Become a miner – Reward system and Tips:
Miners are the Ledger keepers for any cryptocurrency. Their job is to regularly update the blocks by running algorithms that actively calculate the Proof of work of each transaction. They make money by creating blocks, this happens as more and more transactions are processed and the money is moved around in the system. The reward makes this tedious job worthwhile. The reward began as the transfer of 50 freshly created coins per block into the wallet of the user. After every 21,000 coins, the reward is halved, being 12.5 coins per block currently. Miners also make money by tips on each transaction. The tipping is expected to allow them a greater income once the network expands and the price is driven further up. This will make mining even profitable when the reward coins get reduced to nil.
Become a trader:
To trade cryptocurrency a person requires two things:
- A crypto wallet that carries currency
- A crypto exchange to trade on
The first step here is to select a currency. Various options include XRP, Bitcoin, Ethereum, Litecoin among others. There are over 8000 different currencies available. The second step is to buy it. After this is done, the sum of money can be traded over time as per desirability via an exchange. The exchange allows users to purchase and sell crypto in replacement of assets, fiat tokens, and another cryptocurrency. There are several exchanges out there, the choice really depends on their services and the skillset of the traders. Popular exchanges include – Coinbase, Coinbase’s GDAX, Bittrex, Binance, or Kraken. Exchanges are also divided into categories, these can be decentralized or centralized.
- The GBTC trust as sold on the stock market.
- A cryptocurrency IRA (a highly strategic inquiry is required for positive earnings)
- An exchange to buy coins on and a wallet to store the coins in
- An exchange-broker-wallet hybrid like Coinbase/GDAX (which allows customers to buy/sell/store cryptocurrency)
The process is similar to trading, it lasts for a longer term and it is more research-driven.
Gamble on price speculation:
A Contract for Difference (CFD) allows users to bet on the changes in the price of currency over a period of time. If the price bet is proved true, the punter wins an amount.
To enter this lottery-like gamble, all entrants pay an entry fee. Although this amount is nominal, it results in a great pool of resource to be distributed among the winners and the makers of these schemes eventually. This is a great tool for the inexperienced newbies in the ecosystem wanting to enjoy the benefits of crypto.
Content Creation as a source of Income:
Cryptocurrency payments can be received through blockchain alternatives for mainstream content portals such as Reddit and Youtube. Making videos for the blockchain Youtube – D tube allows users to earn cryptocurrency based on the number of subscribers and views on the video. Similarly, content on SteemIt, the blockchain version of Reddit allows users to create content and get paid for it in return.
Lend your computing power:
Applications allow users to earn in cryptocurrency by lending their computing power as a service to portals like winminer.com.
Ponzi Pyramid Schemes:
While users must be wary of scam and fraud on unreliable, shady new schemes, Ponzi schemes are a quick ticket to success, but only if the rider jumps on the wheels before other players enter the competition and hit the profits. Ponzi schemes are self-destructive and self exhaustive. They are NOT a way to make money, atleast not for investors. But, the first few layers within a Ponzi Pyramid tend to make good amounts of profits. However, they mostly come to public knowledge when they have over expanded and the scam bit has surfaced. Meaning that the scheme has run out of money to pay the people. Thus, it eventually defrauds its community shamelessly.