Contents
- What is a crypto currency
- Popular ways to make money on cryptocurrency
- Step-by-step instructions for making money on cryptocurrency for beginners
- Serişteyên Pispor
- Pirs û bersivên populer
New oil, a virtual Eldorado, the money of the future, which are already very expensive — cryptocurrencies are described with such metaphors and comparisons.
Over the past couple of years, the number of people who have earned the first fortune on digital coins has been multiplying from almost nothing. It is no wonder that beginners also think how to get rich on this. But they don’t know where to start. From mining, investing, trading, creating and selling NFTs, there are a dozen options.
Let’s talk about ways to make money on cryptocurrency in 2022.
What is a crypto currency
Cryptocurrency is digital money, which is based on a program code – it was calculated by a computer. Virtual payment systems with their own currencies, which are also called coins. All operations in this system are protected by a cipher – a cryptographic method.
At the heart of the cipher is the blockchain – a colossal database of identifiers and checksums. A new approach, the essence of which is decentralization and general control. Blockchain can be explained more simply with an example.
Imagine a fantastic picture. If Our Country did not have the Ministry of Finance, the Central Bank and other bodies controlling the national currency and finances. This is decentralization. At the same time, the whole country would agree that it keeps a common diary of expenses. Citizen A made a transfer to citizen B – 5000 rubles. He transferred 2500 rubles to citizen V. No one has access to this money, except for the sender and recipient. Also, translations are anonymous. But everyone can watch the cash flows.
Such a database is divided into blocks. In the diary example, this could be a page. And each page is linked to the previous one. A chain is formed – chain (“chain”) – and is translated from English. Blocks have their own numbers (identifiers) and a checksum, which prevents changes from being made so that others do not see. If we return to the example with transfers, then imagine that citizen A made a transfer of 5000 rubles, and then decided to correct it by 4000 rubles. This will be noticed by the recipient citizen B and everyone else.
What is it for? The most popular answer is that money no longer depends on the authority of central banks and financial institutions. Only mathematics that guarantees security.
Most cryptocurrencies are not backed by real currency rates, gold reserves, but get their value only through the trust of their holders, who, in turn, trust the blockchain system.
In Our Country, authorities have a difficult attitude towards cryptocurrencies in 2022. However, now there is a federal law “On digital financial assets, digital currency…”1, which denotes the legal status of coins, mining, smart contracts and ICO (“Initial Token Offering”).
Popular ways to make money on cryptocurrency
With attachments
Zemî | Generation of new blocks by computer calculations |
Minareya cloudê | An investor rents mining power from another company, which mines a crypt and gives income |
Trading | Trading on the stock exchange |
Holding (hold) | If trading is active trading on the stock exchange on exchange rate differences, then hold is bought, waited until the price rose and sold |
Selling and buying NFTs | NFT – digital certificate of copyright, based on this technology, a large market for auctions of pictures, photos, music has appeared |
Krpitolotherei | Analogue of classic lotteries |
Creating your own cryptocurrency | Launch of a coin or token: a new cryptocurrency can be an access key to other services, represent some kind of financial asset |
Staking (staking) | Storage of crypto coins by analogy with a bank deposit |
rûpel landing | Borrow cryptocurrency to exchanges or other users at interest |
Cryptophone | Transfer of your assets to the professional management of the fund, which chooses its own earning strategies and, if successful, returns the investment with interest |
ICO | Financing the launch of a new token |
No investment
Creation of NFTs | Selling photos, paintings, music of your own creation |
Teaching others | “Guides” (amateur tutorials), webinars, author’s courses and recommendations for beginners – cryptocoaches make money on this |
Step-by-step instructions for making money on cryptocurrency for beginners
1. Zemî
To produce an already existing cryptocurrency by computing new blocks with the power of a computer. Previously, in the early stages of the appearance of the crypt, the power of a home PC was enough for mining. Over time, getting new blocks becomes more and more difficult.
After all, each is connected with the previous one, and that one is connected with the other, and so on. It takes a lot of equipment to do the calculations. Therefore, now miners create farms – complexes with a large number of video cards (they perform calculations faster than processors).
Meriv çawa dest pê dike: assemble a mining farm or purchase a ready-made one, choose a cryptocurrency for mining, launch a mining application.
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2. Cloud mining
Passive cryptocurrency mining. As we have already said, the equipment is expensive, and there is a shortage of powerful video cards on the market – miners are buying everything. But after all, someone buys them and mines the crypt! Farms need money for development, payment for electricity. They accept investments. In return, they share the mined coins with you.
Meriv çawa dest pê dike: choose a cloud service, conclude a contract with it (as a rule, there are clear tariff plans) and wait for its execution.
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3. Crypto trading
“Buy low, sell high” are simple rules in a very complex game. The cryptocurrency market is distinguished from classical trading by even greater volatility – price volatility. Is it bad or good? For the layman, bad. And for an investor, it is a real way to get 100% and even 1000% on the difference in rates in a matter of hours.
Meriv çawa dest pê dike: register on one of the major crypto exchanges.
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4. Holding
Such investment is also called English HOLD or HODL. Hold means “hold”, and the second word means nothing. This is a typo by one of the crypto investors, which became a meme, but was fixed as an identical concept to hold. The essence of the strategy is simple: buy a cryptocurrency and forget about it for months or years. Then you open your assets and sell those that have grown.
