Gains option from cryptocurrency

Gains from cryptocurrency mining

The traditional way to earn from cryptocurrency is mining, the cryptocurrency acquisition solving mathematical problems using computing resources and specific equipment. Mining of the most tokens is implemented with the principle Proof-of-Work (PoW) — meaning the miner confirms the work completed in the network, miners compete for the confirmation speed, so the more is powerful the equipment, the more cryptocurrencies may be «mined».

The most popular ways to gain from cryptocurrency today are GPU and ASIC mining. ASIC-miner are the devices designed purposely for cryptocurrency mining. They are defined by high performance, simple to adjust. But ASIC is an expensive device, upon that the most sough-after, sold at huge extra charges. On the falling market ASIC devices are updated faster than pay off, and the outdated ASIC doesn’t bring the fair profit and can’t be sold at the fair price. If the token price falls down significantly, the ASIC purchase may appear loss making. Apart from this the device takes consumes too much power. The top requested ASIC-devices in 2018 are Canaan Avalon Miner 741, Bitmain antminer s9, Ebit Miner e10, BW-L21 litecoin asic miner, Bitmain antminer L3 Plus, Innosilicon A5 dashmaster, Pinidea asic x11 Miner dr-100.

Gains option from cryptocurrency

ASIC Bitmain Antminer L3+ for lightcoin mining

GPU-mining is the cryptocurrency mining process using videocards. The earning power of one video card isn’t high, but they may be gathered into a mining farm — some GPU-processors, combined into a mining system. Many cryptocurrencies may be quite effectively mined on farms and they aren’t tied to just one cryptocurrency. But farms aren’t easy to adjust, and the inaccurate adjusted mining will result in a low farm productivity. And anyway, the farms consume too much power. In 2018 most popular for mining are the following video cards: GeForce GTX TITAN Xp, Radeon Vega Frontier Edition, GeForce GTX 1080 Ti, Radeon Vega 64, GeForce GTX 1070, GeForce GTX 1060.

GPU-mining

GPU RX Vega 64

CPU-mining is the cryptocurrency mining on computer processor. Some tokens can be mined on CPU only. The productivity of such kind of mining isn’t high, neither the resource consumption. In exchange, the cloud mining works for those users, who don’t bother themselves to go into technical details of the process. This is the computing power lease of an external agency on certain terms provided in a contract. The earned cryptocurrencies are charged to the wallet, and the company providing powers, takes the commission for the equipment use. The most important in cloud mining is to choose a safe service as the fraud blossoms in this field, there is a belief that up to 90% of cloud mining services are the scam. The safe services of the cloud mining among other are: IQ Mining, Hashflare, Genesis Mining, Nuvoo Mining, CCG Mining, AlienCloud, EOBot, World Mining.

Mining pool groups the users into a team for cryptocurrency mining. The time-consuming task of cryptocurrency mining is distributed into many small tasks, thereafter decreasing the system load and increasing the overall mining efficiency. The profit is distributed depends on the miner’s contribution, which in its turn depends on the computer performance. To start working in pool you need to choose the relevant resource, install the software, study the profit distribution principle. The following mining pools are considered the biggest ones today: AntPool AntPool, DiscasFish/F2Pool, BitFury Pool, BW Pool BW, BTCC BTCC, ViaBTC, BTC.Top, Slush Slush, GBMiners.

Mining pool

BitFury Pool interface

POS-mining

Unlike Proof-of-Work (PoW), Proof-of-Stake (PoS) principle construes that the cryptocurrency amount by user is more crucial that the equipment capacity. PoS-mining doesn’t require the specific equipment, just a home PC connected to Internet. For mining a wallet is downloaded, synchronized with the network — and the mining process itself starts. The disadvantages of such method are that for getting profit you need to have a lot of tokens, at that the profit distribution principle isn’t clear. The most known POS-tokens are: DASH (not quite POS), NEO, PIVX, OkCash, NAV Coin, Stratis, STRAT, Reddcoin, Decred, BlackCoin, CoinMagi, Diamond, Mintcoin, OKCash, HyperStake, Poloniex, Hyper, Quotient, ZeitCoin.

