Understanding Crypto Passive Income

Passive income in cryptocurrency is not vastly different from traditional methods in terms of its goal — to earn money without ongoing effort. However, the means of achieving this in the crypto world are distinct and diverse, ranging from mining to DeFi initiatives. This section introduces the concept and sets the stage for a deeper exploration of specific methods.

Crypto Mining

Mining stands as a cornerstone of the cryptocurrency passive income stream. It involves validating transactions and securing the blockchain network. Key players like Bitcoin, Litecoin, and Monero offer various mining opportunities, each with unique challenges and rewards. Mining’s profitability hinges on hardware costs and electricity consumption, as detailed in resources like hotcoinpost.io.

Liquidity Pools and DeFi

Decentralized Finance (DeFi) has revolutionized earning opportunities in crypto, with liquidity pools being a prime example. Participants contribute to these pools to facilitate trading on DeFi platforms, earning fees in return. Projects like Uniswap are at the forefront of this movement. However, while lucrative, these opportunities come with risks such as impermanent loss and market volatility.

Play-to-Earn Games and Crypto Affiliate Programs

The gaming sector has embraced blockchain, giving rise to play-to-earn games where players can earn crypto rewards. Parallelly, crypto affiliate programs offer a way to earn by promoting crypto services or products. While these methods can be rewarding, they demand time and a substantial audience for affiliate programs.

Other Passive Income Strategies

Beyond the common methods, crypto offers niche opportunities like margin lending, where one lends assets to traders, and dividend-earning tokens, where holders receive a share of profits. The dynamics of forks and airdrops also present unique chances to earn passively, often with minimal effort but varying degrees of risk and return.

Risks and Considerations

The volatile nature of cryptocurrency is a double-edged sword. It offers high rewards but with significant risks. Market fluctuations, platform reliability, technical challenges, and security issues are vital considerations for anyone looking to earn passive income in this space. Understanding these risks is crucial for informed decision-making.

Navigating the Evolving Landscape of Crypto Passive Income

As we delve deeper into the intricacies of passive income streams in the cryptocurrency domain, it’s evident that this emerging field offers many opportunities for seasoned investors and newcomers. The journey through various avenues such as mining, DeFi, play-to-earn games, and affiliate programs unveils a dynamic spectrum of earning potential, each with distinct mechanisms, benefits, and risks.
The allure of earning passive income through cryptocurrencies is undeniable. It presents a novel approach to investment and aligns with the broader digitalization trend in finance. However, as with any investment, it comes with challenges and considerations. The volatile nature of digital currencies, the technical nuances of blockchain technology, and the evolving regulatory landscape are factors that require careful consideration and continuous learning.
Adopting a strategic approach is crucial for those keen on exploring these opportunities. This involves conducting thorough research, understanding the underlying mechanisms of each passive income stream, and staying updated with the latest trends and developments in the crypto space. Platforms like hotcoinpost.io serve as valuable resources in this journey, offering insights and updates that can guide investors in making informed decisions.
Moreover, diversification remains a key strategy in mitigating risk. By spreading investments across different types of passive income streams, investors can potentially buffer against volatility and enhance their chances of steady returns. Yet, the importance of due diligence cannot be overstated. Engaging with reputable platforms, understanding the specifics of each investment opportunity, and being mindful of security practices are essential steps in safeguarding one’s investment.
In conclusion, while generating passive income in crypto is fraught with complexities and challenges, it also offers significant potential for growth and innovation. By staying informed, adopting a balanced approach, and leveraging the resources available, investors can navigate this exciting landscape with greater confidence and understanding. As the crypto ecosystem continues to evolve, so will the opportunities for passive income, promising a fascinating journey ahead for those willing to explore the depths of this digital frontier.

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Once you’ve delegated your ATOM, it’s crucial to understand the ongoing management required. You can redelegate from one validator to another without waiting for the unbonding period, which is advantageous if your current validator changes their commission rates or faces on-chain issues. However, be aware that once redelegated, a 21-day waiting period is enforced before you can redelegate again.

Another key aspect is that rewards from staking are not auto-compounded. Maximizing returns involves regularly claiming and reinvesting these rewards, albeit with the consideration of transaction fees. For those looking to optimize their staking strategy, the ATOM staking calculator on CryptoStake can be a valuable tool, helping determine the ideal frequency for restaking based on your Cosmos amount.

Furthermore, staking ATOM empowers you to participate in the Cosmos ecosystem’s governance, allowing you to vote on important proposals. This involvement is vital for the ecosystem, though it doesn’t directly impact your reward total.

By selecting a reputable, long-term oriented validator, you can minimize maintenance efforts, focusing mainly on reinvesting your rewards to maximize gains.

Choosing the right validators for Cosmos staking rewards

Selecting the right validators is crucial in the Proof of Stake (PoS) ecosystem, particularly for ATOM token holders. This decision hinges on several factors:

Commission rates:

The commission rate is the percentage of your rewards that validators keep for themselves. A high commission rate diminishes your earnings, while an excessively low rate might indicate financial instability for the validator, potentially impacting their long-term operations. Remember, validators can adjust these rates over time.

Number of users and validator’s self-stake:

The number of delegators can reflect a validator’s reputation. Additionally, a validator with a significant self-stake likely has more skin in the game, enhancing their incentive to maintain high-quality service. However, this metric isn’t foolproof, as validators might delegate to themselves from different wallets for increased security.

Current status and network share:

Active validators can be verified through the Validator Dashboard on Mintscan. It’s essential to avoid overly popular validators to reduce centralization risks, as well as those with low network shares due to their potential unprofitability. Checking if your chosen validator is within the top 175 is crucial, as only these receive rewards.

Performance and ecosystem contribution:

Prioritize validators with high uptime (preferably above 99%) and a clean history of operations. Some validators offer additional services like tax tools or explorers, indicative of their commitment to the Cosmos Ecosystem.

Carefully weighing these factors will guide you towards responsible and profitable staking decisions in the Cosmos network.

