How to make money with cryptocurrency?
Usually, in order to transfer money from one person to another, you need an intermediary - a bank. It's different with cryptocurrency: the bank does not participate in the exchange. The cryptocurrency is built on the blockchain system – a chain of information blocks. They are used to transfer digital money from person to person without an intermediary.
You can earn income from cryptocurrencies in a variety of ways, for example, by investing, trading, mining, or attracting referrals. Some beginners do not know how to make money with cryptocurrency and turn to ineffective strategies.
Popular ways to make money on cryptocurrency.
• Mining, Generation of new blocks by computer calculations.
• Cloud mining, the Investor rents mining power from another company, which mines crypto and gives income.
• Trading, Exchange trading.
• Holding, If trading is active trading on the stock exchange on exchange rate differences, then hold is bought, waited until the price rose and sold.
• Sale and purchase of NFT, NFT - digital certificate of copyright, based on this technology, a large market for auctions of pictures, photos, music has appeared.
• Cryptolottery, analogue of classic lotteries.
• Creating your own cryptocurrency, Launching a coin or token: a new cryptocurrency can be an access key to other services, represent some kind of financial asset
• Staking. Storage of crypto coins by analogy with a bank deposit.
• Landing, Borrow cryptocurrency to exchanges or other users at a percentage.
• Crypto funds, Transfer of their assets to professional management of the fund, which chooses its own strategies for earning money and, if successful, returns investments with interest.
• ICO, Financing the launch of a new token.
Why is it safe to use cryptocurrency.
The data that gets on the Internet can be assigned and changed, but on the blockchain, fraud with wallets or payments is almost impossible. The high level of security is due to the fact that the information in each block is encrypted, and the blocks are linked by a chain. To hack the system, too much power is needed, since for the sake of one cell of information it will be necessary to change the cipher of all the others.
The system has other features that guarantee the safety of operations:
• unique addresses are used to transfer funds: for each operation, they are generated by the system itself;
• transactions are open and transparent, but it is impossible to link data to a specific person and his location;
• operations are carried out instantly, they cannot be intercepted;
• The authenticity of addresses is verified by encryption keys.