We have collected the TOP 5 popular options for making a profit from digital money in a comfortable home environment. We will tell you how to make money on cryptocurrency in 2022.
Earnings on cryptocurrency with the help of mining
One of the most common and reliable ways to make money on cryptocurrency is mining. In translation from English, mining is mining. How it works?
Miners on special farms, where mining facilities are installed, consisting of one to tens of thousands of processors and video cards, calculate special blocks that give the right to receive a certain number of virtual coins. At the same time, miners have the right to choose the mined coin. If bitcoin is chosen, the mining premium is paid in bitcoins, and if, for example, the choice fell on ethereum, then they will pay with ethers.
The very first miners who mined the main currency of the crypto world — bitcoin, received the most generous reward. But the algorithm of bitcoin, sewn into its program code, suggests that every year its production will become more difficult. Moreover, the number of coins is limited: the last bitcoin must be mined in 2140. Now the network is controlled by huge mining pools that buy ASIC miners (special equipment that replaced video cards) to mine coins.
Single miners who raised the bitcoin mining industry cannot withstand competition and go into niche projects related to other digital currencies. You can also earn money from them.
Let’s take a closer look at all the schemes for earning bitcoin with the help of mining.
The most popular and quite profitable scheme for obtaining cryptocurrency is mining on video cards.
Why are video cards good for those who decide to make money on cryptocurrency? They have a fairly long service life (even older versions cope with the extraction of cryptocurrencies), their algorithms are easy to reconfigure, and there is a three-year warranty from the manufacturer. This is relevant because modern versions of video cards work on new generation GPUs without flashing.
You can’t mine much on one video card, so they work with farms mainly. This is a design consisting of several video cards at once. The number of farms is limited by the capital of the investor and the size of the premises. The main expenses are rent and electricity bills. Miner equipment also creates a lot of noise. True, this problem is least of all related to video cards. Even a farm assembled from 5–7 video cards is much inferior in decibels to an advanced ASIC miner.
ASIC (ASIC) is a reliable, relatively compact device for mining cryptocurrency on certain algorithms. The problem with ASIC is that it is a highly specialized device. If a miner wants to mine several coins at once, he will have to buy a gadget for each of them. It is impossible to reprogram an ASIC that works, for example, with bitcoin to work with other currencies. As for economic efficiency, ASIC consumes about 3 kW of electricity and brings its owner $350 of net profit per month.
Among the shortcomings of working with the device, we highlight a very high noise level. It is definitely not suitable for an apartment. As an option — a separate room or a mining hotel.
Of the low-cost and low-profit schemes, you can add mining in the browser. It requires JavaScript to be installed. Unfortunately, in this scheme, the disadvantages prevail over the advantages. The main problem is the high risk of becoming a victim of a virus attack that will turn your computer into a mining node for another user.
It is easier and more relaxed to train in the extraction of coins on the hard drive. You will need special software and a large amount of the hard drive itself from 3 terabytes.
Cons — a limited number of coins for mining and low profitability.
cloud option
Mining can also be done on cloud servers. To do this, you just need to rent a certain amount of computing power in a remote data center. Some services also offer ASICs for leasing with a buyout after the expiration of the lease.
The benefits of cloud mining are obvious. This is the absence of noise in the apartment, saving on equipment and time. Farms need to be monitored around the clock.
Unfortunately, a huge disadvantage of this method of mining cryptocurrency is the high risks. There are too many scammers in the cloud service that undermine the reputation of the entire market and neutralize the advantages of a rather nice scheme.
How to make money on cryptocurrency trading
The second way to make money on cryptocurrencies at home is to trade on the stock exchange and work with gaming platforms and partners.
Trading is a constant and painstaking work on the exchange: viewing analytics, monitoring the market, working on compiling a diversified investment portfolio. And of course, investments, long or short term — it all depends on your capital and risk tolerance.
You can get your profit after registering on the sites of affiliate and referral programs. Participants of these programs receive a reward for expanding the client base of cryptocurrency exchanges, exchangers, etc. The premium for a client is 30–40% of the commission from a transaction or exchange.
