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How to Make Money With Bitcoin
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How to Make Money With Bitcoin
There are several ways to make money with Bitcoin, even when crypto markets are choppy.
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9 years of experience Expertise Stocks ETFs economic newsSam Taube writes about investing for NerdWallet. He has covered investing and financial news since earning his economics degree from the University of Maryland in 2016. Sam has previously written for Investopedia, Benzinga, Seeking Alpha, Wealth Daily and Investment U, and has worked as an editor for Investment U, Wealth Daily and Haven Investment Letter. He is based in Brooklyn, New York.
Sam Taube writes about investing for NerdWallet. He has covered investing and financial news since earning his economics degree from the University of Maryland in 2016. Sam has previously written for Investopedia, Benzinga, Seeking Alpha, Wealth Daily and Investment U, and has worked as an editor for Investment U, Wealth Daily and Haven Investment Letter. He is based in Brooklyn, New York. Published in Lead Writer + more + moreUsing a credit card with Bitcoin rewards
Using a credit card with Bitcoin rewards Lending BitcoinAccepting payments or tips in Bitcoin
Accepting payments or tips in Bitcoin Day-trading Bitcoin What about Bitcoin mining? Frequently asked questionsMaking money with Bitcoin has become increasingly complicated. Prices are volatile. Promises of free Bitcoin are often scams. Bitcoin mining, once accessible to individual investors, is now so competitive that it’s rarely a profitable venture for those with small setups.
Making money with Bitcoin has become increasingly complicated. Prices are volatile. Promises of free Bitcoin are often scams. Bitcoin mining, once accessible to individual investors, is now so competitive that it’s rarely a profitable venture for those with small setups.However, it’s still possible to make money with Bitcoin. You can trade it, lend it, hold it or earn it. Returns aren’t guaranteed on this volatile asset; just as you can make money as the price goes up, it’s also possible you could lose money if the price goes down.
However, it’s still possible to make money with Bitcoin. You can trade it, lend it, hold it or earn it. Returns aren’t guaranteed on this volatile asset; just as you can make money as the price goes up, it’s also possible you could lose money if the price goes down.But Bitcoin’s growth since launching makes some crypto investors optimistic about its future: In 2010, 1 Bitcoin was worth about 9 cents. In late 2025, it hit an all-time high above $126,000. As of April 2026, it trades for about half of that price — which still works out to a return of about 70,000,000% from 2010.
But Bitcoin’s growth since launching makes some crypto investors optimistic about its future: In 2010, 1 Bitcoin was worth about 9 cents. In late 2025, it hit an all-time high above $126,000. As of April 2026, it trades for about half of that price — which still works out to a return of about 70,000,000% from 2010.Holding Bitcoin
Holding BitcoinDifficulty: Easy.
Difficulty: Difficulty: Easy.Return: Depends on size of investment and price changes.
Return: Return: Depends on size of investment and price changes.Buying and holding Bitcoin as a long-term investment — or, as some crypto enthusiasts call it, HODLing — can be a low-effort way to make money in the long term, as long as its price when you finally sell it is higher than the price at which you bought it.
Buying and holding Bitcoin as a long-term investment — or, as some crypto enthusiasts call it, HODLing — can be a low-effort way to make money in the long term, as long as its price when you finally sell it is higher than the price at which you bought it.Bitcoin was originally conceived as a cryptocurrency that could be used for day-to-day transactions, but as its value increased, many investors have started to view Bitcoin as a long-term investment. As with any investment, holding for a longer period of time means you’ll have to endure ups and downs in pricing without being tempted to buy or sell. If you choose to buy and hold Bitcoin, you’ll want to make sure you’re not overexposed to it and that you’re not investing money you can’t afford to lose. One guideline is to invest no more than 10% of your portfolio into risky assets like Bitcoin.
Bitcoin was originally conceived as a cryptocurrency that could be used for day-to-day transactions, but as its value increased, many investors have started to view Bitcoin as a long-term investment. As with any investment, holding for a longer period of time means you’ll have to endure ups and downs in pricing without being tempted to buy or sell. If you choose to buy and hold Bitcoin, you’ll want to make sure you’re not overexposed to it and that you’re not investing money you can’t afford to lose. One guideline is to invest no more than 10% of your portfolio into risky assets like Bitcoin.Webull
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Learn More Learn More Learn MoreHow about Bitcoin ETFs?