 

Earnings at cryptocurrency exchange

Cryptoexchange is the main place for cryptocurrency for cryptocurrency earnings today. There is a great number of cryptocurrencies in the world, so one have to choose which one to work with. Let’s concider top-10 cryptocurrencies in turnover according to the rating Coinmarketcap (data on 30 October 2018).

BitMEX reviewsBitMEX

Hong Kong cryptocurrency, not very convenient to work with, as the deposit and the withdrawal are possible in cryptocurrencies only, so one need to join other exchanges and exchange resources. But there is no commission for the deposit, neither for the withdrawal, low trading commission.

  •  Foundation date: 2014.
  •  Verification: n/a.
  •  Deposit/withdrawal: cryptocurrency only.
  •  Commissions: no commissions for deposit and withdrawal, trading — up to 0.25%.
  •  Safety level: high.
  •  Specific aspects: vast opportunities for cryptocurrency trading, with deposit and withdrawal in cryptocurrencies only though.
  •  bitmex.com.

BitMEX reviewsBithumb

Korean cryptocurrency, and this is the core fact related to the main issues while using this exchange services. Deposit and withdrawal need to be performed in wons, Korean national currency, so the arbitrage is not possible. The verification on the platform is quite complicated thing, and it’s required because of severe legislation of South Korea. Purchase and sale commissions — 0,15%, there is a voucher system available, applying which you can lower the commission.

  • Foundation date: 2015.
  • Verification: required.
  • Deposit-withdrawal: wons.
  • Commissions: trading — 0.15%.
  • Safety level: high.
  • Specific aspects: vast opportunities for cryptocurrency trading, but the deposit and withdrawal are in wons only.
  • bithumb.com.

BitMEX reviewsBinance

This exchange has been founded in Hong Kong in 2017, its specific thing is its own cryptocurrency BNB issued through ICO for investment in cryptoexchange, and now its application lets traders to double drop the commissions.

  • Verification: no verification required.
  • Withdrawal and deposit of fiat money: QIWI, YandexMoney, Webmoney, Skrill/Moneybookers, Neteller, Visa/MasterCard.
  • Withdrawal commission: yes, trading commission — 0.1%.
  • Trading pairs: around 400 cryptocurrencies, no fiat money.
  • Languages: English, Chinese.
  • Safety level: high.
  • Among disadvantages, — no withdrawal in fiat money, at times the exchange increases the minimal transaction sum at short notice.
  • binance.com.

BitMEX reviewsZB.COM

Chinese cryptoexchange, all you need to know to work with it though is just English. Provides the vast opportunities for trading. For instance, the separate chart for cryptocurrencies, the trader deals most often with. The specific aspect of the exchange is that all trading sessions are divided into four categories: QCash, ZB Coin, USDT and BTC. The inconvenience of the exchange is in a complex trading system with fiat money. So this exchange is mainly for cryptocurrency trading. The withdrawal is also in cryptocurrencies.

  • Founded: in 2017.
  • Verification: not required.
  • Commission: trading up to 0.2%.
  • Languages: English, Chinese.
  • Safety level: unknown.
  • zb.com

BitMEX reviewsOKEx

Chinese-Hong Kong exchange. On the exchange the cryptocurrencies and USDT tokens are traded. There is the option for margin and futures trading. Besides, the cryptoexchange trading terminal may be downloaded to the computer as a desktop version — this is one of specific things of the exchange. The deposit of fiat money is possible after verification.

  • Founded: in 2015.
  • Verification: not required.
  • Commission: trading — up 0,05% to 0,2%.
  • Languages: English, Chinese.
  • Safety level: the highest, but time-consuming, the regular password insertion is required.
  • okex.com.

BitMEX reviewsHuobi

Chinese cryptoexchange, founded in 2013. 142 cryptocurrencies may be traded in the exchange, along with dollars and RMB. Verification is specific — the account is supposed to be linked to a real bank account. At that the part of the information is available in Chinese only. There are many commission types on the exchange, for different currencies and transactions, in each case you need to refer to the commission table on a separate page.

  • Verification: required.
  • Commission: different for various currencies and transactions, the maximal one is 0,5% by RMB withdrawal.
  • Languages: English, Chinese, etc.
  • Safety level: the highest, time-consuming verification.
  • huobi.com.

