There are a ton of ways to make Bitcoins today, and there are a lot of factors that can determine how much you can really make. A lot of new people to Bitcoin can and do start by getting free Bitcoins daily (although tiny amounts) from Faucets. Others do doing jobs for Bitcoins where all types of talents are sought out for. Some people invest in various Bitcoin businesses, while many try to create their own Bitcoin business or just accept Bitcoins for their normal business.
At the end of the day making Bitcoins is very similar to making normal money; through selling a product or providing a service. However, in the world of the Bitcoin economy, it is much more like the Wild West – there are essentially no rules, making it easier to do business at times and very risky at other times.
Here is a list of the top 7 ways to make Bitcoins today, starting from easiest to do (generally with the smallest returns) and increasing to the harder to do (generally with greater returns). Note, I have not listed Bitcoin mining as I am convinced no one on a small scale can make money doing this anymore.
1. Make Free Bitcoins Through Faucets (<$100/month)
So firstly if you have never heard of a Bitcoin Faucet before it is a way a site gives users micro Bitcoin payments for doing various things. Some sites just give users a tiny amount of Bitcoins every few minutes for solving a basic google screen capture, while other sites pay you to view advertisements.
Why are they free?
They are not free, advertisers are paying for them and most likely you are getting a small share of what the advertisers are paying. Additionally, a lot of Bitcoin Faucets are found on gambling sites, so while they are giving away small amounts of Bitcoins, a lot of people will become hooked on the gambling site and not leave.
How much can you make?
Realistically doing this full time with all the Faucet sites and gambling sites with free Faucets, my best guess is you could make up to $100 a month.
If you have some script made with multiple computers and proxies automatically claiming the Faucets, maybe you could do more. However, if you had the skills to write such a script you should be working on your own software!
Where do I go to?
Faucet sites come and go all the time. Below is a list of 2 different Faucet sites I have used in the past where you can make some micro Bitcoins:
- Crypto-Games – a gambling site with a progressive Faucet.
- Bitvest – a gambling site with a progressive Faucet via quests.
Faucets are probably the worst way to make Bitcoins today in terms of the time you spend and the money you make. However, if you do not own any Bitcoins yet, you will be able to get your first Bitcoins this way.
2. Make Bitcoins From Forum Posting ($100 – $1,000/month)
The Bitcoin Talk Forum is the biggest place that I know of where you will find thousands of new posts and views every day from Bitcoin users all around the world. Satoshi Nakamoto even used the Bitcoin Talk Forum himself before leaving in 2010. As it is so popular nearly every Bitcoin business is represented there doing customer service, promotions and marketing.
The Bitcoin Talk Forum gives users the ability to put a website link and graphic image in the signature of their account(s). Bitcoin businesses know how useful the website link and graphic image are, and as such, will pay you to promote their site by using their website link and image. As opposed to explaining this further, here is the direct link showing the open Bitcoin Signature Campaigns you can sign up too.
Essentially you will be paid to ‘rent’ your signature per week/month, for a certain amount of posts per week/month and paid more depending on how long you have been on the site (different levels for users exists).
How much can you make?
Once you have multiple Bitcoin Talk Forum accounts (which many users do but won’t admit), you can get around $100 per account, per month if you post enough and your account is relatively senior (Hero member and above). Part time one account you could make $100 a month, full time you could potentially have 10 accounts and make around $1,000 a month. You can even buy and sell senior accounts as people are so interested in the paid advertising campaigns. I have tried a few campaigns and have always been paid, but the time versus income is definitely not worth it for me.
3. Bitcoin Jobs ($1,000 – $10,000/month)
Bitcoin Jobs are a pretty obvious one. People always think you need to be a professional programmer to get paid in the Bitcoin world but this is not always true. There are 3 places I think are a great way to look for Bitcoin Jobs and they are:
- Jobs4Bitcoins – Reddit Forum where you can find jobs paid in Bitcoins.
- Marketplace – Bitcoin Talk Forum (post your own job your want if one does not exist already).
