Before creating the main opportunities for earning on cryptocurrency, it is necessary to form a common understanding of cryptocurrency.
Cryptocurrency is one of the types of digital currency, the creation and control of which are based on cryptographic methods. This is electronic money that has specific differences from the money we already know (for example, money on bank cards). Firstly, cryptocurrencies are practically not issued by the state, with the exception of the national currency of Venezuela – Petro. Secondly, cryptocurrency transactions are almost anonymous. Thirdly, no one controls the exchange rate of this currency.
Due to the lack of control over the cryptocurrency rate, high jumps in growth and fall in short periods of time are possible. 200% growth per year is common in the world of digital assets. For example, the Dash cryptocurrency for 2017 had an increase of 100 times, Ethereum – 90, Litecoin – 60. The market growth is difficult to explain, its pace can be compared to a snowball. The possibility of such rapid growth creates easy earnings, which so beckons all people.
How did Bitcoin appear if it is not regulated by anyone
The year of birth of Bitcoin, the main of the existing cryptocurrencies, is considered to be 2009. At this point, he became the embodiment of a new technology called blockchain. Bitcoin – a code in which the code of all previous bitcoins and operations with them is encrypted.
Blockchain is a kind of book in which transactions with cryptocurrencies are recorded and who, to whom and how much money is transferred, is indicated. Translation operations are combined into blocks, and blocks into a chain. You cannot change a single operation that has taken place, even if it succeeds, then nothing will change on other computers that contain copies of the book.
Bitcoins are stored on digital wallets protected by cryptographic keys, and to whom these wallets belong is unknown. Paying with bitcoins is like walking in a mask, but with transparent pockets. Everyone sees how much money has been transferred, but who and to whom can only guess.
There is a demand for cryptocurrency, earnings are possible on it, but is it regulated by law
Operations with cryptocurrencies are regulated by law in the following countries – Japan, Belarus, USA, Canada, Great Britain, Germany, Denmark, Sweden, Australia, Singapore, Czech Republic and other countries. According to analytical data, 99 out of 246 countries of the world use cryptocurrencies. Now Bitcoins can pay for a hotel in Spain, buy coffee in New York, pay at Dell, Lamborghini, Microsoft.
How to really make money on cryptocurrencies in proven ways
Option number 1. Buy Bitcoin.
This option is preferable for those who do not want to engage in purchases and sales of cryptocurrencies (speculation), but are ready to invest their money in the long term. You can buy Bitcoin through an exchanger (localbitcoins.net, okschanger.com, bestchange.ru), on online exchanges (kraken.com, bittrex.net) or from random people on the forums, but this is not safe.
Option number 2. Create your crypto portfolio.
This option is suitable for gambling. A crypto portfolio is a complex of cryptocurrency assets that are collected by one person in order to earn money on changes in the cryptocurrency rate. In order to properly form your portfolio, you need to have wide knowledge of the cryptocurrency market, market trends and have the ability to analyze since there are currently more than 2000. The course of each cryptocurrency is related to the value of bitcoin, but most often it grows much faster.
For new users of the cryptocurrency market, experts advise forming their crypto portfolio from the top 10 digital currencies by capitalization, that is, by total cost.
Top 10 cryptocurrencies:
6) Bitcoin Cash;
7) Binance Coin;
A complete list of cryptocurrencies, their capitalization, exchange rate and course dynamics can be viewed at coinmarketcap.com
Option number 3. Mining
This is one of the most reliable cryptocurrency earning options. Mining is a calculation of adding blocks to a chain, which is performed by powerful computers. The income from the calculations is formed from the commission from operations with cryptocurrency. People who are mining are called miners.
There is competition in the mining world. Miners compete among themselves for the primacy of miscalculation of the block. Whoever calculates first will receive a reward. Due to competition, there is a demand for more powerful equipment, therefore, the cost of mining is constantly increasing in price. To counter competition, miners are united in groups – pools, which allow faster calculation of blocks.
To start a successful miner, you need to purchase an ASIC computer designed only for cryptocurrency mining. Powerful models cost up to 1.6 thousand dollars and are not suitable for work in the apartment due to high noise and strong heating. In this case, it is necessary to find a non-residential premises.
But initially, before investing money, you need to calculate the possible profit from mining and compare it with the required costs – the cost of equipment, rental of premises and electricity. Under the best conditions, investments can pay off in 2 months. Due to ongoing competition and growth in capacity, profits can be significantly reduced.
Option number 4. Cloud mining.
This option is suitable for those who are interested in mining, but they are not attracted by the purchase of special equipment, rental of premises and electricity costs. Cloud mining generates income according to the following scheme: a miner pays a specialized company for the purchase of equipment, which subsequently pays him the income from mining, deducting his percentage for the service.
Option number 5. Blockchain investing.
There are a lot of projects on blockchain technology, and the procedure for raising funds for their development is ICO, or Inital Coin Offering (placement of coins, tokens in primary access). ICO is a project issuing of peculiar shares in the form of tokens or coupons with which the user will pay for site services in the future. That is, tokens are issued to private investors according to their investment, which in the future can be resold or exchanged for company services.
This earnings option has disadvantages. Firstly, because of the hype in the market, there are many scammers who take advantage of the fact that the interests of ICO investors are not protected by anyone. Secondly, the product that the team forms may be unclaimed in the future on the world market. It must be remembered that investments in ICOs can be recouped both in the short, medium and long term.
This article lists the effective ways to make money on cryptocurrency. In each of them you can find both advantages and disadvantages, when choosing from them, you need to analyze each and choose the most optimal one for yourself.