BitMEX reviewsBitForex

The bombshell among cryptoexchanges in a way, as it was among unpopular ones before August, but in August 2018 suddenly reached the top due to the exchange token BF. Only limited orders may be made, no margin trading, trading RMB only is possible.

  • Founded: in 2018.
  • Legislation: Singapore and Seychelles.
  • Verification: not required but advantageous.
  • Commission: no commission for deposit and withdrawal.
  • Languages: English, Chinese.
  • Withdrawal and deposit: bank transfers, very complicated for CIS countries.
  • Safety level: unknown.
  • bitforex.com.

BitMEX reviewsHitBTC

HitBTC registered in Hong Kong, supports over 700 cryptocurrencies. For dealing with the cryptocurrency no verification is required and the demo service is available allowing to test the services before the real trading starts. The margin trading may be performed on the exchange through MetaTrader 4, the commissions are quite low.

  • Foundation date: 2014.
  • Deposit and withdrawal of fiat money: SWIFT USD, SEPA EUR transfers.
  • Commissions: for deposit — 0.0006 ВТС, for withdrawal — 0.001 BTC, trading commission — 0.1%.
  • Languages: English, Chinese.
  • Safety level: high.
  • Specific features: demo-service.
  • hitbtc.com.

BitMEX reviewsBitfinex

Among specific features of cryptoexchange Bitfinex, which should be brought to the attention, are the time-consuming registration system on the exchange and the fact, that Bitfinex is closely linked to Tether tokens, which officially relate to dollar, but it’s largely unknown if they are worth it. Otherwise it’s a usual cryptoexchange with normal services.

  • Foundation date: 2012.
  • Legislation: British Virgin Islands.
  • Verification: required.
  • Withdrawal and deposit of fiat money: bank transfers available.
  • Commissions: for deposit — 0.01%, for withdrawal depends on cryptocurrency, trading commission is up to 0,2%.
  • Trading pairs: over 30.
  • Languages: English, Chinese, ect.
  • Safety level: the highest.
  • Special features: provides vast opportunities for trading, by difficult verification and high commissions for the withdrawal through banks.
  • bitfinex.com.

BitMEX reviewsEXMO

Also to say a few words about EXMO cryptoexchange, as it’s popular by traders of CIS countries. No verification required, but the services are translated into Ukrainian. Among the disadvantages of cryptoexchange is its unstable operation.

  • Foundation: 2014.
  • Legislation: Great Britain.
  • Verification: no verification required.
  • Commissions: no deposit commissions, commission for the withdrawal — up 0% to 6%, trading commission — 0,2%.
  • Languages: English, Chinese, French, German, Ukrainian, Polish.
  • Safety level: highest.
  • Specific features: the mirror site is available, — for users of the countries where the exchange is blocked.
  • exmo.com.

Traders should also pay their attention to the following popular cryptocurrencies with unchallenged image: Poloniex, Kraken, Bittrex, CEX.IO, Bitstamp, LiveCoin.

 

Gains from Bitcoin

Mining is one of the most popular ways of bitcoin acquisition. But today it’s almost unobtainable fo a usual individual user because of enormous associated expenses. There are very large computing resources needed for bitcoin mining, along with huge energy consumption and major early steps investments. The individual user may join the cloud mining network and gain from bitcoin this way. The profit unlikely will be mind blowing, yet it’s a realistic way to take part on cryptoeconomy. One can also cash in on bitcoin performing the simple work on specialized resources, such as CoinWorker (coinworker.com), CoinAdder (coinadder.com), Advercoins (advercoins.com) and others.

A fairy recent option of gaining from bitcoin indirectly came out, through investing in derivatives. One can invest particularly trading it as contract for difference (CFD). Such services provide among others AMarkets, Instaforex, Alpari. The advantage of this way to make money is that you don’t need to buy the bitcoin inself. You need to open bitcoin price dynamics positions by CFD-broker. But please keep in mind that the investments in bitcoin derivatives don’t address the high risks, which are generally typical for the investments in cryptocurrencies.

Gains from Bitcoin

Interface of the website CoinAdder

Bitcoins may be gained as a salary, working as freelancer. In this case you don’t need the start up investments, the most important for consideration is working out the bitcoin withdrawal into fiat money with minimal commissions. There are even freelance exchanges, where the payment is initially provided in bitcoins, bor example XBT Freelancer (xbtfreelancer.com) or Cryptogrind (cryptogrind.com).

