Did you know that your computer can make you money thanks to the mining of crypto-currencies? Cryptocurrencies like Bitcoin, Litecoin or Ethereum are virtual currencies but they have real value, for example at the time of writing this article, a single Bitcoin is worth almost $50,000.
The cryptocurrency industry is growing rapidly and is valued at more than Two trillion dollars to date. That’s more than two thousand billion dollars!
Cryptocurrencies have become legal in a number of countries, where they can be used to buy goods or services from the biggest brands and retailers.
The way the technology works, anyone can verify transactions made by users through a mining program installed on their computer. In return for this mining “work”, the miner is paid a very small cryptocurrency commission.
There are two great ways to make money with cryptocurrencies:
The first is cryptocurrency trading. It is enough to buy cryptocurrencies at low points and sell them at high points, this is called speculating on the price of crypto-currencies and thanks to price fluctuations it is thus possible to generate profits although it is unregulated by the government and comes with a HIGH RISK of loss.
The second way to generate profits with cryptocurrencies is mining. Remember that all Bitcoin or crypto-currency transactions are public and thanks to mining programs, miners will verify the transactions. Among other things, a miner ensures that this person who has crypto-currencies has indeed sent a specific amount of crypto-currencies to another wallet. This process is made automatic thanks to mining programs.
Not all cryptocurrencies can be mined because some of them use other methods to verify transactions but Bitcoin, Ethereum, Monero and many others can be mined.
To mine cryptocurrencies like Bitcoin was possible a few years ago using a simple computer, but as crypto-currencies (and particularly Bitcoin) became popular, the competition became more and more tough making it more difficult to mine cryptocurrencies.
Thus to mine Bitcoin it is necessary to have more computing equipment which may require a large financial investment without forgetting the high cost of electricity that mining represents. An alternative to Bitcoin mining that is generating a lot of interest is to turn to mining other cryptocurrencies, which are easier to mine and on which there are not as many miners as with Bitcoin.
So which way to make money with crypto appeals to you the most? Trading or mining?