interest on it. This works for people who have bitcoin they do not intend to sell or trade. Instead of letting your bitcoin sit idle in your wallet, you can lend it to earn extra income.
There are many lending platforms in the cryptocurrency space. Depending on the lending platform, you set the terms yourself or go with the already fixed interest rates.
Unlike mining, trading, and affiliate marketing, you do not have to put in much work for this method of earning money with bitcoin.
Mining is still a profitable way of making money with bitcoin. Bitcoin mining was the initial method for earning bitcoin and was the only method for a while.
Bitcoin mining is the process of validating transactions on the blockchain by completing complex mathematical equations. Initially, mining bitcoin did not require a lot of resources. People could mine on their desktop in the early days.
However, bitcoin mining has evolved. It now requires robust hardware like Application-Specific Integrated Circuits (ASICs) or mining rigs created from Graphics Processing Units (GPUs).
Further, you will need to have a stable internet connection and electricity supply to mine bitcoin smoothly. As an incentive for confirming transactions on the bitcoin blockchain, miners are rewarded with newly minted bitcoin. This bitcoin covers mining cost and makes it a profitable venture.
You can earn money with bitcoin by mining. You will need to get the necessary resources, set up your mining rig, and watch as you earn some bitcoin.
Another and more realistic option to consider is joining a mining pool. Instead of mining bitcoin as an individual, you can join other miners in a pool. This increases the hash rate and chances of earning bitcoin significantly.
Mining pools combine the mining capacity of different miners into one. After, block rewards are split proportionally based on the contribution of every miner.
Trading is a very popular way to make money with bitcoin. Most people are attracted to this method due to the possible gains. However, trading is very risky.
Trading involves speculating on the price movement of bitcoin in a way that makes you money. Trading consists of reading and analyzing charts to predict price movements in the future. There are different types of trading to choose from. You can trade on the spot market or trade futures with margin.
AAX is a robust trading platform that allows you to trade bitcoin against several cryptocurrencies. Further, AAX is integrated with trading bots, allowing you to automate your trades.
Affiliate marketing is a well-known way of earning money in several industries, especially online. There are several services and products built around bitcoin. Affiliate marketing rewards you for promoting these products and services.
Bitcoin platforms like exchanges, wallets, and savings applications have referral programs that reward you when people sign up through your promotions.
AAX Tribe is an affiliate program for users on AAX. The program grants incentives for referring your friends to AAX exchange. You are rewarded for sharing your AAX affiliate links with your friends and followers.
When people sign up on AAX with your link, you receive a commission of up to 40% every time they make a trade. What’s more, when people you referred refer users to the platform, they are counted as second-tier referrals. You receive a 10% commission every time they trade.