Have you joined the Bitcoin craze yet? If you are looking to earn money online, investing in Bitcoin might be a golden opportunity! Maybe you’ve heard of Bitcoin in passing but you don’t really know what it is. If you belong to any of the online PTC sites, no doubt you’ve clicked on hundreds of splash page ads touting the online cryptocurrency.
Rather than bore you with the technical details (many of which are difficult to fully explain anyway), I’ve added a few links below to videos, podcasts, and articles which explain some of the finer points of what Bitcoins are and how they work. But the extreme barebones explanation is that Bitcoin (often abbreviated as BTC) is a relatively recent digital currency and payment system that exists exclusively online. There is no actual currency for you to physically hand over to a store clerk or deposit into a coin slot, but the currency is real and it has actual value. You can ‘buy’ Bitcoin through electronic transactions using other forms of currency, and you can convert Bitcoin into just about any of the hundreds of world currencies. The Bitcoin exchange rates update on a regular basis.
No longer just for the super tech nerds, recent spikes in Bitcoin value and financial reports from leading news agencies have made more of the general public take notice. As more people hop onto the Bitcoin bandwagon, its price continues to soar higher and higher at tremendous rates. Consider this. If you had invested just $100 in Bitcoin in December of 2016 and did NOTHING with that investment for a year, on December 7, 2017 you could have had nearly $2,500! Although there are no guarantees, many experts project that the value of Bitcoin will to continue to rise – making now a great time to get into the Bitcoin market.
What is Bitcoin and how does it work? The short 90 second video linked below provides a brief overview introduction to Bitcoin for those who have not had much exposure to the cryptocurrency concept. The video is not super technical, so even the average person without tremendous computer knowledge can understand the concept basics.
The above video briefly touches on Bitcoin mining, which is the process through which individual or collective computers process complex equations which validate and record recent Bitcoin transactions into a public ledger. This process provides security to the Bitcoin system and keeps everything running smoothly as Bitcoin transaction credits and debits are made across the globe by Bitcoin users. As a result of this validation process, those miners providing computing power receive small fractional amounts of new Bitcoin released into circulation. Think of it in terms of a prospector uncovering a small gold nugget after working an area with his pickaxe!
For a more detailed mining explanation, yet still understandable to the average person, take a look at this article on How Bitcoin Mining Works.
The problem with mining Bitcoin is that it takes an incredible amount of computer processing power to complete the validation processes. The typical desktop computer cannot provide enough processing power to complete enough of the mining computations to make it worthwhile. Only machines with advanced hardware – beyond what you would typically buy at Best Buy for normal home use – can efficiently mine Bitcoin, which in turn require extreme amounts of electricity to crunch them out. So it almost becomes cost prohibitive for the average person to engage in Bitcoin mining. You could end up spending more money on hardware and electricity costs than you ultimately recover in newly mined Bitcoin.
If you don’t have extra cash laying around to invest in Bitcoin or to buy the necessary computer hardware and pay for the electricity necessary to profitably mine Bitcoin, you may want to check out some online Bitcoin faucets instead.
A Bitcoin faucet is a web site that allows registered users to claim free Bitcoin fragments through regular visits to faucet sites. They are very similar to some of the GPT sites you may already be familiar with (paid to click ads, completing online tasks or offers, clicking through slideshows, completing surveys) except that they pay out in Bitcoin rather than standard currency. Some faucets simply require that you check in at various time intervals to collect the accumulated Bitcoin fragments. Think of it as a leaky kitchen faucet that Drip… Drip… Drips water into a sink. Over time the tiny drops of water collect into a large glass of water sufficient to drink – or into a large pot of water to boil pasta on the stove. Theoretically, that small faucet could eventually even fill up a swimming pool!
