ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Make Money with Bitcoin - A Quick Tutorial to Get You Started

Updated on July 2, 2013

Getting Started

You may have read an article or somewhere online that Bitcoins exist but you need more information because it all seems so interesting and you are right. It`s all very interesting no matter which way you look at it and there are plenty of money to be made daily in this market. Of course there are also risks involved but there is nothing in this life that doesn`t involve some kind of risk.

The Basics - What is Bitcoin

Bitcoin is a digital currency. So what? Who needs it when there are real money to be spent?

That`s a good and also tricky question! Well for start it`s something new and exciting. You can trade it for goods just like buying in USD, EURO or any other currency. So the great thing is that it can be spent like real money but what are the advantages?

  • Advantages of Bitcoin over real life Money?

    • There are no Banks in the middle, the money are sent fast betweed the buyer and the vendor.
    • You can make money without doing anything besides leaving your computer crunch away numbers
    • There are no charge-backs, everything is verified by other so called "miners" in the network
    • Nobody know who you are, it`s like an anonymous bank account where nobody knows your name


How do I get Started Making Money with Bitcoins?

It`s easy to start making money mining for Bitcoins but there are two ways of doing it:


  • You will need to setup your own mining rig - A dedicated computer or even better - multiple computers that will have the hashing power you need in order to make a lot of cash.

You may want to check out my other article about Mining for Bitcoins where you can find other useful information.

  • You can buy Bitcoins through an exchange website like BTC-E.COM. The value of a Bitcoin fluctuates a lot, it can go down by $5 in 5 minutes or it can go up $10 in 5 minutes. You just need a little time (one hour daily is enough) to be there when it happens.

The method is simple: You buy the Bitcoin or Bitcoins when the value drops and you sell when the value goes up.

How much money can I make in one day?

The money you can make in a day depends only on the mining rigs you have or the money you invest.

The difference is that by mining Bitcoins with you own rigs you risk nothing. If something goes wrong you can always sell the hardware and cash out what you already made.

If you decide you want to invest some money in the exchange market the rewards can be bigger but there is always a risk. There is no market with zero risk and you should always remember: don`t invest more money than you can afford to lose.


If you`ve already seen my other article about getting started step by step, you can surely make up your mind about Bitcoins and you know all the steps on how to make your own wallet, download the drivers needed, signup on a mining pool etc. If not, make sure you read it carefully.

Is $2000 or $3000 per month a realistic figure?

All I can say is yes, for the moment it is possible and even much more but for how long I cannot say. There will always be people who win and people who lose and those who have missed the train.


By investing in ASIC miners you can earn much more than that but you won`t have the benefit of being able to sell your equipment if someday Bitcoin mining dies.

What are ASIC miners?

  • ASIC miners are dedicated mining machines that make calculations at a very high speed, and use a lot less power than graphic cards.
  • The downside is that the companies that produce these machines can`t keep up with the demand and it takes months to get your order which can be risky (mining Bitcoins could no longer be profitable by the time your order is shipped).

There are people that currently make a lot of money with these machines but they jumped on the train when the time was right.

Watch the video below to find out more about the benefits and dangers of Bitcoin

Conclusion

I have recently decided myself to start mining after a lot of thinking about the subject I finally decided it`s worth a shot a bought a few mining rigs. I make about $500 per month, I know It`s not much and I will never get rich this way but at least I`m making money without lifting a finger, I can go to work, go to sleep and the rigs keep on going and making money night and day.

In a future article I will write about the best mining rig configuration (power consumption vs hashing power and how to make the best hardware choice) so be sure to check out this article for updates in the next few days.

Please feel free to ask me any questions and I will gladly answer as soon as possible.

Poll

Do you want to start mining Bitcoins?

See results

Comments

    0 of 8192 characters used
    Post Comment

    • Sebastian Balog profile imageAUTHOR

      Balog Sebastian 

      5 years ago from Worldwide

      I recommend cgminer and to mine for Litecoins because the profit is bigger. At this moment 235.77% compared to Bitcoin

    • Majidsiko profile image

      Majidsiko 

      5 years ago from Kenya

      Is it advisable to add my one computer just to add some passive income. Which miners do you suggest

    • Sebastian Balog profile imageAUTHOR

      Balog Sebastian 

      5 years ago from Worldwide

      I`m sure you`re right, there are people willing to exploit any market but that`s something that nobody can stop.

    • clairewait profile image

      clairewait 

      5 years ago from North Carolina

      Ah yes. All the drug dealers are jumping on this as we speak, I'm sure.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)