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Investments & Earnings / Криптовалюты / Статьи о криптовалютах

Криптовалюты / Статьи о криптовалютах 29-01-2019 5 226 0

Online Earnings on Cryptocurrency Exchanges Can you earn money on cryptocurrency?

The cryptocurrency world attracts a huge number of both experienced financiers and beginners who want to master earning money on cryptocurrency. Today various earning options related to cryptocurrency are available. However, each option has its own pros and cons. And to understand whether it is realistic to earn money on cryptocurrency, let's consider what options for earning cryptocurrency exist, their advantages and disadvantages.

Classic mining

Despite the fact that Asia has practically monopolized mining, it is still possible to earn money on cryptocurrency through mining. Classic mining means the use of special equipment to perform computational operations on the blockchain network, which sorts through possible combinations of hashes in order to find a new block with cryptocurrency. Mining can be done using a video card (GPU), a processor (CPU) or a special miner (ASIC miner and others). The choice of equipment depends on the currency being mined.

Advantages of classic mining:
- personal equipment;
- full control over the process.

Disadvantages of classic mining:
- high cost of equipment and a long payback period;
- the ability to mine only one currency;
- high level of noise and heat generation;
- high electricity costs;
- the need for round-the-clock operation of the farm.

Conclusion: it is possible to make money on cryptocurrency through mining. This option is suitable for those who already have idle equipment and access to cheap electricity.

Cloud mining

This type of mining does not require your own equipment. It is rented on a special service or from other users. Depending on the contract, different capacities of computing equipment are available, as well as the term of its use. The most popular services providing cloud mining contracts:
- Genesis mining
- Agiocrypto
- Nicehash
- Minergate
- Hashflare

Advantages of cloud mining:
- allows mining several different currencies at the same time;
- absence of noise and excessive heat generation;
- quick start;
- contracts costing from $100;
- deep knowledge is not required;

Disadvantages of cloud mining:
- lack of control over the mining process due to the absence of equipment;
- the probability of an abrupt closure or bankruptcy of the service.

Conclusion: This type of mining is suitable for those who are just diving into the world of cryptocurrencies and want to study the process and receive a small profit without much effort. However, before buying a contract, you should study the service in detail so as not to get caught on the hook of scammers.

Trading on a cryptocurrency exchange

Earning money through trading on cryptocurrency exchanges is more suitable for those who have trading experience or understand economics well. But beginners can also invest money in cryptocurrency, get comfortable on a crypto exchange and make a profit. There are quite a lot of articles on the Internet about how to analyze graphs and charts presented on cryptocurrency exchanges. This knowledge will help you orient yourself when placing orders and determine when it is better to buy or sell a particular cryptocurrency.

Advantages of trading on a crypto exchange:
- start with a minimal amount;
- the ability to use the exchange to store currency;
- a large selection of cryptocurrency for trading;
- the ability to trade on credit, if the chosen exchange has margin trading;

Disadvantages of trading on a crypto exchange:
- high risk of loss due to sharp exchange rate fluctuations;
- high fees for converting cryptocurrency into fiat;
- large time costs for studying the specifics of how cryptocurrency exchanges work and the need to constantly track currency rate fluctuations;
- the verification process, in case of withdrawing fiat from the exchange and, as a result, loss of anonymity.

Conclusion: trading on a cryptocurrency exchange can bring good profit provided there is a serious approach to studying the rules and basic principles of how exchanges work.

Holding

Holding is the purchase and storage of cryptocurrency for the purpose of selling it at a high rate. This method can bring real super-profit. We all remember how Bitcoin in 2010 cost $0.003, and in 2017 the most patient could sell it for $20,000.

Advantages of holding cryptocurrency:
- low entry threshold and the ability to independently determine the amount of investment;
- the ability to buy and store different coins.

Disadvantages of holding cryptocurrency:
- this method of earning requires great patience;
- the difficulty of determining the optimal time to withdraw, since it always seems that "tomorrow it will be even more expensive".

Conclusion: holding is a good way to invest free funds for a patient person. However, you should not forget that a project may not succeed.

Airdrop campaigns

Airdrop is a free distribution of cryptocurrency by a project as an advertising campaign. Usually, in order to participate in an Airdrop, a user needs to fulfill several simple conditions (filling out a special form, going through the verification process, etc.).

Advantages of Airdrop:
- complete absence of financial investments;
- low time costs for the application.

Disadvantages of Airdrop:
- low cost of the coins participating in the Airdrop;
- small payout amounts;
- only a small percentage of projects distributing currency become successful.

Conclusion: Airdrop is the easiest way to get cryptocurrency without practically any effort.

So, earning money on cryptocurrency is realistic if you study the cryptocurrency market well and approach this method of earning responsibly. But when choosing any type of cryptocurrency earning and making investments in cryptocurrency, it is worth remembering that cryptocurrency is always a risk. Therefore, you should not dive in headfirst and invest your last money.

Online Earnings on Cryptocurrency Exchanges Can you earn money on cryptocurrency?