How to start making money from cryptocurrencies in the garden for a beginner. Three ways
The development of the cryptoindustry allows today to choose a convenient way to make a profit from working with digital coins. In most cases, this requires certain knowledge and start-up capital.
RBC-Crypto does not provide investment advice, the material is published for informational purposes only. Cryptocurrency is a volatile asset that can lead to financial losses.
Since the beginning of 2021, bitcoin has risen in price by almost 40%. At 12:30 Moscow time, its price is $ 40 thousand. In mid-April, the main cryptocurrency reached an all-time high at around $ 64.3 thousand. Over the past two months, the digital coin has fallen in price by 37%. from Garden Shop Pro crypto
The largest altcoin by capitalization, Ethereum, has grown by 238% since January 2021. Its price rose to $ 4.3 thousand in April (an increase of 482%), and then went down. Altcoin is currently trading at $ 2,500.
Such profitability allowed holders of digital coins to increase their capital several times. To do this, it was enough to buy cryptocurrency and hold it. We will tell you the main ways that even beginners will make a profit in the field of digital assets.
Buying digital coins for their long-term retention is considered a classic way of earning money, which does not require deep involvement in the market, and is also completely passive. The main feature of this method is its long-term nature.
The cryptocurrency shows high profitability over the long term. For example, when buying bitcoin in January of this year, you could get a yield of 40%. But, if the main cryptocurrency was bought in June last year, then the return on investment would be 335%. Buying bitcoin in June 2016 would bring the investor 6919%. However, it should be borne in mind that previous growth does not guarantee a future rise in asset prices.
When investing in digital assets for a long time, it is necessary to adhere to a trading strategy, not reacting to short-term changes in the exchange rate. You also need to ensure the safety of your investments. To do this, it is recommended to use a hardware (cold) wallet and store it, as well as the seed phrase, in a safe place.
Seed phrase is a set of random 12, 18 or 24 English words that is used to recover a cryptocurrency wallet.
For those who do not want to invest their own funds, but want to get cryptocurrency, there is a way to make money on distributions and performing various tasks. There are services that pay with digital coins for simple actions, for example, installing a mobile application on your device or following on social networks.
For example, the Brave browser pays cryptocurrency to view advertisements, and the Steemit social network rewards users with digital coins for activity: views, likes, reposts, and comments.
Airdrop is a free token giveaway that runs crypto projects to attract a new audience. For example, the developers of the Uniswap decentralized exchange have already handed out 400 tokens to new users. To do this, it was necessary to perform any operation on their platform. At the time of distribution, the cost of 400 tokens was about $ 1.3 thousand. Now these digital coins cost $ 9.3 thousand (yield 615%).
The most active users received from 95 thousand to 245 thousand coins. At the asset rate at that time it was from $ 250 thousand to $ 750 thousand. About 50 more people received from 10 thousand to 95 thousand coins, that is, $ 25-250 thousand.
The free distribution of tokens in December last year was carried out by the 1inch decentralized crypto exchange. One of the users took a reward in the amount of 9.75 million tokens, which at the exchange rate at that time was more than $ 25 million. Another 3 users received from 1.21 to 1.34 million 1inch – this is from $ 3 million to $ 3.35 million. 37 traders were withdrawn from the wallet rewards from 100 thousand to 700 thousand coins – from $ 250 thousand to $ 1.75 million.An award of $ 25 thousand – $ 250 thousand in the project’s cryptocurrency was received by 190 people.
Staking is a way of passive earnings, in which users store coins on the Proof-of-Stake (PoS) algorithm and ensure the blockchain remains operational. This gives them the right to receive remuneration. To earn money on staking, additional equipment and large computing power are not required, as for mining.
For staking, you need to buy cryptocurrency and freeze it in a special wallet. In this case, the average yield will be from 1% to 20% per annum. For example, crypto exchange Binance is now offering staking of its internal token with a yield of 8.4%. Staking can be a complement to investing. However, it is worth considering the risk of a decrease in the value of tokens involved in staking. In this case, there is a possibility of losing your savings.
To start staking, you need to study how the PoS algorithm works, as well as familiarize yourself with the available offers on the market. For example, the Binance crypto exchange offers staking other tokens such as Ethereum, Tether (USDT), and Chainlink.
In 2021, Ethereum plans to switch to the Proof-of-Stake algorithm as part of the blockchain update to version 2.0. This will allow altcoin holders to block their digital coins to ensure the network is operational and receive a reward for this.
For several months, DeFi tokens have brought investors multiple profits, and DeFi platforms promise users thousands of percent per annum for opening a deposit. We tell you how to choose a project with good potential and reduce the risk of losing all your money
The cryptocurrency market provides opportunities to make money every day. Some of them are conservative, for example, trading on bitcoin rate fluctuations, the value of which can be about 10% per day. Other options offer both significantly higher income and significant risks.
High leverage trading and options
One of the surest ways to earn hundreds of percent on one trade, or lose everything on it, is to trade with leverage. Many exchanges and derivatives platforms, such as Bitmex, Binance Futures, OKEx and others, allow clients to borrow funds against the security of their assets. Loan size and risks are determined by a coefficient, the value of which starts from 1 and reaches 100, in rare cases exceeding this value.
It works as follows. A trader temporarily gives the exchange, say, 1 ruble as collateral and, having chosen a leverage with a coefficient of 100, receives 100 rubles in return. Cryptocurrency is automatically bought on them. If its price rises by 1%, the user receives 100% of the profit. If the asset becomes 1% cheaper, the platform closes the deal and takes both the issued funds and the collateral.
Private trader Alexander Boyarintsev spoke about another way of earning money. He proposed an option with the purchase of call options for a cryptocurrency. These are contracts that give the right to buy an asset under predetermined conditions. The price of such contracts may fall if the volatility of the asset rate decreases, this will make the conclusion of the transaction more profitable.
“Example: Bitcoin price was $ 9,500. Volatility dropped and options with a strike of $ 11,000 and a two-week expiration date were worth $ 60. I bought 3 options. Then the BTC price went above $ 11,000. Accordingly, everything above this price turned into profit. The risk was $ 180 – $ 60 for each option. The total profit is $ 3000, „Boyarintsev explained.
Investing in DeFi Tokens
Another sure way to increase your capital at times or to zero it out is investing in cryptocurrencies from the field of decentralized finance (DeFi). In 2020, this sector is experiencing a boom stage. Many DeFi tokens that did not yet exist in June-July grew by thousands of percent in August. The most striking example is the Yearn Finance (YFI) platform token. It was released on July 18 and cost $ 32 at the time. In September, the price of YFI rose by more than 130,000%, to $ 44,000, now it has dropped to $ 22,000.
There are many such examples. Unitrade token (TRADE), which appeared on August 5, went from $ 0.11 to $ 2.6, but then fell in price to $ 1. The UMA (UMA) coin, issued at the end of April, showed an increase from $ 0.3 to $ 25, now it costs $ 12.5. The price of the Ocean Protocol (OCEAN) cryptocurrency for the same period grew from $ 0.03 to $ 0.62, now it has dropped to $ 0.32.
