Here I am at my desk with my new Nano X Ledger that I just bought and I think to myself, ‘What is cryptocurrency and how can you make money with it?
How to make money with cryptocurrency
The very best method for making money on cryptocurrency like Bitcoin is with a cryptocurrency transaction robot. This free transaction system works according to a very simple principle: it monitors 22 trading platforms simultaneously and buys automatically and at a low cost cryptocurrency from platform A which it immediately sells on platform B at a higher price.
In this way, you can easily make small profits (a few cents), but the best thing about this system is that the robot makes these transactions continuously, an average of 20 pieces per minute.
If you don’t know how to set up a trading bot, you can just Google or search on Youtube on how to do it. It’s fairly easy.
But I wanna show you another way if you think setting up a trading bot just sounds too complicated and this method simply just involves you buying crypto and storing it on Blockfi.
Check it out:
What is cryptocurrency?
Cryptocurrency is a digital currency, which means that you trade exclusively with it online, and it lacks physical form. This is significantly different from traditional currencies, which are usually based on expensive metals, such as gold.
However, where fiat money is generated in accordance with the state or a commodity, this type of virtual money is generated using encryption techniques. The programming regulates the use and release dates of cryptocurrencies.
The encryption techniques are, based on how well programmed they are, what guarantees the value and ensures that the process is reliable.
This decentralization means that states, banks and other financial institutions cannot move this money… unless the country prohibits users from trading with them at all (more on that later!).
Cryptocurrency: Where does the name crypto mean and come from?
Its name comes from cryptography – where you convert plain text to unreadable text – and encryption – which is the process of converting private data into a code for extra security.
Similarly, your cryptocurrency account contains confidential information that others cannot access, as well as an accounting process that cannot be changed once the records are complete.
What is cryptocurrency useful for?
Cryptocurrency can be used for a variety of purposes, as long as the seller accepts it as a payment method. There are things that cryptocurrency is used for today:
Other uses of cryptocurrency
Cryptocurrency can also be used as a direct payment method between users of a particular cryptocurrency, which is suitable for a variety of online activities.
This is especially convenient for people who work from home (or who want to do so). More and more globetrotting freelancers are starting to accept cryptocurrency as the preferred method of payment – mainly thanks to the decentralization and freedom it provides.
Why cryptocurrency has come with some contreversy
But ever since it first came to the attention of the public, cryptocurrency has gained a somewhat controversial reputation.
Why is it so if it comes with so many benefits?
Due to their private nature, cryptocurrency can sometimes attract illegal activities. This is, of course, the case with all successful methods of making a profit – not to mention money in general.
A good question to ask regarding this is: what is cryptocurrency designed for?
The creator of bitcoin certainly planned that his cryptocurrency would be a replica of the highly centralized financial institutions and states that directly affect the value of currency.
Why you should use cryptocurrency
There are great benefits to using cryptocurrency rather than virtual money linked to fiat money.
1. Freedom of purchase
What is cryptocurrency if not total financial freedom?
In contrast, cryptocurrency gives you the freedom and responsibility to spend your assets on whatever services you want.
This also goes in the other direction, as people can use it to pay for the services you provide.
2. Cryptocurrency: Anonymity
Shopping online is safe and anonymous.
Private key information guarantees that your virtual wallet can be accessed privately and that transactions are kept secure and not monitored by a third party.
It is true that many wallets now require ID and registration in order to start buying / selling coins, as countries have cracked down on cryptocurrency for tax reasons.
But the transactions are still completely anonymous and private.
3. No conflicts with payments
With a decentralized currency, there is no worry about frozen assets or that your salary will be taken back due to disputes. All transactions are final.
Decentralization also means less risk of fraudulent transactions.
4. Lower transaction costs
What is the cost of cryptocurrency for you on a daily basis? Advantageously, transaction fees are very low.
With cryptocurrency trading, one can actually expect much lower costs in general, since transaction fees are not charged based on the total value.
They are charged entirely according to the provider of your bitcoin wallet and have a very small, fixed cost.
5. Cryptos worldwide availability
Cryptocurrency is available at most exchange offices in the world, unless specifically prohibited. At the time of writing, there are several countries that have completely banned bitcoin.
Cryptocurrency is especially useful if the country you live in is going through a government crisis and capital exchanges have been stopped.
Cryptocurrency allows you to trade assets with other users, without limits.
