Ways to make money on cryptocurrency
Everyone has heard about cryptocurrency today. This is a recent invention of mankind, has brought new blockchain technology and a lot of advantages into our lives. If you want to know how to make money on cryptocurrency in 2017, and how to increase your capital with it, read this article.
WHAT IS CRYPTOCURRENCY
Cryptocurrencies are discussed today on central TV channels and serious financial analysts are writing. If you ask the first person you meet on the street: “What is cryptocurrency?”, He will answer you - this is money from the Internet. This answer is only partially true. Yes, cryptocurrencies are spreading on the Internet, but thanks to this they have an impact on the whole world. After all, the World Wide Web offers great opportunities. We can buy goods in any heat of the world, invest and pay bills without leaving home. All this can be done with cryptocurrencies. But, in our time, Bitcoin, Ethereum and various altcoins are an excellent investment tool. The cryptocurrency market is young and, like any other young market, is subject to great volatility. Which makes it possible to quickly get rich on it. But another factor in the growth of cryptocurrencies is their popularity. Thanks to this trend, the most famous cryptocurrencies have long exceeded their initial value by hundreds and thousands of times. Cryptocurrencies are computer code. Most of them (the most promising ones) do not have an emission center. And this is the most important advantage of the token over ordinary money. After all, the one who gives the command to turn on the printing press is not responsible for its release. Therefore, the depreciation of the cryptocurrency due to the increase in the money supply cannot occur. The maximum number of popular tokens is known initially. Cryptocurrencies have undeniable advantages: Transparency. All information about the use of cryptocurrency is written in the code. At any time, you can find out the history of the token and its participation in transactions. High degree of protection. It is impossible to counterfeit cryptocurrency. Anonymity. Banks and tax authorities cannot track the movement of tokens. Independence. Cryptocurrencies are not regulated by government agencies. Convenience. You don't need to go to the bank to "open an account". All of this can be done online. Of course, in the article about cryptocurrencies, one cannot but mention their disadvantages. The main ones are: Lack of legal status. At any time, any state can prohibit cryptocurrency and its use will lead to violations of the law. Criminal use. The lack of control in the cryptocurrency market leads to the fact that tokens are used by criminals. Thus, they can transfer funds for criminal activities and launder money. Fraud. The popularity of “digital money” has led to the emergence of many scammers in this marke.
How to start making money on cryptocurrency? There are several ways. We will focus on the eight most popula.
1. MINING
The only way to mine most cryptocurrencies is by mining. This process is the solution of mathematical problems for the implementation of token transactions. Miners, using computer technology, decrypt the blocks of the chain and receive digital coins for this. Initially, it was possible to mine (extract) cryptocurrency using weak equipment. But when this business became profitable, computer processors were replaced by video cards. They were united with each other in farms, which brought in a solid income. Later, special equipment for mining began to appear. Mining is not that profitable today. On the one hand, the most profitable cryptocurrency Bitcoin was occupied by large mining pools that unite not only private miners, but entire farms. On the other hand, mining other “digital money” is not so profitable because of their low exchange rate. IMPORTANT: Modern mining depends not so much on the capabilities of the equipment as on the correct choice of cryptocurrency. Today, fans of such earnings have a lot to choose from: Dash, Ripple and other already well-known cryptocurrencies are beginning to gain popularity. This means that their market quotation will soon be high. But maybe you will find such an altcoin that few people know about and use it to make a fortun.
HOW TO MINE CRYPTOCURRENC
You can get "digital money" in two ways: Independently, using your equipment. All rewards will remain on the solo miner's account. In pools. As the capacities grow, it becomes unprofitable to independently mine tokens. Therefore, the best solution is to join the pools. In this case, the received reward is divided among all and a small percentage for membership in the pool is deducted from it. The profitability of mining is a combination of five factors: Time of the token price The number of tokens available Equipment characteristics Electricity prices If we pay attention to the first cryptocurrency - Bitcoin. That for one dollar at the time of its appearance, 1.309.03 BTC was offered. Today, the Bitcoin rate has grown many times over, which has increased the income from mining. But here you need to know one nuance. The thing is that at certain intervals the reward for each new block decreases. Initially, miners received 50 BTC. Today the amount of rewards is "only" 12.5 BTC. The algorithm for earning how to earn bitcoin cryptocurrency from scratch using mining is simple: Buying ready-made equipment or assembling it yourself Setting up equipment and registering in the pool Receiving a reward IMPORTANT: Investment in equipment for mining cryptocurrency is very high today. You can find out how long it takes to return your investment using special calculators located on specialized site.