- Email Bitcoin websites with content and ask if they need a writer (I have done/do this).
How much can you make?
Depending on your skill level I see some programmers get paid up to $50 an hour while some jobs can pay as little as a few dollars for a 500 word article. I have written articles for a bunch of different sites in the past and usually get paid $10-$20 for a 500 word article. So full time, I think a good writer can make around $1,000 – $3,000 a month (depending on how much work they get) and a good programmer can probably make up to $10,000 a month or more.
4. Bitcoin Gambling Bankroll Investing (<5% returns/month)
Bitcoin gambling bankroll investing can yield great returns, but only if the site stays up and doesn’t run away with all your Bitcoins. I have run a Bitcoin gambling investment experiment in the past which can be found at Bitcoin Gambling Reviews. Following this thread all the sites invested in are recorded monthly and historic returns show it has averaged royghly 5% a month.
Assuming the 5% returns continue without a site running away, if you have enough Bitcoins invested, you can make a lot of money.
So what is Bitcoin gambling bankroll investing?
Firstly to attract Bitcoin gamblers a gambling site needs to prove that they have the funds to pay out winners; this is known as a bankroll. Most Bitcoin gambling sites do this with an offline cold wallet that they make publicly visible so gamblers know they have the money to pay them if they have a big win.
Bitcoin bankrolls can range from 10’s of Bitcoins to some having 1,000’s of Bitcoins, and most gambling sites cannot afford to fund a bankroll themselves. As such many Bitcoin gambling sites crowdfund the bankroll.
To entice investors to fund the bankroll, Bitcoin gambling sites share a percentage of the profits with investors. Some sites sharing up to 90% of the profits with bankroll investors and the lowest on the market is currently 50%.
So explaining this in a quick example:
Say you invest in Crypto-Games for one month. You deposit 1 Bitcoin into the bankroll and the total bankroll is 100 Bitcoins. This means you own 1% of the site bankroll and get 1% of the bankroll profits.
Crypto-Games currently give 70% of the sites profit to bankroll investors. So if in a given month the site makes 100 Bitcoins in profit, 70 Bitcoins would be given to bankroll investors. As you own 1% of the bankroll you would be given 0.7 Bitcoins in profit bringing your balance to 1.7 Bitcoins.
How much money do Bitcoin gambling sites make?
It varies massively from site to site. Bitcoin gambling sites that you can invest in all have a house edge on games that are played. This generally varies from as low as 0.5% to 2%, which means for every 100 Bitcoins wagered a gambling site expects to make 0.5 Bitcoins (with a 0.5% house edge) or 2 Bitcoin (with a house edge of 2%). However, as the house edge is always very low in the Bitcoin gambling world, there is a lot of variance and sites can take short term loses. So you are not guaranteed to make a profit every month.
Plot of actually investor returns over time at Crypto-Games
The key factors in determining how much money you will make are:
- The amount wagered every month (the higher the better).
- The house edge (the higher the better, however, too high and no one will play).
- The % of profit shared with bankroll investors (the higher the better).
- The size of the bankroll with regards to the betting volume (the smaller the bankroll and the higher the betting volume the better. This means you do not have to share the profits with a lot of other people).
- Trustworthiness of the site. No matter how good the points 1,2,3 & 4 mentioned above are, if the site runs away with everyone’s money you lose everything. This has happened many times in the past and will certainly happen again.
Additionally, one strategy of bankroll investing is to split your investments over as many investment sites as possible. This can minimize the impact of one site running away with everyone’s money.
Where do I go?
I am not going to recommend any Bitcoin gambling site bankroll to invest in, but I will tell you where I am or have invested in before. These sites include:
5. Bitcoin Trading
Personally I think trading is like a form of gambling with the exception of arbitrage trading. People can and try to speculate on the direction of the Bitcoin price in the short term (buy when they think it is low and sell when they think it is high), but in my opinion this is a zero to negative sum game as someone is losing while someone else wins. So I will only discuss Bitcoin arbitrage trading a little further. If you don’t know what arbitrage trading is, it is basically profiting from price differences in Bitcoin across different Bitcoin exchanges/markets.