6. It’s available 24/7
Cryptocurrency transactions can be sent via email or SMS whenever you want. You can also store your assets offline, with the assurance that the key information is kept secret.
Once you have transferred funds, you do not have to be online or pay any excess fees, unlike a bank.
How does cryptocurrency work?
Cryptocurrency is not printed as ordinary money and is not authorized by any authority – instead it is generated automatically and strictly in accordance with algorithmic rules. These algorithms depend entirely on the currency in question.
When users transfer bitcoins, they use a P2P network: a direct server-to-server connection without a central provider.
Cryptose is created digitally and should only be used digitally. You can buy ones that have already been “broken” or break them yourself.
All transactions are recorded in a large virtual account called a “blockchain”. Since this accounting is always public and accessible, every single “coin” is accounted for, which makes it impossible to cheat the system.
It is constantly updated to maintain its value.
What is blockchain?
Many people, even those who know a lot about cryptocurrency, get confused about this topic, and when asked, “What is the blockchain of cryptocurrency?” it is difficult to get a good answer.
But I can help you, do not worry.
Sometimes it can be quite confusing to understand a blockchain (which is a common feature of all types of cryptocurrency).
It’s an account, but is it actually a network located in a specific location?
Yes and no. According to PC for all, blockchain is a digital register, and is usually connected to the technology behind cryptocurrency.
What is blockchain? (Short explanation)
Here comes the short version: there is no centralized authority that runs a network or a blockchain. Blockchain is actually maintained by a network of users using P2P technology.
This means that it is everywhere and nowhere at the same time. This decentralization is what makes cryptocurrency so powerful and revolutionary.
Never before has monetary power actually been in the hands of the common man, without the backing of a state.
What is cryptocurrency mining?
Mining, basically means verifying the latest series of transactions, and then adding them as blocks in the general accounting.
After a series of blocks, this blockchain will eventually automatically generate a new cryptocurrency coin.
However, due to the competition between cryptocurrency breakers and expert encryption, it is a challenge to mine a single coin, especially bitcoin, which is the oldest cryptocurrency.
Switches must first solve a computationally difficult puzzle (called a hash), and this requires high-performance computers and the right software.
How to keep your cryptocurrency safe – a cryptocurrency wallet
You may be wondering, “What is the cryptocurrency’s way of dealing with theft and hacking?”.
Of course, you do not have to mine coins to get started making money on cryptocurrency. All you need is a wallet app or website portal to get started.
Cryptocurrency wallets are like physical wallets because they simply “hold” your financial information. In this case, the wallet also calculates information for you, because you can immediately withdraw or deposit funds, and change your balance immediately.
Here’s an example video:
How to buy bitcoin safely
Because these virtual coins are digital, not physical currency, there is a very small risk of theft, even if it is significantly less than the threat of traditional online scams.
Because encryption requires multiple signatures, each wallet company needs to guarantee a high level of security for the information in question.
Just to be safe I will show how to buy bitcoin in a safe manner:
How to make money with cryptocurrency
When it comes to cryptocurrency, there are many strategies and methods by which you can earn coins.
It is not surprising that many lucrative subfields have emerged from cryptocurrencies, given its potential for growth, innovation and profit.
Here comes a few examples:
When it comes to day trading for cryptocurrencies, it works in practice in the same way as when day trading stocks.
You can daytrade cryptocurrencies in different ways, some are more advanced than others. The simple way is to, for example, buy 1 BTC (Bitcoin) and then sell it for a more expensive price.
More advanced ways are that you ‘short’ Bitcoin.
You do this when you think the price of Bitcoin or other cryptocurrencies will fall. Then you borrow money at a predetermined price from an exchange to later sell Bitcoin when the price has gone down.
Day trading can be the most profitable way to make money, but also a little more risky.
How to daytrade with bitcoin:
2. Mining cryptocurrencies
One of the historically most profitable ways that people have become rich through cryptocurrencies is by mining them.
But, today, Bitcoin and other cryptocurrencies are mined all over the world, but unfortunately for Bitcoin, it has become so incredibly popular that now it is mostly companies or people with very advanced equipment that are successful.
As with gold, it was easier to dig out new gold when competition was less and fewer had been found.
As with Bitcoin, the difficulty increases through increased competition and fewer Bitcoins left in the world to dig out.
