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Top 28 Best Ways to Earn Bitcoin and Get Paid in Cryptocurrency for 2020 – CryptoGround


Here are the 28 Best Ways to Earn Bitcoin Online

With the hype surrounding crypto continuing to grow with each passing day, more and more casual VC enthusiasts are looking to get a piece of the action. And while in the past it has been difficult for your average person to earn currencies like BTC, ETH, BCH, as things stand, there currently exist a host of novel avenues that allow individuals to acquire crypto in a highly streamlined, straightforward manner.   

In this guide, we will seek to outline some of the easiest ways (other than buying) that people can make use of to earn Bitcoin. For example, many startups routinely make use of airdrops, online polls, task completion activities as a means of distributing free crypto. However, before we dive headfirst into how one can acquire BTC easily, it can be of help for our readers to learn more about the in’s and outs of this niche domain.

BTC vs Fiat

BTC vs Fiat

Most people tend to assume that the only way they can acquire Bitcoin is by buying the premier crypto using their fiat assets. However, in the recent past, a number of service providers operating within today’s freelance gig-economy have made it possible for individuals to earn BTC in a highly simple manner. With that being said, it is important for people to stop thinking about BTC in terms of its overall pricing but rather its micro-earning potential. For example, it can be beneficial for people to remember that when it comes to crypto, there exist a number of different ways in which to acquire these assets as opposed to fiat — which can only be earned through payments, sales or transactions.

In addition to all this, it is important for crypto enthusiasts to be able to break down BTC to its most basic unit of account — the Satoshi. This is because most startups that allow people to earn BTC, usually offer payouts in the form of Satoshi (or Sat). In this regard, we can see that a single SAT is equal to 0.00000001 bitcoin. Alternatively, it can also be said that each Bitcoin contains 100 million satoshis — which roughly means that there will only ever exist a total of 2 Quadrillion, 100 Trillion Satoshis.

In terms of the scarcity aspect of BTC, once people start to see that only a fixed number of Satoshi can ever be created (21 quantrillions Sats), their value is bound to start increasing — especially before the 2020 bitcoin halving. With that out there, we will now take a look at the basics of earning bitcoin.

Here’s how you can make Bitcoin

In order for people to start earning Bitcoin, they need to first generate a wallet address for themselves. This can be done by either making use of a software wallet such as (Atomic wallet) or a cold storage option such as Trezor, Ledger or the Nano S. Also, with so many BTC procuration options now available in the market today, let’s take a look at some of the most direct methods of acquiring the flagship crypto asset:

  • Via the use of a traditional exchange.
  • OTC/P2P broker or local ATM
  • Mining (even though substantial technical acumen is required for the same)
  • Getting paid in Bitcoin for completing certain activities

It also bears mentioning that the various BTC-earning possibilities listed out in this piece have not been ranked in any specific order, rather, they should merely be viewed as an entire catalog of proven micro-earning methods available in the market today. Lastly, as a word of caution, some of these methods may not appear to be legitimate in nature, however, as mentioned earlier, in this guide, we will discuss all the pros and cons surrounding each of these methods in detail.

(1) AIRDROPS

As many of our readers may be well aware of, Airdrops currently present the global crypto community with one of the easiest and fastest means of earning VC’s today. In this regard, it should be mentioned that these days there are many startups, companies that simply give away crypto for free — sometimes up to $100.

The idea behind the entire setup is that emerging firms will be able to rope in new customers and clients by offering them free digital assets. As things stand, there are hundreds of airdrop events that take place every month, with many of the companies hosting these events offering their users decent rewards.

Some of the avenues where one can stay up to date with the latest airdrop announcements include crypto forums like BitcoinTalk.org as well as other community platforms such as Reddit.

Overview of the method:

  • The effort quotient required is quite low. It can be employed by users with little to no technical knowledge regarding crypto.
  • The overall earning potential for Airdrops is quite poor. At max, users may be able to make around $100 or so using such avenues.
  • There is little to no risk involved with airdrops since they are completely legitimate in nature.