A hype has formed around the DeFi sphere, so even one successful purchase of a DeFi token can multiply the investment. But the chances of losing on this are much higher than the chances of luck. Firstly, now there are a lot of decentralized projects, especially when compared with the beginning of summer. Therefore, user capital, which was previously allocated to a limited number of assets, now accounts for thousands of projects.
Secondly, along with the hype, scammers came into this area. And the allegedly DeFi tokens issued by them are much larger than the real projects. After the incredible rise in the price of YFI, many users decided that they should try to buy DeFi coins as early as possible, before the masses knew about it. In this regard, there is a demand for services that allow the first to know about the release of a new DeFi token.
Most of these coins first appear on the Uniswap exchange. Services such as Astrotools.io or Dextools.io allow you to monitor in real time how new projects are added to the site. On the one hand, it enables traders to buy coins as soon as they appear, in the hope of multiple growth.
On the other hand, there is no strict listing procedure on Uniswap. Anyone can issue a token and add it to this exchange. In this regard, fraudsters take advantage of the traders’ hunt for new projects and try to „slip“ their coins, which have absolutely nothing behind them. Probably for this reason, according to Astrotools.io and Dextools.io, new cryptocurrencies appear on Uniswap literally every 5 minutes. Often, it’s not even humans who do it. Scammers create special programs that automatically issue tokens and add them to Uniswap and other decentralized exchanges.
The magnitude of the risk and possible income from the hunt for new DeFi projects is demonstrated by the example of the HotDog token. It was released on September 2 and went up in price from $ 5 to $ 6200 in a day, and then dropped in price almost to zero within a few minutes. Another example is the SAVE coin. On September 14, its rate soared by more than 500%, to $ 5000 after the creator of YFI spoke about the project on his Twitter account. The very next day SAVE cost about $ 300.
There are several criteria that increase the likelihood of selecting a token with good potential. The first is limited emissions. The lower this indicator of an asset, the higher its price can be. For example, a key factor in the growth of the YFI rate was the fact that there are a total of 30 thousand tokens. But the issue itself does not guarantee a rise in the price of the cryptocurrency. On the contrary, many fraudulent projects issue coins with an issue of exactly 30 thousand in order to make inexperienced traders believe that this is the new YFI.
The second is product availability. If the project has released any application or platform, as its polarity grows, more and more users will learn about this coin. This makes it likely that it will rise in price in the future.
The availability of the product also increases the chances that the token will be added to the marketplaces. This is the third and probably the most important criterion for selecting DeFi projects. After listing on exchanges, DeFi coins are showing explosive growth. Reasons: more users get the opportunity to invest in cryptocurrency, and the addition to the exchange gives more reasons to assume that the project is not a dummy.
However, it is usually too late to buy DeFi tokens after they have been added to large platforms. Typically, listings on Coinbase, Binance and other industry giants coincide with the peak price of such coins. Therefore, the chance to make money on investing in DeFi tokens is higher if you buy them after they appear on small trading platforms in the expectation that market leaders will pay attention to them.
The DeFi sphere offers another way of making risky money – “profitable farming”. It works as follows. The user makes a deposit to the platform in cryptocurrency, for example, Ethereum. A percentage is paid on this deposit, but in another cryptocurrency – in the native tokens of the project. In this way, „the farmer reaps the harvest.“ The resulting coins can then be sold to lock in profits.
„Profitable farming“ is now very popular. The reason is sometimes insane rates on deposits. In the early days of DeFi, platforms often offer returns in the thousands of percent per annum. For example, the Spaghetti Money project in the first day of operation allowed users to receive up to 35,000% per annum in bitcoin. Sushiswap project – over 2000%. And these are normal indicators for the sector.
Such rates are suspicious. Indeed, there are a number of nuances. First, the amount of profitability depends on the number of users – the more there are, the fewer tokens will fall on one “farmer”.
Second, the price of the „harvest“ coin plays a key role. Typically, the price is high on the first day after launching the app. But as soon as users start receiving payments, they sell tokens and their value drops. This has a corresponding effect on deposit rates.
Third, most DeFi platforms launch without going through a code audit. This means that the protocol can operate with a critical vulnerability, and there is a risk for users to lose funds. For example, on August 12, the Yam platform began to work, on the first day, users contributed more than $ 500 million in cryptocurrency to it. The next day, the project developer reported an error in the code. Within half an hour after that, the price of the Yam token fell from $ 167 to $ 1.
Third, scammers. They come up with various ways to deceive users and steal their funds. One example is that the platform code contains an extremely high commission for withdrawing funds. Let’s say that to deposit cryptocurrency for „harvesting“, you need to pay $ 30-50, and to withdraw – more than $ 1000. Another example is that attackers, luring users with high rates, can try to sell them their tokens, which have no intrinsic value.
Fourth, a lack of understanding of how “profitable farming” works. On September 11, a user told how he lost $ 5,000. He poured funds into the platform to receive 300% of the income per year when he deposits in Ethereum. However, he later decided to change the plan to another, more profitable one.
The Kimbap project offered a 1000% yield if the platform’s native token was used for farming. The user bought it for $ 5000 and made a deposit. The next day, the price of the coin fell more than 100 times. Such an outcome was to be expected, since in this coin other traders “harvested” and sold it to realize the profit.
Fourthly, not only the project token can fall in price, but also Ethereum itself or any other cryptocurrency used as a deposit. You also need to consider commissions. The cost of one transaction on the ETH network, due to the rapid growth in the popularity of the DeFi sphere, has increased tenfold since the beginning of the summer – up to $ 6-10. Even more expensive has become the implementation of smart contracts, the use of which is necessary for farming – $ 30-50.
The rise in commissions has presented farmers with a difficult choice. On the one hand, they need you divide a rather large amount for this strategy in order to reduce the share of the commission. Only one deposit / withdrawal of funds can lose about $ 100. On the other hand, in order to get significant income, you need to deposit funds on the platform in the first days of its launch. And doing this with unverified projects that have not been audited is extremely risky.
On September 13, former product manager at analyst firm Messari Qiao Wang called DeFi tokens „the investment opportunity of the decade.“ He believes that not taking this chance is like not buying Bitcoin in 2013 or Ethereum in 2015. However, there is a lot of „junk“ in this industry, so it is extremely important to choose projects that develop a real product and have a fundamental basis for growth.
In one of our articles, we described the current situation on the cryptocurrency market, which experienced a year of fabulous growth and then a year of dramatic decline. We will now outline how investing in bitcoin and other virtual currencies works and what their benefits are.
First, let’s recall very briefly how the cryptocurrency system works. If you know, you can skip this passage.
Cryptocurrencies are digital money, the oldest and most famous of which is bitcoin, which originated ten years ago. However, the history of virtual internet currencies is older, projects such as e-gold or beenz.com were created in the 1990s, but they did not last long – hacker attacks and interventions by state regulators broke their neck.
The creators of bitcoin learned from their example and created an autonomous, decentralized system, completely immune to hacker attacks and government intervention. It is based on a network of thousands of interconnected computers of many different users. Whenever a transaction occurs on the network, it is authorized by all these computers in the system, after which it is written in a kind of virtual ledger. Which makes it virtually impossible to commit any fraud.