Understanding ATOM staking rewards and calculations

Grasping the mechanics behind Cosmos ATOM staking rewards is key to maximizing your staking strategy. ATOM rewards comprise several elements:

Block rewards:

The Cosmos network mints new tokens as block rewards, governed by on-chain parameters like annual issuance and expected block time. The network’s inflation rate is dynamic, increasing by 13% annually up to 20% if less than 66% of all ATOM is staked. Conversely, if staking exceeds 66%, the rate decreases to 7% per annum.

Realized block time and transaction fees:

While the on-chain parameters suggest an expected block time, actual times can vary. The last 30 days’ average is used to adjust annual payout predictions. Moreover, each transaction processed by the network incurs fees, distributed to delegators in proportion to their stake. Thus, the staking Annual Percentage Rate (APR) fluctuates with network usage and transaction frequency.

Distribution among active stakers:

It’s important to note that as more ATOM is staked, individual reward rates diminish due to the division of total rewards among a larger pool of stakers.

With the potential introduction of ATOM 2.0 and forthcoming governance proposals, the staking landscape might see significant shifts. These could affect the reward rate and token utility, making it vital for stakers to stay informed. For a deeper understanding and to simulate various scenarios, the Cosmos Staking Calculator on cryptostake.com can be an invaluable resource.

Navigating the risks of staking ATOM

While staking ATOM offers attractive rewards, it’s imperative to be aware of the associated risks:

Slashing and unbonding risks:

Delegating ATOM to a validator involves a slashing risk. If the validator misbehaves, such as in double signing events, your staked ATOM can be slashed up to 5%. Additionally, validators may face jailing, during which time no rewards are earned. The unbonding period for ATOM is 21 days, a critical consideration given the volatility of crypto markets. This period means you cannot immediately liquidate your staked tokens, necessitating a thoughtful approach if you plan to hold ATOM short-term.

Dropping out of the active set:

Validators falling out of the top 175 lose reward eligibility, impacting your staking yield. Regularly monitoring your validator’s status is therefore crucial to ensure they remain active and don’t raise their commission fees unexpectedly.

Protocol security risks:

The Cosmos protocol, like any other, could harbor unknown bugs. These risks are inherent not just in staking but in any ATOM-related investment, underscoring the importance of a cautious investment strategy.

By thoroughly evaluating these risks and choosing validators wisely, you can better safeguard your investment while participating in the Cosmos network’s staking ecosystem.

An overview of ATOM: utility and tokenomics

ATOM, the cornerstone of the Cosmos network, serves multiple key functions essential to the platform’s operation:

Token Utilities:

• Gas Token: Every transaction on the network requires a fee, paid to validators in ATOM.
• Governance: ATOM holders play a direct role in network governance, using staked tokens for voting. Unlike some networks, Cosmos enables delegators to participate in governance directly, rather than through validators.
• Staking: Staking ATOM contributes to the security and stability of the Cosmos Hub.

Tokenomics of ATOM:

Unlike many cryptocurrencies, ATOM does not have a supply cap. The supply is expected to expand indefinitely, influenced by network parameters and block times. The introduction of ATOM 2.0 and upcoming governance proposals could significantly alter these dynamics, making it important for investors to stay abreast of developments.

Initial Token Distribution: The initial distribution of ATOM followed a multi-tiered approach:

• 7.1% to Strategic and Early Adopters.
• 5% to Seed Investors.
• 67.9% to Tendermint Inc.
• 10% each to Future Sales and the Interchain Foundation.

These allocations underscore the broad participation and investment in the development and future of the Cosmos network, reflecting its commitment to a decentralized and collaborative ecosystem.

Cosmos Hub and Tendermint BFT: powering ATOM

The Cosmos Hub, the foundational blockchain of the Cosmos network, is driven by Tendermint BFT (Byzantine Fault Tolerant), a pioneering consensus engine. This engine is renowned for its robustness, offering instant finality, scalability, and resilience against malicious activities. Its open-source nature allows transparent inspection and use, fostering a secure and collaborative development environment.

Key Features of Tendermint BFT:

• Instant Finality: Transactions are finalized swiftly, ensuring efficiency and reducing the risk of forks.
• Scalability: Designed for horizontal scalability, Tendermint BFT can handle increasing workloads effectively.
• Security: Its BFT nature makes it secure against a range of cyber threats, enhancing the overall integrity of the network.

The Cosmos Hub’s validator set consists of the top 175 by staked tokens. Validators are chosen randomly to propose blocks, with a requirement of 66% of other active validators’ agreement for finality. The more tokens staked, the higher the chance of being selected as a proposer, reinforcing the importance of stake distribution.

In summary, the Cosmos Hub and Tendermint BFT form a powerful combination, securing the network while promoting decentralization and efficient governance. This robust infrastructure underpins the value and functionality of ATOM, making it a significant player in the broader cryptocurrency landscape.

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The Essence of Crypto Mining: Digital Alchemy

At its core, cryptocurrency mining is a form of digital alchemy. It transforms electrical energy into valuable digital coins by solving complex mathematical puzzles. These puzzles serve the dual purpose of validating transactions and adding them to the blockchain, the digital ledger that underpins cryptocurrencies. Miners employ specialized computer hardware known as mining rigs to execute this process.

Digital Gold Rush: Profits and Promises

The allure of cryptocurrency mining lies in its promise of financial freedom and the potential for substantial profits. Like the prospectors of old who flocked to goldfields, modern miners invest significant resources and time in the pursuit of digital treasures. However, the key difference lies in the tools they employ—powerful computers that harness their computational might to compete in the cryptographic race.

Bitcoin: The Shining Beacon of Mining

Among the numerous cryptocurrencies associated with mining, Bitcoin stands as the most iconic, often referred to as “digital gold.” Satoshi Nakamoto, the pseudonymous creator of Bitcoin, designed this cryptocurrency with a finite supply of 21 million coins, making it an attractive store of value and a hedge against traditional financial systems. This scarcity has contributed significantly to its popularity among both miners and investors.

Proof of Work: The Engine Behind Crypto Mining

The backbone of cryptocurrency mining, particularly for Bitcoin, is the Proof of Work (PoW) consensus mechanism. PoW relies on miners solving intricate mathematical puzzles to validate transactions and add them to the blockchain. The first miner to successfully solve the puzzle is rewarded with a block subsidy (newly created coins) and transaction fees. This competitive process incentivizes miners to invest in increasingly powerful hardware and consumes vast amounts of electricity.