POSSIBLE MINING RISK
Among the possible risks of investing in mining, it should be noted: Instability of the cryptocurrency rate Large investments at the initial stage Possible "misunderstanding" on the part of the state You can get most of the cryptocurrencies. Would you like to learn how to earn ether cryptocurrency? All the methods described in this article are suitable for the brainchild of Vitalik Buteri.
2. CLOUD MINING
It is possible to mitigate the risks of physical mining with the help of "cloud" mining of cryptocurrency. Essentially, these two methods are identical. The only difference is that you do not collect equipment, but rent it or buy it back for a long time. At the same time, the equipment can be located in any part of the world and specialists will be engaged in its maintenance. You, as its owner or tenant, will receive mining income minus maintenance costs. In simple terms, cloud mining is an opportunity to start mining cryptocurrency without knowledge of this technology. The main thing is to find the right company that will provide you with this opportunity. Advantages of "cloud" mining: All settings and maintenance of equipment are carried out by professionals Small investments at the initial stage Disadvantages of such token mining: Less income than when mining on your own equipment Purchased equipment remains in a remote data center Fraudsters who can collect money and simply disappear The most popular and proven cloud mining services are: Hashflare - provides the ability to mine Ethereum Hashing24 - provides the ability to mine popular cryptocurrencies Cryptomining - one of the best mining services in terms of mining Telcominer - a service with a simple interface and stable incom.
3. BUYING CRYPTO-CURRENCY ON THE EXCHAN
Another tool for making money on cryptocurrency is buying it on the exchange. Due to the high volatility of the market, when buying "digital money" today, after a while it can be sold at a significant profit. An example of Bitcoin on the face. But here you need to take into account the risks of this way of investing your funds: There is no regulator that can solve the claims Possibility of hacking a wallet on the exchange (examples of such hacker "tricks" appear constantly) High volatility can quickly help increase capital, but also reduce it If you decide take a chance, then you need to think about which cryptocurrency to invest in. This market does not only live on Bitcoin. And not everyone can buy the first cryptocurrency today. Among the popular altcoins, it should be noted: Ethereum Ripple Litecoin Dash NEM This list is replenished almost daily. Have you decided on a cryptocurrency? Now you need to find the exchange that trades it. Most popular: Polonex.com. Suitable for advanced users only. Russian-speaking cryptocurrency investors are not liked on Polonex. Livecoin.net. Not a bad exchange, which can be credited to through the "Capitalist" payment system. Localbitcoins.net. Service that supports Russian, but is not an exchange. This is an exchanger, but it is good and reliable enoug.
IMPORTAN
One of the popular places to buy cryptocurrency from Russians is the YObit.net service. You can link it to your Qiwi wallet and transfer money in a couple of clicks. You can buy cryptocurrency today at any online exchanger. But investing in "new money" is a risky business. As for trading on the stock exchange, this is a rather difficult task. Unlike the stock exchange, the high volatility does not allow the use of tools used on other exchanges to this process. Exchange speculators involved in the process of buying / selling cryptocurrencies use three tactics here that are sure to suit beginners: trading on pullbacks trading on impulses trading on breakou.
You can learn more about these types of trading from specialized literature. Unfortunately, there is not much of it yet. Moreover, translated into Russian. But you can use "smart" books about working in the stock and foreign exchange markets. True, everything will have to be adjusted for cryptocurrency exchanges. But that shouldn't scare newbies. After all, every successful trader has his own trading system. And without it, even after reading a hundred books about trading on the stock exchange, it will be impossible to achieve success.
IMPORTANT
When buying cryptocurrency on the exchange, do not be afraid to lose your money. Therefore, “play” on the movement of quotes only for those funds without which you can live. And then luck will surely smile at yo.