You can get bitcoins for advertising on your own website. For instance there are resources like BitMedia (bitmedia.io), which are paying for the click amount on the adverts. There are online games monetizing the time spent for gaming, paying users in bitcoins. Among such games are BirdsBit, Chopcoin, Coinbrawl, Battlecoin, Bitrunner, Spells of Genesis, Sarutobi, Spark Profit, Takara.

But the most affordable way to gain bitcoin today is cryptotrading. Now bitcoin is too expensive to start trading right with it. Traders first work with cheaper tokens improving the appropriate skills, testing strategies, deepening the cryptomarket understanding and earning cryptocurrency. For the profit from cryptocurrencies the trader little by little buys the bitcoin, then works with this, ultimate cryptocurrency.

 

Gains from cryptocurrency rate, intraday trading

The gain from cryptocurrency rate is performed on cryptoexchange. Most of traders practice the intraday trading, also called «day-trade» or «day-trading» — it’s binary trading. In day-trading the positions open within minutes or hours during the trading day or full day. By the end of the trading day the trader doesn’t leave a single position open. In intraday trading traders often monitor the cryptocurrency price and try to forecast its changes in the way allowing to cash in from the cryptocurrency volatility. The main difficulty is in cryptocurrency market suddenness, especially in the period of high volatility.

During the intraday trading you need to consider some key insights. First of all you need to monitor the bitcoin dynamics, whatever token you use for trading. Bitcoin absolutely takes over in the cryptocurrency market and any its movement effects all other cryptocurrencies. Put simply, if the bitcoin rises in price, all the other cryptocurrencies do, too. Day-trading to the greater extent involves getting profit through analytical activity, reasonable deal making for gaining moderate, but stable profit instead of excess profit resulted from a unique set of circumstances.

Intraday trading requires from the trader to keep an eye on the news which may effect the cryptomarket. Trader needs to pick the adequate information sources — forums news aggregators, social media etc. — peel fakes apart and choose significant information. This gives a hard start while trading. The trader shall know how to apply the fundamental and technical analysis for the price forecast, to forecast the market behavior, make an educated guess and make a decision based on it.

 

Earning strategy for cryptocurrency

The trading strategy presents a set of rules, behavior patterns, techniques, actions tried and tested well in advance, which the trader applies while working with cryptocurrencies to get profit and/or avoid losses. As part of trading strategy the market entry points and exit terms are defined, along with the time lags between entry and exit points, deposit share to open position from, closing terms for the position etc. The parameters set by trading strategy are not universal, for each cryptocurrency its own strategy is supposed to be developed, taking into account the behavior analysis of particularly this cryptocurrency.

To the strategies based on the timeline belong among other position trading, swing-trading, scalping. By position trading the trader waits for a certain situation to arise in the market and trades within this situation, regardless of time. For example, the trader enters trading on the trend reversal only.

Swing-trading is a strategy, by which the trader trades during a certain cycle, for instance while the cryptocurrency price arises or falls. The cycle may be continuing, up to several days.

Scalping strategy means opening and closing of positions on each price bounce. The trader can close tens of transactions an hour not bothering himself with thorough analysis of the situation and setting stop-losses for loss limitation — as most of transactions by scalping are usually disadvantageous.

The strategies based on the market situations it’s trading on a pullback, on a bounce, impulse trading, high-margin strategy, trading on a break.

Trading on a pullback is that the trader purchases the cryptocurrency, when its price adjusts to decreasing on ascending trend, or sells, when the price adjusts to increasing on descending trend. The trader gets his profit, when the trend comes back to the mainstream after the adjustment.

Trading on a bounce means the trader buying cryptocurrency on the descending trend at mark, which he considers to be the start of the cryptocurrency price increase. When the price keeps increasing, the trader sells the cryptocurrency at a profit.

Impulses are clear one way cryptocurrency rate movements. Applying the impulse trading strategy the trader purchases the cryptocurrency at the impulse start to price increase and sells seeing the impulse to price decrease.