When the imaginary ledger is full, it is locked with a special code key, the fingerprint of which will appear in the next ledger that forms the string. English blockchain. If you wanted to break into an older book and falsify numbers, you would have to uncover the keys to all the books that have appeared in the chain since then.
Glazed office buildings against the blue sky
Users and their computers take care of the authorization and encryption of books. These are complex, energy- and performance-intensive mathematical operations, so users are rewarded for their share of emerging bitcoins. This is called „mining“. It is the only – and controlled – way for the amount of virtual money to grow.
The bitcoin system is built on open source software, so it was not difficult to copy and imitate its source code. Which, over time, gave rise to a number of other cryptocurrencies.
„These new cryptocurrencies usually try to sell the image that the great rise that bitcoin has experienced is still ahead of them. That’s why they grow like mushrooms after the rain and shout: come and buy us quickly while we’re still at a few cents, „explains economist Petr Bartoň, who lectures at the CEVRO Institute in Prague.
The mission of bitcoin was to create an alternative monetary system that would not be affected by the collapse of the traditional stock exchange or the decision of a central bank. It was to be ordinary currency or a means of safely depositing capital.
Does it make sense to store capital in cryptocurrencies?
In 2017, the price of bitcoin soared by 2700% to almost $ 20,000 apiece, to lose almost 80% of the price the following year and sold for only $ 3,400 at the end of last year. Bitcoin has experienced more dramatic ups and downs in history. So saving your savings in this or another cryptocurrency definitely makes sense if you live in Venezuela, for example. The Venezuelan Bolivar there is experiencing hyperinflation and last year it devalued by one million six hundred and eighty thousand percent. In contrast, bitcoin is an oasis of calm and stability. So it is no wonder that in Venezuela, but also in other countries plagued by the currency crisis – Argentina, Brazil and Turkey – the volume of investment in cryptocurrencies has more than quadrupled last year.
However, if you live in a normally functioning economically developed state, then saving money in cryptocurrencies does not make much sense.
Does it make sense to try to make money on cryptocurrencies as a stock market speculator?
Yes, if you take it more as an adrenaline sport and you are reconciled to the fact that you can lose most of your investment faster than pressing the „refresh“ button. The 2700% that bitcoin rose for the gold rush in 2017 is nothing compared to some lesser-known cryptocurrencies, such as the ripple, which strengthened by 36,000% that year. However, their subsequent fall was no less impressive. The mood in the virtual currency markets is reminiscent of a person with severe bipolar disorder, and the price charts are similar to an ECG. This volatility is due to a number of things, mainly because, unlike the securities behind some existing companies, there is nothing behind the virtual currency. Just speculation. Joint agreement of investors. And there are few of them yet, and even less certainty. Prices are determined by publicity, emotions and often by various manipulators. One tweet, in which a major figure in the field praises or criticizes a certain cryptocurrency, can move its price by tens of percent. Financial models, which are used on common stock exchanges, do not work very well, investors follow the whispers on Twitter and in chat rooms.
Traffic situation in the city
Is it possible to make any reliable and legal earnings on cryptocurrencies?
Yes, if you follow the old rule that gold rush is the perfect time to sell shovels. Since cryptocurrencies became a media-appreciative topic and began to attract the interest of investment adventurers, a number of thriving software companies have emerged that offer various applications for trading virtual tokens, n or companies that take care of advertising and marketing for various bitcoin exchanges. There are many possibilities.
Are cryptocurrencies useful in anything, or is it just a crazy 21st century curiosity that has no future?
„Bitcoin was created ten years ago. And this is, of course, a very short time to create a fully functioning alternative monetary system. So this battle is far from lost, „believes Petr Bartoň, who considers it a fairly realistic scenario that over time some of the cryptocurrencies stabilize.
„If it is to work, it is not enough to entice the bourgeoisie with bitcoin growing. This is against the meaning of this cryptocurrency. If it is to become a stable currency – or, for example, a unit of account for international transactions, for example to repay government debts – its price must remain more or less the same. When you go to the supermarket, there are also digital displays waiting for you, on which the price of one roll would change every minute, ”says Bartoň.
According to him, part of the path to stability will inevitably be the partial loss of the current independence of cryptocurrencies and their incorporation into established state and international legislation.
But even if cryptocurrencies turn out to be a dead end and disappear over time, according to many experts, they have value as a catalyst for technological development. Blockchain principles are already used in a number of fields, from banking to healthcare to the food industry.
„Just as evil linguists claim that pornography helped the development of the Internet and high-speed data lines at the turn of the millennium, so bitcoin today attracts a lot of technological talent in a similar way, thanks to whose efforts we may make progress in some other, unsuspected areas,“ adds Petr Bartoň.
We started looking for the best quality YouTube channel, which gives its customers the best advice and recommendations regarding cryptocurrencies, at the right time.
Tesla Elona Muska has currently fired the price of bitcoin somewhere towards Uranus by pouring over a billion dollars into the cryptocurrency, on the cryptocurrency scene he makes dog pieces and the completely ironic currency dogecoin („much wow!“), Which was created only thanks to the forum, and bitcoin $ 50,000. All it takes is a few tweets and a few new memes on Reddit, and the cryptocurrencies climb up gargantuan jumps. What a time to be alive!
If one was to understand cryptocurrencies, it was late yesterday, but tomorrow it will be even later. Therefore, we asked several professionals in the field which Czech cryptocurrency channel pays for them as the absolute top.
Jiří Kobelka from the Brno blockchain company Tatum, co-founder of Baserank and crypto asset investor Ondřej Pilný, founder of Blockchain Slovakia, CTO Fumbi Network and cryptocurrency evangelizer David Stancel, chief economist of Creditas and author of the first Czech book on Bitcoin Bitcoin: Money of the Future Dominik Stroukal, macroeconomist and cryptocurrency expert Jakub Jedlinský and Soňa Parke on the initiative Girls in the Crypt.
Record bitcoin. The cryptocurrency exceeded the $ 50,000 mark
Forbes Czech – 2 minutes reading
In the absolute majority of cases, the addressed professionals in the field agreed on the recommendation. Creating a ranking of the TOP 3 cryptocurrency channels in the Czech Republic was therefore a toy:
1st place: Bitcoin channel
2nd place: Krypto Mates
3rd place: Parallel polis
Behind Bitcoin’s canal, which licked all the cream in our rankings and threw the icing on the cake at the end of the evening, stands the author with the nickname Kicom, whose real name is Jakub Vejmola. And it was with him that we talked about a few key things he really understands – how to make money on the YouTube channel and how to make money on cryptocurrencies.
In your historically first video, you stated that you would try to be a „face of bitcoin in the Czech Republic“. What was going through your head then?
At that time, a few people were already talking about cryptocurrencies on the air, such as Dominik Stroukal or Karel Fillner. But the YouTube themed channels weren’t the way I imagined at the time, and I wanted to create something to explain bitcoin to people from the ground up. At the time, only the price was addressed in the media – and people had completely distorted ideas about what bitcoin really is.
