Five ways to earn on cryptocurrency from home
Do you want to know how to make money with cryptocurrency in 2022 by doing almost nothing?
One of the most common and reliable ways to make money with cryptocurrency is mining. How does it work?
Miners on special farms, where mining capacities are installed, consisting of from one to tens of thousands of processors and video cards, calculate special blocks that give the right to receive a certain number of virtual coins. At the same time, miners have the right to choose the coin to be mined. If bitcoin is chosen, the bonus for mining is paid in bitcoins, but if, for example, the choice fell on etherium, money will be paid in ethers.
The very first miners who mined bitcoin, the main currency of the crypto-world, received the most generous remuneration. But bitcoin’s algorithm, embedded in its software code, suggests that its mining will become more difficult every year. Moreover, the number of coins is limited: the last bitcoin must be mined in 2140. Now the network is controlled by huge mining pools, which buy special devices for mining – ASIC-miners, which replaced video cards.
One-man miners, who raised the bitcoin mining industry, can not withstand the competition and go to projects related to other digital currencies. You can make money on them, too.
Let’s take a closer look at all bitcoin mining schemes.
The most popular and quite profitable scheme for obtaining cryptocurrency is mining on video cards.
What are good video cards for those who decided to make money with cryptocurrency? They have quite a long lifespan and even the old versions cope with mining cryptocurrencies. Their algorithms are not difficult to reconfigure and there is a three-year warranty from the manufacturer. This is relevant because modern versions of video cards work on new generations of GPUs without re-flashing.
You can’t make much money on one video card, that’s why miners work mostly with farms. This is a construction consisting of several video cards. The number of video cards is limited by investor’s capital and room size. The main costs are rent and payment of electricity bills. Also the equipment for miners creates a lot of noise. Although this problem is least of all related to video cards. Even a farm of 5 video cards is far inferior to an advanced ASIC miner in terms of decibels.
ASIC is a reliable, relatively compact device for mining cryptocurrency using certain algorithms. The problem with working with ASIC is that it is a highly specialized device. If a miner wants to mine several coins at once, he will have to buy a device for each of them. It is impossible to reprogram an ASIC that works with bitcoin, for example, to work with other currencies. With regard to economic efficiency, the ASIC consumes about 3 kilowatt of electricity per hour and brings its owner about $350 of net profit a month.
From the disadvantages of working with the ASIC device we will allocate a very high noise level. It is definitely not suitable for an apartment. As an option – a separate room or a mining hotel. Such hotels exist in most major cities.
It is easier and quieter to train in mining coins on your hard drive. You will need special software and a large capacity of hard drive from 3 terabytes.
Minuses of this way of earning is a limited number of coins for mining and low profitability.
You can also engage in mining on cloud servers. All one needs to do is to rent a certain amount of processing power from a remote data center. Some services also offer ASICs for leasing
The advantages of cloud mining are obvious. This is the absence of noise in the apartment, saving on equipment and time. Crypto farms need to be monitored around the clock.
Unfortunately, a huge disadvantage of this method of mining cryptocurrency are high risks. There are too many scammers, which undermine the reputation of the whole market and negate the benefits of a rather nice scheme.
Another way to make money with cryptocurrency at home today is trading on the exchange and working with platforms and partners.
Trading is a constant and painstaking work on the exchange: reviewing analytics, monitoring the market, working on a diversified investment portfolio. And, of course, investing for a long or short term – everything depends on your capital and readiness for high risks.
You can get your profit after registration on the sites with the help of affiliate and referral programs. Participants in these programs are rewarded for expanding the client base of cryptocurrency exchanges. The premium for a client is about 30% of the commission of a transaction or exchange.
Let’s say a client bought bitcoins at your link and paid 1.5% of the commission. Of that amount, you will receive a third as a bonus.
The second way to make money with cryptocurrency is staking, which is an alternative model of mining coins with a special algorithm. Officially called PoS abbreviation for Proof of Stake. New blocks in this model are created based on the age of coins, time for staking, and an algorithm of random selection. Users of staking networks are called forgers.
A participant in a staking program only needs to get a wallet, refill it with coins, and keep the computer plugged into the network. A wallet in a staking becomes one of the nodes in a chain that maintains the network and checks for transactions. This is rewarded with a percentage of the amount deposited. The larger the amount, the higher the premium. The final profit depends on how long the money is in the wallet.
We would also like to tell you about Masternodes. Masternodes are the main nodes of the network, with special powers. When a new block is created, the owners of the masternode receive a reward. Let’s take a closer look at this scheme. Coins are purchased and withdrawn to a hot or cold wallet. Then, special software is downloaded and installed, which ensures the operation of the master node on the owner’s computer or on a remote server. By and large, running a Masternode is an investment in one of the coins. The problem is that this coin can both rise in value and fall.
These are the ways of earning with cryptocurrency today. Want more instructions on how to do it? – Write your questions in comments, we will be glad to help you! And be sure to subscribe to our channel: an ocean of relevant and useful information in the field of cryptocurrencies is waiting for you here!
1 thought on “Five ways to earn on cryptocurrency from home”
I don’t think making money from crypto is that easy, but the truth is, you have to try and act. A rolling stone gathers no moss.