(2) Freelance Marketplaces that Pay in Crypto

Over the course of the past decade or so, a number of jobs that pay people in Bitcoin (as well as certain other cryptos) have started to spring up all over the internet. The tasks may vary in nature (such as responding to emails, creating niche’ digital content) but they allow users to receive their remuneration in VC — which in turn allows them to cut down on a lot of peripheral costs and taxes that are usually levied by industry players like PayPal, Square, etc.

At press time, freelancers can make use of a number of potent job avenues such as  Reddit’s r/Jobs4Bitcoin, Bitwage, Earn.com, CryptoGrind, CryptoJobs, Bitfortip, Coinality to find the area of work that best suits them (as well as pays them in their desired VC).

Overview of the method:

  • A sizeable amount of effort is required to be a successful freelancer, especially since the market is quite competitive these days.
  • The earning potential for crypto freelancers is practically unlimited since one can choose to take up as many assignments as one wants.
  • There is little to no risk involved in making use of this method.

(3) Earning crypto via Coinbase

As some of our regular readers may already be aware of, Coinbase — one of the world’s leading crypto exchanges — recently released an online training program that allows people to get paid for simply learning about digital currencies. Users can avail of courses related to DAI, blockchain, EOS (as well as a host of other VCs) and upon successfully completing the associated tests, a fixed sum of crypto is automatically transferred into the person’s wallet address.

In terms of what the rewards look like, Coinbase is currently dishing out $20 for its DAI course and $50 for its XLM and EOS courses. The training is quick, easy, and engaging. You watch videos, complete a single quiz testing you on what you learned, then receive crypto in your Coinbase wallet.

Overview of the method:

  • The overall income potential of this method is quite low — on average, users will be able to earn anywhere between $20$200.
  • There is no risk involved when making use of such an avenue.

(4) Pay for Clicks and other Micro-Earning Jobs

Simply put, these avenues are cheap and easy ways of making some BTC, however, they are painfully boring, time-consuming and arduous. As things stand, there are many pay to click (PTC) websites that allow individuals to earn a few Satoshis in return for watching certain advertisements. Alternatively, there are some websites that require users to complete surveys or perform a couple of small tasks in return for a small, fixed amount of BTC.

With that being said, these jobs don’t really allow people to make a lot of money — usually on a good day, a person can make anywhere between $0.25 – $2 per hour (an amount which may not even allow the individual to cover his/her computer’s electricity and internet usage costs.)

Overview of the method

  • As mentioned earlier, most of the microearning jobs available in the market these days are highly time-consuming and effort filled.
  • The earning potential of PTC jobs is extremely low.
  • There is little to no risk involved in using such methods.

(5) Faucets

While not as popular these days, Bitcoin faucets were extremely sought after crypto earning avenues during the early days of BTC. Essentially, faucets were used to distribute dozens of bitcoins every half-an-hour or so to people who visited a particular website.

However, as things stand today, Bitcoin faucets are not really a thing anymore, primarily because of the currency’s increasing market demand. Instead, there are faucets of a similar nature that allow people to acquire other smaller, less-valuable cryptocurrencies.

Overview of the method:

  • The overall earning potential of this method is quite varied — so much so that users can earn anywhere between  $1 per hour to $1,000 per month using this avenue.
  • There is little to no effort required when making use of a crypto faucet.
  • The method is absolutely free of any risks and can be employed in a completely safe and sound manner.

(6) Bounty Programs and Signature Campaigns

Even though bounties and signature campaigns are not as common as they used to be some years back (especially during the 2017 ICO boom), there are still some companies making use of such business models.

Signature campaigns basically refer to a novel method wherein crypto firms pay established platforms to advertise their products in exchange for a small amount of crypto. For example, a startup will pay a person — who possesses a seasoned BitcoinTalk.org forum account —  for adding the company’s logo or image to their online signature.

In a similar vein, bounties are payment avenues that allow individuals to earn money in exchange for things like:

  • Sourcing of bugs in a startup’s code.
  • Translation of technical data.

Overview of the method

  • The effort involved in making use of bounty programs is quite minimal.
  • The earning potential of signature campaigns/bounties can range quite a bit (from around $0.01$500) depending on a number of different factors.
  • There is little to no risk involved in using such methods.