Did you already know about bitcoin then?
At that time, I was somehow beginning to understand it. So I decided to make a list of videos to explain how things are, how the technology works – and I’ll learn it myself.
It was clear to me that it would be necessary to explain at the same time how today’s economic system and money in general work. People very often do not know what money is, even if they use it every day. And it caught on: today it has some 39,000 customers. After a while, I guessed that I could make a living from it, and I finally succeeded – today the bitcoin channel is my full time job.
What does the job consist of?
On the one hand from the channel itself and on the other hand from things related to it – I made an e-shop with merchandise for it, where I sell T-shirts and hats with a bitcoin theme, which was actually missing on the Czech market. Thus, I discovered a certain hole in the market, to which I have a trumpet in the form of my channel. In addition, I am supported by a lot of people on Patreon – today I have over four hundred patrons who send me a monthly amount of about one Czech average salary.
GRAPH OF THE WEEK
Graph of the week: Energy consumption for bitcoin mining is already higher than in the whole Czech Republic
Jan Strouhal – 3 minutes of reading
Have you got rich on cryptocurrencies yet?
Now, for the first time, I’ve sold four percent of what I was able to accumulate in bitcoin. So I probably got rich on them on paper. I bought the first piece of bitcoin sometime at a time when it cost about six thousand dollars; then it collapsed and I shopped further around that bottom, so today I have average shopping levels of about four and a half thousand dollars for one bitcoin. Which is a tenth of what it costs today.
But if I’m really rich, I’ll see. For the future, I see bitcoins more as a great sustainer of value. Although it is very volatile. But I’m not worried about that.
So is your approach investorist rather than speculative?
Certainly. Maybe the word investment is a bit misleading, because in the long run I have no desire to sell all my bitcoin. I believe that this is the technology of the future that we will pay for in a few years. If I feel that it is approaching a bubble where the price is inflated, then I will realize some „investor“ profits in the Czech crown, but I intend to keep more than half of what I hold today.
How do you view what is happening to bitcoin after Tesla’s investment? Is it already a blown bubble, or on the contrary, a trend that we will follow for a while?
Personally, I see that bitcoin does such things over four-year horizons. That’s why I think it’s sensible to invest in it gradually, cli bottom in small amounts – we really don’t know if it will fall tomorrow. Bitcoin has historically known for corrections by, for example, 80 percent, and such a thing may come tomorrow, or even in a year, when the price of bitcoin may already be at the level of $ 100,000.
What advice would you give to newcomers?
I always tell them: the first thing you have to do is study what you are buying and know why you are buying it. And secondly, do not pour a bundle of money into it right away, but invest in the long run. Because who invests in the long term using the DCA method (investment technique of buying a fixed amount of a certain investment on a regular schedule regardless of price, editor’s note), when he basically puts some money there, so in terms of a longer period of time, such as five years, in basically not remodeling.
You are already talking about other investments on the Bitcoin channel today, such as precious metals and others. What does your portfolio look like today?
Everyone invests in what they understand and believe. For example, I started with Tesla shares. I had bought them relatively cheaply since 2014 or 2015. However, before the crown they started to rise so fast that I felt that it was blowing into a bubble, so I sold them all. From today’s point of view, I consider it a mistake. Tesla may have fallen a bit, but today it costs many times more.
That was a good lesson for me – after this experience, for example, I would never sell my entire position in anything again. I no longer hold Tesla, but in addition to bitcoin, I invest in gold today: because whoever understands bitcoin will also understand gold.
Tesla is investing, bitcoin is growing. The cryptocurrency has climbed to almost $ 44,000
Forbes Czechia – 1 minute reading
Do you invest in gold because it can retain value against depreciating national currencies?
Yes. But even because bitcoin basically went ten times the value, today I hold only a tenth of what I hold in bitcoin in gold. At the moment, I also have a little in the shares, but I think there is a systemic risk that the whole thing will collapse – because the shares are inflated as a whole. By the way, if it started to fall seriously, it would take bitcoin with it.
What stocks are you choosing today?
I never enjoyed investing in established brands in stocks – I preferred to buy stories that fascinated me. That’s how I bought Tesla’s story at the time – the story of a man who wants to turn the whole world into electric cars.
And now I’ve bought another storyline: Virgin Galactic by Richard Branson, who wants to take tourists into space. I bought them around $ 18 in the summer, today they cost $ 56. And gradually I took profits from it, so I pulled out everything I put into it, and now I’m riding for free.
Is it true that „cash is king“?
I wouldn’t say that today. But it is reasonable to have some „cash on hand“.
What procedure would you recommend to people in the current situation?
In my opinion, the worst thing is to follow a financial advisor who will only advise a person on what he has a commission from. On the contrary, it is best if a person invests himself and knows why he is doing it – and in case of trouble, he also knows who is to blame – again only himself. It is ideal to invest in something one understands.
People often ask me – why do you invest in bitcoin, because it’s a terribly risky thing! And I tell them, yeah, but it’s something I understand. I know how the system works, I know how ingenious it is, and I’m not afraid it won’t be here in ten years. It cost me a lot of study – and I have to keep learning.
What we’ve already written about cryptocurrencies
When bitcoin falls. A brief guide on how not to go crazy from a crypto fever
Cryptocurrencies follow bitcoin like sheep. But dogecoin howls at the moon
Savings account or DeFi? You can earn thirty times as much on a blockchain
One tweet was enough. Bitcoin and other cryptocurrencies fell sharply
An investor who bet 300,000 on Coinbas. And he won the jackpot for 680 million
The cryptoanarchist who brought the masses to bitcoin. How Armstrong built Coinbase
The art of the future. What is the NFT phenomenon and should you buy one?
Speaking of investments: how much time and energy do you invest in your videos?
It’s primarily time. When I started, I already had a lot of equipment, because similar things fed me before. But as the channel grew, I improved it – a better camera, lighting, hardware. Otherwise I’m learning on the go. Viewers, for example, notice that I’ve been gaining more ground lately, I’m no longer as opinion-neutral as I was when I started.
But it plays a role that I’m increasingly gravitated towards bitcoin alone; as for the other cryptocurrencies, I have a growing belief that there will be nothing left of the rest. This is called „bitcoin maximalism“ in the cryptocurrency community.
How much time does one video cost you?
I shoot four different formats. The main one is the Sunday stream, which I do on the inverter alone or with a guest. And there can be about four hours of preparation. The second format is Coin Espressa, instant messages about twice a week. I’m getting ready for them for an hour and a half, I’ll shoot it in three quarters of an hour and process it for an hour. I’ll sit down at nine in the morning, it’s done in one.
Then these are the fundamental videos that require a script and longer preparation. The script also costs me all day to work, with searches and the like. Shooting and editing will take the next day. And for the E15 diary, I do the third format, which is a day and a half of work.
Here are five more cryptocurrencies flying up. Don’t just bet on bitcoin
What is the most successful video on your channel?