Meriv çawa dest pê dike: buy a crypt on the exchange, in a digital exchanger or from another user, put it on your wallet and wait.
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5. NFT auctions
The abbreviation stands for “non-fungible token”. NFT-works exist in a single copy and therefore are unique. And everyone can see who their owner is and this information cannot be changed. Therefore, NFT-works have received value. Example: A motion designer drew an animation and sold it. Or Twitter founder Jack Dorsey sold his first tweet at auction for $2,9 million. The new owner has become the owner of this post. What did it give him? Nothing but a sense of possession. But after all, collectors buy original paintings by Dali and Malevich, and someone thinks that they can be viewed on the Internet for free.
The mechanics of NFT auctions can be more complex than the classic auction bidding game. Each product can have its own purchase algorithm. For example, selling a painting in parts, and in the end it will be received entirely by the one who has collected more pieces of the mosaic. Although there are classic examples of auctions – whoever paid more, he became the new owner.
Meriv çawa dest pê dike: register on one of the NFT platforms.
Avantaj û dezavantajan
6. Cryptolottery
Pay $1 and win 1000 BTC — lottery players are lured by such slogans. There are those who really pay the winners, but this market is not transparent.
Meriv çawa dest pê dike: buy a ticket for one of the virtual lotteries.
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7. Create your own cryptocurrency
First of all, you need to decide whether you plan to issue coins or tokens. The token uses the blockchain technology of another coin, it is faster to launch it, since the code is in the public domain. To issue a coin, you need to understand programming, write code.
Meriv çawa dest pê dike: study the theory of cryptocurrencies, think over the concept of your own token or coin, a strategy for its promotion and launch on the market.
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8.Staking
This is the main alternative to mining, crypto mining. The bottom line is that the stakers store the cryptocurrency in the wallet – they block it on the account. Like placing a deposit in a bank. Not all coins are suitable for staking, but only with the PoS algorithm – stands for “proof of stake mechanism”. Among them are coins EOS, BIT, ETH 2.0, Tezos, TRON, Cosmos and others. When the coins are blocked in the holder’s wallet, they help to mine new blocks and make transactions faster for other market participants. For this, the staker receives his reward.
Meriv çawa dest pê dike: buy coins, “freeze” them in the wallet with a special deposit smart contract.
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9. Daketin
To lend money to a crypto-platform or to a private person. Such usury of our time.
Meriv çawa dest pê dike: choose a reliable partner, conclude a contract with him.
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10. Crypto funds
Suitable for those who are aware of the full potential of cryptocurrencies, but do not want or do not have the proper amount of time to engage in trading and other investments. You give money to the fund, it selects liquid assets, buys and sells them, and then shares the profit with you, receiving its percentage. Crypto funds have different investment strategies: moderate in terms of risk or high risk.
Meriv çawa dest pê dike: decide on one or more funds, conclude an agreement with them to manage your assets.
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11. ICO
The company releases its coins or tokens on the market and asks investors to sponsor the project. Each company and investor hopes that the novelty will “shoot” and it will be possible to sell it profitably in the short or long term.
Meriv çawa dest pê dike: choose a project on one of the sites or exchanges, invest in it.
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12. Create your own NFT artwork
A way to make money for creative or famous people. An NFT object can be made not only a picture, photo or song, but real objects. You just need to create a digital certificate of ownership for them.
Meriv çawa dest pê dike: create a crypto wallet, register on the NFT creation platform and put the product up for auction.
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13. Hîndarî
If you know how to explain complex things in simple terms, if you have a certain level of knowledge, charisma, and know how to win people over, then you can make good money on training.
Meriv çawa dest pê dike: create your own guide or lecture series, start advertising it and sell access to your knowledge.
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Serişteyên Pispor
Me pirs kir Evgenia Udilova – trader and expert in technical analysis share life hacks on how to make money on cryptocurrency.
- Learn from mistakes, fill bumps. The market quickly and clearly explains where you went wrong.
- Find a mentor who will accompany you, explain and suggest what to do.
- Make a strategy for earning, stick to it and adjust based on the market situation.
- Open a crypto wallet, deposit free money on it and start trying in small steps.
- Investments are a huge risk, but are encouraged by good returns. Don’t put all your money into one project.
- In the world of cryptocurrencies, the same rule applies as in other areas. You need to be able to understand a new topic, join it, study it and not leave it halfway.
- Choose the cryptosphere that you like. So it will be more interesting to dive into the topic and it will be easier to succeed,
- For beginners, I do not recommend investing in ICO. Everyone is trying to go here, because they heard that you can put $50 and get rich quick. In fact, not many coins go to the exchange and people lose money.
Pirs û bersivên populer
The questions are answered by a trader, an expert in technical analysis with more than 15 years of experience Evgeny Udilov.
Is it possible to earn cryptocurrency without mining?
What is the safest way to make money on cryptocurrency for a beginner?
Is cryptocurrency income taxable?
Çavkaniyên ji
- Federal Law “On Digital Financial Assets, Digital Currency and Amendments to Certain Legislative Acts of the Federation” http://ips.pravo.gov.ru:8080/default.aspx?pn=0001202007310056
very good information