(7) Cryptocurrency Trading

By far one of the most obvious methods to make money using VC, trading allows people to exchange fiat assets (Such as the US Dollar, Euro) in place of BTC. Not only that, over the course of the last 3-5 years, a number of online retailers have started to accept crypto trades in exchange for various physical goods and services.

With that being said, it needs to be made absolutely clear that exchanging cryptocurrencies in return for goods can be a very risky business model, especially since there is a high level of volatility involved in the matter.

Overview of the method

  • Investors and traders who have been operating within the crypto market are well aware of the fact that the trading industry presents users with midhigh level risks.
  • The effort required to make money using day trading techniques is quite high.
  • On paper, people can make an infinite amount of money using various crypto trading techniques.

(8) Affiliate Programs

It is now common knowledge that a whole host of established trading platforms and cryptocurrency exchanges provide their users with affiliate programs — that allows them to earn crypto in exchange for sharing signup links with their family and friends. And even though the method is quite road worn, some trading platforms still allow users to make hundreds (sometimes even thousands) of dollars via affiliate commissions.

In terms of remunerations, some exchanges offer payouts in the form of fiat assets while others in the form of crypto. Lastly, it is worth highlighting that affiliate income schemes are not the monopoly of crypto exchanges alone since there are many online retailers, as well as, VC service providers that also offer BTC payouts.

Overview of the method:

  • Affiliate programs require little to no effort from the users end.
  • The overall earning potential of this method can vary quite substantially ($5$1000 per month)
  • There is no risk involved in making use of affiliatebased secondary income schemes.

(9) Gaming + Gambling

Gambling is a popular earning avenue that a lot of people make use of on a regular basis to earn BTC. However, the fact remains that as easy as it may seem to double up on one’s crypto holdings through gambling, it is equally possible to lose all of one’s savings thanks to one wrong decision.

With that being said, there currently exist a number of ‘provably fair’ online casinos that allow people to acquire crypto in a highly transparent manner. Additionally, most Bitcoin casinos these days make use of a 51% house edge — which is much better than many traditional casinos that are operating today in Las Vegas and Atlantic city. Lastly, most of the algorithms used by crypto casinos can be verified by independent developers.

Most crypto-based gambling games are quite straightforward and do not require people to put in too much effort.

Overview of the method:

  • A very minimal amount of effort is required to participate in different cryptobased gambling games.
  • The overall income that can be generated through the use of this avenue can vary quite substantially.
  • There is a lot of risk involved in crypto gambling.

(10) Writing in Exchange for Crypto

There are a number of cryptocurrency blogs/news platforms that pay people to write about Bitcoin (as well as crypto in general) in exchange for digital assets. Not only that, there are also quite a few VC-related startups that are always on the lookout for writers to devise their in-house content (especially bitcoin-related social media posts, press releases, etc).

In regards to payments, most employers usually provide their personnel with the option of being paid either in crypto or fiat.

Overview of the method:

  • There is a substantial amount of effort that goes into creating cryptocurrencyrelated content.
  • Writing gigs offer individuals decent remunerations ($5 $50 per hour)
  • There is absolutely no risk involved here.

(11) Selling Crypto-Related Products

It is possible for people to make money if they have any useful, pertinent services to offer to the global crypto community. For example, people can either offer to build VC-related software, offer their marketing services to firms or serve as an escrow channel for crypto tx’s in return for some BTC.

Overview of the method:

  • There is quite a lot of effort involved in the use of such a money making avenue.
  • The income potential can range quite substantially depending upon an individual’s interpersonal skills and overall technical prowess.
  • There is a smallto-medium element of risk involved when selling crypto-related products to clients.

(12) Mining

There was a time when any individual with a half-decent desktop computer (with a powerful enough graphics card) could mine Bitcoin, as well as, a host of other crypto assets quite easily. However, as the market has matured, it is no longer feasible for people to make use of such a method to mine VC’s.

Not only that, but it is becoming increasingly less profitable these days for individuals to mine cryptocurrencies that have low value.

