Although exposed to turbulent price ups and downs, Bitcoin remains the most expensive cryptocurrency on the exchange market. Bitcoin is a desirable asset for any aspiring investor. Lots of early buyers of Bitcoin (when its price was just a fraction of a cent) managed to become filthy rich just by selling their Bitcoin holdings at the right time.While buying Bitcoin is still a luxury unattainable for most crypto enthusiasts, it is still possible to obtain this digital currency through mining. In this article, we will explore the question of how to make Bitcoins.
- Bitcoin at a Glance
- Earn Bitcoins from Mining
- How Bitcoin Mining Works
- How to Make Bitcoins from Mining
- Potential Risks Associated with Bitcoin Mining
- How to Make Bitcoins in Alternative Ways
- Play-To-Earn Games
- Make Bitcoins by Completing Different Tasks
- Write Articles and Get Paid in Bitcoins
- Make Bitcoins via Airdrops
- Earn Bitcoins via Bounties
- Make Bitcoins from Cloud Mining
- Stake Bitcoins
- Extract Bitcoin from Web Surfing
- Bottom Line
Bitcoin at a GlanceBitcoin is known as a pioneer of cryptocurrencies. It is the first and still most prominent electronic currency that is seriously believed to dethrone traditional finance. Bitcoin enables peer-to-peer (P2P) exchange of value over the internet without involving centralized intermediaries. Bitcoin relies on a decentralized protocol, data cryptography, and a network-wide node consensus mechanism that all exist in a frequently updated public transaction ledger known as “blockchain.”Bitcoin functions as electronic cash that operates independently of any jurisdiction or financial institution. This is why Bitcoin is referred to as a decentralized payment means. Bitcoin can be sent all over the world without asking banks to execute the transaction, while the history of all Bitcoin movements is recorded in the public ledger and cannot be any how modified.
Bitcoin can refer to the Bitcoin software protocol, as well as the monetary unit, which is represented by the ticker symbol BTC.Launched anonymously in January 2009 for a small group of technologists, Bitcoin is now a globally traded digital asset with a daily settlement value of tens of billions of dollars. Although its regulatory status varies by region and continues to evolve, Bitcoin is most often regulated either as a currency or as a commodity, and its use is permitted (with varying levels of restrictions) in all major countries. In June 2021, El Salvador became the first country to make Bitcoin legal tender.
Earn Bitcoins from MiningThe process of earning Bitcoins from mining is similar to the process of extracting a precious metal from Earth's interior.Bitcoin’s white paper says:The steady addition of a constant amount of new coins is analogous to gold miners expending resources to add gold to circulation. In our case, it is CPU time and electricity that is expended.A rough idea of Bitcoin mining revolves around the following:
- Users compete for Bitcoin rewards by applying computing power in a process known as Proof of Work (PoW). The process is so named because only users (miners) who have proven that they have allocated enough resources (work) qualify for receiving a reward.
- A reward is given to a winning miner approximately every 10 minutes.
- The reward is two-level: (1) the “block reward”, which is the newly minted Bitcoin token. The block reward is currently set at 6.25 Bitcoins (but it will be halved from the beginning of May 2024 and then halved again four years later and so on). (2) The fees associated with all transactions in the current block. End users wishing to make a transaction must pay a fee to the proposed transaction as an incentive for miners to include it in the next block.
How Bitcoin Mining WorksTo successfully add a new block to the blockchain, Bitcoin miners must compete against each other to solve complex mathematical equations that require the use of powerful computer machines and substantial consumption of electricity.To win that competition and verify a new block in the public ledger, a miner must be the first to find the correct or closest solution to a mathematical equation. The process of finding the correct number (hash) is known as proof of work. Miners guess the right hash by making as many random guesses as possible, which consumes a lot of computing power. The difficulty of Bitcoin mining is ever-increasing as more miners want to compete for Bitcoin rewards.How do you earn Bitcoins from mining? Bitcoin mining requires initial investment to obtain robust hardware that can solve intricate mathematical problems. Such software does exist and is called an application-specific integrated circuit (ASIC).ASIC units tend to be expensive, and some of them come with a $10,000 price tag. While efficient in mining Bitcoin, ASIC machines take abnormally huge amounts of electricity, which is highly criticized by global environmentalists. The expensiveness of ASICs also affects the profit-making capacity of Bitcoin mining.Yet, if a Bitcoin miner successfully adds a new block to the blockchain, they are rewarded with 6.25 Bitcoins (the price of 1 Bitcoin is $18,863.70 at the time of writing). The Bitcoin mining reward is reduced by half once 210,000 blocks are created or approximately every four years.
How to Make Bitcoins from MiningAlthough Bitcoin mining is a procedure to solve extraordinary mathematical puzzles, it is done by a machine, not by a user themselves. So, from an ordinary person’s point of view, getting down on Bitcoin mining requires quite a simple formality. Before plunging into this business, a user needs to do their homework and acquire certain things:
- Powerful computing hardware. It is possible to use an ordinary computer, but a person should realize that Bitcoin mining is an arms race with aggressive competition. It is entirely the robustness of technology that can make or break the Bitcoin mining business.