Earning strategy for cryptocurrency

The bitcoin breaks the mark of 10 thousand dollars, 28.11.2017, Coinmarketcap.

Trading on a break the trader enters the market, when the descending trend «breaks» the price level — the mark, from which the trend reverses and the price starts increasing. If the trader calculated this point right, he manages to buy the cryptocurrency at the lowest price.

The article recommended: Cryptocurrency trading strategy with Stochastics for 60 seconds

The majority of traders move beyond just any one strategy, but compile them, developing their own strategy or apply different strategies under different conditions.

 

Bot for gains from cryptocurrency

Cryptobot is a program (AutoCrypto-Bot review), adjusted for the automated cryptocurrency trading according to the parameters set. The bots can be trading and arbitrage ones. Trading bots deal with one exchange, arbitrage ones purchase tokens on the exchange with relatively lower rate and sell on the exchange with the higher price. The bots can simply purchase currency at the rate drop and sell at the rate increase, but there are the bots set for quite complex actions — they monitor the rate dynamics, close transactions under certain conditions, analyze loads of figures. The bots work according to the strategy, the trader designs for them, but the new coming traders had better deal with the parameters already set.

You can download the cryptobot for free, buy or write yourself if you have the relevant skills, or add a script downloaded from an outsource resource. There are a lot of bots in Internet, ready for application on certain exchanges. But the trader downloads them at his own risk, as bots may be written by hackers. The paid cryptorobot can be purchased on lease or for unlimited use by a company developing them, for instance HaasOnline (haasonline.com). Also you can order a customized bot by a private developer. Apart from this, you can buy scripts to write your bot. To write a bot for a certain exchange you need the exchange to have API (Application Programming Interface), — the page with this information in displayed on the exchange separately.

The main advantage of the bot is that it gets rid of monotonous, hours-long work. The bot can quicker react on the situation changing, if it’s programmed right, also it can quickly work on several exchanges at the same time. Bot doesn’t make mistakes implementing the strategy and no emotions effect its decisions, unlike by man. At the same time, bot trading on long distances is less effective than a man. Bot budges a man on the point of forecasting situation, taking decisions in an illogical issue, can’t estimate the news effect on the market.

Among popular bots we can call Gekko (more detailed information on gekko.wizb.it), Haasbot, Zenbot (more detailed information on github.com), Crypto Trader (cryptotrader.org), BTC Robot (clickbetter.com), USI TECH (usitech-intl.io), Gunbot (gunbot.shop), Leonardo (margin.de), Bitconnect (bitconnect.co).

Crypto trading robot

Gunbot bot interface

 

Training on gains from cryptocurrency

Gains from cryptocurrency requires a certain knowledge. No matter which way you are going to earn from cryptocurrency, you need to master the cryptocurrency market from basic concepts, among them are blockchain, cryptocurrency, fork, altcoin, mining, investment, trading etc. If the user doesn’t plan to become a developer in blockchain industry, don’t bother yourself with the technology details, but everyone should know the principles. At the same time, the specific technical information is crucial by mining training.

You shall see into the matter how to keep cryptocurrencies, how to exchange them to fiat money. Alternatively, how to buy cryptocurrencies for fiat money. After you got into basic concepts of cryptocurrency industry, you need to decide, how you plan to earn and study this way well. If you want to focus on mining, you need to find out which tokens are worth mining now, what equipment to use, calculate purchase costs and equipment installation, energy consumption, put an increased focus on safety issues.

The main and at bottom the only information source about cryptocurrencies and ways to earn from them are Internet websites, social media, professional forums. The trading is the most difficult to master and at the same time most gainful cryptocurrency earning way. Cryptocurrency trading is carried on cryptoexchange, so you need to choose an appropriate cryptoexchange. You need to see into details of exchange operation — how to enter sum again account, how to purchase cryptocurrencies, how to withdraw, under which conditions, with which commissions, how to solve the issues occurring while trading.

The trader shall master the terminology and topical slang. He needs to get familiar with the principles of fundamental and technical analysis, have skills of cryptocurrency price analysis, using charts, analyzing trading results and adjusting his actions. Studying trading strategies is the required stage, as trading on the exchange will be loss making without them. One of the crucial traders skills is evaluation of prospects of the token you plan to trade.

