How can I make money with cryptocurrency?
Blockchain is a completely new technology, and the opportunities to monetize it are endless. There are mainly two methods. It is mining and investment.
A. Become a miner
Mining is a slow but safe way to make money in cryptocurrencies, including Bitcoin. Miners are people who are rewarded for activating transactions on the network. In the case of Bitcoin, there are two types of rewards. One is a reward for adding new blocks, and the other is for selecting a specific transaction.
Each cryptocurrency pays its borrowers through a different mechanism. Some currencies only pay transaction fees, while others use various means to pay incentives.
To participate in the mining operation, you only need to contribute the CPU to the network. Since the CPU requires electricity, it is important to compare the profit I earn from mining with the cost I have to pay. This cost will vary depending on the country you are in and your electricity bill in that country. China’s very cheap electricity bill explains why most of the miner networks reside in China.
Another factor users should consider is the hash power of their hardware and the current Bitcoin price.
More expert miners use special hardware with a high hash rate to increase the probability of getting a block. ASIC (Application Specific Integrated Circuit) is a generic term used for these devices. The combination of ASICs and low electricity rates can give you better returns in your mining business.
To become a miner, you can become an individual miner, or you can join and become a member of a miner network. The miner network shares the CPU. A group of miners, also known as a Mining Pool, is a recommended method for those who do not have a lot of hardware. Members of the mining pool pay for the CPU power they contribute. Famous mining pools for Bitcoin mining include:
- Bitfury – Located in Georgia
- BTC.com – Located in China
- Slush – located in the Czech Republic
For other cryptocurrencies, you need to research which mining pool is the best for you. In general, a pool is formed when the currency in question starts gaining trades.
B. Invest in cryptocurrency
Direct investing is a fast but somewhat risky way to make money from cryptocurrencies. If you do not have the time and resources to mine, you can buy cryptocurrency on an exchange. Over the past few years, Bitcoin has captured the attention of thousands of investors with huge returns.
Anyone can buy crypto coins at any time, but there are certain times when profits (and losses) are at their peak. It is an Initial Coin Offering (ICO) . Those familiar with stock investing will find that an initial public offering (IPO) is very similar to an initial public offering (IPO).
Cryptocurrency public is the time when the virtual coin is first introduced, and at this time, the coin has no value yet. At this time, potential investors can decide whether to invest or not. If this cryptocurrency is successful in listing and trading is activated, the value of the coin will rise and investors can earn profits.
Let’s take a look at the funny story below when people bought bitcoin and later got a big shock.
- In 2009, a Norwegian student studying cryptography paid $27 to purchase 5000 BTC, and completely forgot about it. Four years later, as the media started talking about bitcoin, he remembered that he had bought bitcoin before, and when he checked its value, he found that it was worth $886,000. Of that, half was used to build a home in Oslo’s affluent village, while the rest was left behind, which is estimated to be worth $28 million today.
- On May 22, 2010, computer programmer Laszlo Hanyecz bought two pizzas with Bitcoin. At that time, he paid 10,000 BTC, which was worth $41 at the time. But at today’s value, this bitcoin is worth $67 million, making it the most expensive pizza in the world. In an interview, Laszlo said that he was happy just to be able to buy something with bitcoin, because at that time the value of bitcoin was close to zero.
- James Howell is an IT engineer in Newport, England, who started mining Bitcoin using his laptop in 2009. After mining about 7,500 BTC, he stopped mining. He sold his laptop on eBay, removed the hard disk on which his Bitcoin private key was stored, and put it in a drawer, thinking that one day the bitcoin price would rise. Years later, while cleaning the house, his hard disk was accidentally thrown away. In today’s terms, the lost bitcoin is worth about $85 million. James wanted to find it in a landfill, but the work was halted due to environmental concerns and the possibility of a dangerous gas leak.
While there are many stories of how the value of Bitcoin has risen dramatically, one thing investors should always keep in mind is that the value of cryptocurrencies fluctuates significantly. For example, over the past six months, the value of Bitcoin has repeatedly increased and decreased significantly.
In general, cryptocurrencies are quite volatile. The fact that Bitcoin’s value has risen significantly over the past few years does not guarantee that its value will continue to rise in the future.
My advice here is to invest an amount that you won’t mind losing at all. Please don’t waste all of your hard-earned money on the hopeless prospect of a decent return. You may be lucky, but you can also lose a lot of money. If you want to check the latest bitcoin price, check it on vpnMentor’s bitcoin calculator .