- Bitcoin wallet. A wallet is a hardware or software solution that will keep your Bitcoin earnings from mining. Some of the most secure wallets for Bitcoin include Trezor, Ledger, MetaMask, and Exodus. These wallets also allow for buying Bitcoin with a bank card, as well as sending and receiving token transfers.
- Mining software: The Internet brims with offers from different providers who supply mining software. Some solutions are free to download and are compatible with popular OS, including Windows and Mac. Once the software is installed and activated on a computing machine, it is possible to initiate the process of Bitcoin mining.
- Obtain decent Bitcoin mining software. It used to be possible to mine Bitcoins using your personal computer's processor or high-speed video cards, but this is no longer the case. With the advent of increasingly sophisticated mining hardware, especially application-specific integrated circuit (ASIC) chips designed exclusively for Bitcoin mining, digging for digital gold through an ordinary desktop PC might not be very profitable. Specialized Bitcoin mining software is available in such online marketplaces as Amazon, while the selection is vast too. Graphic processing units (GPUs), field-programmable gate arrays (FPGAs), and application-specific integrated circuses (ASICs) are designated for Bitcoin mining with elevated hashing power.
- Install Bitcoin mining software. Upon getting the ideal Bitcoin mining hardware, it is necessary to download a dedicated computer program for mining purposes. Your options will revolve around BFGminer, CGminer, and other popular Bitcoin mining programs.
- Set up a Bitcoin wallet. Bitcoin mining rewards need a treasury where they will be kept. Use a non-custody Bitcoin wallet with multi-factor authentication from a trusted provider. The Bitcoin rewards are sent to the indicated wallet using a unique address that must be input correctly, otherwise, the Bitcoin reward will not reach its destination.
- Start mining. Once you've set up your Bitcoin wallet, link it to your mining farm. Now you can start mining Bitcoins and make money. Bitcoin mining is achieved by running SHA256 double hash verification processes to validate Bitcoin transactions and provide the necessary security for the entire Bitcoin network. To profit off Bitcoin mining, your equipment must have a high hash rate, which is measured in terms of speed in hashes per second.
Potential Risks Associated with Bitcoin MiningWhether as a hobby or a full-time activity, Bitcoin mining is a computer-intense procedure where a clever machine is working at the peak of its capacity for a long time. Some mediocre computing machines without a robust cooling mechanism can veritably burn because of the non-stop, intense work. The burnt hardware can lead to short circuits and inflammation in your electrical system with all the awful consequences imaginable.Price volatility is also an issue with Bitcoin mining. Not so long ago, Bitcoin was traded at a price of nearly $69,000, but today, its cost hardly reaches the $19,000 mark. Drastic price fluctuations make it hard for miners to know whether their mining rewards will outweigh the expenses on electricity and mining equipment.Cryptocurrencies like Bitcoin are also heavily criticized for the negative impact they cause on nature. Global Bitcoin mining results in elevated carbon dioxide emissions—because of the way the crypto works.
Since Bitcoin allows users to generate new tokens by solving mathematical equations that consume lots of processing power; in order to do this efficiently, miners must use top-notch electricity-generating computers or solar panels.This means that running apparatuses will create a lot of excessive heat during Bitcoin mining process, thus aggravating global climate warming. Because of the detrimental effect of Bitcoin mining on the environment, many international governments have started prohibiting or seriously restricting the opportunities for cryptocurrency mining, causing miners to quit their business.
How to Make Bitcoins in Alternative WaysHow do I make Bitcoins apart from mining? This question nags at many beginners who are just beginning their Bitcoin journey. Luckily, there are many ways to make Bitcoins without splurging on sophisticated machines and elevated electricity bills.
Play-To-Earn GamesRewarding gaming is one of the best use cases of blockchain technology and cryptocurrencies. There are many mobile and desktop products that are ready to award your in-game achievements with Bitcoins. Bitcoin Pop, Bitcoin Food Fight, Coin Hunt World and Bitcoin Blast are just some of the numerous titles that pay you the cherished BTC for successfully completed missions. While most crypto games do not allow for earning stacks and stacks of Bitcoins, you can still effectively monetize the time you would otherwise spend playing for fun.Some projects also allow you to make Bitcoins by being active throughout the day and performing physical exercises. The most interesting projects in this sphere are Sweatcoin and Lympo that rewards users in crypto for walking and running.
Make Bitcoins by Completing Different TasksIf you do not want to earn Bitcoins from mining, but do not mind owning some crypto, you can earn BTC by completing different tasks and participating in surveys over the internet.There is no shortage of websites and mobile apps that pay Bitcoins for a variety of things, from testing games, concocting reviews, and viewing ads to liking posts, making reposts, and other activities you normally perform online, yet without being paid. FeaturePoints, TV-Two, and Cointiply are just some projects that enable people to make Bitcoin without mining.