Unlike other earning ways the cryptotrading you can study attending courses. The main criteria by choosing courses is the successful trading experience by trader or training company. Otherwise choosing courses the trader shall clearly imagine the study purpose and his expertise level. If there is no idea about cryptocurrency market, you need to choose the courses presenting this industry from scratch. In the light of experience the trader can choose the advanced studies.

Among cryptocurrency trading training courses worth mentioning are: Cryptocurrency trading school (simpletrade.biz), Naman’s cryptocurrency trading school (hamaha.net), Vladimir Bazhenov’s paid courses (perceivingmarkets.com), Crypto Samurai free online course (cryptocartel.club).

 

Gains from cryptocurrencies with no investments and automated gains from cryptocurrency

There are options to gain from cryptocurrency not purchasing her. This ways aren’t very gainful, so users try to automate them — this allows gaining income from the amount of the resources used. Among such options are bitcoin cranes, — websites, on which you need to complete simple tasks for a very small payment. For instance, the users enter captcha, stay on a certain website for some time, follow links, watch videos and complete other actions getting paid in satoshi. The income is so small that one has to work on tens of resources to receive the significant income.

To automate and speed up the process of collecting satoshi on cranes, some isers develop programs or download them from the outsource websites. But the cranes try to avoid allowing automation and ban the bots, when noticed. However the enthusiasts manage to bypass the bans and collect satoshi in automated mode, as doing it manually brings the little profit. Among the most popular resources with cranes are the following ones: Freebitco, Moonb, 3btc, Freenem, DiceMine, Cryptomininggame, Coinfaucet, Kopilka, BonusBitcoin, FieldofBitcoin, FrogFaucet, CoinCollecting, CrownFaucet, PentaFaucet, BattleBitcoin, DailyFreeBits, MezzaBank, Free-Bitcoin, GoldsDay, PinkTussy, Milli 99. To gain cryptocurrency with no investments you can publishing the materials in some social media or on specific websites, for instance Golos.io (golos.io).

Another way of earnings is attending promotional campaigns for tokens, in this case you need to complete tasks not requiring any special skills. This process may hardly be automated, the profit from it is higher than from cranes though. More complex way is the bounty-campaign, in a course of which the project initiator attracts the specialists for solving the issues of project development and promotion and pays in tokens. This is nearly kind of freelance, which may bring a good income. In 2018 the following bounty-campaigns were effective: Zippie, Zilliqa, Electroneum, WePower. Some cryptocurrency projects offer the participation on referral programs, this is an option of passive income from attracting new users to the project.

Affiliate programs offer promoting different internet resources, mostly related to cryptocurrencies, but not these only. For each user involved to the resource the company pays a small percent. Again, you won’t manage to earn a lot from one resource, but placing the advert and promoting the links of many resources you can get up to 1 bitcoin a month. But for this you sure need to have quite a strong blog or account in social media, in this case the user gets quite healthy profits. Among popular affiliate programs the following ones may be called: TokenDrops, Bountyhive, Bitflip, Hashflare, Minergate, Bitter, Swissadspaysfaucet, Bitgames, Freebitcoin.

Gains from cryptocurrencies with no investments

TokenDrops Project Interface

 

Summary

To summarize, one can say that the most profitable and safe earning ways for cryptocurrency are trading and mining. But to use this way for cashing in from cryptocurrency, you need both early stage investments and adequate training. To trade cryptocurrencies effectively, you need to learn on your own initiative or on courses, by the way, assumption is that you need at least two years of practice to learn trading getting stable profit. And throughout this period you need to be ready to financial losses from bad deals. For effective mining you need to study well the technical parameters of mining devices and installing equipment is equally important thing, as well as being familiar with device cooling, grid connection. You need to learn quick calculation of mining profit margins depends on a token, its bouncing in the market, electric rate changes.

To cash in from mining is possible, too, but the return won’t be high anyway. No financial contributions doesn’t mean that you won’t spend any other resources attending some project, first of all the time, but also computing resources and — electricity. But the most important thing in this kind of gains is never trust the project 100%. Absolutely any project of gains from cryptocurrency with no investments, even that with nice reputation, may any time «become a scam» or a hackers’ victim, along with the user’s money — this happened a good many time.


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