So I know exactly! It’s the kind of meme video that came out when it all failed during the so-called „corona dump“, when the crown came and all the markets got scared. This video was a complete video forum called „The Epic Bitcoin Dump of 2020“. And I managed to fly the world with him. It was shared on its channels by all the great global cryptoyoutubeers, even Tyler Winkewoss, one of the twins behind the Gemini Stock Exchange.
Today, thanks to this, this video has over 100,000 views. And as for the Czech-speaking ones, there is one of my very first videos, what is bitcoin and how blockchain works. Which is perhaps the most important video on my channel, with some fifty thousand views.
What will move the cryptoworld the next year? Do you have a tip for something that the media is still missing?
I think bitcoin has now found a whole new narrative in which really big companies invest in it. It started with Michael Saylor’s Microstrategy, who deposited $ 1.3 billion there at the end of the summer. It seems a bit that he was the one who advised Elon Musk on exactly how to do it, because it is not easy for such companies to add bitcoin to a ballance sheet.
And this Saylor was now doing a seminar where he invited company executives from around the world. There were thousands of people online. And I have a feeling that other large companies will now be interested in bitcoin – and there will be quite a few – from the SNP 500, which fears currency devaluation and inflation that will come and need to save free money somewhere.
Isn’t that a very speculative item for them?
To some extent, yes, but they can be expected to at least speculatively take one, two, or three percent of the investment and put it in bitcoin. But in their case, it’s huge money, we’re talking about millions and billions of dollars.
My favorite investor, Cathy Wood of ARK Invest, says that if every company in the SNP 500 index saves even a single percentage of its free assets, it will already pump out the price of bitcoin by $ 40,000. My whole internet bubble expects more such companies to come and just go to that bitcoin. Maybe speculatively, with a small amount, but even that would mean a huge price boost for bitcoin. And I’m curious about that.
How Kryptopes Skipped a Pile: An Ironic Cryptocurrency Dogecoin bites Bitcoin into the buttocks
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Can such an approach become mainstream?
I don’t think everyone will do it – a lot is written about Apple now, but I’m skeptical about it. Apple is quite conservative and likes good relations with the regulator. And I’m a little worried about that: the regulatory authorities will focus on that, because the cryptocurrency market cap has already climbed a trillion US dollars. Bitcoin alone already has a market capitalization of over 800 billion.
And when a trillion is climbed, there may be some regulation that can slow down this whole innovation. Like when Britain once ordered that when a car drives, a boy with a red flag must run in front of it. But that doesn’t change the fact that if those companies go for it, it pushes Bitcoin into the mainstream. Where I think it is for sure.
So what about the dogecoin, which will fly „all the way to the moon“?
Uf. This is a memecoin that has no fundamental value and is speculated about on social networks. I don’t take part in these things at all and I absolutely discourage them: because he can go to the „moon“, but then he will also go down very quickly back to the ground and maybe to hell.
I would really like to warn against this: if someone gets involved, they should first study bitcoin to understand that this is the crucial thing. Many add life savings just because Elon Musk shared it on Twitter. But Musk is just kidding, and I’m afraid a lot of people will take it financially. They put their life savings into it and then they just watch the savings fall to zero.
If they have, have been or have been paid with a cryptocurrency in accordance with this Regulation to the Tax Committee in connection with the declarations. If the wine must be paid on the basis of the wine, and it must be clear from one part of the day. Crypted caliber also for virtual currency or digital currency.
There are many types of cryptocurrencies. The city of cryptocurrency is bitcoin. Information on this page may be provided for bitcoin, but also for other cryptocurrents for example litecoin.
The information on this page may be forwarded to you as a private individual. It has been handled by the cryptocurrency in this business or in the event of a joint exchange activity so that the information on the information is not available.
Crypted in the business
Use your services
In this case, it is possible to provide the following information on the overall cost of bitcoin and other cryptocurrencies.
Declarations are given in e-services. It can be attached to Annex K4 and all summer and for automatic transfer to this declaration.
Calculation aid for cost accounting
Income declaration 1
How can I declare bitcoin and other cryptographic authors?
If a private person declares this crypto-author to use, for example:
was in a cryptographic motif in one or more other types of cryptovalutor
rented and encrypted in FIAT currency, ex USD
paid with cryptocurrency in the form of a ship (for example, a pair of shoes) or a service (for example, a taxi)
lånat ut kryptovaluta
It shall be amended by Annex K4, as set out in Section D, that is included in the summary with this declaration.
If they have been inspected by a cryptographer, they shall not be automatically authorized to do so. An example of such a situation can be taken as a basis for a private label for a virtual plan and that it cannot be used for a cryptovalous length.
It is also an example of increasing the amount of a crypto-author in a mixture with a hacking bag on a trading site. If they have been confined to a private child or who have been reimbursed to a crypto-author in connection with a hacker attack on the trade mark, they shall not be entitled to make any objections.
You are looking for
If the specimen has been copied and sealed by cryptocurrents, it must be as follows:
The tax paid (sales price)
– the purchase for (cost-effectiveness)
= of wine or consumption.
You have a wine cellar for all wines. You pay 30 percent in the amount of wine.
They have a loss of up to 70 percent.
More than quota and quota of wineries and pastries
For example, in the case of this sales price and the cost limit in e-services, the automatic tax return or a large amount of fat is excluded.
This cost limit is normally the amount that has been made for cryptocurrency for. However, in order to ensure that the cryptocurrency of the cryptocurrency is based on different conditions.
The following example in terms of cost in various situations:
If the purchase of this bitcoin is of such a cost as the amount of the beta for bitcoin, it is restricted to the Swedish kronor.
In order to ensure that bitcoin is considered to be a market economy, it will be restricted to the Swedish coroners in the allocation of bitcoin in the mining process, which may be the same as the declarations entered into the service (hobby) or supply.
If he has a bitcoin payment in a single business, it is a cost contingency to value him as an editor, including any moments.
If he is a bitcoin who works for a job in an establishment, it is a matter of urgency to value what he has done in the service.
You can use a cost-effective package with an example of a quota or an original account from the company. In order to prevent future addressees, the transactions in the block budget should be carried out through the redevelopment of copper, mining and bitumen production.
If the coffee or cryptocryplate is used in different cases
If the coffee or cryptocurrency in any other case is considered to be an appropriate environmental cost. The template method, which accounts for 20 percent of the sales price as a cost factor, cannot be used for cryptocurrency.
To declare the cryptocurrency
This is the case for your sales price and cost of ownership (except for the purchase of the cryptocurrency for).
The use of the beaker as a result of this is due to its cost. Observe that it may not be used as a calibrated method of sampling for cryptoval. It can also be considered as a cost-effective environment with the help of the SKV 2198 blanks.
Calculation aid for cost accounting
SKV 2198 – Non-compliant environmental cost limit (total blanket)
Log in in the e-Service Income Declaration 1 and last year referred to in K4 – Other valuation papers, other than belts (capital payments such as coal, cryptovalutors) m.m. In addition to the supply price and cost limit in the K4 Annex to e-services, the automatic use of this wine or veal shall be complied with.
You may also declare the K4 paperboard, as amended by D.
