There are many Bitcoin supporters who believe that digital currency is the future and investing in it today can reap huge returns later. The most popular way of owning Bitcoins is through buying on a Bitcoin exchange. Some people may choose to keep them for a longer time horizon while others like to profit by selling them as soon as they find an opportunity. Like any other asset, the principle of buy low and sell high applies to Bitcoins. Interestingly, there are many other ways to earn and own Bitcoins which are different from the buying them on a Bitcoin exchange. Here are a few options which Bitcoin enthusiasts can explore. (See: A Look At The Most Popular Bitcoin Exchanges)
Bitcoin mining is the process through which Bitcoins are released to come into circulation. In simple words it involves solving a computationally difficult puzzle to discover a new block which is added to the blockchain and receiving a reward in the form of few Bitcoins. The block reward (new Bitcoins) which currently at 25 (it was 50 in 2009 and decreases every 4 years). Back in 2009, when mining began, it took a regular desktop to be able to generate the coins but as more and more Bitcoins are generated, difficulty in the mining process increases. To combat the difficulty level, miners now use faster hardware like Application-Specific Integrated Circuits (ASIC), more advanced processing units like Graphic Processing Units (GPUs), etc. (See: What is Bitcoin Mining?)
- Receiving As Payment
Another way to earn Bitcoins can be to accept it as a means of payment for products or services sold or provided. Say, you have a small store selling grocery or flowers, just display a sign “Bitcoin Accepted Here” and many of your customers may prefer to pay through this option. The payments with Bitcoins can be made with the requisite the hardware terminal or wallet address through QR codes and touch screen apps in case of a brick and mortar store. It’s easy to accept Bitcoins even for an online business, just add this option along with various other ways like credit card, net banking, etc to pay. Online payments will require a Bitcoin merchant tool (external processor like Coinbase, BitPay) to accept Bitcoin payments. (See: Stores Where You Can Buy Things With Bitcoins)
Ways To Earn Bitcoins
- Working For Them
Bitcoins can be earned on a regular basis by getting paid for a job in Bitcoins. This system is not popular yet and thus has limitations in terms of such offers. Other than working for company, explore the option to be paid in Bitcoins as a self employed person. There are some websites which are dedicated to the digital currency paying jobs. WorkForBitcoin brings together work seekers and prospective employers through its website. Coinality is another job board which features jobs – freelance, part-time, full-time job opportunities for payment in Bitcoin, Dogecoin and Litecoin. Few companies which place job offers on Coinality are Coinbase, bitpay, ripple, secondmarket, etc. Jobs4Bitcoins (reddit.com) is a popular Bitcoin job board. BitGigs is a portal offering a wide range of jobs for payment in Bitcoins.
- Interest Payment
Another interesting way to earn Bitcoins is by lending them. Lending can take three forms – direct lending to someone known or through a website which facilitate peer to peer lending where borrowers and lending meet, or lending Bitcoins to some websites that act as banks where you earn a certain interest rate for Bitcoin deposits. Some websites which offer such services are Bitbond, BitLendingClub, BTCjam, etc. However, be sure about the reliability factor while choosing a website offering deposit or peer to peer service; do go through the terms and conditions, research about the location and reputation of the company.
Though Gambling is one of the options in the list, it’s not the best way to earn Bitcoins. There are many casinos which offer different options like online lotteries, jackpots, spread betting, casino games, etc to Bitcoin players. It is advisable to stay away from gambling as it is a highly risky way to acquire Bitcoins. (See: How Bitcoin Casinos Work)
The Bottom Line
Few other ways of earning Bitcoins can be through tips, faucet, arbitrage, etc. The world of virtual currency is growing bigger with its own exchanges, casinos, jobs, hardware’s, applications and increasing acceptance. However, lack of clarity on its regulations and legality still raises questions and is holding back many from joining the Bitcoin world.