So why do the price differences occur?
Different Bitcoin exchanges have very similar but slightly different buy and sell prices. They are not 100% efficient for a multitude of factors. Some of these include:
- People buying and selling Bitcoin are generally not on all the same exchanges. This means if Bitcoin is 1% higher on the exchange they are setup on (for example), some people may pay the higher 1% price as opposed to moving to a new exchange and creating a new account.
- Some exchanges have different fees for buying and selling which can increase the buy/sell price.
- Some exchanges are limited to certain people in certain places of the world, creating a price that can differ from the rest of the world.
- Some countries have certain taxes on the sale of Bitcoin which can increase the cost (think Australia with their capital gains tax).
- Some countries have insanely high inflation and some people in those countries want to get out of their national currency so badly they will pay a higher price for Bitcoin (think Venezuela today).
How would you profit from this?
Assuming you had an account at all of the exchanges in the world, you could buy Bitcoins on the exchange with the lowest price and immediately sell the Bitcoins on the exchange with the highest price. It sounds simple to do and when you see the difference in prices of the exchanges it seems like an easy thing to do. However, setting up the accounts, turning fiat currency into Bitcoin and then back into fiat currency, along with the general risks of losing money due to the speed of the price changes, can make this very difficult. I also believe at some stage (if it is not already happening), there will be programs, not people, arbitrage trading Bitcoin across different markets.
Where do I go?
There are a lot of different Bitcoin exchanges you can go to. Below is a list of some of them:
6. Bitcoin Affiliates (5% – 50% Revenue Share)
All Bitcoin businesses are looking to get more customers and sell more products and or services. As such, most are actively involved in advertising their sites and paying people to bring in more customers. Some sites like Trezor (the Bitcoin Hardware Wallet), will give you 5% of all products sold, and some gambling sites will give you up to 50% of the revenue made from referred customers for life!
If there is a site you think you can promote and send customers to that doesn’t offer an affiliate program or the affiliate share seems low, email the site and ask if you can be an affiliate and/or ask for a better affiliate share.
A lot of people are interested in becoming a Bitcoin affiliate but always assume a website is required to do so. This is not always the case as just sharing a link through an account on the Bitcoin Talk Forum, emailing friends, sharing on Facebook, Reddit or even Twitter can get you affiliate income.
7. Accepting Bitcoin Payments
By now you have probably seen the above sign at a lot of different online stores. Every month more and more online businesses start to accept Bitcoins (and even offline businesses too). If you have an online business one of the easiest ways to get Bitcoins is to simple accept them as a payment method.
As Bitcoin is currently so volatile just setting a price in Bitcoins for your product or service is not a logical method to run your business. If the price goes up a lot no one will buy and if the the price goes down a lot you may lose money. The solution is to accept Bitcoin at the right currency rate (for most this may be in USD) for a given time frame. Therefore, having an API setup to change the Bitcoin value with respect to a currency is what you will need. There are many sites that can do this but one that stands out to me is Coinbase.
Even if you don’t have an online business, Bitcoins can still be easily accepted in person through a Bitcoin mobile application. There are many to choose from but the one I use on my phone is from blockchain.info. By downloading their application receiving and sending Bitcoins is very easy (just don’t plan on storing large amounts of Bitcoins there).
Make Bitcoins Summary
I have only touched on 8 ways of making Bitcoins that I am relatively familiar with, but there are lots more. Some of these include:
- Bitcoin equity investments
- ICO’s – Initial Coin Offering’s
- Bitcoin sports arbitrage trading
- Creating your own Bitcoin business
- Bonus scalping from Bitcoin gambling sites
If you think I have left anything out worth mentioning with regards to making Bitcoins please let me know and I will look into it further and may even invest some Bitcoins 🙂 Additionally if you have a site that is making you Bitcoins and you want to share your story, please contact me and I will share it!