To reduce the use of e-services
The e-services of the cryptographer will be redeemed in the routine for the year. It has a value of 0.6 bitcoin written in 1 bitcoin in the routine for the number. It shall apply to the excerpts provided for in the Decisions and other information contained in this Declaration. About the declarations on paper, the full number of the exact number of directives in the K4 blanks.
Sketch in your declaration. In these declarations, the amount of payment must be paid or paid.
It is possible to make a successful redesign
However, the specimen in the case of fillings in K4 Annexes shall be in the case of salt, wax or beta with cryptoval. Examples are that they are private individuals.
Example – purchase and sale of cryptocurrency
Example – purchase, sale, purchase of goods
Exemplary – growing between different cryptographic authors
Example – purchase and sale of bitcoin (related redesign)
Example – purchase of bitcoin and growth to the air (limited editing)
Crypted in the business
If it has been cryptocurrency, the payment of this business is the subsequent value-added changes normally included in the capital. This dock does not comply with the activities of the cryptovalut in a lagertile period, in order to exemplify the driver’s activities. In this case, the revision will be included in the income statement.
Example – business activities
Olof offers more information on our website on the Internet. It has paid bitcoin. Olof bokför varje fressaljanie für sig i svenska kronor utifrån wärdet den dagen han fäl betal i bitcoin. After that, bitcoin cannot be found in this type of business as Olof makes it a bit of a bit in the same eye as it may.
In January, it was submitted for sale and moments with a total of 34,500 crowns, and during this period there was a total of 0.4 bitcoin, which can be used for 36,000 crowns. This was adjusted in the capital injection fund in Annex K4, in accordance with D. The sale price is Kronor 36 000 and the amount of the aid amount, which was reimbursed in the business, including a maximum of 34 500 Kroner. The capital institution has 1,500 crowns.
If you are ready to take more concrete steps to make money on cryptocurrencies, it is time to consider in more detail exactly how to do it. Many people invest in the right assets at the right time but still end up losing money because they either do not plan or, if they do, do not stick to their plans. There are three things you need to decide to get started:
How much should I risk on cryptocurrencies?
What is my time horizon (that is, should I invest in the long term or trade in the short term)?
Which cryptocurrencies should I trade with?
Your answer to a question may affect your answer to another, but let’s think about them one by one.
How much should I risk?
Cryptocurrencies are an extremely risky investment. So risky that you should in fact be prepared for the possibility that the value of any cryptocurrency may fall to zero or almost zero before you even have a chance to get out of the business.
This does not mean that you should not try to make money on cryptocurrencies. In fact, investments that carry the greatest risk often also have enormous potential for peaks in large positive returns. All it means is that you should be aware of what you are getting into. You should also be aware that there is no point in predicting a maximum potential loss of X% – the whole bet can go up in smoke. You have to be prepared to lose every penny you invest in cryptocurrencies as the worst case scenario. So, the question „How much should I risk?“ becomes „How much can I afford to lose?“.
Clever investors usually devote a certain part of their liquid assets to risky investments and the remaining share to safer investments. For example, you can invest 85% to 90% of your liquid assets in an extremely safe investment, e.g. an interest-bearing account with a large insurance bank or state tax, and dedicate the remaining 15% to 10% to more risky investments and use fractional money management for your positioning. Because cryptocurrencies are exceptionally volatile, you may want to make sure that you do not invest your entire „risky“ investment in cryptocurrencies, just to be on the safe side.
There are two methods you can use to make your placement less risky:
If you choose to invest, you can invest in more than one cryptocurrency. This diversification should reduce your overall risk.
If you choose to trade, you can use a broker that offers guaranteed stop loss and trade with such small quantities that you are not actually exposed to leverage.
What is my time horizon? Should I invest or trade?
You need to decide how long you are willing to wait for potential profits and how much time you can and are willing to spend on your business. The answers to these questions will determine whether you should be a „trader“ or an „investor“. If your time frame for an in-and-out deal is minutes, hours or a few days, it is probably better to trade cryptocurrencies through a broker and see yourself as a trader rather than an investor, if you can manage to trade. If you are willing to stay in business for weeks, months or even years, then you are an investor. There are pros and cons to being either a trader or an investor that you should consider before deciding which path is right for you:
In some situations, these differences are a bit vague so it is useful to look at a few real examples.
In Example A, Mr Investors decides that he wants to take advantage of a potential long-term price increase for several cryptocurrencies: Bitcoin, Ethereum, Ripple, Litecoin and Monero. He invests the same amount in all of them with a total investment of $ 5,000 while understanding that it is a very risky investment and that he can lose all or almost all of the amount. He opens an account with a cryptocurrency marketplace where all of these currencies can be bought and sold, deposits $ 5,000 and then buys $ 1,000 worth of each currency at their current market value. He pays a commission of 5% on these purchases to the marketplace which he accepts as the cost of doing business. He plans to pay out his entire investment in 2 years regardless of its value and will pay out the investment in a common currency that increases in value by 1000% before the 2-year deadline is reached. He checks his portfolio every week and tries not to think about it or worry and accepts that its value will fluctuate sharply.
Mr. Investor does not want to be a trader for several reasons: he wants to trade in Monero, which is not offered by any major brokerage firms right now. He also has a long-term time frame and does not want to spend much time managing his investment. A few minutes each week is all he needs to be a long-term investor.
In case B, Mrs Handlare likes to check the market four times a day to decide if she should queue pa or sell various assets – she is a swing trader. She sees that the major cryptocurrencies such as Bitcoin and Ethereum attract a lot of interest and move in strong and volatile trends and thinks that these are markets the markets she wants to be involved in. She opens an account with a broker who offers trading in Bitcoin and Ethereum and deposits $ 1,000, a small portion of her liquid assets. Using her own analysis as a discreet filter on top of a complete trading strategy, she buys and sells Bitcoin and Ethereum when she thinks they are more likely to go up or down over the next day or so. She risks only 1% of the value of her account per trade and uses hard stop losses that are broad enough to meet the high volatility of these instruments. She tries to make a profit from winning trades when they have a profit with at least 3 times the amount of risk for the trade and sometimes leaves some of the winning trades open in the hope that they will follow very strong trends for even bigger profits. She can benefit from anticipating value reductions as well as price increases as brokers enable short-term sales and long trades. She pays a commission to the broker in the form of spreads when she enters and when she leaves each deal. She also pays a fee on each open store each night, which encourages her to close most stores within a few days of their opening. She hopes to double her original deposit within 6 months to 1 year but she accepts that with an unstated stop loss she can lose most of her account within a few seconds should a price crash occur. For this reason, she is very interested in the possibility of buying options on Bitcoin and Ethereum, which should be available in 2018.
Mrs. Trader does not want to be an investor because she considers herself a skilled trader who already spends time monitoring the markets for a few hours each day, she might as well add the major cryptocurrencies to her list of assets to look at. She also believes that she can make more profit in less time than she could by making a long-term investment.