In order to mine crypto these days, people either need to create their own mining farms or source multiple high-end mining devices. Additionally, it bears mentioning that the process has become quite cumbersome these days since it makes use of a large amount of electricity.

Last but not least, mining is a risk laden activity that promises amazing returns under certain conditions, but also has the potential to make an individual go completely bankrupt overnight. For people looking to make their way into this sector, it is best if they can first find a place where they have access to cheap, abundant electricity as well as the option of purchasing mining rigs at bulk rates.

Overview of the method:

  • There is a lot of effort involved in the mining of different cryptocurrencies.
  • While the reward quotient related to mining may look quite attractive on paper, the volatility of the crypto market can literally make the process futile almost overnight.

(13) BTC Lending

As the crypto market has continued to mature over the course of the last decade, it has now become possible for people to lend their BTC across a host of different online platforms in return for a fixed monthly interest. In this regard, it bears mentioning that there currently exists a large number of P2P lending markets as well as certain crypto exchanges that allow individuals to lend money as well as leverage their trades.

With that being said, when participating in any online money lending activity, it is of utmost importance for lenders to source high-quality collateral from their clients, so that, in case a borrower refuses to pay back the original sum, they have some sort of financial security waiting in the background.

Overview of the method

  • The effort required to lend one’s crypto online is quite minimal.
  • There is a lot of risk when it comes BTC lending.
  • On paper, users can earn easily up to 15% of their base lending amount annually.

(14) HYIPS and Pyramid Schemes

During their heyday (which was around 2017), high yield investment programs (HYIPs) and pyramid schemes were a rage throughout the global crypto market. Since then, these money making avenues have largely faded out, even though there are some in existence till this very day. In their most basic sense, HYIPs promise to make individuals rich almost overnight using various ponzi structures that reward early entrants. However, as most of our readers probably already know, these schemes are ultimately destined to implode and fail.

Overview of the method:

  • When trying to make money through the use of a pyramid scheme, it is of utmost importance that the participant cashes in at an early stage of the program. That way returns are higher and more stable.
  • There is an insane amount of risk involved when making use of HYIPs and pyramid schemes.
  • Despite the associated risks involved, these methods allow users to potentially make a lot of money within a small period of time.

(15) BTC Forks

For those of our readers who may not be aware of what a fork is, it is essentially a split that takes place when members of a particular crypto project cannot come to a consensus regarding certain rule changes affecting the platform. In this regard, it should be mentioned that in the past we have seen a number of popular crypto assets being forked into two new projects (such as Ethereum into ETH and ETC; Bitcoin Cash into BCH ABC and BCH SV).

Also, whenever a fork takes place, owners of the original crypto asset end up with both of the forked currencies. For example, people who owned Bitcoin before it was forked back in 2017, ended up with equal amounts of BCH and BTC following the split.

Overview of the method

  • There is little to no effort required from the users end to cash in on such an opportunity.
  • The overall earning potential of this method depends largely on the currency that is undergoing the forking process.

(16) Trading Bots

Even though the market is full of scammy trading bots these days, there are a few of them that work as advertised. In general, legitimate trading bots make use of algorithms that are able to seamlessly detect market patterns based on ongoing trade activity. Additionally, many developers make use of historical crypto data so as to design bots that are able to function dynamically as well as facilitate trades on the users behalf.

Overview of the matter

  • There is literally no effort needed when using a trading bot.
  • Trading bots come with their fair share of risks — especially since they work in a completely automated fashion.
  • The earning potential of trading bots is quite high, but at the same time they can also cause investors to lose a lot of money.

(17) Binary Options Trading

As things stand, there exist a number of scammy binary options trading platforms in the market today. And while the industry at large has been banned by a number of governments across the globe (such as Canada), there are still many people who like to make use of this financial avenue since they consider it to be an ideal alternative to the crypto gambling market.

Overview of the method:

  • There is definitely some effort involved when making use of Binary Options platforms.
  • The risk element when it comes to this method is extremely high. However, at the same time binary trading allows users to earn humongous amounts of money in a quick and fast manner.

