While the potential for Bitcoin to completely overhaul the socio-economic model that we live under and enhance both personal and financial freedoms and disempowering the big banks, many people are interested in Bitcoin for a more earthly reason – profit.
There’s no denying that to a huge amount of people in the space Bitcoin is simply a vehicle for earning money hand over fist, and that’s OK – these people invest in the space and promote it to more potential investors, something much needed for increased adoption and growth in Bitcoin and altcoins.
But how exactly are these people making money? Today we’re going to take a look at the various ways people are earning money in the space and when relevant, the pros and cons of these methods, starting with the most well-known one.
There’s a famous post on Reddit called “Beginners Guide to Daytrading Crypto” which simply consists of the word “Don’t” when users click to read it, and that’s a valid piece of advice.
While it’s certainly the most well-known of the profitable business opportunities available in the Bitcoin space, day-trading comes with huge risks which are often compounded by margin trading.
If you’ve ever seen pictures of Lambos with HODL license plates, odds are those people are or were daytraders in the crypto space. Because of the extreme volatility, there is a huge profit opportunity for those who know what they’re doing (disclaimer: I do not know what I’m doing).
Day trading requires patience, an understanding of technical analysis (TA), some startup capital, and extreme discipline – people unable to cut their losses can find themselves losing everything in the blink of an eye, so this is not for the faint of heart and best avoided until you’ve really done your homework.
Margin trading (where you bet with odds meaning you can gain OR LOSE several times more than the amount you’re betting) is also for advanced users only. Youtube has excellent tutorials on day trading strategies and groups like The Chart Guys can help with those TA skills.
Just another day in #crypto … #REKT pic.twitter.com/WFXUo7t4zF
— Crypto Memes (@CryptoMemes) March 7, 2018
Mining is another way people have made it big in the crypto space. It’s worth pointing out that the current climate for Bitcoin mining is rather hostile, something we’ve written about before. At the moment the price for mining a bitcoin in many countries barely nets any profit due to the bear market and the high cost of electricity.
However, mining altcoins can still be profitable if you mine the right one at the right time, which of course requires a lot of research and know-how. Mining also requires a fairly hefty investment into some gear like an ASIC miner or GPU mining rig. As with anything, it’s best to DYOR before taking the plunge and putting your money where your mouth is.
ICOs saw a huge boom in 2017 with many people becoming millionaires off the back of small investments of a few thousand dollars. Some ICOs like Ethereum saw an ROI of many thousands of percent, something very rarely seen in traditional investment. The unregulated model also allowed people who are not accredited investors to invest and earn money, opening up the investment sector to regular people for the first time in a big way.
However, the unregulated nature of the space comes with major downsides. ICOs are one area of the crypto space which is heavily criticised, and with good reason. The Wall Street Journal found that one in five ICOs were straight up scams with no intention of providing investors with a return on their investment, and beyond that the majority of ICOs are doomed to failure. It’s possible to make money through ICOs, but in my opinion this is not a safe area of the crypto space in terms of earning money. Next.
Now we’re getting into the more niche and untapped areas of the crypto space. Bitcoin and altcoin awareness is growing rapidly worldwide, creating a huge market for tshirts, stickers, backpacks, mugs, and all the other products and goods associated with popular merchandise.
While not uncompetitive, merch could be one of the more promising areas for aspiring entrepreneurs to capitalize on the crypto craze. Unlike ICOs or mining, it’s still relatively early days in the crypto merch market and there’s plenty of room for newcomers capable of marketing their wares successfully online.
This is another less talked about business model in the crypto space.
Remittances are payments sent from overseas workers to their families or friends back home. Many people who could stand to benefit from using cryptocurrency are still unaware of or intimidated by the methods required to send crypto – hardware wallets, private keys, and exchange rates are for the technologically literate, and there are many overseas laborers and so on who are not good with computers but could benefit greatly from crypto.
The methods available at the moment to these people are scandalously expensive due to the monopoly the servies have (or had) on the market. PayPal, Western Union, and similar services charge huge commissions and exchange rates. Anyone capable of helping workers transfer their money into crypto and send it home at a reduced rate could stand to make a steady and consistent profit from doing so.
While it can be difficult to pick the right ICO, there are many ICOs out there with a genuine business model and use case, and all of them need staff to run their project.
One burgeoning area in the space is community management. Community management is simply handling marketing and PR for an ICO or crypto company, including talking to potential investors in Telegram groups, posting information on Reddit and other social media platforms, and acting as a brand ambassador by representing the projects at conferences. There is a growing need for people capable of doing this and the job doesn’t require technical skills so much as it does people skills, dedication, and a good work ethic. Community managers can earn upwards of $60,000 a year.
Blockchain programmers are in incredibly scarce supply, and anyone capable of learning computer programming could stand to enter a lifelong and lucrative career path making around $100,000 a year. While this requires advanced technical skills, there are blockchain boot camps and training centers around the world teaching absolute beginners how to code in languages like Solidity so they can create blockchain programs and platforms that can be integrated into existing business models.
You didn’t expect me to leave this one out, did you? Anyone with a way with words and a strong understanding of the space can help spread the good word by becoming a content writer, writing informative articles helping to increase adoption and educate newcomers and veteran crypto enthusiasts alike.
You can even write for Crypto Is Coming – get in touch with samples and you might find yourself with a new business opportunity in the crypto space right now!
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