First of all, you should put all the dots above “i” and figure out what the cryptocurrency as a whole is. In the modern world of cryptocurrency, making money is one of the fastest and most profitable ways to get money, and quite large. And how to make money will depend on you. There are two main ways to payroll cryptocurrency: trade and mining.
Each of these methods is provided with both pluses and minuses. We will try as clearly as possible to tell you about the most important.
Bitcoin mining is a process of cryptographic calculations. As you know, bitcoins are extracted by blocks, while the size of the block increases with an increase in the total number of coins generated. At first there were 50 bitcoins in the block, but the number of mined coins is halved every 210,000 blocks. Thus, the reward for each block found with a certain frequency drops by half.
The process of mining coins requires processing power, time and energy. And the longer bitcoin mining takes, the production becomes more resource-intensive. Of the main drawbacks, there is a huge competition among miners, because there are more companies and less remuneration, and therefore the so-called “war for the extraction” is taking place between the miners. Another disadvantage is that several tens of thousands of dollars and a lot of patience with competitors, as well as monthly energy costs, are required to purchase equipment that will bring in tangible income. One of the main advantages is a steady income in cryptocurrency. But if income is expressed in paper money, it will constantly “float” along with a change in the rate.
1. Purchase and connection of equipment, setting up the Internet;
2. Install specialized software and enter the mining pool;
3. Monitoring the health of the system and the implementation of updates.
If mining requires special equipment, then in this case you need only the capital on the trading account. In addition, if the trade is that you get access to a large number of cryptocurrency, while mining is mainly focused on one token, which later, if necessary, can be exchanged for another. It is very profitable to acquire and keep different cryptocurrencies, and then just sit and wait until they grow at least twice, since the result of the transaction will be in your favor. It is beneficial that you do not spend a lot of time on frequent transactions and your income is definitely higher than from mining, and yet you spend less nerves.
Brief instruction on trading:
1. Choosing a broker for work and opening a trading account;
2. Installing a terminal for transactions;
3. The introduction of funds to the trading account and the opening of the first transactions.