Despite Bitcoin experiencing a massive downturn in 2022, this asset class remains one of the most traded and profitable investments. This virtual currency is highly volatile. However, anytime the price of this electronic currency drops drastically, it bounces back. Also, the value of this currency might increase in 2023 because of the global acceptance of this electronic asset. Large public and private institutions are more welcoming of this digital asset hence promoting institutional adoption.
Bitcoin has a hard limit cap whereby traders can only mine 21 million Bitcoins. This scarcity plays a significant role in the value of Bitcoin. Demand for this digital money increases because of its limited supply, increasing its value. Besides being a great store of value and an exchange medium, this digital money is an excellent hedge against inflation. Many investors use this electronic money to hedge against inflation.
In other words, this digital asset is a lucrative and profitable investment. Here are proven ways to earn passive income with this electronic asset in 2023.
Trading
Trading this electronic money involves buying it at a low price and selling it at a higher price. Moreover, trading this electronic currency consists in taking advantage of the highly volatile nature of this electronic asset. The majority of the early Bitcoin adopters are now millionaires and billionaires. However, to successfully trade this digital money, you must create an effective trading strategy and stick to it. You could also practice day trading, swing trading, or arbitrage. Find an effective plan that best suits your needs.
Conversely, you should find a reliable trading exchange to help maximize your trading profits and apply your strategies. Perhaps you can consider creating an account with Qumas AI
Mining
Mining is the oldest and most effective way of earning passive income with this electronic currency. The mining process allows one to receive a reward for securing a network using computing power. In other words, mining involves solving complex mathematical equations and eventually receiving tips. This virtual asset has its underlying technology known as blockchain technology. Thousands of computer nodes spread across the globe manage blockchain technology. These computer nodes verify Bitcoin transactions that do not defy the community’s rules and regulations.
Initially, the public used to mine this electronic currency on regular computer hardware or mining rigs. However, mining the coin is extremely expensive with the increased adoption of this virtual asset. Mining this digital money requires costly hardware and also consumes a lot of energy. Regardless, mining is very lucrative. You can choose to practice pool mining or solo mining.
Lending
Lending is similar to staking. This electronic money involves investors lending their Bitcoins to borrowers to earn interest. Also, you can get a Bitcoin mortgage loan and pledge your Bitcoins as collateral. You can lend this virtual currency via trusted lending platforms in decentralized and centralized segments. Eventually, you can earn some passive income in the form of interest from lending this electronic currency to borrowers.
On the other hand, certain risks come with lending this electronic money. So, understand the risks associated with lending this electronic currency.
Airdrops
Airdrops are a great way to try out new cryptocurrencies. If you fulfil specific criteria involving this digital money, you are entitled to receive an airdrop. In simpler terms, airdrops are great marketing strategies that help create awareness about this digital money and amass followers. It would help if you made a digital wallet to store your Bitcoins to receive your airdrops.
The Bottom Line
As seen above, there are multiple ways to earn a passive income with this electronic money. Each means has its risks and benefits. Therefore, do your research thoroughly and find which method works for you.