Environmental Concerns: The Dark Side of Mining

Despite the potential for substantial profits, the environmental impact of cryptocurrency mining has raised significant concerns. Large-scale mining operations can rival small countries in terms of energy consumption, exacerbating climate change and highlighting the need for more sustainable practices. Critics argue that the environmental costs outweigh the benefits, necessitating a shift towards greener alternatives.

Shifting Tides: The Rise of Proof of Stake (PoS)

In response to environmental concerns, some cryptocurrencies are exploring alternative consensus mechanisms. Ethereum, the second-largest cryptocurrency by market capitalization, is in the process of transitioning from PoW to Proof of Stake (PoS). PoS requires validators to hold and “stake” a certain amount of the cryptocurrency as collateral, rather than relying on computational power. This shift aims to reduce the environmental footprint of cryptocurrency mining while maintaining network security.

Mining Collectives: Joining Forces for Success

The digital gold rush has given rise to a global network of mining pools and farms. Mining pools are collectives where individual miners combine their computational power, increasing their chances of solving cryptographic puzzles and receiving cryptocurrency rewards. Mining farms, often located in regions with low electricity costs, house rows of mining rigs, resembling futuristic data centers dedicated to the pursuit of digital wealth.

Global Challenges: Regulation and Legal Complexities

Beyond environmental concerns and resource-intensive operations, cryptocurrency mining also faces regulatory and legal challenges. Governments worldwide are grappling with how to regulate cryptocurrencies and mining activities. The decentralized and borderless nature of cryptocurrencies presents unique challenges for lawmakers, as they seek to strike a balance between innovation, consumer protection, and financial stability.

Conclusion: The Unstoppable March of Crypto Mining

In conclusion, the mining of cryptocurrency represents a modern-day digital gold rush that has reshaped the financial landscape. It offers the potential for financial independence and significant profits, but it also raises pressing questions about its environmental impact and regulatory oversight. As the world grapples with these challenges, the allure of crypto mining continues to attract adventurers and entrepreneurs, making it a captivating and transformative force in our increasingly digital world. As the industry evolves, finding a balance between profit, sustainability, and regulation will be essential to ensure the enduring success of the digital gold rush.

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Understanding the Crypto Market

The cryptocurrency market is a 24/7 global phenomenon, offering investors a borderless platform for trading without the need for intermediaries. Its decentralized nature is a magnet for those seeking financial autonomy and anonymity. However, the market’s wild volatility demands prudent decision-making. Engaging in crypto investments requires a deep understanding of the risks and rewards tied to digital assets.

Volatility:

In the realm of cryptocurrencies, rollercoaster-like price fluctuations are the norm. A coin’s value can skyrocket one day and plummet the next. This volatility can be attributed to numerous factors, including market sentiment, regulatory shifts, technological progress, and macroeconomic events. While such volatility offers lucrative opportunities, it also exposes investors to significant losses. To navigate this exciting yet unpredictable market, adopting a long-term outlook and considering the underlying technology and project fundamentals is paramount.

Diversification:

With unpredictability as its hallmark, diversification becomes a crucial risk management tool. Spreading investments across various cryptocurrencies and traditional assets can cushion potential losses from the drastic price swings of individual coins. Diversification fosters a stable approach to investing in this highly dynamic market.

Research:

In the crypto universe, thorough research is the golden rule. Unlike traditional financial assets, cryptocurrencies often lack a long history of data and are influenced by speculative narratives. To make informed decisions, investors must delve into a cryptocurrency’s technology, comprehend its use case and utility, evaluate its development team and community support, and analyze its competitive landscape. Additionally, keeping an eye on market news, regulatory updates, and industry trends is vital to thrive in this ever-evolving space.

Security:

As cryptocurrencies reside in digital wallets, security becomes a paramount concern. Choosing reputable and secure wallets for both daily transactions and long-term storage is essential. Hardware wallets stand out as one of the safest options, keeping private keys offline and away from potential cyber threats. Practicing strong security measures, such as enabling two-factor authentication, using robust passwords, and staying vigilant against phishing attempts, adds an extra layer of protection to crypto holdings.

Regulatory Environment:

The crypto market operates within a rapidly shifting regulatory landscape. Governments and financial regulators worldwide continuously adapt their stance towards cryptocurrencies and blockchain technology. While some countries embrace and regulate cryptocurrencies, providing clear legal frameworks, others may impose restrictions or outright bans. Staying informed about regulatory developments in one’s own country and abroad is critical, as they significantly impact market sentiment and investment value.

Emotional Discipline:

Investing in cryptocurrencies can evoke intense emotions, particularly during periods of substantial price fluctuations. Fear and greed often cloud rational judgment. To navigate the emotional rollercoaster of the crypto market, maintaining emotional discipline is paramount. Avoiding impulsive decisions driven by short-term market sentiment and adhering to a well-defined investment plan can help investors weather the storm and stay on course towards their goals.

Tesler: A Comprehensive Overview

Tesler, an established name in the crypto realm, offers a secure and user-friendly platform for investors. With advanced encryption and robust security measures, Tesler prioritizes safeguarding users’ assets. The platform’s intuitive interface makes it ideal for beginners and experienced traders alike.

How to Get Started with Tesler

To begin investing with Tesler, sign up for an account by providing necessary details. After verification, fund your account using a variety of payment options. Tesler’s user-friendly dashboard simplifies the investment process, allowing users to start trading promptly.

Crypto Investment Strategies

Investors can also explore a variety of other strategies to navigate the volatile crypto market. One such approach is day trading, where traders buy and sell cryptocurrencies within the same day, aiming to profit from intraday price movements. Day traders closely monitor market trends, news, and technical indicators to make swift and strategic decisions.

Another strategy is swing trading, which involves holding positions for several days or weeks. Swing traders look for price patterns and trends, attempting to capitalize on medium-term price swings. This strategy requires a good understanding of market sentiment and technical analysis.

Arbitrage is yet another technique employed by investors to take advantage of price discrepancies across different exchanges. By buying an asset on one exchange and selling it on another at a higher price, traders can generate profits with low risk. However, arbitrage opportunities are often short-lived and require quick execution.

