Cryptocurrencies – how to make money on them? This question is often asked by novices. Here are some ways to invest in disqualifying various types of pyramid schemes, MLMs, and many other scams.
TOP 5 ways to earn in the world of cryptocurrencies:
The easiest way to own cryptocurrencies is to buy them. If, for example, you were to lose that $ 250 on a shady investment platform offering a “super” trading bot, it would be much better to buy cryptocurrencies for your own account with that money. Try to avoid companies that try to extort funds from you under the pretext of a high return on investment. Such promises are just empty words thrown to the wind. No “revolutionary” software will make you a millionaire overnight.
If you have had the thought of investing in pseudo-cryptocurrency programs based on multi-level marketing, try to get rid of it. These types of decisions can cost you dearly. In this case, the risk of losing money is very high: what if you find yourself on the last rung of a collapsing financial pyramid or give your money to brokers who are not going to return it to you? Recovering funds will be quite difficult, especially when the company suddenly disappears from the market and disappears without a trace … Such stories have happened before.
So if you would like to invest in cryptocurrencies, do not use the services of intermediaries who claim that they will multiply your capital. Choose a reputable exchange or an exchange office and make the purchase yourself. However, remember that these types of assets are very volatile. Price fluctuations depend on many factors. Therefore, it is worth approaching the market with a ready investment strategy. However, if you are a completely green person in this topic and you don’t really know where to start, focus on education. Reach for reliable sources of information, because the security of your cryptocurrencies will depend on this: you need to know how to store them and what wallet to choose. Avoid pseudo experts who can trap you.
Cryptocurrency investors can be divided into two basic groups: long-term and short-term. The former buy a given coin in the long run, hoping to increase it in the future. Others, on the other hand, focus on short-term trading of cryptocurrencies: they buy them at a low and sell them when they reach a certain value.
Remember! Cryptocurrencies will not provide you with any guarantee of profit. Only invest funds that you can afford to lose!
When investing in the cryptocurrency market, the threshold is very low. You don’t have to buy the entire cryptocurrency, you can buy a small part to slowly gain experience. If you want to experiment, it is better to do it on small amounts.
Receiving airdrops and using taps
The good news is, you don’t need to go deep into the water right away. When gaining knowledge about the market, you can use the so-called cryptocurrency taps or collect aidrops.
They are sources of free coins. At the taps, you can receive fractions of cryptocurrency data. However, this is only fun, not a lot of money. For example, Bitcoin is divided up to eight decimal places. Small parts of BTC are called satoshi. On the respective pages, you may receive a certain number of such fractions every 15 minutes. Of course, you will not raise a large sum this way, but it may be your first contact with cryptocurrencies. For some it is a waste of time, for others it is a lot of fun!
Aidrops become the second option. What are they anyway? Well, it is a form of a bonus or a gift from a given project. The user can receive a certain amount of cryptocurrencies for free in return for performing small activities: registering on the platform, being active in social media, or taking part in contests. However, it all depends on the individual approach of the company, because it sets the rules. For her, it may be a way to expand the group of stakeholders. Although there have been occasions that projects have suddenly given away cryptocurrencies to people who had coins in their wallets, usually most companies announce a free pool ready to be collected in order to attract new users.
Take the opportunity and join the Tokeneo community! Register on our exchange and receive a gift in the form of TEO tokens!
Remember that not every cryptocurrency or token will become the second Bitcoin. There are many projects on the market. Some of them, however, are of no value …
Note: cryptocurrency faucets and airdrops should be free, if a site asks you to deposit a certain amount of funds in order to collect the prize, it may be a scam!
A good way to get cryptocurrencies or tokens is creativity. Surely you’ve heard of the Steemit platform! Or Publish0x;) Its phenomenon is that content that suits the tastes of the audience is rewarded. Each user can vote for someone.
If your publications become quite popular, you will receive a corresponding prize in the form of the Steem cryptocurrency. However, it works both ways. When your article does not appeal to other people, they can cast a negative vote for it, which will deprive you of a given amount of accumulated coins. Transparency is undoubtedly the advantage of this platform. Each author can check who voted whom.
Registration on Steemit is free, but account verification takes up to 2 weeks. You may pay an additional fee for instant access.
Another option for getting cryptocurrencies is mining them. However, this process is an investment. You need the right equipment to dig. However, this is not all, because it is not enough to connect the excavators to electricity and wait for it to dig Bitcoins. The profitability of this process is influenced by many factors such as: the price for electricity, the current cryptocurrency exchange rate, the computing power of the excavator, the costs of cooling the equipment, the reward for the block excavated and many other things.
Miners very often join the mining pools. In this way, they combine the computing power of their excavator with other mining equipment. They may then receive less money, but more often. The cryptocurrency miner then receives an amount adequate to the work performed by his excavator.
Before you decide to become a miner, study this topic in more detail.
In this case, it all boils down to the fact that not every cryptocurrency can be mined. They differ from each other by the consensus algorithm. There are two main methods of block validation: Proof of Work (PoW) – Proof of Work and Proof of Stake (PoS) – Proof of Stake.
In the former, the digging process takes place, in the latter, the so-called validators – people responsible for confirming blocks. The more coins of a given project you have, the greater the chances that you will be able to perform such a function.
Staking is basically the process by which you freeze your funds in your wallet to support a project’s blockchain. For this you receive an adequate reward. To increase your chances of becoming a validator, you can join the so-called staking pool. It is created when several holders of a given cryptocurrency decide to combine their resources. These individuals simply add up their funds and then share the block verification rewards among themselves in proportion to their own contribution.