To claim those small Bitcoin drips, called Satoshi (one Satoshi = 0.00000001 Bitcoin) most faucets simply require that you first register on the site and periodically login to complete a short captcha test to prove that you are human and not a bot. Some faucets allow you to submit a claim every five minutes, some set a 15 minute interval, and others make you wait an hour or more. Because the value/price of Bitcoin has recently been on the rise, the number of Satoshi most faucets will dispense will vary over time but will remain roughly proportionate to the same equivalent dollar value.
I invite you to check back often and login to the newly created Bitcoin Faucet page on GetPaid! as I will periodically add new faucet opportunities that I have tested and approved. (For the time being, I have not yet delved into the other competing cryptocurrencies, but that may also change). In the meanwhile, here are a few faucets to start you off. In just over a week, I’ve already earned several dollars from these sources.
*These three faucets automatically pool their earnings together into a microwallet called CoinPot. If you regularly drain these three faucets each day throughout the day, you can earn special bonuses and rapidly increase your holdings.
Most faucets, like many standard PTC or other online earning systems, require you to reach a minimum balance before you can cash out your Bitcoin or Satoshi. Some will also charge you fees to transfer your earnings (although the fees might be reduced or waived if you reach a higher amount before cashing out) so be sure to read any site terms carefully before joining any faucets or using any Bitcoin wallets.
So you may ask: What are Bitcoin wallets? They are quite literally, a wallet where you store the Bitcoin that you’ve accumulated. Some are web based, some are secure external USB drives, some are paper certificates – but they all serve the same purpose – to keep your Bitcoin secure and safe.
Coinbase is a popular online wallet that I currently use. Coinbase is not only a wallet, but also an exchange where you can buy and sell Bitcoin directly. Coinbase also has a corresponding smartphone app. Both the app and the web page include a real time currency exchange rate and conversion which gives you an up to the minute dollar value of the Bitcoin stored in your Coinbase wallet. If you sign up to use the Coinbase wallet using the links contained in this post, you will receive the equivalent of $10 in Bitcoin deposited into your Coinbase wallet after purchasing or selling $100 worth of currency through Coinbase.
A Bitcoin wallet has a long randomly generated wallet address – a string of 26-35 characters which acts similar to a bank account number. A “public” wallet address is exclusively for receiving Bitcoin — one that you can freely give to other people or to the Bitcoin faucets you join. This enables them to deposit earned Bitcoin into your wallet. This public address cannot be ‘stolen’ or used to make unauthorized withdrawals from your wallet – it can only be used to make deposits, making it safe to circulate in public. So for instance, let’s say that you really enjoy GetPaid! and get a lot of useful information from the site. You enjoy it so much that you decide you want to show some appreciation by making a small Bitcoin donation. You can do that by sending some fraction of Bitcoin to the public Bitcoin address: 1GaRnnfYLWnn63drni2rgHrhvUeb5RTPpq.
A “private” wallet address is used for sending Bitcoin from your wallet. A private address should remain private and treated with the utmost security. Never share your private wallet address with anyone – unless you want that person to have full access to your Bitcoin wallet and the ability to wipe it clean! You can read more about Bitcoin wallet addresses (also sometimes called “keys”) here. Another good article about Bitcoin wallet security is linked here and is definitely worth a read.
There are other offline wallet options: Ledger Nano S, Trezor, Digital Bitbox, and Keep Key just to name a few hardware options. These USB devices allow you to store your Bitcoin and other digital currency offline adding an additional layer of security. Paper wallets are also an option – where your Bitcoin wallet address is stored on paper certificates which can remain offline and stored in a secure location such as a locked safe or a bank safe deposit box, although they have security issues of their own which you should consider before putting all of your Bitcoin eggs into one basket. Read more about paper wallets here.
So that’s it in a nutshell. Far from a comprehensive review of everything there is to know about Bitcoin, but enough to get you started on this money making opportunity. Some other useful resources on Bitcoin are linked below – a few other worthwhile articles and a couple of podcasts if you have the time to listen.
- Another informative Bitcoin podcast can be found here
- Some things you need to know
- A great FAQ on Bitcoin
- How to Store Your Bitcoins – a good article on Bitcoin wallets