5 Tips for Earning Dividends (Passive Bitcoin) In 2023


Since 2008, Bitcoin has been the most profitable investment across any asset class. For example, if you had spent $100 on Bitcoin in 2009, it would be worth more now than if you’d spent $100 on other assets. This includes blue-chip stocks such as Tesla, Amazon, Apple and Microsoft.

Why is Bitcoin such a valuable asset, and how can you profit off the wealth available from the world’s leading cryptocurrency? It isn’t just digital asset investment, as you can now use cryptocurrencies to play casino games.

Of course, casino games should be seen as fun and not as a form of income; however, some long-term investors see the current market as an ideal time to Bitcoin casino invest.

Today, we will break down a few tips to help you peel off profits from your Bitcoin investment and how to earn passive income from such a valuable asset.

What is Bitcoin?

Bitcoin is a revolutionary digital currency that has changed the trajectory of finance and investment forever. The textbook definition of Bitcoin is the world’s first decentralized, peer-to-peer payment system that allows users to send and receive money without needing a central authority or bank.

The reason that no central authority is necessary is due to the innovative blockchain technology that has been designed alongside Bitcoin. The public blockchain logs every transaction and is immediately viewable. So, when you send your Bitcoin to somebody else’s wallet via this system, the record is logged, viewable, verified and cannot be amended.

Even though the original design was highly innovative and has since become a massive part of popular culture, the original designer, or designers, couldn’t have predicted how much it would change the financial landscape. I’m sure they didn’t suspect that it would become legal tender in multiple countries.

It has become increasingly popular due to its low transaction fees, fast transactions and secure nature. With its growing popularity, more people are beginning to learn about Bitcoin and how it works.

Tip 1 – Know when to take profit

No matter how much Bitcoin you own, you should set reasonable take-profit limits. For example, if you have invested in a small amount of Bitcoin, but it increases to 15%, shaving off the profit and allowing the rest to continue accumulating value is one of the most common ways that investors will earn passive income from their Bitcoin investment. If you hold on to the asset for too long, it could deplete in value, given how volatile the market is.

Tip 2 – Use a reputable broker

With so many cryptocurrency exchanges and brokers looking to obtain your patronage, ensuring you use a reputable service that allows you to withdraw your digital asset quickly is incredibly important. Unfortunately, some brokers are more reliable than others.

You must perform due diligence before opening an account and trading Bitcoin as you want to sell at your chosen price, given how volatile the asset can be. Some other cryptocurrencies allow you to stake the investment to earn interest. However, this is something you can’t do with Bitcoin.

Tip 3 – Follow the news

If you keep an eye on economic news, you will have a better indication of whether your Bitcoin may increase or decrease in value. In 2024, the Bitcoin halving will take place, making the asset scarcer, which is predicted to increase its value further.

However, other economic news, such as interest rate hikes and financial projections, can impact cryptocurrency prices. Learning how these events move the market can give you better entry and exit points to shave off your dividends.

Tip 4 – Start a small business

Do you think you have valuable insight into how Bitcoin and the broader world of cryptocurrency work? One way to earn a passive income stream from Bitcoin is by spreading your knowledge to others.

There are plenty of crypto YouTubers who have hundreds of thousands of subscribers. We aren’t suggesting that you need to immediately aim for this total; however, it shows how big the market is to analyze cryptocurrencies and tokens and give your opinion on the market.

Tip 5 – P2P lending

Crypto lending is when you, as a trader or investor, borrow your asset from another investor or trader on a P2P platform. They can then secure a loan from you with your liquid digital assets used as capital. This offers a solution for you as a trader and crypto investor seeking passive income. P2P lending provides a solution to investors who want to earn dividends on their holdings and borrowers who wish to access cash.

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.