Let’s say a customer bought bitcoin using your link and paid a 1.5% commission. With this one and a half percent, you get a third as a bonus.
You can get your profit after registering on the sites of affiliate and referral programs. Participants of these programs receive a reward for expanding the client base of cryptocurrency exchanges, exchangers, etc. The premium for a client is 30–40% of the commission from a transaction or exchange.
Let’s say a customer bought bitcoin using your link and paid a 1.5% commission. With this one and a half percent, you get a third as a bonus.
money for storage
The third way is staking, an alternative coin mining model that has a special algorithm embedded in it. It is officially called the PoS (Proof of Stake) abbreviation. New blocks in this model are created based on the age of the coins (time used for staking) and a random selection algorithm. Users of staking networks are called forgers, or in translation into Russian — “blacksmiths”.
It is enough for a participant of the staking program to open a wallet, replenish it with coins and keep the computer connected to the network. The staking wallet becomes one of the chain nodes that maintains the network and validates transactions. For this, remuneration is charged as a percentage of the deposit amount. The larger the amount, the higher the premium. The final profit depends on how long the money is in the wallet.
An addition to staking is the masternode, which was invented quite recently.
Masternodes are the main nodes of the network, with special powers. When a new block is created, masternode owners are rewarded. The masternode is launched according to the staking scheme. Coins are bought, withdrawn to a hot or cold wallet. Then special software is downloaded and installed, which ensures the operation of the main node on the owner’s computer or on a remote server. By and large, the launch of a masternode is an investment in one of the coins. The problem is that this coin can both rise in price and fall.
Cryptocurrency earning in 2022 from scratch
You can earn on cryptocurrency from scratch by participating in the programs: Airdrop and Bounty. These two terms are quite often confused, although they are completely different, but this is due to the specifics of the cryptocurrency market.
The Airdrop process gives away digital tokens for free. To get them, you need to complete a fairly simple task and write a post about it in popular social networks.
To make money on cryptocurrency in any airdrop, you will need: email, social media accounts (Facebook, Instagram, Twitter, Telegram), and each of these accounts must have at least 100 followers. The age of the page is at least 3 months, and the topic is cryptocurrencies and finance. Many organizers of airdrops check the pages of participants for the presence of bots and cheating. Another mandatory point is accounts on specialized cryptocurrency forums and a cryptocurrency wallet to receive the appropriate reward.
Bounty in translation means “reward”, “gift” and “encouragement”. This award is given by various ICO companies to promote their product on social media.
During the Bounty campaign, you need to translate an article or work out the design of the site. Here you can’t get by with simple skills, and such campaigns are within the power of qualified specialists. On the other hand, the fee for participating in the promotion of a particular digital coin in Bounty is much higher than in Airdrop. But the payments are also stretched in time.
After the distribution of tokens in Bounty and Airdrop campaigns, the question often arises, what to do with these coins in order to get a normal profit.
There are several options for working with the received digital currency. For example, you can keep the coins and not leave the project, hoping that the startup will take off.
If there is no trust in the project or you want to take profits, you need to wait until the coin enters the exchanges and sell it at the peak price.
Or you can simply accumulate tokens from different projects and exchange them for more significant cryptocurrencies.
How do you most often make money with cryptocurrencies?
Not a single topic of making money on cryptocurrencies is complete without investing in ICO, DAO, STO. In recent years, private investors have tried all these formats. What are we talking about? About startups that issued project coins in exchange for investments and were sure that they would shoot and become as popular as the TOP-5 coins of the digital world. If we talk about ICOs, then there were much more stories of failures and outright fraud than simple and understandable success stories.
It is much more interesting and safer to invest with the help of Initial Exchange Offering (IEO), which translates as initial exchange offering. This method of crowdfunding is distinguished by the strictness of binding a startup to a specific exchange. The exchange administration carefully studies the project before listing and concludes a pre-contract with the startup developers. All major provisions are regulated in this pre-contract.
As a result, potential investors who want to make money on cryptocurrency know in advance: the price of a digital token, the maximum issue volume, and the details of the distribution of capital among startup participants.
If you want to learn more how to make huge income and passive income with cryptocurrency click here
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