How about Bitcoin ETFs?In January 2024, the Securities and Exchange Commission approved a handful of spot Bitcoin ETFs. These allow investors — including 401(k) investors, who were previously unable to directly access Bitcoin through their retirement accounts — to gain exposure to the cryptocurrency.
In January 2024, the Securities and Exchange Commission approved a handful of spot Bitcoin ETFs . These allow investors — including 401(k) investors, who were previously unable to directly access Bitcoin through their retirement accounts — to gain exposure to the cryptocurrency.On one hand, Bitcoin ETFs provide an easy way for fund-oriented investors, such as those with retirement accounts, to allocate a portion of their portfolio to cryptocurrency for the sake of investment diversification. On the other hand, they lack many of the benefits of actual cryptocurrency ownership — you can't spend them or store them in a cold wallet. And they may be subject to just as much volatility as Bitcoin itself.
On one hand, Bitcoin ETFs provide an easy way for fund-oriented investors, such as those with retirement accounts, to allocate a portion of their portfolio to cryptocurrency for the sake of investment diversification. On the other hand, they lack many of the benefits of actual cryptocurrency ownership — you can't spend them or store them in a cold wallet . And they may be subject to just as much volatility as Bitcoin itself.» See how and where to buy Bitcoin
» » See how and where to buy BitcoinUsing a credit card with Bitcoin rewards
Using a credit card with Bitcoin rewardsDifficulty: Easy.
Difficulty: Difficulty: Easy.Return: Generally 3% or less per dollar spent on certain categories and 1% on all other purchases.
Return: Return: Generally 3% or less per dollar spent on certain categories and 1% on all other purchases.There are a few crypto credit cards that will allow you to earn rewards in cryptocurrency. Similar to traditional cash-back programs, you can earn a small percentage of the purchases you make with the card, which can be paid out in Bitcoin or other cryptocurrencies. Some offer sign-up bonuses that allow you to earn additional rewards if you meet certain criteria.
There are a few crypto credit cards that will allow you to earn rewards in cryptocurrency. Similar to traditional cash-back programs, you can earn a small percentage of the purchases you make with the card, which can be paid out in Bitcoin or other cryptocurrencies. Some offer sign-up bonuses that allow you to earn additional rewards if you meet certain criteria.Keep in mind that your crypto rewards might be reduced by transaction fees or a spread added by the provider. A spread is the difference between the market price and the rate provided by a certain platform; when the issuer of a crypto credit card has one that applies to rewards, it means you'll get a slightly less favorable exchange rate when both earning and selling those crypto rewards.
Keep in mind that your crypto rewards might be reduced by transaction fees or a spread added by the provider. A spread is the difference between the market price and the rate provided by a certain platform; when the issuer of a crypto credit card has one that applies to rewards, it means you'll get a slightly less favorable exchange rate when both earning and selling those crypto rewards.» Find a card: Best crypto rewards credit cards
» Find a card: » Find a card: Best crypto rewards credit cardsLending Bitcoin
Lending BitcoinDifficulty: Medium.
Difficulty: Difficulty: Medium.Return: 4.5%-7.25%.
Return: Return: 4.5%-7.25%.If you already own some Bitcoin, you can earn interest on your assets by lending to other investors or institutions. There are several platforms that let you lend out your Bitcoin in return for interest
If you already own some Bitcoin, you can earn interest on your assets by lending to other investors or institutions. There are several platforms that let you lend out your Bitcoin in return for interest Bitcompare. Latest Bitcoin Lending Rates. Accessed Mar 26, 2025. .However, each platform has stipulations for lending worth digging into. For instance, you could lose some or all of your investment if the borrower you’re lending to defaults. Crypto lending is also a relatively new strategy and carries a high level of risk and uncertainty. Notably, multiple platforms stopped offering lending services in 2022, although many have since restarted them.