(18) Futures Trading

Back in 2017, the world’s first fully regulated Bitcoin futures trading marketplace was launched. Following this, the price of Bitcoin proceeded to surge and climb up to its all time high value of around $20K. As things stand today, more and more people are starting to dabble in futures trading, since it provides investors with an avenue to make money in a fast, consistent manner. Not only that, there currently exist many CTFC-regulated platforms (such as Bakkt) that allow individuals to dabble in BTC futures trading in a highly straightforward, hassle free fashion.

Overview of the method:

  • A mediumto-high level of effort is required to participate in activities like futures trading.
  • The potential rewards associated with BTC futures trading can vary quite substantially.
  • This method is risk laden and investors should consider all of their options in detail before entering this market.

(19) Request for Donations

Once in a while, a few creative people get lucky because they printed their Bitcoin wallet’s QR code on a sign. Requesting for crypto donations is a perfectly legitimate way of earning BTC these days. A lot of twitter analysts, torrent uploaders, streamers make use of such avenues to make money. Not only that, certain websites also ask for donations instead of bombarding their users with ads.

Overview of the method:

  • There is little to no effort required in making use of such a method.
  • The earning potential of this method is quite poor since it relies mostly on the generosity of other people.
  • Donations are absolutely risk free.

(20) Crypto Interest from Certain Savings Accounts

Today, a number of financial institutions are providing their users with savings accounts that offer crypto-based monetary interest. The model is pretty much the same as fiat savings accounts — i.e. users who deposit money can earn a steady interest on their holdings over a fixed period of time.

When utilizing such a method, users can acquire anywhere between 1%-6% interest per annum. Not only that, this interest rate can be compounded, further allowing crypto owners to maximize their returns. In this regard, it bears mentioning that Blockfi is one of the biggest and most reputable service providers operating within this domain today.

With all that out there, it bears mentioning that these savings accounts are quite risky since there is little-to-no guarantee that your funds are safe.

Overview of the method:

  • There is hardly any effort involved in opening a cryptobased savings account.
  • The overall risk involved with the use of such a method lies in the mediumto-high range.
  • Assured returns when using crypto savings accounts are quite low (usually ranging between 1% 6%).

(21) Making Use of Crypto Cashback Schemes

A number of retailers, as well as, shopping websites provide their users with the option of receiving cashbacks in the form of cryptocurrencies. For example, Rakuten provides its users with various VC-related cashback opportunities from a wide array of popular websites. Similarly, Lolli too allows users to make purchases via a host of retail platforms such as CVS, Macy’s and then get cashbacks in the form of bitcoin.

In this regard, some stores provide cash back incentives of upto 9% in BTC. By availing of such services, people can gradually rack up their crypto cash piles — while carrying out their daily shopping activities.

Overview of the method:

  • There is no effort involved as such, rather all one has to do is install the associated website extension browser and shop as usual.
  • The overall income potential associated with crypto cashback schemes can vary quite a bit (usually ranging between 0.5% 9%).
  • A very minimal amount of risk is involved when using crypto cashback avenues.

(22) Play Online Games

Even though this may sound like a joke to some, there actually exist a plethora of video games that allow players to get paid in Bitcoin for simply playing them. From a technical standpoint, we can see that a lot of these types of games work in ways that are similar to faucets — i.e. they provide a steady trickle of money to anyone playing. And while these games were way more common at the turn of the last decade, there are still some that allow players to earn small amounts of BTC.

Other types of games that allow users to earn crypto include MMORPGs, where people can earn VCs for completing different in-game tasks. In this regard, some of the titles that people can check out include:

  • Huntercoin — where players earn native HUC tokens for killing the bad guys.
  • Steem Monsters — a card game that offers payouts in the form of Steem tokens.
  • Storm Play — a game comprising of various microtasks that pays users in Storm tokens.

Overview of the method

  • This method is quite effortless since it essentially requires users to play video games from the comfort of their own homes.
  • The overall earning potential of this avenue is quite limited.
  • There is no risk involved at all.

