With the host of revenue opportunities Bitcoin has kept bringing ever since its inception, profiting from it in 2023 in several ways remains on the table for both newcomers to the cryptocurrency realm and well-experienced investors. The market is still as profitable as ever, despite the turbulence experienced in the last period and detrimental events that took their toll on the asset’s price.
The ways to profit from Bitcoin this year vary depending on many factors, like the token’s performance, expected results, and the user’s knowledge and resources. For instance, if you want to trade Bitcoin but look to take a step back from the popular cryptocurrency exchanges, you can buy Bitcoin P2P and sell it on a P2P marketplace, hold it for the long term, or use it as you see fit. On the other hand, affiliate programs enabling businesses and content creators to gain rewards for bringing users to a platform are gaining traction among cryptocurrency devotees.
Whether you’re up to investing time in monitoring market trends or seeking profitable ways that necessitate less involvement, you have several methods to generate profits with Bitcoin this year, so let’s dive in!
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Trading Bitcoin
Trading the reigning coin can be the most preferred method to exploit the cryptocurrency’s rising popularity. The risk involved grows with the amount of money poured into digital funds, so ensure you’re making your calculations carefully. This implicates profound knowledge of the cryptocurrency market and charts, the moves, and how willing you are to take speculative risks when holding on to your trading strategy. You can earn more revenue through different approaches, with some of the most popular ones being the following:
- Peer-to-peer trading (P2P). Suppose you want to directly interact with a Bitcoin provider and have the freedom of choice regarding Bitcoin’s cost without opting for a cryptocurrency exchange. In that case, you can make use of P2P marketplaces. Essentially, there are not many differences between the services provided by these platforms, and they only come down to the trading approach. For instance, while a cryptocurrency exchange employs an automated engine to complete transactions, the P2P marketplace lets you directly trade with another user depending on the chosen payment venue and local currency.
- Scalping. Bitcoin scalping is preferred by traders who would instead make a quick buck from the small price fluctuations in the market instead of resorting to long-term investing strategies. Given the strategy’s fast-paced attribute, you’ll need to be quick on the uptake to spot the coins that enjoy increased interest due to different events. However, you can employ technical indicators in your strategy to improve it, including candlesticks, Bollinger bands, and exponential moving averages.
- Swing trading. Unlike the dynamic scalping strategy, swim trading positions can take anywhere from a few days to several weeks. This is a popular venture based on the theory that price fluctuations are rarely linear because there’s an ongoing movement in the balance between the bull and bear markets. The more skill you have in using trading indicators, the higher the chances to profit from well-known market shifts.
Mining
Despite the tumultuous past of Bitcoin and its competitors, Bitcoin mining remains a profitable venture to profit from the growing interest in the asset, even though you shouldn’t expect the same returns that the strategy would have delivered in its heyday. This happens because the asset’s price has fallen from its peaks, as the market is still recovering from the cryptocurrency scandals and failures of 2022 that impacted it well into 2023. Economic uncertainty, political challenges, and other detrimental conditions also led to a slump in cryptocurrency prices.
Despite ongoing challenges, most cryptocurrencies hold on to their value. They are expected to behave well in the future, with the most prominent ones, like Bitcoin and Ethereum topping the list. To determine whether mining Bitcoin suits your financial goals, you can estimate the profitability with specially designed tools before spending money on expensive software and gear.
Most miners today rely on Bitcoin mining pools – a network where every miner combines their computational power. They emerged as reliable options as cryptocurrency mining became increasingly challenging over time, with Bitcoin mining difficulty fluctuating depending on the number of participants in the mining process.
Lending Bitcoin
The traditional financial system has long enabled participants to borrow and repay loans. Now it was about time that individuals could be provided similar opportunities in cryptocurrency, given their surging popularity.
Therefore, lending Bitcoin can prove profitable if you have large amounts that lie dormant and out of use. You will need a cryptocurrency wallet to make deposits for Bitcoin borrowers, who often include large corporations and investors that will use your funds for working capital, speculation, and other purposes. There are a host of different lending platforms designed to enable users to borrow cryptocurrency from holders, including peer-to-peer, centralized, or decentralized providers, each paying a specific interest rate in exchange for the service.
However, you should note that this isn’t the safest endeavor. Even though lending may involve earnings as high as 15% of the amount lent, it may also bring its fair share of risks, primarily associated with the cryptocurrency’s abrupt ups and downs and the market’s volatility.
Affiliate programs
Businesses have relied on affiliates to promote their offerings through various tactics and drive more users to their web pages for decades. Given their affordability and time-saving characteristic, increasingly more companies have implemented this effective strategy to boost the brand’s exposure and bottom line.
Bitcoin is not a stranger to affiliate programs, and the process involves similar steps to those of a company that pays commissions to users who contribute to efforts to generate income for the brand. You will create an account on the chosen platform and wait to be registered. Afterward, you will receive a link to send to as many individuals as possible. The more receivers who register on the platform through the link sent by you and make purchases, the greater your reward will be. However, you will need to seek out new potential participants to keep bringing in revenue.
Generating income with Bitcoin remains an achievable target in 2023, and it all depends on how much time, effort, and risk you are willing to take. Remembering that each cryptocurrency is subjected to significant price fluctuations is a good way to start creating your strategy to boost your revenues, so make sure you leverage their volatility and treat it cautiously.