The following is a list of the more common methods to earn bitcoin. Like normal currencies, there are many ways to earn it, and short of working for it, is only limited by the imagination.
I don’t have much experience with this as I feel it’s a bit late for the average person to start mining as it getting increasingly harder to mine bitcoin as time goes on. In addition, there are a large number of serious outfits to compete with including large well-funded companies.
However, if you still want to do it, you can get some mining hardware pretty easily and get started. Be warned that you will most likely not break-even due to costs to run the equipment. If you are serious, you can join a mining pool such as bitminter which combines resources with many other miners and increases the chance of making a profit. You simply connect your mining equipment to their server and you will receive a percentage of the bitcoins mined minus pool costs.
Here are a few ideas for mining equipment to suit most hobby and beginner budgets:
Work for it
Seems pretty obvious and it is becoming very common for freelance and task-oriented work on sites like XBTFreelancer where you bid for the job/task and get paid in bitcoin when you complete it. The vast majority of freelance work revolves around content writing and software development.
Payment by bitcoin is even creeping into a number of companies where you earn your salary/wages and then get paid the equivalent in bitcoin. If you can find one go for it – let me know how it goes.
Whether you are paid by the hour or a fixed amount, this form of earning is known as ‘linear income’ which basically means that you exchange your time and skills for a certain amount of money. As such, how much you can earn is generally limited to how many hours you can allocate.
Faucets are the most popular way to get into bitcoin and subsequently earn it. Most people find this incredibly unrewarding and give up quickly as the majoruty of faucets are rubbish. However, if you are prepared to spend some time you can earn some bitcoin from a few excellent faucets such as Moon Bitcoin which offers a number of bonus incentives to increase earnings. Check our list of top faucets to get going.
Another obvious one, but you can simply unload some of your unused items using a number of eBay style websites. One great site for this is Bitify which is a bitcoin marketplace and auction site where you can sell whatever you want. They even offer an escrow service where the funds are held until the sale is completed which gives the buyer peace of mind thus improving chances of a sale. Or you can simply stick an ad in the local paper and wait for the phone to ring – good luck!
If you manufacture something you can also sell your goods for bitcoin. There are a number of wholesalers who operate in bitcoin now. Go forth and find them for your chosen niche.
Investing is the process of making money from money and it will be covered in much more detail here. Suffice to say, once you invest some bitcoin as the principal, you can earn bitcoin through payments (generally as a percentage) from this principal. This is my favorite method, as when done correctly it allows you to grow your bitcoin with minimal effort.
Trading is often mistaken for investment but it is basically the process of buying and selling an item at various intervals based on predicting a price or volume movement. It’s not for the faint of heart, but the volatility of bitcoin can be extremely rewarding if you know what you are doing.
There are a large number of bitcoin exchanges which gives a lot of flexibility in trading, but be aware that they are not regulated by governments like fiat currency exchanges. A great way to get started in trading is through LocalBitcoins who make it very easy to find a place to trade. You can even set up your own exchange and really get your hands dirty.
Not a method I recommend, but it can be a legitimate way to earn bitcoin if you know what you are doing. There are thousands of online gambling sites which accept bitcoin but not all are created equal. BitCasino has a large variety of games and has good reputation in the industry. Remember, check if it’s legal where you live and always gamble responsibly. Never gamble more than you can afford to lose.