However, each platform has stipulations for lending worth digging into. For instance, you could lose some or all of your investment if the borrower you’re lending to defaults. Crypto lending is also a relatively new strategy and carries a high level of risk and uncertainty. Notably, multiple platforms stopped offering lending services in 2022, although many have since restarted them.In November 2022, crypto broker Gemini told customers they might be unable to withdraw funds from Gemini Earn. Indeed, those funds were frozen until February 2024, when the New York State Department of Financial Services announced that Gemini would have to return at least $1.1 billion to affected customers.
In November 2022, crypto broker Gemini told customers they might be unable to withdraw funds from Gemini Earn. Indeed, those funds were frozen until February 2024, when the New York State Department of Financial Services announced that Gemini would have to return at least $1.1 billion to affected customers.Accepting payments or tips in Bitcoin
Accepting payments or tips in BitcoinDifficulty: Medium.
Difficulty: Difficulty: Medium.Return: Depends on payment amounts in Bitcoin and price movement.
Return: Return: Depends on payment amounts in Bitcoin and price movement.If you accept payments or tips for side gigs or a business, consider giving people the option to pay in Bitcoin. You can do this with platforms with crypto payment processing services such as Coinbase or BitPay.
If you accept payments or tips for side gigs or a business, consider giving people the option to pay in Bitcoin . You can do this with platforms with crypto payment processing services such as Coinbase or BitPay.The setup is relatively simple, though navigating the tax implications and risk associated with accepting Bitcoin payments can be more complicated. Coinbase’s self-managed account can be set up immediately. BitPay takes a few days to get approved but allows you to accept several cryptocurrencies.
The setup is relatively simple, though navigating the tax implications and risk associated with accepting Bitcoin payments can be more complicated. Coinbase’s self-managed account can be set up immediately. BitPay takes a few days to get approved but allows you to accept several cryptocurrencies.Day-trading Bitcoin
Day-trading BitcoinDifficulty: Hard.
Difficulty: Difficulty: Hard.Return: Depends on size of investment, trades and price changes.
Return: Return: Depends on size of investment, trades and price changes.It's technically possible to make money by buying and selling Bitcoin within short windows, moving in and out of positions as the market changes. But similar to day trading with stocks, it's far more likely you will lose money this way.
It's technically possible to make money by buying and selling Bitcoin within short windows, moving in and out of positions as the market changes. But similar to day trading with stocks, it's far more likely you will lose money this way.Stock day traders use macro- and microeconomic data, market trends that date back to the beginning of the stock market, and other tools at their disposal in order to make educated guesses at which stocks to buy or sell. And still, these active traders struggle to match the returns that can come from buying and holding, say, low-cost funds that track a broad market index.
Stock day traders use macro- and microeconomic data, market trends that date back to the beginning of the stock market, and other tools at their disposal in order to make educated guesses at which stocks to buy or sell. And still, these active traders struggle to match the returns that can come from buying and holding, say, low-cost funds that track a broad market index.Investors have far less data about the behavior of Bitcoin under certain economic conditions, so predicting its price movements can be even more difficult. Additionally, trading cryptocurrency on a regular basis can quickly become a nightmare during tax season. You’ll need to be diligent about keeping records of what you bought and sold and the different price points involved. If you’re thinking about becoming a frequent cryptocurrency trader, it’s a good idea to speak with an accountant and make sure you know what to keep track of before getting started.
Investors have far less data about the behavior of Bitcoin under certain economic conditions, so predicting its price movements can be even more difficult. Additionally, trading cryptocurrency on a regular basis can quickly become a nightmare during tax season. You’ll need to be diligent about keeping records of what you bought and sold and the different price points involved. If you’re thinking about becoming a frequent cryptocurrency trader, it’s a good idea to speak with an accountant and make sure you know what to keep track of before getting started.» What to know: Tax rules for cryptocurrencies
» What to know: » What to know: Tax rules for cryptocurrenciesSome volatility is necessary to make money through day trading; prices need to move up or down for a trader to be able to make a profit. But crypto is more volatile than other assets, and that makes an already deceptively difficult notion like "buy low and sell high" even more of a challenge. If you're intent on giving this a try, start small and be cautious.
Some volatility is necessary to make money through day trading; prices need to move up or down for a trader to be able to make a profit. But crypto is more volatile than other assets, and that makes an already deceptively difficult notion like "buy low and sell high" even more of a challenge. If you're intent on giving this a try, start small and be cautious.What about Bitcoin mining?
