2019 was an interesting year for bitcoin and cryptocurrency in general. After minimal activity in the first quarter, price exploded in April. Many felt this was a return to the gold rush days of 2017. Some pundits were predicting bitcoin price to break $200,000 and even higher. Unfortunately, it didn’t quite pan out like that and the price has seen a steady slide since the end of June. Perhaps the whales are lurking to hoover up some cheap coins before the pump some predict in 2020. Regardless, Bitcoin’s popularity has soared in spite of its volatile price – or perhaps because of it. Either way, 2019 saw an explosion of alternative ways of spending bitcoin and making money from it. We look at some of the most lucrative possibilities here.
Table of Contents
Contracts for Difference
We all know that the price of bitcoin can rise and fall by the day and hour. If the price is falling, how can anyone possibly make money off it? Enter contracts for difference (CFDs). CFDs are an investment instrument that lets investors trade on the price of bitcoin rather than buying the underlying coin. Investors enter into buy or sell trades, meaning it is possible to make money whether the price goes up or down. If you have a feeling that price will go down, open a sell trade, and if you are correct, you make a profit. CFDs have also proven a popular hedge for those holding actual bitcoins.
While there are risks involved in trading CFDs these can be mitigated to an extent via education and training. Gambling, on the other hand, needs no such preparation. Place a bet, cross your fingers and hope for the best. The gambling industry experienced an abrupt intrusion of crypto. The trend might have started a few years ago, but bitcoin casinos become practically mainstream in 2019. This included bitcoin casinos with slots and table games such as Fortune Jack and Bitstarz. It also saw the rise of a new form of bitcoin gambling – crash games, of which Rocketpot is a standout provider. This ultra-fast paced form of gambling is paired with a vibrant social aspect which encapsulated what the bitcoin community is all about. A solid hit that is bound to keep rising in 2020.
Alternatives to Hodling
Some investors cling to their bitcoins no matter what. If the market dropped to a penny, oh well, they’d keep on holding. There is nothing new or wrong about that. Investors that held traditional stocks through bubbles and recessions generally come out positive in the long run. Others are hodling but looking for alternative ways of making money from bitcoin in the meantime. Some of these alternative methods include lending bitcoin through sites such as Bitbond and BTCPOP. This innovation is still in an experimental phase at the moment. But it showcases the continuing innovations of crypto entrepreneurs.
People hodling, lending, trading, or bitcoin gambling, all have one thing in common. That is making money from bitcoin. The fantastic news as we head into 2020 is that there are an increasing number of ways to do so. There is no need to passively wait for bitcoin price to increase. Daring investors now have solid alternatives for creating additional bitcoin side income.