If you click the link that brought you to this article, i believe you want to know how you can make money through cryptocurrency.
Firstly, before we jump into how you can make money, we need to understand what cyptocurrency means and is.
What is cryptocurrency?
Cryptocurrency are digital currencies and that represented in decimal figures. they are not physical money known as Fiat currency. Cryptocurrency could actually be knowns as computer money.
Crytocurency are generated figures by a computer algorithm and its a peer-to-peer system. this means that it is decentralized and no controlled by anyone, economy or government.
There are over a thousand cryptocurrency coins today. And BITCOIN is the first coin to ever emerge and its the standard for exchange between all coins today just as dollar is an international currency for exchange.
All cryptocurrencies are kept in teir wallet which is the same as the normal bank accounts. the biggest alllet and the home of all cryptocurrency coins is Blockchain. Blockchain is rather refered to as the central bank of all coins. All coins derive their technology from blockchain and it was the first wallet for bitcoin. Today there are other companies that provide wallets for bitcoin aside blockchain but all still finally gets their technology from Blockchain.
Cryptocurrency and how i can make money?
As stated above, there are many different kinds of cryptocurrency coins available. each of this coins are companies and you buying their coin is a share holder of the company, so as the value of the coin increases in dollars, so does your coin too.
There are several ways one can become a millionaire in cryptocurrency.
- Mining: Mining of crytpocurrency is the most popular of all ways. The setback here is that its capital intensive. Mining is the act of using high speed super computers to solve some computer algorithm puzzles and when each computer successfully solves a puzzle, a block of coins is allocated to the computer which can be claimed from Blockchain. Mining is usually done by large orgainizations that is heavily funded.
- Initial coin offering (ICO): is an unregulated and controversial means of crowdfunding via use of cryptocurrency, which can be a source of capital for startup companies. In an ICO a percentage of the newly issued cryptocurrency is sold to investors in exchange for legal tender or other cryptocurrencies such as Bitcoin. when ICOs are offered in tokens which are in cents, the value increases as more and more people participate in th ICO until the said coin is fully operational. Now imagin you participated in an ICO when the said coin was $0.11 and you bought about $100 worth, then imagine after few months the coin rises fom $0.11 to $2, you will be about $2000 richer. which you can easily convert the coin to Bitcoin and sell.
- Trading: This is a trending part and its not new to anyone. we have all heard of Forex trading and cryptocurrncy trading is just the same. There are many exchange platforms where this trading takes place and an example is bittrex
- Buying and selling: I call this buying and selling which could also be called trading, but this is a bit different from the trading. this one refers to when you buy a coin, you wait till it rises and you sell. this means that if you buy bitcoin at a particular value, when the value increases in the market you could sell the one you gained on top. This is what i actually and this is the most guarnteed way to make money from cryptocurrency. buy, wait till it rises, then sell your gain. when it drops, buy and when it rises sell again..the cycle continues.
cryptocurrency is the future and its important one gets involved now as more and more compnies are embracing the world of crypto for payments.