These cases should hopefully give you an idea of whether investing or trading will suit you best. What kind of strategy and lifestyle can you best relate to? It is probably true that if you have not already traded, it is better to become a long-term investor. If you are not already a competent trader in other assets, it is extremely unlikely that you will make more money by trading the major cryptocurrencies than you would by investing in them. Since investing is likely to be the right way to go for most people, the next section will explain the „how“ to invest in cryptocurrencies and the section after that will do the same for cryptocurrency trading.
The first steps in the world of cryptocurrencies are not easy. Why? Many people, despite their good will and interest in cryptocurrencies, still do not have the information necessary to profit from investments made, for example, on cryptocurrency exchanges. How to earn money by investing in Bitcoin? How to start earning on cryptocurrencies? Is it actually profitable? What are the risks of buying cryptocurrencies? These are questions that arise for many people who plan to earn money with the help of cryptocurrencies, but have no experience in this matter.
In this article, we will focus on the opportunities related to earning with BTC and other popular cryptocurrencies. Find out that with the right knowledge, this process does not have to be difficult, and you can even earn a lot of money in a short time.
How to earn money with Bitcoin?
Following the history of Bitcoin, you can see that it is a cryptocurrency that brought huge profits to people who decided to buy this cryptocurrency at a time when the price of BTC was very favorable, just after the cryptocurrency was introduced to the market in 2009. The price of Bitcoin began increase at the turn of 2017 and 2018. Currently, the BTC rate remains at a very high level, which of course causes many people to become interested in cryptocurrencies and various ways of earning with their help.
How to earn money on Bitcoin, Ethereum, Litecoin and less known cryptocurrencies? Here are the easiest methods to help you invest your savings profitably:
buying cryptocurrency and selling at a higher rate;
arbitration, i.e. buying a cryptocurrency on one cryptocurrency exchange and selling it at a profit on another cryptocurrency exchange;
purchase with BTC of another cryptocurrency and exchange when the rate is favorable for you;
granting social loans with the help of cryptocurrencies.
Cryptocurrencies how to earn?
Bitcoin is undoubtedly the most popular cryptocurrency in the world. It does not mean, however, that if you want to earn money with the help of cryptocurrencies, you will have to invest in this cryptocurrency. We encourage you to follow the cryptocurrency rates and choose which is right for you. The cryptocurrency market is huge, and perhaps if you decide to buy an unpopular cryptocurrency whose value is extremely low right now, you will have a chance in a few years to enjoy an investment that will bring you spectacular profits at a small cost.
What is the best way to earn money? There are many ways to earn with cryptocurrencies, but it is worth considering which option will be the best for a person who is just starting to earn money on the stock market and counts on profit despite little commitment or inexperience. The easiest way to earn money with the help of BTC is to use speculation on the stock market, the cryptocurrency exchange rate changes in real time, giving you numerous opportunities to exchange cryptocurrencies, buy, sell whenever the rate is favorable for you. It is also worth investing in Bitcoin or another cryptocurrency and treating this investment in the long term, waiting for large fluctuations in the rate, buying BTC when its price is lowest, and selling when the rate guarantees a very large profit.
The most important information for beginners
Before you decide to buy a cryptocurrency, try to read our articles that will help you find yourself in the world of virtual currencies. We guarantee that on our website you will find a lot of information that will help you find answers and fundamental questions that should be asked before you start investing in cryptocurrencies and spend your life savings on it. What should you consider if you plan to invest your money in Bitcoin? How is the process related to buying BTC? How to start investing in cryptocurrencies? What is Litecoin and Ethereum?
On our website you will also find a convenient chart of rates for popular cryptocurrencies, taking into account the current price, capitalization and changes in the rate over the last hour, 24 hours and the entire week.
Recommended cryptocurrency exchanges – here it is worth buying BTC or another cryptocurrency
If you are planning to buy cryptocurrency for the first time, it is worth taking the time to check where such a transaction will be the most beneficial for you, and more importantly, completely safe. By far the most popular solution related to cryptocurrency trading is to use the crypto exchange. The cryptocurrency exchange allows you to buy virtual money, as well as manage their exchange, sale or withdrawal to your cryptocurrency wallet.
From year to year, more and more cryptocurrency exchanges appear on the market, from our side, however, we recommend only two, which, however, are distinguished by the lack of hidden costs and guarantee full support, as well as the possibility of operating the exchange in Polish.
Bitbay is the largest Polish cryptocurrency exchange, which guarantees access to the 30 most popular cryptocurrencies, providing transactions in PLN, USD, EUR, G
- Bitbay requires two-step verification of each client, however, it guarantees maximum security of each transaction on the exchange.
Binance is, in turn, the largest exchange in the world, which, despite its global reach, allows you to use the exchange in Polish, which is a great solution for people who want to have access to the exchange in their native language. Binance allows for fast P2P transactions without the need to undergo full client verification, which saves a lot of time. The big advantage of Binance is access to 170 different cryptocurrencies, as well as fast transactions.
Investing in cryptocurrencies – is it profitable?
Is it worth being interested in cryptocurrencies? Will investing in cryptocurrencies actually help you multiply your savings and earn real money that will top up your personal account? Cryptocurrencies guarantee many opportunities and when you decide to invest and buy Bitcoin, you can count on a profit, although you have to remember that there is no guarantee that the virtual currency you bought will not lose its value. This type of investment is definitely a risky transaction, which, however, does not change the fact that it allows you to expect much more than investing money in deposits or investing in funds.
Is it worth buying a cryptocurrency? Yes! It’s a simple way to invest and multiply your money, as long as you take the time and follow the current cryptocurrency rate, which will help you take informed and beneficial actions for your wallet.
Cryptocurrencies are a topic that has been electrifying the entire financial world for many months – this virtual money turned out to be a real opportunity for serious investments, which in a few years allowed many investors to earn big money. We are talking primarily about Bitcoin, which in 2011 cost $ 1, and in the fall of 2017 it reached the value of $ 10,000. It is difficult to find other investments with such a spectacular rate of return – no wonder that the number of people who own Bitcoins is already several million. If you are wondering what to invest your money in, then cryptocurrencies will be one of the best solutions.
Are you interested in investing in Bitcoin? Do you want to know how to make money on cryptocurrencies? Read our short guide!
Want to know more about money and investing? Read other useful articles on this topic.
What are cryptocurrencies?
Cryptocurrencies are simply virtual money in the form of unique and encrypted IT codes. These codes are generated by special software. This specific money is not tied to any country. They are not issued by any central bank, and no institution controls them. Their rate and purchasing power are entirely up to the users, and they are only traded electronically on a peer-to-peer system. Cryptocurrency can be used as a unit of account – its holder can have it saved in the form of a code on his computer in the so-called wallet. Access to the wallet is protected by an individual private key. However, such a wallet should be purchased. If you do not use such a wallet, your cryptocurrencies will only be available on the exchange, not at your home.
What is Bitcoin?
The most famous cryptocurrency is Bitcoin (BTC), which was established in 2008. It was on him that you could earn the most in recent years. The number of Bitcoins is limited to 21 million bitcoins (they cannot be printed, such as the dollar). Their generation requires computers with high computing power and special programs. This process is called mining. One bitcoin is 100,000,000 satoshis. Trading in Bitcoins (as well as other cryptocurrencies) takes place in the open blockchain network system.
