How can I earn bitcoin?

Seeing stories of how an average Joe became a millionaire by making an investment in bitcoin when it was new might make bitcoin very attractive to invest in nowadays, seeing as it’s constantly on the rise. Fortunately, you still have a chance to get in the world of cryptocurrency. Bitcoin is still in its early days and keeps growing, so if you’re willing to make the investment it’s really possible you’ll get large returns in exchange for it.

You have plenty of options to earn bitcoins. Nowadays, plenty of jobs that pay in fiat currency also give you the option to receive your payments in bitcoin. So, let’s take a look at the most common ways to earn bitcoin:

Mining

Chances are that if you’ve read a bit about bitcoin, you might’ve seen the term ‘bitcoin mining’ on more than one occasion. Now, don’t think of it as physical mining, there’s no “bitcoin ore” that is mined by a bunch of people in an underground cave. Instead, bitcoin mining happens through a computer that tries to solve a mathematical problem, and just like that computer, every other computer that’s mining competes to solve the problem first. Whoever solves it gets rewarded in exchange. You might be thinking that since it’s through a computer the problems are solved in a matter of seconds, but this is far from the truth. Throughout the years, mining evolved to the point that specialized hardware was created with the sole purpose of mining bitcoins more effectively, meaning that the problems are solved faster. However, even with powerful hardware, it still takes time, because by design, the difficulty of the problems constantly increases and so does the time to solve them.

BitCoin mining machine

Mining might seem like a fun or interesting thing to get into, but if you’re looking to profit from it, it’s definitely not recommended. Throughout the years, plenty of people and some big companies have invested big amounts of money into mining hardware, competing against that isn’t exactly worth the investment. The reason is that you have to take into account several factors such as: the electricity costs related to your hardware when mining and how the difficulty of the problems constantly increases. Because of this, chances are you won’t even make a return on your investment, much less make a profit. A way to circumvent this would be finding a place where electricity is cheap or something like a rented apartment where you don’t directly pay for all the electricity consumption.

If you’re still interested in mining, knowing these terms will be helpful when doing your research:

 

  • ROI: stands for Return on Investment, which is the amount of time it’ll take for your investment to start making a profit. The costs of shipping, electricity and/or pool fees may or may not be taken into account
  • Hash: is the amount of calculations that a miner runs in a second. This means that one hash = one calculation. As a small note, Hash units have 1,000 times the hash rate of the last, as shown below.
  • KH/s: Kilohashes per second. One Kilohash=1,000 hashes.
  • MH/s: Megahashes per second. One Megahash=1,000,000 hashes.
  • GH/s: Gigahashes per second. One Gigahash = 1,000,000,000 hashes.
  • TH/s: Terahashes per second. One Terahash = 1,000,000,000,000 hashes.
  • PT/s: Petahashes per second. One Petahash = 1,000,000,000,000,000 hashes.
  • W: stands for Watt. This is used to measure the amount of electricity that the miner uses. More wattage means more electricity is being used by the miner, meaning higher electricity bills
  • ASIC: stands for Application-Specific Integrated Circuit. In general terms an ASIC is a chip designed with a specific purpose in mind. In Bitcoin, ASICs are powerful chips designed specifically to mine bitcoin more efficiently. The introduction of these chips dramatically increased the hash rates for bitcoin miners.
  • Algorithm: every cryptocurrency has an algorithm. Many algorithms exist, but the one bitcoin uses is called SHA-256. So, when looking for miners, look for SHA-256, since these are the ones that let you mine bitcoin.

Apply for some jobs

As it was said previously, you can find jobs that give you the option to get paid in bitcoin just like any other currency. Because bitcoin is still relatively new and is constantly growing, new bitcoin companies tend to be hiring quite often. Additional to this, check out Jobs4Bitcoins and Coinality for some job offers that pay in bitcoin.

 

Selling goods

Selling a product can be profitable if done right, and you can sell it for bitcoin if that’s what you want. Make a website for the product you’re selling, and then set up an online store for it, with the addition of a bitcoin payment processor. BitPay is well-known and popular among merchants, as it can be used in both online and physical stores.

BitCoin Mining Investment

To sum things up

You can earn bitcoin through different methods, and there is no wrong approach. It can be tough to get into at first, but with determination and enough research you’ll be able to figure things out in no time. Think of new projects that you could make a profit out of, innovation is important and good in this field. As a small note, If you still want to get into mining make sure to do some thorough research before making any big investments, since there’s a high chance you’ll end up losing money. Bitcoin is still in its early days, and there’s a lot of potential behind it, using it proves to be very beneficial to its growth. So, what are you waiting for? Take a step forward into the world of cryptocurrency.

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