Penny cryptocurrency

Penny cryptocurrency

The world of cryptocurrencies is fast-changing and growing, with many people starting to see the advantages these decentralized currencies provide over traditional fiat currency. However, when it comes down to making money, what are the best ways to make money in crypto? With all that being said, this is a list I wrote on how you can get started in cryptocurrency, but hopefully, at least this gives something to work on in terms of finding out where to begin!

I would like to point out here that Bitcoin and other cryptocurrencies were created by individuals rather than government organizations, so some information may be biased. Also, as a person new to cryptocurrency, the technicalities may not be as simple as they seem. Therefore, these tips should only help you if you have the knowledge of the concepts behind them. If not, check out CryptoFAQs for more info. Some tips I may give here might not apply to everyone, especially if not knowing the whole market would be hard to start off with, but we will get over this first. So let’s dive in and find out how to make your fortune in cryptocurrencies

1. Start mining!

First of all. How do I actually mining of bitcoins? In short, mining your bitcoins requires energy to process, which is often used up quicker than needed. That may or may not be, depending on how much energy you are spending or even if there are other means of power, but most bitcoin miners use about 50 watts per kilohertz. What does it mean to me? Well, for every bitcoin, there is 1⁶ (or 1028 trillion) coins mined, meaning one coin needs to be worth 1000 bitcoins. There are three main reasons why mining bitcoins takes so many units of energy. Firstly, you need a many of rooms! Every block that miners create requires an entire space of computers to store them. Mining also consumes processing power, meaning the mining machine itself gets quite old in terms of running times and becomes obsolete at some point, although if you have enough computers it will never become obsolete, unlike banks where their machines are too expensive. Then, the reason that mining makes so many bitcoins is because you are generating energy from the digital realm. As each piece of data gets generated digitally, it becomes possible to receive payments from anyone who owns cryptocurrency. To sum things up, this is the biggest selling point for cryptocurrencies, and as such their value increases. This shows us that we can come up with theories to predict future price fluctuations based on factors outside of our control. For example, in 2014, there was very little innovation on blockchain technology, which had already existed since 2017. It means we can expect prices to grow faster than we already are. But wait, the thing is, we don’t know how it works yet? Sure, we still do the public blockchains, the scaling solutions, etc. But now I want to bring it back to mining because now we have a better understanding of how crypto mining works in general. Mining is easy, you need only one computer to mine, and you only need some electricity in order for this to happen! Now if you still aren’t sure, think of it like how many cigarettes smoking a liter of cigarettes, but instead of just counting how many cigarettes are smoked over a long period and how much those costs, think about how many dollars are generated per year is burned in the process. On top of the fact that mines burn a huge amount of electricity, it drains water as well. Finally, many areas around big cities have very little access to clean water, and mining isn’t always environmentally friendly either. Mining could be harmful to the environment and the planet.

2. Buy Low & Hold Longer

In the same way that I mentioned earlier, you need to buy coins, whether through trading platforms, exchanges, or crypto finance apps. Many exchanges allow users to purchase real bitcoins, which are like gold. They can be bought with cash, crypto, or Ethereum (the platform used in Ethereum 2). Each exchange has its own rules and restrictions, which is why certain ones are good. Most notably Bittrex is known for allowing you to trade Bitcoins and Ethereum against USD, EUR, and GBP. When trading Bitcoin or ETH on one of Bittrex’s websites, make sure you read the FAQs section for details on these features before jumping into the transaction. You will not receive a fee for buying BTC or ETH. After you have done this, you can earn cryptocurrencies with a minimum investment of 0.10% daily or $50 per month, whichever is easier because of course, buying Bitcoins is very affordable.

3. Invest Your Earning

There are two things you can do with Bitcoins that you can’t do anywhere else: hold cryptocurrencies for many years or invest in Bitcoins. A majority of the time, coins only last for 3–4 years. Why is that for? Because some coins require too many people to keep. Currently, it takes about 24 million bitcoins to keep one bitcoin for about 5–6 years. For example, if you want a 100% safe coin, you can only carry 300,000 bitcoins, whereas bitcoin which holds 615,999 bitcoins can be held for over 25 years. Let’s say you invested $150,000 in Bitcoins in 2011. Over the next 3–4 years, the price increases to $700,000. Now you can sell those Bitcoins while they sit somewhere between 5–6 billion US Dollars. Imagine that in 2029, bitcoin is able to reach a high price of over $2 trillion. Since then, the price drops to $50 per coin, which will cost less than $100,000 in the end. Although, we have heard the story of Ripple and how they rose to almost 250 billion in 2018 and ended up breaking their market cap record in 2019. These investments made investors rich, but that was an extreme case because Ripple failed to retain any value after eventually reaching a total of 500 billion in 2020. At least, Ripple kept everything for 5–7 years, but with 454 billion in assets today and a valuation of approximately 12.8 billion USD, it can be argued that it made money without paying fees. All that said, that doesn’t mean that investing in Bitcoins shouldn’t be done safely from a financial perspective. Just remember investing in stocks/dividend stocks, cryptocurrencies are great for returns, but over the long term, they can get really risky as well.

4. Investing Is Risky?

You can invest in cryptocurrencies without getting too much involved in the market. Simply put, crypto exchanges exist to prevent fraud, but if anything, Bitcoin holders have been proven to be extremely safe. Even when they receive an unexpected payment, you can rest assured of receiving the full amount as promised. Remember, most cryptocurrencies require no upfront payment in order to thrive. By investing in the right markets, you can maximize both your gains and losses. Before investing, try testing yourself on local currency and see just how it compares, or before leaving the country try it out on another country as well. If you want to know more about Bitcoin and its operations, watch this YouTube video. Once you have purchased bitcoins through an exchange and you are happy with the experience, try holding onto these coins for longer periods of time as you would with real currencies. Don’t try to sell bitcoins quickly as they might lose value. Instead, stick with the initial offer and try to build more value.

5. Watch out for Scammers

Before you invest in Bitcoin, take a look at the official website, CoinMarketCap.com. Make sure that none of the companies listed on this page have anything to do with cryptocurrencies. Never take cryptocurrency or private investments without doing proper research. And don’t be surprised if your friends are skeptical about what you might do with Bitcoins. Don’t have bitcoins and want to sell them to someone but forget not to take it seriously, especially if you do have a security clearance from the authorities!