(23) Create Your Crypto-related Youtube Channel or Start a Podcast

One of the best ways to make some crypto online is by starting your own Youtube channel or podcast. However, in order for some big bucks to flow in, it is important to build a dedicated following first. Some of the many ways through which content creators can earn crypto-based income include:

  • Referrals: Many crypto personalities offer their subscribers with referral codes  — which when used allow the host to get paid almost instantaneously.
  • Donations: The global crypto community is one of the most generous in the world. In this regard, it bears mentioning that many content creators are routinely rewarded by their followers in the form of popular digital currencies including ETH, BTC, BCH, XRP etc.
  • Advertisements: Many popular channels are routinely asked by crypto companies to feature their products in exchange for a fixed amount of VC. During the 2017 market boom, it is rumored that many cryptooriented content creators were able to rake in  6figure advertising revenue streams.

Overview of the method

  • The overall effort required to succeed within this domain is extremely high — mainly because the market has become saturated with Youtubers focusing on cryptorelated content these days.
  • There is hardly any risk involved in starting your own Youtube channel or podcast.
  • The income potential of this particular method is virtually limitless — given that an individual is able to establish a decent subscriber base first.

(24) Sell Advertising Space in lieu of Crypto

A potent way of making some decent money is through creating a crypto-oriented website and then selling the associated advertising space to firms operating within this sector for certain sum of BTC. With that being said, decent revenue streams will only start to flow in once enough people start to visit the website in question. This can be achieved by loading the site with a host of pertinent content such as:

  • News related to a particular crypto market or region that might still be untapped or on the rise.
  • Indepth product and platform reviews
  • Analysis of crypto investment opportunities
  • Technical content creation (currency analysis, future trend projections, price breakdowns, etc).

Overview of the matter:

  • The aforementioned venture can be quite arduous as well as time consuming.
  • The method presents users with a high income generation potential.
  • There are hardly any risks involved with starting your own website.

(25) Earn Crypto by Becoming an Influencer

As most of our readers may be well aware of, a single tweet from a person with a huge online following can be highly beneficial for a crypto startup’s overall market exposure. Much like influencers from any other domain, crypto experts too can make a lot of money if they have a significant following on social media platforms like Facebook, Twitter or Instagram.

Simply put, if you can amass a significant number of your followers to become interested in VCs, that power can be leveraged in a host of different ways, including crypto donations.

Overview of the method:

  • A lot of work needs to be put in by any individual looking to become a famous crypto personality.
  • The returns involved usually lie in the medium to high range.
  • There are hardly any risks involved in the matter.

(26) Work for Crypto Projects in Marketing and PR Oriented Roles

Most crypto startups rely on marketing and PR personnel for their success. And while a lot of crypto/blockchain companies pay their employees in fiat, many of these firms also offer payments in the form of crypto assets. For example, in their early days of operation, multinationals like Google and Apple were known to pay some of their employees in stock options instead of cash.

Additionally, it is also worth mentioning that marketing and PR jobs can be quite varied these days. Thus, it can be useful for enthusiasts to check out this ever evolving domain for different openings.

Overview of the method:

  • A decent amount of effort is required to secure a marketing or PR job with a crypto startup.
  • The income associated with such gigs can vary quite substantially depending on an individuals technical prowess and prior work experience.
  • There is lowmedium risk involved when operating within this space.

(27) Earn Crypto by Getting on the Treadmill

There is actually an app called Sweatcoin that allows users to earn real crypto assets for exercising (the app converts the number of steps you take into VC). It is available on iOS as well as Android devices.

In regards to how the system works, the creators of the app claim that Sweatcoin users can earn around 1 SWC token for every 1000 steps they take. With that being said, it bears mentioning that while Sweatcoins cannot be traded online, they can be used to pay for things like:

  • Video streaming subscriptions
  • Frequent flier miles
  • Audio and video books
  • Electronic items

Overview of the method:

  • The effort involved in earning the above mentioned SWC tokens depends entirely upon the individual.
  • The overall income potential of this method is quite limited.
  • There are no risks involved.

(28) OPM Wealth

Through the use of OPMs business model, people can use the crypto assets of other people in order to earn BTC for themselves. Essentially, the firm makes use of a referral-based business model that allows others to fix their credit rating while receiving commissions ( in the form of cryptocurrencies). However, in the recent past, a number of people have come forth and claimed that the system is extremely scammy and has caused them to lose their life savings.

