If you’re looking for ways to make money with Bitcoin, then look no further. This article features 5 ways that you use Bitcoin to make a profit.
All of the featured methods work. Have a read through them and pick the one that most stands out to you.
Let’s keep the introduction short, and get into it. Bitcoin waits for no-one!
Oh, just one small thing: I am not a financial advisor, this article is purely for entertainment purposes. Hopefully, you’ll have as much fun reading it as I did writing it. Please, double-triple check that you can operate crypto-asset businesses in your country or state--seriously, it’s not a joke.
This is one of those methods you don’t hear about every day. So I’ve put it at the top of the list. That way you can’t complain if you don’t make it to the bottom of the page.
After all, you’ve probably already heard of mining and trading. Flipping Bitcoin is a little different though, and can genuinely earn you a consistent profit. And it can be automated.
I’ve made a video so you can see how the process works, if it better suits your liking.
If you’re not a video fan or need some more information, continue on. There’s plenty more to learn with this particular Bitcoin money-making method!
What is Bitcoin flipping?
Buying under market-rate and selling over market-rate, in an “broker-like” fashion.
This method almost guarantees profits that will beat the market, even in most downturns. But always keep your eyes open. Note to reader: I am not a financial advisor, the previous statement is not a promise.
Bitcoin flipping is a fair simple way you can make money. Any difficulty you run into is likely a product of your own unnerved-ness of being new to Bitcoin or trading it with other people. Which is only natural.
After you give it a try, you’ll soon realise what I’m sharing with you.
Is it easy to flip Bitcoin for profit?
On every peer-to-peer crypto trading site, if you post a trade, you can buy Bitcoin under the market rate. You can also sell it over market rate. By repeating this process you “flip” Bitcoin.
You might not be that familiar with P2P crypto trading sites--we’ll cover them in the next section. But some simplicity’s sake: they’re marketplaces for people looking to trade with one another. Anyone can join one of these sites, you just need to signup and have some money in the bank (or in Paypal, Venmo, MoneyBookers .etc) that you’re willing to trade for Bitcoin.
If that sound simple to you, then yes, it’s easy to flip Bitcoin for profit.
This is the where the profit comes from
The most important factor in the flipping process is: who posts the trade. The person “posting” the trade sets the parameters. They create the advertise that someone else accepts. So when your average joe Bitcoin buyer goes to the site, they’ll click the advertisement and fill the other end of the deal taking a loss for the convenience of getting instant service.
When you create ads on these sites, you decide how much Bitcoin is being bought and sold for. This way, you control the narrative of how much profit you’ll earn on each flip. This is important to realise.
I get so many messages from people that haven’t grasped this. I really have tried my best to simplify it. But, when you look at LocalBitcoins (a marketplace where you can flip), the “buy bitcoins” price is the price that you will be selling at.
The “sell bitcoins price” is the price you’ll be buying at.
There is always a profit margin to be made, if your calculation is negative, you are doing the calculation wrong.
Best P2P Exchanges to Flip Bitcoin on
If you want to flip Bitcoin for profit, you’ll need the best sites to flip on.
Preferably sites that don’t charge horrendous fees. And importantly, you also want sites that provide some sort of customer service.
If you’re serious about getting into flipping Bitcoin, you should sign up to multiple sites. That way, you can attract the widest breadth of customers.
Customers don’t stick to any one site, so link back to yourself across profiles, and use the same username to serve as a friendly face. The more sites you’re on the more reputable you look and the more business you get.
LocalBitcoins (the best place to flip Bitcoin)
I’d really appreciate if you clicked my LocalBitcoins link wherever it is on the page. I’ll earn commission from signing you up, at no cost to yourself. Treat it as a thanks, and IOU for any future questions you might ask me!
- Check out my LocalBitcoins flipping guide if you want a focussed guide on LBTC.
Their customer service is incredibly good, and they’re more than happy to intervene in conversations between any two trading parties.
I’ve relied on them in the past, and they’ve always come through. Given the site is free to use, their customer support is honestly a godsend.