Tesler’s Unique Selling Points

Tesler distinguishes itself with several key features. The platform boasts efficient customer support, providing assistance when needed. Moreover, Tesler offers valuable educational resources to empower investors with knowledge about the crypto market.

Success Stories: Real-Life Tesler Investors

Numerous investors have achieved financial success through Tesler’s platform. These success stories illustrate how informed decision-making and strategic investments can yield substantial returns. Aspiring investors can learn valuable lessons from these experiences.

Addressing Concerns: Is Tesler Safe?

Security is a top priority for Tesler. The platform employs cutting-edge encryption to protect user data and assets. Additionally, stringent security protocols prevent unauthorized access to accounts, ensuring a safe investment environment.

Tesler Mobile App: Investing on the Go

Tesler’s mobile app brings convenience to investors’ fingertips. With real-time updates, users can monitor market trends, execute trades, and manage their portfolios while on the move. The app’s user-friendly design enhances the overall investment experience.

The Future of Crypto and Tesler

Cryptocurrency’s potential for disruptive change in the financial landscape is immense. As the crypto market continues to grow, Tesler remains committed to providing innovative solutions and expanding its offerings to cater to evolving investor needs.

Investing in cryptocurrency is an exciting venture, and Tesler presents an ideal platform for beginners and seasoned investors alike. As the crypto market evolves, Tesler’s commitment to security, education, and user experience makes it a compelling choice for those exploring the world of digital assets.

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Cryptocurrencies can be volatile and unpredictable, making it difficult for investors to manage their funds. It is crucial to have a good understanding of crypto investing and the associated risks of cryptocurrency investing before investing.

The future of cryptocurrencies such as Bitcoin, Ethereum and Stablecoin remains uncertain and volatile, and could be affected by new regulations due to events such as the sudden fall of FTX. Some predict that the cryptocurrency sector will recover in 2023 after a tumultuous 2022, believing that bitcoin will soar to $100,000 this year. Others don’t expect such a bright future.

However, 2023 could also be a turning point for cryptocurrencies as more and more governments launch their own centralized cryptocurrencies. China and the Bahamas have already paved the way, and other countries such as the U.S., U.K. and EU are expected to follow suit. This trend toward digitization could lead to more investment in stable coins, which are considered more reliable than volatile cryptocurrencies, making them a safer option for investors.

The decentralized finance sector, known as DeFi, is expected to receive increased attention in 2023. The idea behind DeFi is to offer an alternative world of finance and investment based on cryptocurrencies and blockchain technology, without intermediaries. Ethereum has a strong presence in this sector and is expected to grow in the coming years. In addition, meme coins may maintain their popularity in 2023 after the success of Dogecoin, which has a market capitalization of more than $13 billion. On the other hand, the future of NFTs remains uncertain, and there are different perspectives on their growth potential.

Pros and cons of investing in cryptocurrencies

For those interested in cryptocurrency investing strategies, it is important to thoroughly understand the various advantages and disadvantages associated with them. Like any other investment, it has its pros and cons that must be considered before making a decision.

Pros of investing in cryptocurrencies

Cryptocurrencies offer a number of advantages for investors. Decentralization is one of the key advantages because cryptocurrencies operate on decentralized networks, meaning that central authorities or the government do not control them. This system provides greater financial freedom and independence for users.

In terms of investment potential, some cryptocurrencies have shown significant growth in their value, leading to high potential returns for investors. However, before investing, it is necessary to consider “whether cryptocurrency is a safe investment.

Disadvantages of investing in cryptocurrencies

One significant disadvantage is the volatility of cryptocurrency values, which can be very prone to sudden drops and lead to significant losses for investors. Therefore, it is very important to research and determine the best options for investing in cryptocurrencies that fit your risk appetite and investment goals.

In addition, the lack of government oversight and regulation in the cryptocurrency market can make it a target for fraud and scams, so keep an eye on cryptocurrency news and regulatory updates. Another concern is cybersecurity risk, as cryptocurrency exchanges and wallets are subject to attacks by hackers, leading to the theft of funds. Therefore, it is important to take the necessary security measures to protect your assets.

Also keep in mind that cryptocurrencies are still in the early stages of proliferation and have limited use in the real world, making their long-term viability uncertain. However, as the technology behind cryptocurrencies develops and becomes more accessible, we may see an increase in their adoption and use, leading to their long-term success. It is important to stay up-to-date on the latest developments and trends in the cryptocurrency market in order to make informed investment decisions.

How to reduce the risks when investing in cryptocurrency?

Investing in cryptocurrencies is a common concern because of the uncertain and unpredictable nature of the cryptocurrency market. If you choose to explore the world of digital currencies, the following tips will help you mitigate potential risks and ensure a safer investment.

1) Diversify your portfolio to reduce risk

When looking for the best cryptocurrency to buy, you need to spread your investments between several cryptocurrencies. Consider investing in a combination of established coins, such as Ethereum, and promising new cryptocurrencies with strong development teams. This method helps balance risk and reward, as established coins offer more stability but potentially less growth, while new coins may show higher growth potential but come with more risk.

In addition to spreading investments across different cryptocurrencies, consider investing in different coins. For example, investing in a combination of altcoins and stabelcoins can provide a well-built portfolio of new cryptocurrencies. It is also advisable to hold some assets in a stable currency, such as the U.S. dollar, to hedge against market volatility. Reviewing and rebalancing your portfolio helps you maintain a balanced degree of risk and take advantage of market opportunities. However, keep in mind that investing in new cryptocurrencies is highly speculative and involves a high level of risk. Therefore, it is important to do your research and consult with a financial advisor before investing.

2) Avoid emotional investments in cryptocurrencies

To avoid emotional investing in cryptocurrencies, it is best to create a clear strategy focused on your goals. This technique will help you stop impulsive decisions caused by emotions and market fluctuations. Moreover, setting limits, self-education and a long-term perspective can be beneficial.

You should also avoid following the crowd and making decisions based solely on the actions of others. Instead, take the time to study and think about cryptocurrency models and indicators to make informed decisions consistent with your own goals and risk tolerance. In addition, taking breaks to constantly monitor your investments will help you avoid emotional investing and maintain a more rational outlook. By sticking to these tips, you’ll be able to invest in cryptocurrency with a calm head and minimize the risk of making decisions influenced by emotion.

