For many people, buying Bitcoin in bulk is not a financially profitable investment strategy. But the good news is that there are now more alternatives than ever before that make it easier for people to earn bitcoin.
And believe it or not, in some cases, you don't have to do anything to start making money.
Let's explore what your options are, from accepting bitcoins from your boss to storing them in interest-earning crypto accounts. Depending on your short, medium and long term goals, each option has different benefits for your preferred method of earning Bitcoin.
1. Earn Bitcoin with a Crypto Interest Account
In the same way that people used to (and, to be honest, still do) keep their money in bank accounts and receive interest on their deposits, crypto interest accounts are a new and exciting model for the blockchain industry. This model is often done in a number of ways, including accounts that generate interest. Some people also refer to this simply as lending your Bitcoin. In the end, the result is the same - by transferring your Bitcoin or other cryptocurrency to a financial service provider, you will earn interest on your Bitcoin over time.
How do crypto interest accounts work?
A number of companies now offer the ability to earn interest on your crypto holdings. The basic structure is that you send your crypto to the website of your wallet service provider and over time you will earn interest. This provides a new way for crypto HODLers to store and earn from their crypto asset holdings.
In recent years, the interest rates offered by banks have been lowered, resulting in less than ideal returns. Individuals have been forced to look for other money-producing solutions. Until recently, there were almost no options for crypto holders.
Crypto holders are now turning to alternative financial service providers for this service. Clients can earn up to 6% annual interest on their Bitcoin and Ether. The interest earned by clients also accrues, maximizing their annual return.
For example, with compound interest, the user's effective annual interest after 12 months of 6% will be 6.2%, adding more long-term growth opportunities.
Register to get the highest interest rates for bitcoin on the market.
2. Get Cash Back in Bitcoin When You Shop Online
Ebates, a popular Google Chrome Extension, offers money back to customers for their purchases from thousands of websites. They work with nearly all major online retailers, including everything from Best Buy to Groupon to Nike. After you install the extension and create an account, Ebates will notify you of available discounts as you browse retailer websites. In one click you can activate the discount. At the end of each quarter, you get a check from Ebates with your cash back balance. It's that simple.
In crypto, the companies that call Lolli offer a similar service. Make purchases on websites like Sephora, Macys, or CVS and get cash back in Bitcoin. Each shop has a different number of incentives. Some offer as much as 9% cash back. Others will offer some BTC. This is a very easy way to get free Bitcoin while making everyday purchases.
Another interesting way to get Bitcoin as cash back is with Pei. With the App, you can unlock cashback in BTC, USD, or gift cards. Their app is very easy to use and only runs in the background while you are shopping. The first step is to securely link your bank account, debit card, and credit card to your account via Plaid. Then, whenever you shop at a shop in the Pei merchant community, you will receive cashback directly to your PeiAkun account. It's that simple.
Their partners include companies such as Target, Chipotle, 7-Eleven, and a number of other large retailers. The best part is that not only do you earn Bitcoin through Pei, but you still get a "double drop" on the points and prizes you normally get on your credit card. Pei is one of the best ways to get Bitcoin passively without having to think about it.
Download Pei on your smartphone and use the code "oqskcu" to get a $ 5 sign-up bonus. The bonus is paid after you connect the card and make eligible purchases to start earning money back in Bitcoin.
3. Earn Bitcoin With Affiliate Marketing
Affiliate marketing is a popular way to make money for bloggers, news sites, social media influencers, and the common man. The company provides a unique URL or Promo Code for affiliate marketers to send to their audience. If someone who clicks on the link makes a purchase on your affiliate link, you will receive a reward.
How much can I earn in affiliate rewards?
Each company arranges their affiliate program differently. For many e-commerce brands, you'll get a percentage of the total number of orders your customers refer. For other companies, you may get a set rate for each person who signs up for the service using your promo code.
For example, Coinbase will pay you $ 10 for each customer who signs up and deposits at least $ 100. Another popular exchange, Binance, offers up to 40% of your referral transaction fees. For people with large audiences, that can add up to thousands of dollars per month.
Another alternative is the BlockFi affiliate program, which offers 10% interest earned by referring to a BlockFi Interest Account and $ 50 or 10 basis points of the loan amount (whichever is greater) on the loan funded. Learn more about becoming an affiliate.
4. Get Paid in Bitcoin
Many people have started accepting Bitcoin and other cryptocurrencies as payment for their work. This is a very attractive option for people looking to earn bitcoins from home or as a freelancer. Whether you are an editor, musician, social media manager or artist, you can make money with cryptocurrency to get your services now.
Some of the more popular freelance crypto platforms include:
r / Jobs4Bitcoin - popular Reddit job board for tasks paid for in Bitcoin
Bitwage - payroll and HR services to get paid in Bitcoin
Angel's List - Job board site where many crypto projects recruit
Earn.com - Earn Bitcoin for completing tasks and answering emails
CryptoGrind - The place to buy and sell freelance services using Bitcoin
CryptoJobs - Job boards for freelancers looking to earn crypto for their work
Coinality - A job board for projects looking to pay in crypto
Bitfortip - Earn Bitcoin to help people
How are crypto wages taxed?
People who get Bitcoin or other cryptocurrencies as wages have very specific needs when it comes to accounting and paying taxes. Bitcoin taxes are one of the more confusing parts of owning cryptocurrency. You need to be able to track all your trades and have the latest fiat conversion rates, as well as crypto amounts.
According to TurboTax, employees who are paid in crypto must report their W-2 salaries in dollars, if they were earned in Bitcoin or other digital assets. For freelancers, the profit or loss from the services rendered must also be converted from crypto to dollars on the day it is received. These figures need to be reported on your tax return.
There are a number of companies that specialize in crypto taxes that make this whole process simple, and affordable. Many also provide expert customer service to support you with your questions and personal needs. Their software can help you with anything from collecting and evaluating your crypto trades to calculating the numbers on Bitcoin you earn from your work. Some of these providers include:
5. Earn Bitcoin by Trading or Mining
For some people, trading crypto is the easiest way for them to earn more Bitcoin. There are many trading strategies and every trader has their preferred way of increasing their crypto holdings through trading. However, an increasingly popular way to trade is by leveraged trading. In this scenario, traders will borrow funds to increase their trading. In crypto, these leveraged loans are called crypto backed loans.
One of the easiest ways to mine crypto using your personal computer is with Honeyminer. You just have to download the application and run it in the background. That is all.
What are crypto backed loans?
Crypto-backed loans have a structure like pledged loans, where the borrower provides collateral to the lender to gain access to more funds. More specifically, borrowers provide their cryptocurrency lenders to get USD. After the loan is repaid, the borrower gets their crypto back. This is a safe and easy way to get access to USD or stablecoins.
The benefit of crypto loans is that they don't require a hard or soft pull from a potential borrower's credit score. Since the loan is secured by assets as collateral, there is no risk to both parties. If the borrower decides not to repay the loan, the lender can sell the borrower's collateral to get the funds back.
In addition, crypto-backed loans do not trigger taxable events. Transferring your funds to a crypto lender is not an act of selling, so there are no capital gains implications involved.