4. PURCHASE AND STORAGE OF CRYPTO-CURRENCY IN AN ELECTRONIC WALL
If you decide to store crypto-currency not on the exchange, but in the wallet, then there are several ways to do it. Most often, wallets are divided into online and local. An online cryptocurrency wallet is a location on a remote server that is managed through a web interface. If you have dealt with Sberbank Online or similar solutions of other banks, then you can easily deal with online wallets. It's the same, only instead of physical money, they store tokens. Local wallets are of several types. Most often they are divided into thick and thin. Thin ones take up less hard disk space and help make transactions faster. The fat ones read the entire chain and provide the opportunity for the participant to be part of the blockchain chain. There are also physical wallets. They connect to the computer as peripheral equipment. But the difference between cryptocurrency storage wallets does not end there either. Wallets are divided into universal for various cryptocurrencies and those that support only one cryptocurrency. The best online wallets ar
Blockcha
Coinki
Coinba
Bit
GreenAddres
StrongCo
Xa
Best Local Wallet
Electru
Exod
JA
Mycelium (Mobile)
KryptoKit (Browse)
5. BUYING CRYPTO-CURRENCIES ON ONE EXCHANGE AND SALE ON ANOTHE
The most difficult way to earn tokens is to buy them on one exchange for the purpose of selling them on another. This method is complex and time consuming. You need to view the quotes of the cryptocurrency on several exchanges at once and compare with each other. For this purpose, there is special software that will greatly simplify the task. True, such programs are expensive. The second "nuisance" of this method is the need to have accounts on all verified exchanges. Although this method is quite difficult to implement, it can bring a steady income. By the way, there is no fundamental difference between exchanges and cryptocurrency exchangers. Therefore, such services can be included in the above scheme. But, unlike the exchange, it is less profitable to change money for cryptocurrency in exchangers. This happens due to service commissions. It is also worth considering the fact that most exchangers work only with the most popular cryptocurrencies. Unlike exchanges where you can buy hundreds of different tokens. Do you want to know how to make money on today's cryptocurrency course? Then analyze the quotes of the main tokens. Altcoins can only be viewed if you are confident that you will sell the.
6. ANALOGUES OF MUTUAL FUND
The increased interest in cryptocurrencies prompted the use of time-tested financial instruments to this market. For example, mutual funds. Such funds will help reduce the risks of self-investing and reduce the threshold for entering the cryptocurrency market. As with ordinary mutual funds, the meaning of such an investment is simple. You entrust your funds to a manager who forms an investment portfolio with their help, as well as with the help of other participants in the mutual fund. But instead of stocks and other securities, it contains tokens. How to start earning on cryptocurrency? Use analogs of mutual funds. This method works well for beginners. Advantages of this form of investment: Profitability Low entry threshold Possibility to receive weekly interest Among the disadvantages, we note: Time threshold at which you can not withdraw money from the account Risk of a collapse of the cryptocurrency mark.
7. ANALOGUE OF TRUST MANAGEME
Another way to make money on cryptocurrency, which migrated from the traditional financial sector. This method is similar to the previous one, that your finances will be managed by professionals - a community of crypto brokers with the necessary experience and knowledge. The advantages are identical to those of cryptocurrency mutual funds: Low entry threshold High profitability Possibility to take interest But there are more disadvantages: Operations and communication go through Telegram Information about participants is hidden The deposited funds cannot be withdrawn Lack of verification Many market analysts consider this way of earning to be analogous to financial pyramids of the 90s ... But maybe you're luck.
8. HOW TO EARN CRYPTO-CURRENCY WITHOUT INVESTMEN
The whole truth about how to earn crypto-currency without investment comes down to sites - faucets. Some sites give out tokens to their visitors in the form of rewards. Such a free distribution of bonuses is called faucets. There are faucets for almost all types of cryptocurrency. It is enough to go to such a site, enter your wallet number and fill in other fields. If you want to make money on cryptocurrency without investments, then this method is the most optimal for this. Some sites donate cryptocurrency to users for free. Others "ask" to see an advertisement for this or perform another action: play a kind of lottery, participate in games, open captcha, click banners. Most popular cryptocurrency faucets: Qoinpro is perhaps the most famous faucet. Gives its visitors several tokens at once. Freebitco.in is a stable and time-tested faucet. Gives tokens for games. Kopilka. Issues satoshi every 100 minutes of being on the site. Pays for articles. Kraneasyfreebtc is a good faucet with an excellent BonusBitcoin referral system - it gives out satoshi every 15 minut.
Cryptocurrency is a young tool for making money. On the one hand, such confusion in the market allows you to get super profit, and on the other hand, it increases the risk of losing your funds. You need to invest in tokens carefully and with your head, and then you can increase your capital.