3) Act only when you know for sure

As we know, investing in any digital asset comes with the risks of crypto investing. It is very important to do thorough research and understand the nature of the investment before embarking on it. This process requires an understanding of blockchain technology, an assessment of its growth potential and an awareness of general market trends, including cryptocurrency market news. In addition, it is very important to be aware of any possible warning signs and to constantly monitor your investments to ensure that they are performing as expected.

To summarize

Risk management is an effective way to reduce losses when investing in cryptocurrencies. The golden rule is to do extensive research and avoid decisions based on hype and emotion. In addition, diversifying your investments by carefully researching assets and not relying solely on the cryptocurrency market will help reduce risk and increase your chances of making a profit.

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Cryptotrader

The cryptocurrency market is directly related to finance. And in its essence and functionality, it resembles classic financial and stock markets. The most obvious way to make money in cryptocurrency, just like in the stock market, is trading. It has its own specific features and differences, but the general concept is not inferior to the classic options. Let’s understand, who is a crypto trader in the cryptocurrency market and what materials should be studied to become one?

Who is a cryptocurrency cryptotrader?

A cryptotrader is a person who deals with buying and selling digital assets on a regular and professional basis. A trader’s task is to choose a coin (or the market as a whole), analyze it using various analytical tools and make a decision to buy with the possibility of further growth of the asset price and, accordingly, to sell.

Traders are different from other people involved in cryptocurrency. Trading is a full-time job. A full busy day and sleepless nights. But the rewards are also great if you succeed.

The trader’s path: where to start?

If you are interested in analytics and cryptocurrencies, and you are willing to spend a lot of time in front of the computer, then you should go to study to become a trader. Of course, there are no such specialties in classical universities, but there are many training courses that will help you understand exactly how to analyze coins.

You need to know and clearly understand the different types of market analysis. This is what you will be taught in places like this. Remember that good courses are quite expensive (from $1,000). And there is a lot of scam (cheating) on the Internet and you can easily be cheated for money.

So it is worth to look first at a channel or, for example, a social network which offers you training services.

There is a basic set of analytical tools that every trader should know. The more and better you know them, the better your chance of becoming a successful trader and earning well.

The basic analytical tools include:

1) Elliott Wave Theory – interpretation of financial behavior through visual patterns (waves). It is necessary for predicting the market in the long term.

2) Technical analysis. It is necessary for predicting the price of an asset in the short term.

3) Fundamental analysis. Analysis of the situation in the world and dependence of one factor on another. It is necessary to pay attention to it, as it can be decisive in determining the price and level out the previous two factors. For example, due to the pandemic, the bitcoin exchange rate will go down, even though the previous methods show the opposite.

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Evaluating the prospects of ICOs

The first step for a beginning investor in this market is to evaluate projects offering to buy their tokens. So far, there is no infrastructure for independent and professional asset valuation in this sector. Investors have to rely on themselves. To learn how to make money on ICOs and not go into deficit, you will first need to invest in more than one loss-making project.

When choosing an ICO to invest in, you should pay attention to the development team. To place tokens, you do not need to have great resources and technical skills. The market is not regulated by the state in any way, unlike IPOs, fraud is rampant.

Prospective ICOs account for less than 10% of the total share.

If in the development team will be famous people who have previously worked on other startups, it greatly reduces the risk of losing money. It is undesirable to invest in projects of people who have no career history and achievements. Particular attention in the analysis should be paid to the personality of the founder of the company. When Bredan Eich, former CEO and founder of Mozilla, conducted the ICO of his new project, it took him only 30 seconds to raise money.

An important metric in choosing a project is its liquidity. How easy it will be to sell to intermediaries and consumers. People who know how to make money from ICOs recommend investing in new technology.

It is better to invest in tokens, which will not have a material backing. Otherwise it is not clear why they will grow in value. Unlike stocks, which pay dividends and give holders corporate rights, company tokens give access to services or products at a discount. Tangible asset-backed tokens are unlikely to increase in value because they are not backed by in-demand new technology, but by ordinary production resources.

So, the main points when investing are:

• The team;
• leader of the developers;
• liquidity of the idea.

The difference with earnings from conventional cryptocurrencies

Bitcoin, ether and other cryptocurrencies are popular assets for investment. They are easy to buy, and the rapid growth of market capitalization even allows you to earn something. About 800 cryptocurrencies have been developed so far. Most altcoins are of no use to anyone, they will never interest an investor again. But even if you don’t risk investing in new altcoins and build a portfolio of proven currencies, market cycles coupled with general market nervousness will quickly turn capital into nothing.

When investing in tokens, an investor looks first of all at the project. He can at least roughly guess whether it will be successful or not. No one knows what the price of a new altcoin will be in six months, and it is difficult to make even a rough prediction due to market volatility. If, however, the project for which money is being raised has a clear structure and achievable goals, the likelihood of success is realistic to predict.

Investing in tokens through ETH

At the moment, there are specialized platforms through which developers conduct the initial placement of their tokens. It is convenient to do this through the Ethereum platform.

Initial placement, which is carried out on the Ethereum platform, is carried out thanks to the Smart-contract technology. It is a protocol that exchanges money for services and goods without the participation of third parties. All the user has to do is transfer currency. This reduces costs and helps achieve transparency between the investor and the team.

With the prospect of project development, it is better to keep tokens until the last moment. At some ICOs the growth of their value exceeded 50,000%.

Thus, companies offering ICOs are easy to find, but it is hard to choose a promising project. Most of the initial offerings turn out to be a failure for investors, the remaining few percent bring a profit of thousands of percent. A lot of tokens are sold through the Ethereum platform, where they can be purchased for the corresponding cryptocurrency.

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Is it possible to earn cryptocurrency without investing?

There is always an opportunity to earn passively. For example, staking programs with USDT can bring up to 12% per annum. That is, investing 100 thousand dollars, you will get 12 thousand dollars in a year with nothing to do. But this is if you have some start-up capital. If you don’t have it, earning on cryptocurrency is still available to you. Say, free NFT games with withdrawal. There are not many of them, but they are available.