Overview of the matter:

  • To make full use of this referral system, a decent amount of effort is required.
  • The income potential of OPM Wealth is quite high (users can make anywhere between $500$10,000 on a regular basis).
  • There is a lot of risk involved in the use of this method.

A Few Drawbacks Regarding Crypto Payments

Even though getting paid in crypto sounds awesome on paper, there are a few downsides to the entire process. In this section we will list out some of the core drawbacks of VC-based payments:

  • Monetary Fluctuations: Since cryptocurrencies are subject to constant volatility related price swings, the value of one’s payments may be subject to the whims of the market at large. This makes crypto payments quite risky — especially if that is a person’s only source of income.
  • Gambling of Sorts: When a person gets paid in crypto, he/she is basically gambling with their assets — since the money a person maybe earning today may possibly double in value or become worthless overnight.
  • Regulatory Uncertainty: As most of our readers are probably well aware of, cryptocurrencies are subject to the regulatory whims of local governments all over the globe. In this regard, it bears mentioning that if a country decides to ban or tax their local VC market in a certain way, it can have a massive impact on an individual’s overall crypto earnings.
  • Everevolving Tax Structures: As different nations continue to refine their crypto regulatory structures, it can become increasingly difficult for people receiving their wages in crypto to account for their digital currencies in a streamlined manner.
  • Usability: One of the biggest drawbacks of cryptocurrencies are that they are not widely accepted. Thus, for people living in countries where they cannot liquidate their digital assets in a hassle free manner, it can be quite difficult for them to pay their bills, buy groceries, etc using BTC.

Taxation and Crypto

Straight off the bat, it can be extremely helpful for individuals earning a decent amount of crypto to hire an accountant who specializes in digital payments. This is because, over the course of the last 3-5 years, a number of governments across the globe have become quite strict in regards to people owning large volumes of digital currencies. Additionally, evading income taxes can lead to a person being fined or even spending some time in jail.

A lot of people who get into crypto work with a false notion that it is extremely difficult for governments to keep a tab on their individual altcoin earnings. This is not true since it is becoming easier for tax authorities to keep a tab on a person’s crypto tx’s. In this regard, it bears mentioning that since 2014, the IRS has been making use of a framework wherein it allows people to report their crypto earnings and holdings in a highly straightforward manner.

For tax related matters, the US tax body treats crypto much the same way as it treats real estate properties. What this basically means is that people need to pay capital gains taxes on any VC-related profits that they may acquire.

A brief guide to calculating one’s crypto-related taxes (primarily for individuals living in the United States)

  1. Calculate your total profit or loss using the exact buy/sell dates related to your crypto purchases.
  2. To perform the calculation, you can start by multiplying the sale price of your crypto with the amount sold. This figure should then be subtracted from the total amount that was originally paid for the assets in question.
  3. The final figure obtained after completing the above mentioned calculation is the total profit or loss that you have realized. 
  4. Make a clear delineation between your short and long-term gains.
  5. To do this, you need to check the date of your crypto purchases as well as the date on which you sold your assets. The intervening time frame is referred to as the holding period.
  6. If the aforementioned holding period comes to less than 12 months in total, then you are dealing with a short-term gain. Conversely, if you held your assets for a period of more than one year, you are dealing with a long-term gain.

Lastly, it should be highlighted that the IRS treats short-term gains as ordinary income while long term gains are subject to capital gains tax.

Conclusion

In closing, we hope that this guide will help you earn Bitcoin in a manner that is not only practical but also viable in the long run. And even though the future of the crypto market may still be up for speculation, there is no harm in acquiring some Bitcoin — especially since a whole host of finance experts and analysts believe that the premier cryptocurrency is destined for big things in the near future. Plus, there is always the option of cashing out one’s crypto in exchange for fiat if the need arises.

Last but not least, since the advent of crypto/blockchain tech nearly a decade back, it really does seem as though a whole host of current DeFi (decentralized finance) platforms will reshape the way in which the global finance engine works.

 

 

 



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