Despite Bitcoin experiencing a massive decline in 2022, this asset class remains one of the most traded and profitable investments. This virtual currency is highly volatile. But every time the price of this electronic currency drops drastically, it bounces back. Moreover, the value of this currency may increase in 2023 due to the global acceptance of this electronic resource. Large public and private institutions are more receptive to this digital resource and therefore promote institutional adoption.
Bitcoin has a hard limit cap where traders can only mine 21 million Bitcoins. This scarcity plays a significant role in the value of Bitcoin. The demand for this digital money increases due to the limited supply, which increases its value. Besides being a great store of value and a medium of exchange, this digital money is an excellent hedge against inflation. Many investors use this electronic money to hedge against inflation.
In other words, this digital resource is a lucrative and profitable investment. Here are proven ways to earn passive income with this online asset in 2023.
Trade
Trading this electronic money involves buying it at a low price and selling it at a higher price. Moreover, trading this electronic currency consists of taking advantage of the highly volatile nature of this electronic asset. The majority of early Bitcoin users are now millionaires and billionaires. However, to successfully trade this digital currency, you need to create an effective trading strategy and stick to it. You can also practice day trading, swing trading or arbitrage. Find an efficient plan that best suits your needs.
Conversely, you should find a reliable trading exchange to help you 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 to earn 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 ultimately receiving tips. This virtual resource has its underlying technology known as blockchain technology. Thousands of computer nodes spread throughout the world manage blockchain technology. These data nodes verify Bitcoin transactions that do not defy the community’s rules and regulations.
Originally, the public used to mine this electronic currency on regular hardware or mining rigs. However, mining the coin is extremely expensive with increased use of this virtual resource. Mining this digital money requires expensive hardware and also consumes a lot of energy. Mining is very lucrative anyway. 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. You can also get a Bitcoin loan and put your Bitcoins as collateral. You can lend this virtual currency via reliable 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, lending this electronic money comes with certain risks. So understand the risks associated with lending this electronic currency.
Airdrops
Airdrops are a great way to try out new cryptocurrencies. If you meet specific criteria involving this digital money, you are entitled to receive an airdrop. In simpler terms, airdrops are good marketing strategies that help create awareness about this digital money and gather followers. It would help if you made a digital wallet to store Bitcoins to receive airdrops.
The bottom line
As shown above, there are several ways to earn a passive income with this electronic money. Each remedy has its risks and benefits. Therefore, do your research thoroughly and find which method works for you.