Method 1. Cryptocurrency affiliate programs

Making money on Bitcoins without investing is available to customers of most cryptocurrency exchanges. Usually such exchanges use several methods to attract new users. Among them – affiliate (or referral) programs.

The essence of the affiliate program is that the registered and verified user receives a personal link. He can place it anywhere at his will. Every person who clicks on this link and starts trading at the site will bring the owner of the link bonuses.

As a rule, bonuses are given out in a working token of the site or in some cryptocurrency. Example: You invited an acquaintance to the Binance cryptocurrency exchange. Depending on your activity on the site, you can get up to 50% of all trading commissions for this referral, which he pays to the exchange. Of course, the more referrals, the bigger the payout.

When thinking about how to make money on cryptocurrency, consider a special kind of affiliate programs available to authors of popular blogs. The author places a referral link on his blog and receives payments for each user who clicks on it and starts trading on a cryptocurrency exchange. Such programs are usually more profitable than standard affiliate programs, because the payouts are larger and the potential reach is wider.

Pros and cons of affiliate programs

Main advantages: you don’t need to trade on the platform to get bonuses. Affiliate programs do not require starting capital. You only need to place an affiliate link almost anywhere, inviting everyone in a row.

Main disadvantages: you have to be socially active to earn well. Bonus payments are usually made in working token, which needs to be converted to your convenient cryptocurrency, and this requires commission costs.

How much can I earn?

For example, let’s take the affiliate program of Kraken cryptocurrency exchange. Here, earnings on cryptocurrency through referrals is 20% of their trading fees. Let’s say your referral closes three trades a day and pays $1, $10, $100 commissions for them. You receive 20% of each commission, i.e. $0.20, $2 and $20. In total, you will earn $22.2 per day from one active partner.

Method 2. Bitcoin cranes

How to earn on cryptocurrency for the beginner? One of the easiest ways is Bitcoin cranes. This is the name of special platforms, which pay users rewards for performing simple tasks. Usually they are watching commercials, registering and posting on forums, writing reviews.

For each such action on the account of the user “drops” a little money. On reaching the minimum limit, funds can be withdrawn to an external wallet. Additional payments are possible to receive due to bonus programs and loyalty programs, many of Bitcoin cranes introduce such today.

The main characteristics of Bitcoin taps:

• timing – the time that must pass between performing tasks;
• rate – the amount of remuneration for the execution of a typical job;
• limit – the minimum amount that can be withdrawn from the site.

To make it clear how it works: ClaimFreeCoins has the rate of 20 satoshis (the minimum Bitcoin unit), timing – 5 minutes, but there is no limit. This means that in 1 hour you can earn 240 satoshi, and in a working day (8 hours) you can earn 1920 satoshi.

Pros and cons of Bitcoin cranes

Main advantages: you do not need any investments, special knowledge and equipment, only free time and the simplest PC or smartphone/tablet.

Main disadvantages: Bitcoin cranes do not bring significant profit, even with the highest activity it will be only a few dollars a day.

How much can be earned

Example – Bitcoin crane FireFaucet. Rate from 10 satoshi, timing 1 minute, limit 40 thousand satoshi. You can earn at least 600 satoshi per hour, or 6000 in 10 hours, while you are working non-stop. This yields a minimum of 0.00006 BTC or $1.371096 USD.

Method 3. PTC Websites

Considering how to make money from cryptocurrency without investing anything and without any special knowledge, many stop at this method. PTC websites are similar to Bitcoin cranes. The difference is that on the cranes the tasks are different, while on PTC there is only one type – the user needs to click on the advertisements. There are no timings on PTC websites, but there are other parameters by which they can be compared:

• potential returns;
• list of cryptocurrencies;
• minimum withdrawal.

Most PTC sites determine payouts according to the roulette principle. The user literally spins the roulette wheel before watching the ads and the number that falls out reflects the potential earnings. The higher the number, the more coins the user will get after watching ads. Coins – the internal currency of PTC websites, which is exchanged for real money.

Pros and cons of PTC websites

The main advantages: no special knowledge is needed, there is no need for powerful equipment (a smartphone is enough), no minimum deposit is required.

The main disadvantages: the same as for Bitcoin cranes. That is, you can not provide yourself a substantial income, even if you do not take your eyes off the screen for 16 hours a day.

How much you can earn

For example, take Start click. Not the highest paid, but proven and reliable PTC site. Offers a universal answer to the question of how to make money on cryptocurrency without investing. Pays an average of $0.01 per click on ads. Plus bonuses for activity and referrals. You can earn up to $10-15 per day, but you will have to try very hard.

Method 4. NFT games without investment with withdrawal

Earning cryptocurrency through games is a fait accompli. The first such game appeared in 2017, it is the well-known CryptoKitties. Today there are hundreds of them, free with withdrawal – dozens. The difference between NFT games and regular games is that the characters and in-game items in them are non-exchangeable tokens. They are sold and bought on the internal marketplace of the game, and the funds can be withdrawn to an external wallet.

An example of an NFT game is Blankos Block Party. Registration is free and the game is available on Windows and MacOS. Is a competitive MMO in a cartoon style. While completing various tasks, players receive “blanks” for which they can buy and sell NFT items and characters. Also, all NFT are sold for cryptocurrency, they are easily withdrawn to the wallet MetaMask or similar.

Pros and cons of NFT games

Main advantages: some NFT games are free, require no starting capital. The gameplay is fun, allowing you to combine business with pleasure. Most games are socially oriented.

Main disadvantages: to count on a substantial profit, you need to quickly understand the basic mechanics of the project and constantly “farm”, and it is very time-consuming.

How much can you earn

Axie Infinity is one of the top projects. In general, the game requires investments at the start (to buy the first characters). But you can start for free if you rent monsters from someone (the game itself encourages this practice). Starter monsters cost 200-500 dollars, but at advanced levels there are characters for 15 thousand dollars and above. Here is the answer to the question of how to make money on cryptocurrency without investing.

Method 5. Participation in Airdrop

Airdrop is a marketing strategy that allows you to promote cryptoprojects by introducing a native site token into circulation. Let’s say a new blockchain is launched. In order for its working token to get high liquidity at launch, a certain amount of coins is distributed to users for free. Sometimes this requires a series of simple actions, say, subscribing to the project’s community in some social network and reposting the said post.

