Lending the Bitcoins directly to someone the individual knows – If there is someone on whom the individual can trust, then he/she can agree on the terms such as interest rate and duration.
Peer to peer Bitcoin lending – There are websites from different borrowers who offer this, including Bitbond. In this method, funding requests are published by the borrowers, and the individual can contribute to the loan. Before the individual lends the Bitcoins, he/she need to make sure that the borrowers and the site are trustworthy. When the creditworthiness of applicants is assessed by the site, the credibility of the borrower also increases.
Bitcoin Banking – This approach works like a bank. This is different than the peer to peer lending where the individual diversifies the lending activity to various borrowers; in this approach, there is only one borrower – the bank. The Bank invests the Bitcoins in the form of assets. The only difference is the fact that in the Bitcoin world, there is no deposit insurance.
Earn Bitcoins from Mining
Another way to generate Bitcoins is Bitcoin Mining. When an individual performs this, the computer adds new Bitcoin transactions to the blockchain. When the computer discovers a new block, then the individual is going to receive a number of free Bitcoins. Bitcoin mining is expensive and hardware intense. With this, there are some who supply computing power to the pool, and thus, Bitcoins are earned by them without having to build their own big mining frame.