What do you need to earn bitcoin?
Digital currencies, or cryptocurrencies, are electronic currencies that are generated by networks of computers and are used in place of traditional currencies.
Unlike traditional money, digital coins are not tied to the economy of any country or central bank.
One of these cryptocurrencies is Bitcoin (BTC). The name of the creator of this currency is Satoshi Nakamoto. Several attempts have been made to uncover the real person or group behind this name, but none have been successful.
Many people have heard about cheap buying and long-term storage of BTC. But this is far from the whole spectrum of enrichment on this cryptocurrency. Let’s take a look at other ways to make money with bitcoins.
The principle of earning bitcoins
A great way to make money on cryptocurrency is by mining bitcoin. Mining is the extraction of cryptocurrency. Nobody regulates the issue of cryptocurrency, so everyone can get money. Mining is about putting new transactions on the blockchain. It is a chain of blocks, each of which reflects a separate operation.
There are several ways to mine cryptocurrency. Let’s take a look at three of them.
In the first method, I would like to illustrate the mining of bitcoins on devices of mining farms. This is expensive equipment, including motherboards, a powerful processor, up to 10 video cards and cooling systems. All this forms a special server for earning BTC.
The second method of mining can be called mining using PC video cards. That is, the income includes the use of a personal computer and the additional purchase of powerful equipment.
The third way of mining, I would like to note the way to earn bitcoin by buying rights to mining with cloud mining. This method is suitable for those who do not want to buy or rent expensive equipment. In this case, all data is stored in the cloud storage.
A mining farm is generally more profitable in regions with the lowest electricity prices and low average annual temperatures. The ideal option in this case is the Irkutsk region. I would also like to add that recently there has been a mining boom and the mining of cryptocurrency has become more expensive due to the prices of video cards.
Ways to make money on bitcoins
Cryptocurrency arbitrage is one of the types of trading that moved into the cryptocurrency sphere from the stock market. It has a second name – inter-exchange arbitration.
Arbitration of cryptocurrencies (inter-exchange arbitrage) is a way of making money, which is associated with the difference in prices of cryptocurrency assets on exchanges. In such transactions, everything is often decided in a split second, or even milliseconds. Much also depends on luck and speed of reaction.
Currently, the human factor has been completely eliminated and robots do all the work. This is called high-frequency trading (HFT). These are programs written according to a certain principle. They look for the difference in rates for the same trading pairs on several platforms at once and carry out transactions automatically.
This way of making money is quite safe, because if the deal is unsuccessful, the losses will be minimal. But on the other hand, this exchange has a high entry threshold. Of course, you can enter with $ 10, but the profit will be a couple of cents. Amir Capital is ready to take over the management of your assets and profit from them safely and without risk!
First you need to choose a strategy: investment or trading. The trader makes many trades in a short time, trying to get the maximum benefit. He buys at a low price and sells at a higher price.
The investor, in turn, does not monitor his assets, but only buys in a certain period of time.