When considering how to make money from cryptocurrency, not many people consider this option. That’s because airdrop is not as well known as PTC websites or NFT games. In addition, not all cryptocurrency exchanges offer users to participate in airdrop. For example, Kraken is one of the largest platforms in the world, but does not offer airdrop. On the other hand, airdrop is available at Binance, which is another representative of the top rankings.

To participate in Airdrop, it is enough to have a verified account, no special actions are required (except those specified in the terms of Airdrop).

Pros and Cons of Airdrop

The main advantages: to participate in airdrop, you just need to register at the site and be verified (the latter is not always required). It is earnings on cryptocurrency without investment and special knowledge.

The main disadvantages: you need to know proven sites with profitable offers; airdrop does not give really a lot of coins; additional actions may be required.

How much can be earned

It is difficult to name even an approximate amount. Each new project has its own conditions on airdrop. As an example, let’s take a cryptocurrency COTI, for which Binance recently held an airdrop. The conditions were as follows: you had to buy COTI, and as an ardrop bonus, the user would get 25% of the amount of coins he bought for free. Let’s say you bought 10 thousand COTI, and received an additional 2.5 thousand. At current exchange rates, that’s $280.5.

Method 6. Completing tasks for cryptocurrency

This is one of the most popular answers to the question of how to make money on cryptocurrency for a beginner. Many sites that work with blockchain conduct alpha tests of new features. For the tests, they ask users to perform simple tasks, offering some cryptocurrency in return. This is a common practice and can be found on major platforms.

If you are interested in this cryptocurrency earning option, the easiest way is to find a specialized aggregator site like Cointiply or Cryptomininggame. Such sites collect tasks from different sites and provide them in a conveniently structured form. Or they form their own pool of jobs. It can be participation in a survey, registration on a new platform, testing a support bot in live chat. Due to the variety of tasks, everyone has the opportunity to pick up a variant of earnings, based on personal preferences.

Pros and cons of performing tasks

The main advantages: to start earning, you need to register on a special platform, nothing more. You do not need powerful equipment, special knowledge, start-up capital.

The main disadvantages: according to the ratio of profit and time spent, this is far from the most effective way of earning. Tasks with the most profitable conditions are not so much, on aggregators they are quickly dispersed.

How much can I earn?

For example, let’s take Cointiply. This is one of the largest aggregators with tasks that allow you to earn on cryptocurrency without investment. The site can be accessed through a personal computer or smartphone with iOS/Android operating system. It always publishes a lot of tasks of different types – from viewing ads to writing reviews. If you actively work for 4-6 hours, you can earn about $5-7 USD per day. For more time there is simply not enough free tasks.

Withdrawal

How to earn on cryptocurrency without investing? You can use affiliate programs of cryptocurrency exchanges, bitcoin cranes, PTC, perform various tasks for cryptocurrency. All these ways of making money from cryptocurrency do not require any investment or knowledge, only time. But they have one common problem – they don’t allow you to earn much. So if you are interested in how to make a substantial amount of money from cryptocurrency, there is only one option – cryptocurrency exchanges. They are free and offer many ways to make active and passive money.

The post Making Money on Crypto-currency Without Investing – Top 6 Ways appeared first on Trend_Coin.

Surely you have heard the word more than once, but each time you did not understand its meaning. This article will tackle what mining is, what is the main idea behind it and will also take a look at mining equipment.

What is mining

Mining is the mining of cryptocurrencies. But for sure this definition does not make any sense to you. So let’s rephrase it a bit: mining is the confirmation of transactions in the Blockchain network.

Transactions are transactions, i.e. the transfer of funds. For example, you transfer some bitcoins to your friend – this is a transaction. Such a cryptocurrency transaction cannot just happen. For the transfer to take place, the transaction must be confirmed. That is exactly what miners do. The process of confirming transactions is called mining.

What is mining about?

Transaction validation is the entry of data about that transaction into a new block. Once the data is entered, the transaction is executed (that is, the transfer is made). Then the next blocks will be formed – but for the next transactions. Built blocks do not disappear, they cannot be changed, they stay forever – this is how a chain (chain) of blocks, or Blockchain, is formed.

Each block is formed by calculating a special key (hash). This key is designed to protect the contents of the block (that is, the transaction data). Due to the fact that there is a key, no one can delete the block or change the information recorded in it.

The essence of mining is that finding this very key is not an easy task. Dozens of miners are fighting for its solution – the first to find a key gets a reward (in the form of a certain amount of coins which participants of a transaction “deposit” as a commission). And the first to find the key is the one with the most powerful mining equipment.

You, too, can start decrypting blocks (i.e. mining) and get rewarded.

What is an ASIC-miner

It is a mining device that performs computational operations in an attempt to find the very key (hash). It consists of the following parts:

• The body. It performs a protective function;
• The power supply unit. It rectifies the voltage and reduces it;
• fans. Responsible for cooling the parts;
• The circuit board. It has all the electronic components: chips, transistors, capacitors.

Can I get rich buying an ASIC miner?

Yes, you can. You need to start the mining process according to the instructions from the manufacturer and then the blocks will be decrypted. The process can go on without stopping, even around the clock. But there are a number of factors that affect the amount of your profit. Here they are:

• hash rate. This is the performance of your equipment, that is, how fast it can “search” for keys (decrypt blocks);

• the size of the block award. The bigger the better;
• power consumption. Your ASIC unit will consume electricity, so you need to pay for the electricity;
• 1 kWh rate. The more expensive electricity is in your area, the less you will earn.

There is another important factor – the current rate of the cryptocurrency. You will receive a reward for decrypting blocks in the corresponding digital currency. And the latter tends to drop in value. If that happens, you will lose money – because sooner or later you will need to exchange cryptocurrency to real money (in order to spend). But it’s not all so terrible: the coin can rise in value – then you will get a big profit.

The post What is Mining and How to Make Money from it: Explained in Simple Words appeared first on Trend_Coin.