Write Articles and Get Paid in BitcoinsHow can you make Bitcoins without mining? Individuals who excel at copywriting can monetize their skills and get fairly compensated for their creativity in Bitcoin. Earning digital tokens as a writer can be an amazing side gig. If the value of the crypto goes up, you get a sizable bonus. If its price drops, well, you still have your main income source and are out of any financial instability.
Certain cryptocurrency blogs, news sites, and forums will eagerly pay you in tokens for sharing your exclusive knowledge with the community. Online projects like Lunyr, Steemit, and Publish0x reward smart writers with cryptos for providing quality content.
Make Bitcoins via AirdropsAn airdrop is an event of offering tokens for free at the start of a new project for promotional purposes. Many novice projects rely on airdrops to let the global community know about them. Free tokens are paid to users for helping to advertize the emerging platform.Promotions can be done by sharing the project’s links on your social media, creating promo or explanatory videos for YouTube, writing articles, etc. Some beginner platforms also distribute additional tokens for free among early contributors (the very first buyers). Information about prominent airdrop events is available at CoinMarketCap, Airdrops.io, Icomarks, and other crypto-related portals.
Earn Bitcoins via BountiesA bounty is an incentivization program that rewards developers, programmers, and other users for their contributions for identifying bugs and vulnerabilities in a platform’s code. Both emerging and well-established crypto projects run generous bounty programs to encourage the community to participate in the platform’s improvement. Bounties can help one earn a hefty amount of Bitcoins.
Make Bitcoins from Cloud MiningGetting started with full-scale Bitcoin mining may appear a complex and tedious task for inexperienced crypto users. Exactly for such a category of crypto enthusiasts, there exist Bitcoin cloud mining solutions.
Bitcoin cloud mining is a simple, user-friendly technology that enables everyone to start earning Bitcoin quickly and without heavy initial investments. A person does not need to buy, install, or operate any specialized hardware and software when choosing cloud mining. A person should only create an account with a reputable cloud mining provider, deposit some funds, and purchase a specific hash contract.Generally, the process starts right away. So a new crypto investor is not required to wait a long time to receive the first rewards. It is not uncommon for many cloud miners to get their first Bitcoin reward on the same day when they purchase a cloud hash contract. The significant disadvantage behind this approach is a large number of scam Bitcoin cloud mining sites around the internet. However, you can check Bitdeer or LetMeCloud which are popular crypto projects offering cloud hash mining contracts.
Stake BitcoinsHow to make Bitcoins for free is a hot topic for many users. Although the Bitcoin network employs a proof-of-work consensus algorithm, making Bitcoin staking technically impossible, some large-scale crypto exchanges offer opportunities for earning a passive income on your idle BTC assets. For example, Binance has a BTC staking feature which is actually a sort of savings account with an APY (annual percentage yield) up to 5%.
Extract Bitcoin from Web SurfingInnovative browsers like CryptoTab are convenient tools allowing you not only to explore the Worldwide Web, but also monetize your internet-surfing experience. Such browsers come with crypto mining features where you can make Bitcoins without watching videos, completing micro-tasks, or crafting great content.CryptoTab Browser was designed exclusively for simplifying Bitcoin mining process. The software has an in-built mining algorithm that allows you to use the internet and earn Bitcoins as you do. The solution does use the computing power of a machine where it is installed, yet it is claimed that the browser does not interfere with the device’s performance and processing speed.
CryptoTab is not the only browser that pays crypto. Brave Browser also allows you to earn cryptocurrency just by surfing the web, yet the rewards are distributed in BAT tokens.
CryptoTab Browser users can also partake in the project’s referral program, where they invite friends, promote CryptoTab through socials and get additional earnings. It runs on Chrome and Firefox desktop browsers, as well as a browser app for Windows, iOS, and Android devices.
Bottom LineHow do you make Bitcoins? If your head is occupied with this question then you are in luck because there are lots of possibilities to make Bitcoins.The most obvious one is mining, though Bitcoin mining is indeed a time and money-consuming undertaking. Activities like P2E gaming, bounty programs, airdrop giveaways, content creation, or even staking can also fill your pockets with some amounts of BTC tokens, though not very significant ones.
Bitcoin cloud mining is an affordable approach to making Bitcoins, yet one should be conscious of scammers. To make Bitcoins in an utterly relaxed way, you can also use special browsers on your PC or mobile phone to generate BTC passively while online.Those interested in earning Bitcoins through mining should be aware of potential risks that are closely associated with such a venture. Investing in proper Bitcoin mining equipment can cost a five-figure budget, but given the dense competition among miners and the ever-decreasing Bitcoin reward, mining Bitcoin may result in nothing but financial losses and disappointed ambitions.