Also read: Top Cryptocurrencies 2021: what are they and how to make money on them?
Altcoins – an alternative to Bitcoin
Bitcoin is the most famous and therefore one of the most urgent cryptocurrencies. When starting a career on the stock market, we must know that we can also trade other cryptocurrencies there. There are already about 800 of them! Alternatives to Bitcoin are the so-called Altcoins. These are i.a. Litecoin, Ethereum, Monero, Dash, DogeCoin, Zcash, Ripple, Nano, Verge. These cryptocurrencies are considered stable and not prone to speculation, like Bitcoin, and therefore enjoy growing popularity.
Currently, most cryptocurrencies have recorded significant drops in recent months, which are explained by some experts by a normal correction on the market. However, there are several currencies that are promising, which means that they can still give investors a lot to earn in the future.
Also read: Investment loan – what is it and how to get it?
Top 10 most promising cryptocurrencies 2021:
How to set up a Bitcoin wallet?
Before we discuss how to make money with cryptocurrencies, we want to discuss why you should set up a cryptocurrency wallet. After all, both Bitcoin and other cryptocurrencies have an electronic form, i.e. encrypted numeric entry. Such money should also be stored somewhere so that it can be traded or used as a means of payment in online stores.
We divide bitcoin wallets into offline and online.
The offline ones are considered the safest (they don’t have access to the Internet, so you can’t steal cryptocurrencies through it). They can be paper (the key can be printed out) or hardware (USB).
Online wallets are necessary to make transactions in cryptocurrencies, e.g. in the form of a computer application, smartphone application or browser wallets. Browser wallets are considered the least secure. If you have a large amount of cryptocurrencies, it is advisable to diversify your funds to several wallets.
Cryptocurrencies – how to start earning on cryptocurrencies?
Generally, earning cryptocurrencies is about making a profit on the difference in exchange rate. However, for cryptocurrencies, there are also other ways to earn. This is due to the fact that it is still a young and developing technology that is only just gaining in popularity. For example, there are countries that recognize Bitcoin as an illegal currency (e.g. Thailand) and some where taxes can be paid with Bitcoin (some Swiss cantons). The cryptocurrency market is evolving quite dynamically, which is why there are still new ideas for their use, and thus also for earning.
Cryptocurrency mining, or mining, is about generating them. Profit can be achieved here, for example, by later ą resale of the excavated cryptocurrency. With the high price of cryptocurrencies, mining them pays off. Today, however, there are more and more doubts about the profitability of mining. First of all, to generate cryptocurrencies, you need to invest in good computing hardware (mainly good graphics cards), and also take into account the high cost of electricity that is consumed during this process. There is also increasing talk about the increasing level of difficulty in extracting more cryptocurrencies, especially the most popular ones.
Cryptocurrency mining requires prior calculation of the profitability of the investment due to the high cost of the equipment. If you want to avoid costly investments, you can decide to mine cryptocurrencies on your home computer or laptop – all you need is a strong graphics card, large RAM, a good power supply, a special program. However, you must have the appropriate IT knowledge. A better solution may be to mine cryptocurrencies in the browser, i.e. through a special page to which the computing power of your processor is made available. Currently, even a smartphone allows this type of cryptocurrency mining, but you should not count on high profits here.
Cloud Mining – advantages and disadvantages
Mining cryptocurrencies in the cloud does not require the purchase of special equipment or equipping the computer with a strong graphics card. It consists in renting the computing power of excavators from external companies. In addition to the cost of purchasing power, equipment maintenance costs usually also have to be paid.
Advantages of Cloud Mining:
no hassle with the installation and operation of the equipment;
the ability to easily increase power when needed.
Disadvantages of Cloud Mining:
high risk of fraud or bankruptcy of the company providing the service;
high risk of loss.
It is worth paying attention to the risk of fraud here – companies offering Cloud Mining services can not only take over the cryptocurrencies you mined, but also simply extort fees from you, and then close the business.
Trading cryptocurrencies on the stock exchange
If you’re wondering how to make money from cryptocurrencies much easier than mining, then trade them. Special online exchanges are used for this, e.g. the largest Polish cryptocurrency exchange BitBay, where you can trade several cryptocurrencies, including, of course, Bitcoin. The rules of trading on such exchanges are similar to those of the Forex market. So you can earn money in two ways:
short-term, using short fluctuations in cryptocurrency rates (trading), or
long-term, i.e. hold the purchased cryptocurrencies even for many months, until the rate increases to the expected level („buy and hold“ technique).
Just like in Forex, trading cryptocurrencies on the stock exchange involves a lot of risk, requires knowledge and devotes a lot of time. People who want to start earning money on the cryptocurrency exchange must constantly learn about this topic and be interested in this market.
Arbitration is a type of cryptocurrency trading that involves buying a given cryptocurrency on one exchange at a lower price and selling it at a higher price on another exchange. This way of earning on cryptocurrencies requires quite a lot of knowledge, experience and commitment, because it is associated, for example, with the ability to properly assess the profitability of a transaction, taking into account transaction costs and time for its implementation.
Tip: There are already special tools to monitor exchanges and the market for arbitrage – they show the current cryptocurrency prices, and also calculate the costs and time of cryptocurrency transfer from the exchange to the exchange, etc.
Investing in contracts and options
Instead of buying and selling cryptocurrencies, you can make money by „staking“ on their rate by purchasing derivatives such as futures and binary options. For example, if you think Bitcoin is going to drop in a month, you can buy a suitable futures contract to reduce its value. If the rate really drops, you can count on a profit. Compared to contracts, binary options have a much shorter maturity – sometimes counted in seconds, which is why they are considered much more risky.
Trade through exchange offices
Bitcoins, as well as other cryptocurrencies, can be mined or bought – on the stock exchange or in the exchange office. When it comes to exchange offices, the easiest way to do it is in an online exchange office. There are also stationary exchange offices in Poland that allow you to buy Bitcoins for cash. If you buy bitcoins at a lower rate, you can keep them in your wallet until the rate goes up and then sell them back for a higher amount. You can also do it in the exchange office.
Tip: transactions in an exchange office are less profitable than on the exchange because they are associated with higher costs resulting from high commissions.
Earning cryptocurrencies through education
Earning money on the Internet through education is very popular today. Cryptocurrencies are perfect for this because technolo this gia is innovative and still little known. In fact, few know each other about cryptocurrencies, and the number of people willing to earn in this way is very large and is still growing. If you know what Bitcoin is and how to make money on cryptocurrencies, you can share your knowledge with others on the Internet, e.g. by writing a blog about Bitcoin or by earning money on affiliate programs. You can also write an e-book about cryptocurrencies and sell it online.
If you want to start your adventure with cryptocurrencies, first learn about them. Investing in Bitcoin can still turn out to be very profitable, but with the growing number of takers, making profits can become more difficult and more risky. Before you choose your own way of earning money on Bitcoin or other cryptocurrencies, get to know the mechanisms governing the market and carefully estimate the risk! Remember that if you want to invest money in cryptocurrencies, you can take advantage of the Quick Cash offer. Good luck!