Cryptocurrencies have become one of the most popular trends over the past years. And the subject continues to attract the attention of both ordinary enthusiasts and those who want to capitalize on it.
What should a beginner know to earn enough money to pay off all the loans? How can even an ordinary student make some money in this industry?
In case you have a pending college or university assignment and lack time for profound research, ask the writing essay service to assist you with the task. Meanwhile, let’s take a detailed look at how to start making money on cryptocurrency.
The Safest Currencies to Invest In
The cryptocurrencies below are especially popular and relevant today. They are ones to remember if you are up to start a digital business.
Bitcoin is the first cryptocurrency on the market, which is usually considered the base of the entire industry. In 2009 an individual or a group of individuals named Satoshi Nakamoto generated the first block of Bitcoin (the genesis block) and made the first money transfer on the network.
Over the past years, Bitcoin still remains the most expensive digital currency, and it isn’t going anywhere soon.
Litecoin was created in 2011 as an alternative to Bitcoin. Its founder, Charlie Lee, sought to improve the Bitcoin mining algorithm and reduce the time for a new transaction.
Currently, Litecoin is in the 6th place in terms of capitalization, but significantly ahead of its competitors in terms of demand and usability.
Ethereum is the second most popular digital currency in the world. It was developed in 2014 by Vitaly Buterin, a Russian-Canadian programmer.
The main peculiarity of Ethereum is the use of smart contracts that eliminate possible risks for participants of the transactions. Now, this type of cryptocurrency attracts the attention of major software developers such as Microsoft and IBM.
The Ripple Protocol was launched in 2012. Its main goal is to provide instant, secure, and virtually free financial transactions worldwide without chargebacks. The network is based on a distributed database registry. It contains all the information about transactions and accounts.
Many experts compare the Ripple payment system with SWIFT. Moreover, a lot of banks are already interested in the implementation of Ripple`s technology.
5 Most Effective Ways to Earn on Cryptocurrency
As in every sphere, when it comes to cryptocurrencies, you need to invest your time and/or money to reach the desired results. Let’s consider the most effective strategies and the biggest pitfalls for a beginner to earn some money safely.
Buy & Hold
This method is quite simple. You just buy the safest and promising cryptocurrency and try to forget about it until you see the news about a sharp jump in its price. As expected, your earnings will depend on the timing of the operation.
Hold for Dividends
Cryptocurrencies that pay dividends to holders are becoming a new dominant trend. They offer a stable, self-sufficient model and real value.
For example, the Chinese equivalent of Ethereum, the NEO cryptocurrency, creates a valuable asset called GAS. In contrast, another blockchain application platform, VeChain, generates Thor coins.
To keep the crypto platform working, you need to create new blockchains by solving a computational problem. This is done by powerful specialized computers, known as mining farms. As a reward for creating a block, miners receive newly-created coins.
Buying expensive equipment is not always affordable for beginners; that’s why the most effective option for Bitcoin mining in 2020 is cloud mining. It provides maximum profitability and does not require your participation in the technical part of the process.
Become a Cash Point
Cryptocurrency exchange as a way of earning money online is becoming more and more popular among the users in 2020. The process itself is called arbitration.
The point is to buy for a lower price and sell for a higher one, getting a profit due to the difference in rates. The only thing you will need is a special electronic platform for the exchange.
Work in the Industry
Working in a fast-growing cryptocurrency industry is a promising way to build your career and even make a fortune. Today, you can find hundreds of job opportunities that will allow one to join the companies that are building the coin market.
Cryptocurrency is not just money, but also technology, innovation, and business.
It gives us the opportunity to build a completely new world. There, freedom, privacy, and protection of people’s rights are indispensable components of everyday life. Therefore, investing in cryptocurrency can be a reasonable step towards a better future.
Featured image: HackerNoon