How to make money on bitcoin in 2019Endy Callahan
People have different attitudes towards cryptocurrencies. Some see them as gold mines of new age, an opportunity to make a quick back and move on to the new hot thing, others believe in a bright future (especially Bitcoin enthusiasts) and invest long-term, and the rest simply uses coins to pay for goods and services. In any case, the vast majority of those interested in cryptocurrency want to make money on it.
How can you make money on crypto?
Each new Bitcoin coin is created by generating a new block. This process is called mining. It requires special expensive equipment. Another drawback of this method is the constant complication of the extraction process. The hash rate of the network grows, and the reward of each participant decreases.
Today we can distinguish 3 main types of mining:
- Home. All types of premises are used for mining at home, for example, private houses, apartments, garages. Usually, it is performed using special equipment – ASICs. It is important that the room is well ventilated, dry, has access to stable Internet and electricity. This type of mining is becoming less profitable due to reduced fees, lots of noise and electricity costs
- Industrial. Calculations are made at large-scale enterprises, in old factories and plants. The main disadvantage of this type is a huge initial investment.
- Cloud. Involves the rental of equipment for a certain period under the contract. The client does not need to monitor the operation of computers and repair them. All this is performed by the partner's specialists.
Trading on the stock exchange
This method involves the usual purchase of cryptocurrency on the exchange to sell it in the short or medium-term at a higher cost. The main drawback of these earnings is increased volatility. In other words, a trader can both earn a huge percent of his deposit in a day and lose it as quickly. Therefore, you need to trade carefully, sticking to the developed strategy.
Advantages of trading on the stock exchange:
- High volatility of the exchange rate
- Ability to trade on borrowed funds (with leverage)
- Demo account training
- Pending trade at a user-defined price
Investing in bitcoin
Buying the №1 cryptocurrency for the long term is a great solution if you are willing to leave it in peace for a while.
This method has the following advantages
- The algorithm that prevents from issuing more than 21 million Bitcoins plays in your favor. The fewer coins can be mined, the more they are worth
- Continuous improvement of the algorithm and features of the coin
- High trust in the asset across the world
- Use as a financial refuge in times of political instability
We have reviewed the main ways to earn on bitcoin in 2019. Each of them has strengths and weaknesses. So, when investing, the risks are not as big as when trading on the stock exchange, but also you will not be able to get a quick return on your funds. Whichever method you choose, explore the option thoroughly before you invest money. We recommend that you read the checklist of a competent investor and then proceed. Our crypto portal will help you find useful information about earning on tokens and coins.
Interview with Gen2 on The Capital07 Oct, 2020 Colin Baseman
TOP 10 crypto world news for October 2, 202002 Oct, 2020 Annabella Cornelly
TOP 9 crypto world news for October 1, 202001 Oct, 2020 David Kemp
TOP 10 crypto world news for September 30, 202030 Sep, 2020 Judy Rubio
TOP 9 crypto world news for September 29, 202029 Sep, 2020 Endy Callahan
TOP 10 crypto world news for September 28, 202028 Sep, 2020 Colin Baseman