This tutorial will teach you how to make money with Bitcoin.
I’m going to take you through a many lucrative methods, each with their own pros and cons.
All working methods that will help you earn an income.
Let’s keep the introduction short, and get into it. Bitcoin waits for no-one!
1. Bitcoin Flipping
This is one of those methods you don’t hear about every day. So I’ve put it at the top of the list.
After all, you’ve probably already heard of mining and trading. Flipping Bitcoin is a little different though, and can genuinely earn you consistent profit.
Fortunately, I’ve made a video tutorial so you can see how the process works.
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 practically guarantees profits that will beat the market, even in most downturns. But always keep your eyes open.
It is a very simple way to make money with Bitcoin. Any difficulty you run into is likely product of your own unnerved-ness of being new to Bitcoin, or at least 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!
It’s actually pretty simple
On every peer-to-peer trading site, if you post a trade, you can buy Bitcoin under market rate and sell it over market rate. By repeating this, you will flip Bitcoin and make consistent profits.
The model of this method works when you are the person setting the parameters of your trades.
When you create the ads, you decide how much the 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.
When you look at LocalBitcoins (a marketplace where you can flip), the “buy bitcoins” price is the price that you’ll 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. Believe me.
Flipping bitcoin requires you to trade directly with other people. You profit pretty much instantly.
Best P2P Exchanges to Flip Bitcoin on
If you want to flip Bitcoin for profit, you need sites where you can direct person-to-person.
Preferably sites that don’t charge horrendous fees, and importantly, you need 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.
Often 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’ll get.
LocalBitcoins (the best place to flip Bitcoin)
- Check out my LocalBitcoins flipping guide for more depth on this
LocalBitcoins is the first large-scale, peer-to-peer Bitcoin trading site. Based in Finland, they’ve been dominating the market before Bitcoin even hit the mainstream. This is the trading platform that all the similar alternatives will have been inspired by.
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 god-send.
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 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 product of their smaller user-base.
However, because it looks so professional nowadays, I imagine the spreads may be a little tighter.
Where there are more customers, there will be more suppliers, thus causing a tightening of the potential 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 them 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 the profit.
Final two-cents on staying safe while flipping
Some countries may require you to have a license to do this. But, provided you’re allowed to get into it, flipping bitcoin is an extremely lucrative way to make money.
2. Leveraged 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.
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.
3. Bitcoin Mining
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.
4. Bitcoin Gambling
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.
5. Bitcoin Lending
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!