Since its inception nearly a decade ago, cryptocurrency has gone from being a fringe concept to one of the most popular and lucrative investments of our time. But with popularity comes attention from regulators and governments. Cryptocurrency is no longer an activity limited to tech savvy individuals who know how to code: Investors far and wide are looking for ways to get involved in this new space as an alternative investment vehicle. If you’re considering trading crypto but don’t know where to start, here’s some information that can help!
1 Mine cryptocurrency
Mining used to be an individual pursuit, but the increased difficulty of coins like Bitcoin and poocoin has necessitated that mining become a team effort. You can either mine solo or as part of a larger pool; it’s up to you! Either way, mining is basically providing your computer (or rig if you’ve built one with multiple processors) to support the network. Thanks to cryptography, your computer contributes its compute power and receives rewards in return for helping maintain the integrity of the coin’s blockchain.
2 Stake cryptocurrency
Another means of “earning” cryptocurrencies is through staking . This method is most commonly associated with proof of stake coins , which are currencies that use actual blockchain technology instead of relying on miners’ computing power. In a proof of stake coin, the blockchain is maintained by the owners of its coins in some cases simply because they have a lot of them! Remember that staking requires you to keep your wallet running and connected to the internet at all times. If you’re looking for more passive income from cryptocurrencies, this probably isn’t it.
3 Buy cryptocurrency on exchanges
In order to purchase crypto on exchanges , you’ll need to get yourself a wallet first (the subject of our next tip). Once you have a wallet, buying crypto on an exchange is simple: Just add funds from your bank account or credit card and start purchasing coins like Bitcoin , Ethereum , Litecoin , etc. There are fees associated with each transaction, which are dependent upon the exchange.
4 Exchange cryptocurrency
If you’re looking for more immediate returns on your cryptocurrency investments, exchanges offer an attractive alternative to mining or staking. Exchanges are websites where users can buy or sell coins with each other using various currencies. There are “fiat” currency exchanges , which allow you trading pairs in USD , Euro , etc.; there are also crypto-to-crypto exchanges that only handle two types of coin transactions. If you own some coins but aren’t interested in buying new ones at their current prices, it may be worth trying an exchange to sell them when the price is hight and get back some money rather than simply holding onto them until prices rise again (if ever). For example if you have gigecoins and when you see the gigecoin price is going high so you can think to sell them. However, keep in mind that exchanges aren’t regulated as strictly as traditional brokers and banks, so you may not be as protected in the event of fraud or other illegal activity.
5 Play games for cryptocurrency
Taking to the virtual world to earn real money is possible thanks to a number of different platforms that allow users to play games and receive rewards (in the form of their choice of cryptocurrency) for doing so. One such platform, called Refereum , offers gamers points for completing tasks assigned by video game developers comparing themselves to something like an affiliate program which can then be traded in for various perks within those games. These kinds of programs are especially attractive because they offer incentives for positive behavior (such as helping promote legitimate products). Plus, they’re great ways to keep your gaming skills sharp even if you don’t have a lot of time to play.
There are a number of ways to earn cryptocurrency without having to purchase it outright, but bear in mind that it may take some effort on your part. For more knowledgeable users, staking or mining can be rewarding if you have the hardware for it. Otherwise, buying on exchanges and then trading your coins for others is always an option!