How to earn Bitcoins if I am a beginner?
The year of Bitcoin creation is 2009. This cryptocurrency managed to implement innovations in the financial markets and economics in general.
This coin is produced by many computers spread around the world. Now, this is an approved payment method, but this cryptocurrency isn’t regulated by any country at all. There are a lot of people who are inspired by the success of this cryptocurrency. Why? Maybe, everyone heard the story about a person who bought pizza for Bitcoins and lost an opportunity to become a multimillionaire. There are a lot of people who managed to become rich with this cryptocurrency. What do you need to do to earn Bitcoin?
Can an average person earn Bitcoins by himself? How much time does he need? Let’s consider this topic step-by-step. It is going to be a very interesting trip to a modern financial market and even more.
Creating a Bitcoin wallet
First, you need to create a wallet where your digital money can be stored. You can’t earn Bitcoin without this action. This step is broken down into these smaller steps:
- Registration on the official Blockchain website
- Choosing the best wallet
- Using this wallet.
There are four basic types of cryptocurrency wallets:
The most popular are online wallets because they are the most convenient. Yet, they are the most unsafe.
After registration on the Blockchain, make sure you get the keys. Other cryptocurrency wallets also have special keys that serve as the addresses of this wallet in the network.
There are two types of keys: private and public. The first is needed to send Bitcoins to the receivers and the second is the public address.
It can be compared with a mailbox. It also has an address where other people can send the mail. However, only you have the key that allows you to open this box and get the correspondence.
You should not tell your private key to any person you don’t trust.
The methods of earning a cryptocurrency
There are a lot of ways to earn Bitcoin. You can choose any you want according to your goals and the existing resources. Also, you need some time to set up your method.
The basic method is mining. This is a calculation of hashes that have to follow certain rules. The result of calculations is a block – a certain number of Bitcoins.
Mining requires powerful devices. To increase the overall power, miners create pools of cryptocurrency miners. If you want to be a member of the pool, you have to pay some amount of money. Income is allocated according to the participation interest.
There are special calculators that allow you to calculate your potential income and time you need to get it. However, you should understand that these services can predict income only approximately.
This is a type of mining where you get an income via other data-centers. It consists of the following steps:
- Choosing a cloud mining service.
- Paying for the account. Usually, the number of payment methods is very different and starts with the classical debit card and goes as far as Bitcoins or other cryptocurrencies.
- Connecting to the pool. The mining process starts with this step.
- Money is allocated.
Accounts can cost differently depending on the power of equipment.
It is very important that every miner pays a commission. Also, you often need to pay for electricity. You don’t need to pay every single time because money can be withdrawn from your card automatically.
Lately, this is one of the most popular methods to get an income from Bitcoin. However, this method is significantly riskier than mining. At the same time, mining becomes less and less attractive and a lot of cryptocurrencies are acquired in a completely different way. Trading is a method based on buying Bitcoin when it costs less and selling it at the top price.
The basic rules are similar to classic financial markets. The only difference in cryptocurrency trading is in the extremely high volatility. Prices can be 2 times greater than a few days ago.
There are two basic elements of trading:
- The technical analysis. You use previous price movements to predict the future. There are a lot of instruments that allow you to understand the market situation clearly.
- The fundamental analysis. This is understanding the aspects of the cryptocurrency market that don’t depend on the numbers. This involves basic economics rules and information about companies such as documents, news and others.
On the basis of the technical and fundamental analysis, a trader creates a strategy. This is very important because you aren’t able to be independent of emotions if you don’t have a trading strategy.
This is serious work. If you are successful in stock trading, it’s no guarantee that you will be successful in cryptocurrency trading.
This is one of the easiest methods of getting money with Bitcoin. This method is easy for beginners and can help to understand what cryptocurrency is. You will get a Satoshi, a small part of Bitcoin. What do you need to do to get this money? You need to watch some videos or solve a captcha.
Money is sent to your cryptocurrency wallet. However, you should understand that you aren’t able to get a lot of money using this method.
If you want to play computer games and earn Bitcoins, you can choose this method. Games can be very different starting with arcades and finishing with the farms or other simulators. The great advantage of this type is a lack of need to invest a certain amount to get money. You are able to do without any payments.
Usually, creators of Bitcoin games set up the minimal withdrawal level automatically.
Be attentive. There are a lot of scammers that propose huge amounts of cryptocurrency if you invest some money (not only cryptocurrency, it can also be fiat money). You would be using these services at your own risk.
You should also understand that even if Bitcoin games are a real opportunity to get money, you are not able to earn a lot. There are no other methods aside from mining or trading that allow you to earn Bitcoin. If you get a salary in Bitcoin, you also can earn this digital money.
This is a category of programs that allow you to get additional income if you attract new clients to the exchanges or pools. The reward can be different:
- A certain percentage of the company’s income
- Information about the market situation made by professional analysts.
The total amount of money you can earn depends on the number of people you can engage in mining or certain cryptocurrency projects and the declared conditions.
Can I earn money without investing?
There is a huge demand for Bitcoin and the price of this digital asset grows in the long-term perspective. The reason for this popularity is in the anonymity of operations.
Home mining loses its positions, but cloud mining has certain prospects. You need to have money for an initial investment if you want to mine or trade. You can use cranes or games to get small amounts of cryptocurrency.
How much time do you need to earn one Bitcoin?
You need a stable internet-connection and supply of electricity if you want to spend less time to get the cryptocurrency income. If you use cloud mining, this is not a necessary requirement.
Now, you need to buy a lot of expensive equipment if you want to mine autonomously. The real income largely depends on the amount of investment.
Some people and websites recommend you turn to casinos to increase the amount of Bitcoin. However, you should understand that this approach almost never gives real money. Also, there are a lot of scammers who don’t propose real casinos. They only collect your money and take them. The online casinos are two times riskier because of this fact.
The potential problems of cryptocurrency
Cryptocurrency is a risky sphere by default. Also, you might experience these problems:
- Money cannot be returned. It means that if someone doesn’t give you the goods you buy for Bitcoin, you are not able to return your coins at all, unless the seller makes a transfer to your wallet.
- We know that the wallet has keys. If you lose your private key, you lose your money. Due to this, you need to keep it a secret and store your key in different places.
- Bitcoin isn’t regulated by any government. It means that this cryptocurrency is really independent. This is a significant advantage, but there is one problem with this fact. Every government controls the transactions to make them safe. It can detect the scammers this way. Due to the lack of regulation, you aren’t protected from dishonest people.
- You need too much time if you want to earn money without any investment.
To sum up
It is too risky to earn Bitcoin even if you mine this cryptocurrency. Not every block can bring you the money. There are some blocks that aren’t connected to the system. If you mine Ethereum, you can get money in all cases, even if some blocks are orphaned. However, if you have some experience in this sphere, it will be easier for you.
We don’t recommend you to leave your main job and start trading or mine until you are a real professional. The specialists say that you should invest the amount of money you aren’t ready to lose. These recommendations certainly will help you to use common sense when you mine or trade Bitcoin. Good luck!