You hear a hundred times a day how your neighbors, colleagues, friends, and everyone around you discuss how they make money on cryptocurrencies, wonder who Satoshi Nakamota is, argue about how well Vitalik Buterin speaks Russian? It's time to figure out
How it all began
On January 3, 2009, Satoshi Nakamoto (perhaps a group of people is hiding behind this pseudonym) completed the development of the program code for bitcoin – the first cryptocurrency. On this day, the first block was generated and the first 50 bitcoins were mined. This is how the world learned about blockchain technology , which is now used far beyond digital money.
How many cryptocurrencies are now
Today there are already more than 1,500 different cryptocurrencies . However, your friends, most likely, talk only about 10-20 – leading in terms of capitalization.
How people make digital money
Okay, the main question is how to get cryptocurrency? There are several ways. The main one is by mining , that is, receiving a reward for combining transactions into blocks and calculating the required key to seal the block. You can do this on your own equipment, you can use someone else's, which is provided for rent and may even be located on another continent. This type of mining is called cloud mining . Most of the existing currencies can be mined.
What is a crypto exchange
Another option is to buy the desired cryptocurrency in an exchanger, of which a sufficient number has appeared on the network, but at an unfavorable rate (usually + 7-10% to the official one) or on the exchange . However, it is not too easy to make money on the trading platform, you will have to, at least, go through the identity verification process, that is, send your passport, residence permit and other personal data.
Is it possible to get digital money and not spend real
There is another way to get coins – it does not involve any material costs, but it will take a lot of time. This is a search for various "faucets", airdrops – in other words, free mailings of different cryptocurrencies . There are many options from playing slot machines to managing social media projects in the desired language. Still free coins can be obtained as a result of a hard fork – dividing the original currency chain into two new ones.
How to make money on cryptocurrency
Now you can really make money on digital money, but you need to be prepared for the fact that you can lose all your money in an instant . If you do not take into account mining, in which the complexity of the network is constantly changing, and which we talked about above, there are two more ways. The choice between all the options is complex and depends on the specific moment.
What is digital money trading
The first is trading , that is, trading in cryptocurrencies, you can focus here either on the technical analysis of growth charts (it does not always help), or on insider and not only information about a particular project. As a rule, important news always affects the course of digital money. Another strategy is holding, it is also called "hold" or "hodle" . It is as simple as possible – buy coins and forget about them for a long time in the hope that the rate will increase significantly.
Is it possible to make money differently
The second is participation in the ICO , that is, the initial placement of tokens. It's like crowdfunding, where a startup raises money to launch its product. Investing in ICOs is very risky, since many projects either go bankrupt or simply raise money and cease to exist, but if successful, they can give very high returns.
Is there a proven method that will bring income for sure
Leading analysts and businessmen argue about how to invest in cryptocurrency. Someone considers all digital money to be a pyramid, bubble, grandiose deception, others predict the growth of the bitcoin rate to 100,000 already in 2018. In any case, if you are going to plunge into this world, you need to follow all the industry news and understand all the processes in more detail. We will definitely help you with this.