Peculiarities of investing in cryptocurrencies

The reputation of the digital currency reaches newer heights, the trust of users is also growing. This is facilitated by:

• The expansion of the use of cryptocurrency, including at the state level.
• The investment market is enriched by new players from China and India. Countries and private companies are beginning to look for funds that are not related to the political situation.
• Major online retailers now accept bitcoin, allowing the currency to continue to grow at a rapid pace. The availability of digital currency is increasing, thanks to the installation of street financial vending machines to make payments. The development of cryptocurrency is also associated with the use of new tools for the storage of funds, the development of mining.

As experts predict, the value of cryptocurrencies will grow. However, there may be periods of “stagnation”, when positions will not change, or the time of a non-critical fall. It is also worth considering the fact that long-term investments from a year bring great benefit to the investor and almost never go bust, while short-term investments will be quite unprofitable in the case of a temporary drop in the quotes.

So, in the long term, if you have a fairly large amount of money investing in cryptocurrency is definitely a profitable venture, but even having a very modest amount of free money of 10 – 25 thousand rubles, you can competently invest and earn additional funds. It is important to assess the risks and choose the right cryptocurrency.

Which cryptocurrency to invest in?

Studying the current quotations of cryptocurrencies is the main task of the investor. It is also necessary to take into account the reliability of “digital gold”. At the moment, you can easily get into a difficult situation with fake currencies, which are held by companies and more like a pyramid scheme. Proven cryptocurrencies:

Ethereum has shown steady development since its creation. Of the bonuses for users is the ability to self-generate blockchain applications for financial transactions. The advantage of cryptocurrency is the absence of intermediary companies, it reduces the risk of theft of the invested amount of money. Ethereum users also have the ability to create casinos and betting shops. In the future, experts predict that the cryptocurrency will grow by 10 times.

Bitcoin is one of the most liquid cryptocurrencies. Investors have received more than 120% annual return on investment. This is especially true for long-term investments from 5 years. Of course, having invested in 2012, you can get a fantastic benefit today. It is easy to invest in Bitcoin through a special wallet, which gives access to one of the bitcoin trading platforms.

Monero has a major advantage over other cryptocurrencies, is the anonymity of users and transactions. There are some disadvantages: the currency is very popular on the black market, as funds transfers can not be tracked by law enforcement and others.

Factom is based on blockchain, which ensures data security.

Counterparty is a financial platform that uses blockchain technology and has XCP cryptocurrency. Transactions are carried out on special bitcoin addresses.

Siacoin is a fully anonymous platform with a user-friendly interface.

Lisk is a potential competitor to Ethereum with growth prospects.

Ripple – an ideal cryptocurrency for venture capital transactions, as the commission for payments is reduced.

Steem is a payment system for a service performed.

Zcash is a brand new marketplace with a high level of anonymity and good quotes.

The investment process

Knowing the benefits of investing in cryptocurrencies, and having decided which one to invest your free finances in, you need to think about the process of buying digital money

The traditional way to purchase cryptocurrencies is an electronic wallet, which only the right holder has access to, fraudsters will not be able to hack it, even if the service on which it resides shares data. Transactions with digital currencies can also be carried out on special exchanges, where you get several wallets at once for unhindered operations. Wallets on exchanges are regularly hacked, so keeping large amounts of money is a big risk.

There are exchanges, through which you can re-buy bitcoins for rubles from other users. The services of this type usually have a good rate. The operation is easy to perform, having a card of any other bank. The whole process looks as follows:

• The buyer chooses a seller, in whose account a certain amount of bitcoins is blocked.
• The number of the card to which the transfer is made appears.
• After the payment is made, the seller confirms receiving the money, the bitcoins are transferred to the buyer.

Difficulties for beginner investors

Even a professional cannot predict the rise or fall of new cryptocurrencies, their rate depends more on advertising and all sorts of speculation. With more proven players, such as Ethereum or Bitcoin, the situation is more clear and predictable. But there are a number of other problems related to technical problems. An increase in the number of users will cause transactions to be slower than usual. Payment transactions involving small amounts are unprofitable because of the transfer fee charged. This feature of the new currency may significantly weaken its impact on the economic situation in the world, as well as affect the price and quotes.

Advantages and disadvantages of investing

We would like to start with the advantages of investing in cryptocurrency, because it is really profitable:

• For a long time, Bitcoin has been showing stable growth against other currencies.
• Users have a special trust in bitcoin. Other cryptocurrencies are not in such demand. After any fall, bitcoin is sure to go up. In addition, it has a high capitalization, which further strengthens the position of the currency.
• Bitcoin has already been scaled, and the subsequent branching into a new currency will attract even more users.
• Bitcoin’s liquidity is higher than other cryptocurrencies. The possibilities of using it for buying and selling are also vast.
• Investing in cryptocurrency is a must now, as bitcoin and other digital money are currently exempt from government pressure. There are no additional fees for holding coins, as with deposits or bank accounts. Pros of most cryptocurrencies: anonymity, decentralized.

In addition to the positive factors of investing, it is worth mentioning the disadvantages:

• Significant decrease in the transaction speed for more than a year has been alarming users. According to experts, the situation can only change for the worse, but scaling up the network may solve the problem.
• Some states have prohibitive policies. Excessive control will also lead to the aggravation of the situation, the loss of confidence among users.
• The growth of the rate may be replaced by a sharp “collapse”, which further increases the risks of investing.

Risks of investment

The risks are also conditioned by the fact that even a group of speculators, acting in concert, may affect bitcoin’s status. It is worth remembering the time when the rate fell almost for no reason, in the first days of 2017 it was $1,153, and in five days it had already sharply shifted to $850. Such situations are quite rare, but one should not discount such a possibility. With large investments, it is possible to lose a significant amount.

How to assess the risks?

“Altcoins,” currencies that compete with more proven financial market players, are considered even more profitable in terms of investment. However, their situation may change dramatically in 2-3 years. it is difficult to predict the exact time of stagnation, so the investor should make an independent, weighted decision on the reliable investment of their own funds.

Nuances and possible problems

As predicted by experts, the value of cryptocurrencies will grow. However, there may be periods of “stagnation”, when positions will not change, or a time of non-critical fall. It is also worth considering the fact that long-term investments from a year bring great benefit to the investor and almost never go bust, while short-term investments will be quite unprofitable in case of a temporary drop in quotations.

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