Top 5 Ways to Profit From Bitcoin in 2024

Bitcoin is one of the most profitable assets, not only in crypto markets but also in the world of traditional assets. Just this year, it has grown over 50%. At the start of January 2024, BTC was worth $44,961. On March 14th, it broke its All-Time High, reaching $73,750. If an investor bought $500 in BTC in January, they’d have almost $800 now. But this is not the peak price, and BTC will continue to grow. So it is a smart investment decision to buy Bitcoin with PayPal, to benefit from future price surges. Let’s learn the most profitable ways to invest in it now.

1. Lending

There are plenty of platforms in the ecosystem that offer lending features for Bitcoin. Some are traditional, centralized applications, while others are DeFi protocols running on a blockchain. The latter can’t handle BTC directly, but there are pegged tokens that allow investors to benefit from Bitcoin’s price on them. The process is quite simple. The lender provides a certain amount of crypto to the borrower and earns a percentage of the value lent.

This method can provide a regular income, but it comes with certain risks. Bitcoin price movements can affect your Loan Value Rate (LVR). If this happens, the investor must sell some of their BTC, deposit more, or reduce the loan amount. Another risk is the platform used for lending. While blockchains are generally safe, centralized applications can be hacked, resulting in losing the deposited money.

2. Day Trading

Day trading is an investment technique where users profit from small price movements along the day. It typically consists of buying an asset with a rising trend and selling it again in a few hours. Day trading can also profit from bear markets since investors could sell their assets and buy back at a lower price. This investment strategy, however, requires full-time dedication. Price swings can happen very quickly, and it’s easy to miss the appropriate time to make a trade.

3. HODLing (Holding)

HODLing is a term unique to the crypto ecosystem. It was popularized from a post made on a Bitcointalk forum during a market crash when an investor said they were not going to sell their BTC. This one is the easiest and least demanding strategy, and it’s almost certain to make a profit, albeit in the long term. It consists of buying BTC and holding it throughout market movements. Whether it goes up or down, the goal is to avoid selling the assets, expecting higher returns in the future. To make the most out of a HODLing strategy, it’s important to use one of the best crypto wallets. This ensures that the coins will be safe and protected from hacks or theft. Although it’s a relatively easy and risk-free strategy, it requires investors to be strong and stand through market crashes. In the end, HODLing is for investors who believe Bitcoin has an intrinsic value and trust the price will keep growing despite experiencing price dips.

4. Affiliate Programs

Exchanges and companies providing Bitcoin services often offer affiliate programs to their customers. Participating in affiliate marketing programs, content creators and users can share their referral links. This way, they can earn a commission for each new customer to the platform who joins using their link.

Affiliate marketing is a low-risk strategy, and it can provide a passive income once the link gains popularity. Furthermore, it doesn’t require a monetary investment, but rather the work of creating the content to attract new affiliates. However, since it’s a simple way to make profits, it is highly competitive. Only top content creators can make a decent profit from this kind of strategy. Usually, exchanges and companies require users to reach a certain popularity threshold before assigning them an affiliate link. This can be in the form of a minimum amount of followers, subscribers, or website daily visitors.

5. Arbitrage Trading

Arbitrage trading is a low-risk strategy where investors benefit from price differences across multiple exchanges. People who use this method would buy Bitcoin at an exchange with a lower price. Then, they would sell it in another exchange with a higher price for the asset. This way, they can profit from the small differences in value. Arbitrage trading is possible on centralized exchanges because the price discovery algorithm doesn’t work the same way on all platforms. Different exchanges hold different trade volumes, or they feature particular demand dynamics.

The fact that arbitrage trading relies on such basic principles means the potential profits are comparatively low as well. While it’s not a risky investment, people who practice it can be exposed to volatility. If the price suddenly drops before they sell, they will lose the potential profits.

Conclusion

There are different ways to make a profit investing in Bitcoin in 2024. They can range from high-risk, high-return strategies, which demand investors to participate full-time in the market, like day-trading. Or it could also be the simplest act of buying Bitcoin and holding it for a long time, without worrying about short-time market movements. No matter what strategy an investor chooses, Bitcoin will always be a profitable asset. It consistently grows over time, and its robust infrastructure makes it resistant to hacks and attacks.