What is cryptocurrency and how to make money from it
An important date in the cryptocurrency world is January 3, 2009. On this day, Satoshi Nakamoto presented the development of the bitcoin programming code (the first cryptocurrency), generated the first block and mined the first 50 bitcoins, introducing the blockchain technology to the world.
Today, there are over 1,500 known cryptocurrencies, of which no more than 20 are the leaders in terms of capitalisation.
How to make digital money
Cryptocurrency can be obtained in several ways. The most common is mining, where the reward comes from combining transactions and calculating the key to seal the block. This can be done using your own equipment or by renting it anywhere in the world. This method is called cloud mining. Almost all existing currencies are allowed to be mined.
What is a cryptocurrency exchange
The next method is to purchase the desired cryptocurrency through a networked exchanger or exchange. However, you will have to go through an identity verification procedure in order to deposit the money on the trading floor and not lose out on the exchange due to an unfavorable rate.
How to get digital money without spending real money
If you want to get your hands on the coins without spending any money on your side, be prepared to take the time to search for free distribution of different cryptocurrencies (airdrops, “cranes”). For example, by playing machines, running social networking projects in a particular language, splitting the original chain of currency into two new ones (hardfork).
Making money from cryptocurrency
Digital money offers the opportunity to make significant profits, but there is a risk of losing your entire investment. Apart from mining, which we mentioned above, there are two options. The choice of earning method is influenced by your particular situation.
Digital Money Trading
- trading. Trading cryptocurrencies should be done by analyzing technical analysis of growth charts, although this does not always work. Or, by relying on information about a particular project, including insider information. The exchange rate of digital money, in most cases, depends on significant news.
- hold. The holding strategy is not complicated. You simply have to buy coins and leave them alone until the exchange rate reaches the required value.
Other ways of earning
You can join an initial public offering (ICO) of tokens. This is akin to crowdfunding in which a startup is raising money to release its product. Investing in an ICO is extremely risky because of the high chance of many projects going bankrupt. Others may even shut down after the money has been raised. But if you are lucky, you will have a significant income.
Is there a win-win method to generate revenue?
Even the leading analysts and businessmen disagree on the method and advisability of investing in cryptocurrency. Some refer to digital money as a pyramid scheme, a scam, while others predict a surge in bitcoin. Whatever the case may be, before entering this field, one should be prepared to follow all the news of the industry and the need to work out all the processes in detail.