Disclaimer: The content herein is not, and is not intended to be financial advice, in any way whatsoever.
Bitcoin has not only survived the fraught year, but it also thrived and reached a new all-time high value of $19,763 on November 23, 2020. As per the industry experts, this bull run is different from the earlier ones, mainly because the tech companies serving the industry are seen as mature enough to handle institutional capital. Besides, Bitcoin is turning to be a possible place of refuge in times of economic turmoil as a medium to bypass mainstream payment channels.
With Bitcoin dominating the headlines for the past few days, it’s no surprise that people are keen to find out how they can make some money from the world’s largest cryptocurrency. As the crypto-economy matures over time, we are seeing constant development of the methods to make money with Bitcoin.
1. BTC Gambling
One of the earliest adopters of the cryptocurrency movement was the online gambling operators, who recognized the importance of this historical inflection point. Using alternative currency systems like Bitcoin or Ethereum allowed players to bypass the traditional banking model for the first time. On Casino operators’ end, ditching the banks meant dealing with players in one-to-one transactions, thereby no middleman or payment processors.
Over the years, the growth of cryptocurrencies has made it essential for online Casino operators and vendors to accept Bitcoin as a payment method. The ease of use and accessibility in addition to the minimum transaction fee is responsible for the growth. But the most prominent reason is the anonymity of players. BTC gambling ensures strict privacy and removal of third-party oversight while keeping the banks out of your personal life; they can’t hold up your deposits or withdrawals any longer.
Benefits of BTC Gambling
Playing at online casinos and sportsbooks mean you have to reveal certain personal data while utilizing their services. With BTC gambling, all of your transactions are anonymous, and you don’t have to exchange any personal data with the platform.
2. Possibilities for Everyone
Several countries have an outright ban on gambling, be it online or brick-and-mortar. As Bitcoin is an international currency, anyone can use this currency to deposit at online gambling sites.
3. Quick Transactions
Since there is no middleman between the operators and players, the deposits and withdrawals are quicker than the traditional methods.
Risks of BTC Gambling
1. Fluctuation of Value
Bitcoin is still very volatile and its price can vary swiftly change in either direction.
2. Extra Fees for Currency Conversion
Every time you choose to convert your fiat to Bitcoin or vice-versa, it’s fairly likely that you’ll need to pay conversion fees.
2. Staking BTC
Staking is similar to investing, where apart from the opportunities to trade, an investor can lock up a cryptocurrency and earn interest on it. In addition, stakers also gets the benefit of price appreciation if the cryptocurrency’s price moves upward during the lockup period. With crypto staking, you’ll receive a reward, which is usually a fixed percentage per year.
Sadly, Bitcoin can’t be used for staking because it uses a system called proof-of-work, in which a network of computers race to create a block by solving a cryptographic puzzle. Bitcoins can be exchanged with crypto coins that can be staked for stable returns on staking.
Risks in Staking
Some cryptocurrencies set limits on the coins required in a wallet to get eligible for staking. Therefore, users are forced to unite in “pools” with the subsequent division of earnings.
The risk of centralization is high because the bulk of the assets are in the hands of large players.
A high risk of a decrease in cryptocurrency turnover because users strive to keep their coins locked-up for as long as possible to maximize profit.
3. Leveraging BTC
The rise of bitcoin as a popular cryptocurrency has led to the introduction of Bitcoin’s Contract for Difference across many forex broker platforms, thus allowing traders to capitalize on the sharp swings to make money. Bitcoin leverage trading refers to trading Bitcoin CFD and taking advantage of the leverage offered by the brokers. The process allows you to control more sizable positions and make more profits. The amount put down to open a trade in BTC leverage trading is known as margin.
The Downside of BTC Leveraging
The risk of loss is magnified as the same as the potential gains. The available margin is fractional when compared to the leverage position size, which gets eaten up when the price moves down to what the trader would anticipate.
Now that you know ways to start making money with Bitcoin in your arsenal, why not try them? Who knows if your efforts could lead to profits!
As the crypto world matures over time, there will be an endless amount of earning opportunities offered by Bitcoin. Before you jump onto the bandwagon, be sure to do your research and find ways that work best for you.