The user-interface on LocalBitcoins isn’t the most attractive, but their user-base is vast. After all, they’ve been around for years, and have the momentum to retain users simply based on volume.
Paxful (newer, but might eventually become the best spot)
The not-so “new kid” on the block.
They’ve built an extremely attractive site and ushered in a number of updates that look as if they could compete with the likes of Coinbase soon.
They’ve really honed in on what LocalBitcoins lacks in terms of interface and user-friendliness.
Back in the day, you could flip Bitcoin on here for some disgustingly wide profits. I’m talking 10-20% profits on every flip. This was mostly because they had a smaller user base. But because it looks so professional nowadays, I imagine spreads may be a little tighter on profit margins.
If you go to a “Buy Bitcoin” section on a peer-to-peer trading site, you are not posting a trade. You are answering someone else’s posted trade.
Therefore, you will be paying a premium if buying Bitcoin from them; or losing out on a premium if you are selling Bitcoin to them.
You must post the trades if you wish to make profit.
Important note to all tempted Bitcoin flippers
Some countries may require you to have a license. But, provided you’re allowed to get into it, flipping bitcoin is an extremely lucrative way to make money. Just double-triple-quintuple check, because you don’t want to get in trouble for running an unlicensed exchange because you haven’t bothered to read the fine print.
2Leveraged Bitcoin trading
There would’ve been a point where idea of trading cryptocurrencies on leverage would have been ridiculed. Namely because the markets are volatile, and a small move in the wrong direction can blow out your account.
However, nowadays there are so many opportunities available that it goes without saying Bitcoin leveraged-trading is a thing, and it’s making people money.
This does come with a few warnings though.
Wherever it’s easy to make money with leveraged trading, it’s just as easy to lose money.
Remember this, and internalise it, before you start slamming your bank into ridiculous trades.
How does this differ from normal Bitcoin trading?
Trading on leverage makes it easier to make money with Bitcoin, however, it also exposes you to more risk.
Remember, Bitcoin is a volatile asset. But, with volatility comes opportunities for profit.
Leverage amplifies volatility, such that, you can make more money from smaller price moves.
You can make obscene amounts of money from larger price moves that move in your favour. Though, once again, if it’s not in your favour, your money will disappear into thin air as if it came into contact with a supermassive black hole.
You’ll need to sign up with a broker than actually provides leveraged trading.
Not all brokers offer it, although, many are moving to include it.
This is because the cryptomarkets are maturing, with more and more people seeing past the “clouded” history that scared away early investors.
How does Bitcoin leverage trading work?
Bitcoin leverage trading works by using leverage(a loan from a broker) that enables a person to trade with more Bitcoin than they own.
For example, instead of buying 0.1₿, I could invest the same amount cash but gain exposure to 10₿.
This is good, because if the price of Bitcoin goes up by 10%, I earn 10% of 10₿ instead of of 0.1₿.
This also works in the opposite direction too.
Beware of this. As if the market moves against you, you can also lose your money pretty quick.
And, in certain cases, if you’re particularly unlucky, you could end up losing more than you have in your account. In which case, you will owe money to your broker.
So, before making money with Bitcoin through leveraged trading means, make sure that you do your research, and learn how to protect yourself from negative situations.
Stop Losses, for one, will save you in a multitude of situations. You don’t want to end up posting “loss porn” on WallStreetBets, that’s for sure.
And what is the best site to trade Bitcoin on leverage?
As I previously mentioned, there are quite a few places that offer Bitcoin trading. But not all of them allow you to do this on leverage. Which can hinder your potential to make money with Bitcoin.
The ones I’ve got experience with are:
eToro (great for beginners)
Now, eToro has been around for a long time. Not just for the purposes of trading crypto-currencies, but for trading in general.
They have a vast multitude of trading instruments that you can invest in; forex, stocks, indexes, commodities, and also cryptocurrencies .etc.
If you’re a beginner to trading, you’ll probably find solace in eToro. They’re really user-friendly.
