Cryptocurrency is a type of financial asset that works with special blockchain networks. It is important to understand that there are several types: bitcoin, altcoin, token.
BITCOIN is a payment system that uses a unit of the same name to record transactions.
It can be used to exchange goods or services with merchants who agree to accept them. Exchange for conventional currencies takes place through an online service for exchanging digital currencies, other payment systems, exchange offices, or directly between interested parties.
ALTCOIN is an alternative version of bitcoin, that aims for a lower unit cost.
Altcoins are less promising for trading. They are capitalized through transit to Bitcoin, which increases the correlation with the main cryptocurrency.
You can earn cryptocurrency thanks to mining, trading on exchanges, and investing in cryptocurrency.
One of the most popular is mining. A miner is a node on a network that collects transactions and works to organize them into blocks. When transactions are made, miner nodes receive and verify the transactions, add them to the memory pool, and start collecting multiple transactions into a block. It’s like a device in a computer that helps to earn money. It does this in the form of a commission assigned by the owner of the virtual money, or a reward in the form of a portion of the cryptocurrency issued during the mining process.
Cloud mining is when a company already has a group of miners in places with cheap electricity and you rent them out for a specific period, usually a year or two.
TRADING ON EXCHANGE
This is exchange trading, buying, and selling cryptocurrency. This is a topic in which it is important to be able to analyze information. The most important skill in trading is the ability to manage capital and have a strategy to follow.
INVESTING IN CRYPTOCURRENCY
Also, a good way to make money on cryptocurrency is an investment. Yes, yes, it is still considered a risky method of making money, but it is hard to predict what will happen to the money, even dollars can stop working tomorrow.
When making money on cryptocurrency, it is very important to study and analyze information.
In order not to waste time studying information for a long time and start making money, you need to learn: take training courses, workshops, read relevant resources or work with a mentor. And most importantly, have a strategy. Having tested all the methods on yourself, you can come to what you like the most and work with it, but it takes time, and this is the most valuable resource.