What are cryptocurrencies and how to make money from them

Nowadays only the deaf have not heard about making money on cryptocurrency, and the name Satoshi Nakamota was heard at least once by everyone, who is interested in changes, which are taking place in the world. Let’s talk about how the cryptocurrency began its development and what its prospects are in the coming years.

So, the first cryptocurrency was developed by the same Satoshi Nakamoto in early 2009. There is still controversy about his identity and there is an opinion that there is a whole group of people hiding behind this pseudonym. The first 50 bitcoins were generated on 3 January, resulting in blockchain technology, which is not just about digital money today.

The number of cryptocurrencies and how to make money from them

There are currently more than 1,500 known cryptocurrencies. However, only about 20 of them are known to everyone, and they hold the leading positions in terms of capitalization. The main question that many people are interested in is how to get cryptocurrency. There are several ways. The main one is mining. In this case, a reward is paid for combining transactions into blocks and sealing them with a matched key. This can be done using your own equipment or it can be done using rented equipment and you don’t have to be near it. We are talking about cloud mining, which allows you to perform processes from another continent. Earning digital money is real, but it is also real to lose your own money at one point.

Is it realistic to make digital money without investing?

It is possible to earn virtual coins without investing your own money. However, in this case, it will take a very long time. Here are the main ways of earning:

• Searching for “cranes” and airdrop, in other words, free cryptocurrency mailings;
• A hardfork – splitting the currency into several new ones.

As for buying cryptocurrencies, there are a huge number of exchangers and exchanges on the market. In the first case, the rate will not be the most profitable. As for depositing money into the exchanger, it’s a complicated process. You will have to go through a verification procedure, and for this you will have to provide personal data and send a copy of your passport to be uploaded into the system.

How do I make money from cryptocurrency?

Cryptocurrency trading is a common phenomenon. To make a profit, you need to analyse growth charts and have access to insider information. The rate is heavily influenced by important news, so you need to be one of the first to know what is happening. You can, of course, use another strategy, which is called holding. In this case you need to forget about the coins you purchased for a long time, counting on the fact that their rate will grow considerably.

Another option is an initial public offering of tokens, i.e. participation in an ICO. These investments are similar to crowdfunding, where a startup raises money to launch a product. However, they involve high risks, as most projects go bankrupt or cease to exist after raising a certain amount of money. However, if successful, the returns will be very high.