How to mine crypto:
3. Invest and hold
Like investing in stocks, mutual funds or securities, you can also easily buy cryptocurrencies to save in the long run.
More and more people have started jumping on the cryptocurrency bandwagon and see it as one of several different investment opportunities.
4. Make money by ‘staking’ cryptocurrencies
So instead of mining new cryptocurrencies, by placing your cryptocurrencies in a specific wallet, you can help validate new transactions.
By keeping your cryptocurrencies in this wallet and connected to the blockchain, it helps them validate new transactions, like mining.
How it works:
5. Make money by accepting cryptocurrencies for payments in real life
If you run a store or shop today, you can actually accept cryptocurrencies as a means of payment when someone shops with you.
You might be wondering what benefits it has?
And of course there are both a couple of negative parts and positive to begin with.
The downside is that you have to declare sales separately to your countries tax agency (every country is differen’t so I cant fully answer this) and if, for example, you were to make some money from a cryptocurrency rising in value after a customer bought from you with them, you also need to declare that value as a capital gain.
But the positive thing is that you can really stand out in the market, and take the help of this new technology to market you and your brand.
And considering that more and more people are becoming interested in cryptocurrencies, especially younger generations, maybe you are right here in time.
6. Make money with crypto by finding code bugs
If you are a talented coder or hacker then there are excellent chances for you to earn cryptocurrencies by finding bugs in the code for new web products and services.
Many new companies and organizations that want to launch their new blockchains usually organize bug campaigns. That is, an occasion where they invite people from around the world to try to find bugs in their code.
If you find a bug in the code, you will be rewarded for your help and can get paid in cryptocurrencies.
The 5 most popular cryptocurrencies today
It is time to consider specific coins and what their benefits might be.
Bitcoin tends to be more expensive, while other currencies are cheaper to invest in and can be a good starting point.
Here are the 5 most successful and reliable names to consider:
1. What is bitcoin?
The first successful cryptocurrency, founded in 2009. Bitcoin has a mysterious beginning, but continues to retain value thanks to its encryption methods, which enable a scheduled generation process for new bitcoins.
Bitcoin can be exchanged for fiat money or used to buy products and services online. With almost six million wallet users, this is the most successful system.
2. What is litecoin?
Litecoin is similar to bitcoin and is actually considered a detour from it. It all started in 2011.
The big differences between the two digital currencies include a faster transaction process than bitcoin (2.5 minutes compared to 10) and a different algorithm in the step of “work certificate”.
The price of a coin is also much less than a bitcoin.
3. What is ethereum?
Ethereum was founded in 2013 and is a cryptocurrency generated by its own software platform called Ethereum Virtual Machine.
Ether devices can be purchased and transferred from users to users internationally.
At the start of the programmer Vitalik Buterin in 2013, there were 72 million broken coins. Ethereum was split into two separate blockchains – ethereum and ethereum classic.
The value may be less than bitcoin, but it is starting to become comparable.
4. What is monero?
Monero is a decentralized cryptocurrency, but all transactions, including mining and trading, are kept private to outsiders. It has privacy and decentralization that is comparable to bitcoin, and even better when it comes to hidden balances.
5. What is ripple?
Ripple is not just a system, but a network and a company that provides digital currency. It was founded in 2012 and offers global financial transactions, and also has open accounting, just like other systems.
Of course, it can also be broken.
There may be a centralized Ripple company, but the network can still operate without the company’s direct involvement, creating a decentralized cryptocurrency.
Due to its transparency, some banks and companies use ripple, even though they do not use bitcoin.
The future of cryptocurrency
What is the future of cryptocurrency? This is largely unknown due to what many spectators, such as Bill Gates and Warren Buffet, call an invisible value.
There is a legitimate cause for concern, even beyond generalizations and the volatility of cryptocurrency. The price of bitcoins fluctuates wildly at the time of writing and has not yet settled down.
Other currencies, such as ripple, are more centralized, at least because they have a transparent company, software and founder.
Some people believe that this is the future: more centralization with banks and lenders, and less independence. But bitcoin remains the only cryptocurrency with a five-digit value.
The future / buying with crypto
What is the future of cryptocurrency? The future depends on how the world and the market change.
In the meantime, however, there is no risk of broadening their investments by conservatively trading digital currencies and seeing the results.
You may be surprised at how easy it is to buy services and products, as well as maintain value in the long run.