What about Bitcoin mining?Bitcoin mining can be a lucrative way to make money with Bitcoin, but not for individual investors. Because of the computing power required, the upfront and ongoing costs can far outpace mining rewards earned.
Bitcoin mining can be a lucrative way to make money with Bitcoin, but not for individual investors. Because of the computing power required, the upfront and ongoing costs can far outpace mining rewards earned.Bitcoin’s blockchain operates using a proof-of-work consensus mechanism, which means that miners perform the essential task of validating transactions to keep the network secure. New blocks of transactions are added to the ledger once every 10 minutes, and the miner who validates a new block is rewarded 3.125 Bitcoins. Miners also earn transaction fees paid by users who would like to have their transactions validated faster, which can add about $4,000 to the reward for each block.
Bitcoin’s blockchain operates using a proof-of-work consensus mechanism, which means that miners perform the essential task of validating transactions to keep the network secure. New blocks of transactions are added to the ledger once every 10 minutes, and the miner who validates a new block is rewarded 3.125 Bitcoins. Miners also earn transaction fees paid by users who would like to have their transactions validated faster, which can add about $4,000 to the reward for each block.But to have a chance at earning a Bitcoin reward for validating a block of transactions, you’ll need a powerful computer known as an ASIC (or application-specific integrated circuit), and these can cost over $10,000. You'll also need to spend thousands on electricity to compete with other miners, and earnings aren't guaranteed.
But to have a chance at earning a Bitcoin reward for validating a block of transactions, you’ll need a powerful computer known as an ASIC (or application-specific integrated circuit), and these can cost over $10,000. You'll also need to spend thousands on electricity to compete with other miners, and earnings aren't guaranteed.There are mining pools that exist, where investors can pool computational resources and share rewards for mining Bitcoin. But the setup isn’t any simpler. Pools charge fees for their users, and the larger the pool is, the smaller the reward will be.
There are mining pools that exist, where investors can pool computational resources and share rewards for mining Bitcoin. But the setup isn’t any simpler. Pools charge fees for their users, and the larger the pool is, the smaller the reward will be.Frequently asked questions
Frequently asked questionsAre Bitcoin losses tax-deductible?
Are Bitcoin losses tax-deductible?Yes, although they're not refundable. If you sell Bitcoin at a loss, you can deduct up to $3,000 of crypto losses from your capital gains tax liability, and if you have more losses than that, you can carry forward the remaining amount and deduct it in future years. Check out our page on tax-loss harvesting for more information on this technique.
Yes, although they're not refundable. If you sell Bitcoin at a loss, you can deduct up to $3,000 of crypto losses from your capital gains tax liability, and if you have more losses than that, you can carry forward the remaining amount and deduct it in future years. Check out our page on tax-loss harvesting for more information on this technique.Can you stake Bitcoin?
Can you stake Bitcoin?No. Bitcoin's proof-of-work system does not natively support crypto staking; that's only possible with proof-of-stake cryptocurrencies such as Ethereum. The closest thing to staking with Bitcoin — in terms of its potential to generate passive income — is probably Bitcoin lending.
No. Bitcoin's proof-of-work system does not natively support crypto staking ; that's only possible with proof-of-stake cryptocurrencies such as Ethereum . The closest thing to staking with Bitcoin — in terms of its potential to generate passive income — is probably Bitcoin lending. Neither the author nor editor held positions in the aforementioned investments at the time of publication. Neither the author nor editor held positions in the aforementioned investments at the time of publication. Neither the author nor editor held positions in the aforementioned investments at the time of publication.Helpful resources
Helpful resources Crypto staking: What it is, how it works, calculator Crypto Bank and Crypto Banking 101 More like this Investment Basics Investing Cryptocurrency The 8 Best Crypto Exchanges, Platforms & Apps for 2026 The best crypto app for you will depend heavily on your investing or trading goals and level of experience with cryptocurrencies. We break down all of that to help you choose. Chris Davis Coinbase vs. Robinhood: 2026 Comparison When it comes to buying cryptocurrencies, Coinbase has the upper hand for a few reasons. Andy Rosen How to Get a Crypto Wallet Setting up a crypto wallet might seem intimidating if you're new to crypto, but it only takes a few minutes. Dalia Ramirez