From my point of view, there are currently six ways you can make money with cryptocurrencies. I would like to introduce these to you from my personal point of view.
Making Money With Cryptocurrencies From my point of view, there are currently six ways you can make money with cryptocurrencies. I would like to introduce these to you from my personal point of view.
Cryptocurrency Mining
Probably the best known way to make money online with cryptocurrencies is mining. What Mining (grazing) means in detail, I wrote in this article.
Probably the best known variant is the Proof of Work (POW). But unfortunately this is no longer profitable for private household use with the known and big coins. The investment in hardware and electricity power is now too high.
Honestly, I’ve spent a lot of time thinking about the benefits. I just have no clue.
Disadvantage
The faster I have come up with some disadvantages. I’ve already touched on it above. Especially the big trend currencies are very difficult to mine at home. Because the more popular a coin becomes, the more the hardware is bought. The result is that it is harder to get and more expensive due to increasing demand.
Furthermore, over time it will be increasingly difficult to solve new computing processes, so that the existing technology will quickly become obsolete and regularly invested in new hardware.
And finally, immense electricity costs are incurred. The result is that BitCoin Mining can no longer run profitably from home.
The solution you get under “Mining Pool”.
Cryptocurrency Trading
One of the most classic options is definitely cryptocurrency trading. You have the opportunity, as in the normal financial market, where you can trade among other securities or currency pairs, to buy at various online exchanges, the most diverse currencies and ideally to sell at a profit.
Advantages of cryptocurrency trading
Above all, I see the advantage here that you only have low additional costs. Basically, the online exchanges charge low fees for the transactions carried out.
Disadvantages of Cryptocurrency Trading
The downsides are somewhat more complex in my opinion. Because I appreciate the situation so that only real professionals succeed in successfully participating in trading. Because it is very important to determine exactly when the correct entry and exit points are.
Since September 2017, I have found out how it is possible to trade successfully as an amateur. I present this possibility to you here.
Furthermore, these profits are usually taxable. Only if you keep your currencies in your portfolio for more than a year, they are tax-free. I have to say that I am not a tax consultant and this is not tax advice.
On http://www.bitcoincoupons.org/for/exchanges/ you find current trading platform discounts.
Get your Salary in Cryptocurrencies
Another possibility is that you offer your own products for payment of cryptocurrencies.
Advantages:
Spontaneously, here comes to me an advantage and that of the fact that you can call the crypto currency immediately your own. If you now offer a product or service that does not cost you, then you have the digital currency available directly 1: 1.
Here are suitable in my view z. As digital products are particularly good. Marko Slusarek in his online video course, which I like to introduce to you in this video, shows you how to create this yourself.
Disadvantage
As a disadvantage, I see the price fluctuations in the sale of products and services. So it can be z. For example, if you have a boutique, you can now sell pants for $ 80 and get the current crypto currency price. But the course may have fallen a few minutes after the transaction and you have effectively received only 75 € for the pants. This is of course particularly annoying if you still have to pay the goods to your supplier. And that’s another humane example. Theoretically, the value can also fall much stronger.
But an increase is of course possible.
As a second disadvantage, I see that you have to familiarize yourself with the technique. You also need some payment provider who converts your goods into the appropriate price and makes them available to the buyer.
Buy and Hold
So, from my point of view, it is now slowly getting interesting. With the buy and hold I have myself made very good experiences. However, you also have to deal with the market and be familiar with it. Because not every digital currency is worth inclusion in your personal portfolio.
Honestly. Also, I am far from being an expert and rather a layman. But I bought two digital products from which I adopted the strategies and adapted to myself.
Learn how many people in the US actually hold cryptos.
Benefits of the Buy and Hold Strategy
In my view, you now have the best opportunities to invest cheap in cryptocurrencies. I am convinced that it takes about three to five more years, cryptocurrencies have arrived at the wide extent. And then the price will rise enormously and you will get a really good return.
So take the chance now and get as many coins as you can and you’ll benefit from it in a few years. As I said, I use the above strategies.
The second advantage I see in the buy and hold strategy is tax. Under “2.” I said yes that sales proceeds must be taxed within one year. If you do “buy and hold” properly, you’ll easily get over the one-year deadline and have tax benefits.
Downsides of the “Buy and Hold Strategy”
Of course, I also see disadvantages here. For one thing, you also have to know when to get off. When is the broad gauge informed and the price highest. The other day I heard a nice statement: “If your domestic help appeals to you on cryptocurrencies, then you have to sell.”
As a second point, I see here that you tie your capital longer. You can always fall back on it, but it does not fulfill its purpose. So only use money that you can do without “three to five years”. For that you should, if everything goes well, get it back then in x-fold amount.
BitCoin Lending
Personally, as I said, I use the buy and hold strategy to benefit from likely price increases. One way to optimize the income now is a so-called lending.
Here, the crypto currencies are fixed on a platform for a certain period of time. In return, you get weekly a fixed% rate credited.
But beware, if you also want to implement this strategy, please never use all your cryptocurrencies. Because I can never mention it often enough. With just one touch of a button, your entire deposit can be gone and lost. Therefore, as I said, only use a certain amount of your BitCoins.
You want to inform yourself in advance about BitCoin Lending? Here is an expert site.
Mining Pool
The sixth possibility are so-called mining pools or mining farms such. BitClub Network or Avalon Life. What a mining pool is, I describe in this article.
If you join a mining pool like the BitClub Network or Avalon Life, you have the great advantage of not having to worry about anything I’ve described in “1.” You do not have to buy any hardware, do not worry about power and do not wait for anything, at least not directly
Because indirectly you already buy hardware. But not for you at home. But you buy certain parts of existing hardware that are in the mining pool or mining farms. There it is taken care that these are up-to-date and functional.
Up-to-date, I can expressly recommend Plan C to you. There is a unique cryptomix from which you can already participate in the $ 250.
Advantages of a Mining Pool
As described above, you have the advantage of not having to worry about anything. Every day, machines earn new cryptocurrencies for you!
If you are in a good mining pool, such as For example, if you’re a BitClub Network, you’ll be offered different digital currencies for mining.
Disadvantage
As a disadvantage I see that it always takes some time until you have your pool costs on + – 0. On the merit you have no direct influence. Also, my BitClub Network experiences have shown that earnings are always falling and falling into a “hole”.