How to make a profit from Bitcoin

Just like any cryptocurrency, if you are an investor in Bitcoin, you want to make money. Let’s explore how that could happen.

Many people have tried to earn a profit from cryptocurrencies like Bitcoin. Many have been successful, but many more have failed. So what’s the secret? As with any investment, it is important to do your research. Plunging into any market with little-to-no knowledge is a significant risk, and one that rarely pays off.

So if you want to earn money, you need to start with learning as much as you can about cryptocurrencies like Bitcoin from sites like bitlq. Then you need to investigate the ways that you can possibly make a profit from your investment.

Trethowans
Trethowans

In this article we explore three different ways you can earn a profit from cryptocurrencies like Bitcoin. These are trading, mining and micro earning. Let’s start with trading.

What is trading?

One way many people make a profit from cryptocurrencies like Bitcoin is by training them. As with any commodity, the secret to successful trading is buying when the price is low, then selling when it has increased.

Trading has an element of luck to it, but only a fool relies on luck when handling money! Instead you need to understand the market and its influences well. You need to predict what people may do, and which assets are increasing in popularity and why.

This will enable you to understand the market rate of cryptocurrencies like Bitcoin, and spot when they are undervalued, or have the potential to increase in value. You also need to recognise the right time to sell – sell too early and you may miss out on a significant windfall. Sell to late and you’re left holding an asset that was worth more only a few days ago, and kicking yourself!

What is mining?

Another way you can earn money from cryptocurrencies like Bitcoin is to mine them. So what is ‘mining’? Mining is the process that many cryptocurrencies like Bitcoin use to create new coins and check new transactions.

Mining uses huge, decentralized networks of computers across the globe that check and secure blockchains (blockchains are the virtual books that record cryptocurrency transactions). As a reward for their processing power, a computer on the decentralized network is repaid with new digital coins. So, in effect, what happens is that the cryptocurrency miners upkeep and secure the blockchain, which awards the coins, and the coins act as an incentive for miners to maintain the blockchain.

That said, not everyone can mine cryptocurrencies. A few years ago, you could easily mine them with a good home computer. But as the blockchain has increased it requires much more power to maintain it, so today most mining is done by groups of people combining their resources, or specialized companies.

What is micro earning?

The final way you can potentially make a profit from cryptocurrencies like Bitcoin is micro earning. This method is not a big profit maker, but it is a hassle-free and most straightforward way of generating profit.

Unlike mining, you don’t need any special equipment or the help of a team of people to try micro earning. Nor do you need specialist knowledge or any skills. The only thing you require in micro earning is a strong internet connection with a network and a smartphone.

Micro earning simply involves watching videos and completing questionnaires. That’s it! But as you can imagine for something so simple and not requiring special skills or equipment, the earning potential is small – hence the name!