Top 7 Best Ways to Make Money with Bitcoin in 2021

It has only been 10 years since Bitcoin came into existence and it has already taken the world on a spin. This cryptocurrency made many millionaires since it peaked at $38,000 and above towards the end of January 2021. Cryptocurrency is in itself very complex and so is Bitcoin. While it is the reason behind many success stories now, a lot of people have fallen for Ponzi schemes and other scams owing to a lack of knowledge about Bitcoin. This is mainly because the high profits are extremely attractive, but one has to be extremely careful while investing in it. Here’s a list of ways to make money using Bitcoin in 2021:

1.  Buying and holding Bitcoin:

The old "buy and hold" is one of the ways through which people initially started making money with this cryptocurrency. Many media outlets like thebitcoincode.io did financial stories on the same. HODL is a term that was misspelled by a trader who meant to hold the profits and not sell them immediately. Since then HODLing became the notion wherein it meant having a long-term investment in Bitcoin. Buy Bitcoin as required from any legit cryptocurrency exchange and HODL it till a certain date in the future when it is expected to see a rise in value.

2.  Trading in Bitcoin and Arbitrage Trading:

If you have a general idea about forex or have traded before, this is one of the safest options for you. Keeping a close watch on price movements, external factors that influence the market such as news in the industry, several regulations, and events concerning Bitcoin is essential to understand when to trade in Bitcoins. Another type of trading to earn money via Bitcoin is arbitrage trading. This method will have you buying Bitcoin from an exchange when it is at its cheapest and selling it at a higher margin to another. This is a technique associated with low-risk profit and is a quick way to make money through trading.

3.  Join mining pools or set up your own:

When multiple people join forces and try to generate blocks quicker by increasing hashing power, it becomes easier to start making money according to contributions made by each individual. Solo-mining can also be beneficial if you do not want to pool your resources but depending on the equipment used the hash rates will also vary. 

4.  Future trading and speculations in Bitcoin:

Speculation of future prices of Bitcoin is also another legit way to make money with bitcoin. By this method, you won’t own Bitcoin but it will have you betting for the short and/or long term for a certain time against the price of Bitcoin. If you are knowledgeable about future contracts concerning traditional financial assets, this will be an easy way to make money.  

5.  Network marketing in Bitcoin:

This is a method through which many companies have tried to combine network marketing and cryptocurrencies. You can buy a contract for mining Bitcoin in this case. This is quite similar to cloud mining and the dividends that you earn will be based on the package that you have bought. You can earn commissions when you refer people to the said network marketing network. 

6.  Cloud mining for Bitcoin:

Yes, you can get mining equipment for hire. You don't need to set up the hardware required for mining Bitcoin. You can sign a contract and get to mine in remote locations where affordable cryptocurrencies are located. This will be like investing in mining and getting some level of payout daily instead of investing in the equipment itself. 

7.  Affiliate programs in Bitcoin:

When you refer new consumers to cryptocurrency companies they tend to make small payouts in Bitcoins to you. These affiliate programs are designed for social media campaigns to attract more consumers. First, you enlist in one such program and then you make social media posts or videos about the product with a link in your description which will lead more potential consumers to the company’s sign-up page for such programs. Once they sign up using your link, you get paid for every single sign-up. 

These are some of the most popular ways to make money with Bitcoin in 2021. Try what falls under your area of expertise or read up more about each technique before investing in it.