Making a living from Bitcoin

Bitcoin and making a living from Cryptocurrency

Bitcoin’s popularity has never been more apparent. With recent positive price action, and high-profile investors purchasing large quantities (we’re looking at you Elon Musk), more people than ever want a piece of the action. With Bitcoin trading at over 60,000USD at the time of writing (check out the current price on coinmarketcap) it’s easy to feel left out, and want to jump on the train. We’re going to ask you to pump the breaks. Fear of missing out (FOMO) is a powerful motivator and creator of poor decisions.

Read this blog, understand what people are doing, and continue your learning. No one gets rich for free. Don’t trust every blog or Reddit post that promises passive income from crypto in 2021. You will be setting yourself up for disappointment. What this blog will do is outline the ways in which you can get involved in the crypto-space and collect cryptocurrencies along the way.

First of all, a quick disclaimer: This blog is not clickbait. We won’t be able to teach you how to get rich quickly, nor will it entail official financial advice. This blog serves to educate people on the ways people are currently able to collect more Bitcoin, among other currencies, and the expectations you should set when embarking on this journey.

How to generate income with Bitcoin

Below we’ve created a list of ways people are currently generating income with Bitcoin. First of all, it’s important to remember that most of these paths require a lot of learning, technical knowledge, and most importantly, time. The adage ‘there’s no such thing as a free lunch ‘is very true here, so be aware of what your expectations are. If you’re thinking you’ll be able to retire in a month, it may be time to reflect on that expectation. This is very important.

Now let’s cover some of the strategies people use:

Mining

Mining used to be a great way of getting a bit of Bitcoin on the side. However, with the competition for GPUs, and large-scale mining farms popping up, the value in mining for the small player has decreased markedly. In saying that, if you are interested in learning about Bitcoin, and having a hobby that will pay you small amounts of Bitcoin, then mining can be fun!

Holding

Buying and holding Bitcoin, like any asset, hoping it will rise in price, is the most accessible way people are making money. This is a long-term game, and short-term changes in price should be irrelevant to the holder. People who hold Bitcoin believe it will be worth a lot more in the future, so they slowly accumulate it over months and years, with the intention of selling it at a later date. People can implement dollar-cost averaging to smooth out the volatility and achieve a lower buy-in price.

Trading

It’s very important to understand that any form of trading is not a get-rich-quick scheme. It takes a lot of time, patience, and learning. It’s not for everyone. Only you can decide your risk tolerance.

• Daytrading: This is the practice of buying and selling Bitcoin over short time frames, to benefit from the small changes in price. This method requires the user to understand markets, cycles, and some level of technical analysis. It’s not for the faint of heart and can be incredibly risky. The goal of this strategy is to buy low, sell higher, and either accumulate more Bitcoin or withdraw profits to another currency. If you’re interested in exploring day trading, here’s a great place to start.
• Swing Trading: Swing trading is very similar to day trading, the only difference being timeframe. Swing traders tend to ‘hold positions’ for a bit longer (a few days, as opposed to a few hours). Riding these swings requires a knowledge of the market, and like day-trading, involves risk.

• Arbitrage: For this strategy, traders take advantage of price differences between exchanges. For example, on exchange A, Bitcoin might be work 30,000$, and on exchange B, it is trading at $31,000. A savvy investor spots this, buys the cheaper of the two, immediately selling it for a small profit. Again, this form of trading is dominated by algorithms and trading bots. It’s unwise to expect to make money through arbitrage, but it is possible!

This all sounds super difficult, are there alternatives?

Absolutely. We’re glad you asked. Another way people are able to earn cryptocurrency rewards is through staking. Staking is how proof of stake validates transactions, and is very similar to Bitcoin mining, as mentioned above. If you want a guide on how to start staking, we’ve got you.

The Divi Project saw the potential for a better way. A way to include more people in this financial revolution. We could tout Divi as the ‘best passive income cryptocurrency’, or some other clickbait, but truth be told, it’s not passive nor is it the highest returning coin. And this is a good thing. Divi Nodes and Staking are not passive because they require risk and effort on your part. You’re putting collateral up in the form of Divi and saying you’re willing to be responsible for validating transactions. It’s as far from passive as you can get. Also, you could find coins that have an insane rate of return, but then you would have to question the economics of that coin with such a high inflation rate.

In the Divi Ecosystem, there are two ways to be rewarded for your work.

Earning Divi for running a node

Divi nodes exist at 5 different levels, each with increasing collateral requirements. A Copper starts at 100,000DIVI, increasing to Diamond at 10,000,000DIVI. Masternodes are the organizers of the network, taking on advanced governance roles. They serve as full copies of the blockchain and help keep the network secure.

Earning Divi for staking:

Staking nodes are smaller, requiring only the 10,000DIVI minimum as collateral. Stakers are the validators of the network, responsible for ensuring the accuracy of transactions and preventing double-spending.

A very important final note

Here at the Divi Project, we truly believe in the disruptive power of cryptocurrency. We build solutions that create value and change. Our goal is to transform cryptocurrency into the norm, and not a speculative investment. We encourage everyone to continue to learn, slowly accumulate different currencies (including Divi!), and champion their adoption. We believe this is the beginning of the greatest redistribution of wealth the world has seen, and being on board is the most important step!

We love crypto, that’s no secret. Our advice is simple. Learn and share, share and learn. Only invest if it feels right! If you’re curious about our project, come and chat with us on our Telegram channel and we’ll get you on your way!