And they got some pretty cool features with their social trading opportunities. There are traders that allow you to “follow” their trades. That way, you can invest in a handful of traders that are performing well and have decent risk appetites--important.
Trading212 (beginner-friendly AND commision-free)
This is the broker that I’m currently using. I would use Robinhood but they aren’t in the UK, so this doubles up as a good alternative to Robinhood for UK traders and also as a great commission-free trading app.
Like eToro, they’re user-friendly. And offer loads of different trading instruments that you can trade on leverage. Unlike Etoro, they don’t charge a withdrawal fee, which is pretty important, especially if you’re the type to withdraw and deposit regularly as you need cash.
Trading212 is a little bit more advanced then Etoro, but that is better in some ways. But in all honesty, they both do the same thing. They both have mobile applications and web platforms.
IG (bit more advanced, but still a solid platform)
IG is another great option, but somewhat more advanced than Trading212 and EToro. Their crypto coverage is a little weaker than the others, but in terms of being a solid broker, this is the type of platform you see with ads on billboards. Not some fly-by-night broker.
IG’s barrier to entry is a tad higher than Trading212 and Etoro. Which is fine, provided you can afford it. Their minimum buy-ins for each trade is higher, but if it this is a problem, perhaps you should delve into some of the other ways to make money with Bitcoin.
In the early days of Bitcoin, Mining was easy.
It is still possible, but nowadays it isn’t the easiest thing to do, but it’s definitely still possible to mine cryptocurrency.
People use ASIC miners now. ASIC miners are hardware that’s purpose built for solving cryptocurrency algorithms.
They’re far more effective than standard commercial computer hardware, and if you’re really looking to start a Bitcoin operation, this should be your second port of call.
But first and foremost, you’ll need some Bitcoin mining software.
Mining software that you can use to brain your CPU with
NiceHash makes mining Bitcoin easy. You can mine other cryptos too.
Nicehash is a broker for computational power. But they’ve also got some of the best Bitcoin mining software available. They buy and sell hash power, hash power from miners like you.
When you’re new to mining and you just want to start making money, then you should stop by here first. They’ve even got a cryptocurrency exchange too, so you’ll be able to invest in a some other cryptos if you’re interested.
Many of the other miners are tough to set up or, or require you to have a pretty high baseline understanding of cryptocurrencies and mining technology.
These guys, on the other hand, make it really easy to get started.
I’m not going to advocate gambling Bitcoin, because gambling usually entails playing a game where the odds are stacked against you.
However, it is possible to make money from Bitcoin gambling.
Can you gamble with Bitcoin? Hell yeah.
Yes, you can gamble with Bitcoin. Whether trading and investing, or going to a Bitcoin dice or casino site, it is very much possible to use Bitcoin for gambling purposes. Just make sure they’re a licensed casino.
It’s actually pretty simple to get into too..
To use Bitcoin for online gambling, you’ll first need to acquire some Bitcoin.
Then, find a site where you can gamble Bitcoin; there are many Bitcoin casinos.
Once you have found a site, you’ll need to deposit your Bitcoin to it. You’ll then be able to gamble as you wish. Make sure to read reviews as there are many scams out there.
What is the best Bitcoin casino?
There are many Bitcoin casinos on the internet. But at the moment, the best Bitcoin casino is BitStarz.
Lending your Bitcoin hasn’t yet hit the mainstream. But there are some pretty good options where you can charge up to 15% interest to borrow your Bitcoin.
Is Bitcoin lending risky?
The money is available here because of the perceived risk, but the risk is mitigated by good debtor selection and the appropriate steps taken to “know the customer”.
At first, you might wince and worry about safety, but there are options that offer various security measures the keep you secure.
And after all, you don’t have to go all-in on one loan that may turn bad. You can diversify, and spread risk, and earn those lucrative 15% returns on top of wherever the price of Bitcoin rockets too.
In my opinion, Bitcoin flipping is one of the most lucrative options. Of course, this comes with it’s own risks. But, if you can do it, do it.
On the other hand, leveraged Bitcoin trading is another great option. Though, this too carries risk!