Cryptocurrencies and the disruptive technology behind them all – The Blockchain is a hot topic at the moment. I first started learning about the Blockchain and the most popular cryptocurrency Bitcoin in 2013 when the price was bouncing around $200 a coin!, however sadly only made my first investment into Bitcoin and Ethereum in March 2017 and since then kept climbing down the rabbit hole. Over that time I have discovered some cool ways to get free cryptocurrencies, some best practices and how to invest and make money with cryptocurrencies.
Recently some friends and family have been asking me about cryptocurrencies like, how do they work and what I am doing, so I thought I would share some of that here. I am not an expert, I am still learning this myself, and it’s a fasted paced industry with things changing rapidly, so make sure to do your own research and due diligence before making any investments.
If you are brand new and just getting started with Bitcoin and the cryptocurrency world, then I highly recommend you check out this interview with Teeka Tiwari, one of the leading authorities on Bitcoin and cyrptocurrencies,
Another great podcast to stay up to date and know what is happening in the world of Bitcoin and cryptocurrencies is the Bad Crypto Podcast by Joel Comm and Travis Wright, they host a regular podcast show.
Now, I probably shouldn’t have to say this but I will just in case.
I AM NOT A FINANCIAL ADVISOR AND I DO NOT PLAY ONE ON THE INTERNET. All investments are risky and you must take full responsibility for what you do with your money. Please do you own due diligence before investing any money and do not invest money that you cannot afford to lose.
Also be aware that cryptocurrencies is still very new and in its infantry. This means there is not a lot of regulation and it is a bit wild west out there. Yes, this creates a lot of opportunities to make money right now however it also means there is also a lot of opportunity for people to do you wrong. I am not saying this to scare you off, just to prepare you and make sure to protect yourself.
Have you ever heard the story?
When someone with money meets someone with experience (knowledge). The person with the experience (knowledge) usually ends up with the money and the person with the money ends up with the experience. – This is a great way to describe the cryptocurrencies arena at the moment.
This is why, I recommend if you want to really make money with crytpos, it is important to spend the time now and educate yourself, read all the information, play around with buying some small amounts, etc and get an understanding of how it all works.
Personally my main strategy with cryptocurrencies is to HODL (Hold On To Dear Life) and wait for the big pay day(s). However I have also been experimenting with various ways of mining cryptocurrencies and investing them to get bigger returns and that is what I am going to share with you here.
If you do not own any cryptocurrencies, then this should be your first step. There are many places (exchanges) you can buy cryptocurrencies from, probably the easiest and one of the most popular is Coinbase.com This is where I started, their platform is easy to use, they also have an app you can download onto your smartphone. Once you create an account and verify your ID, you can then link it to your credit card or bank account and buy as little as $10 worth of Bitcoin, Ethereum or Litecoin instantly.
If you Sign up to Coinbase using this link and when you deposit $100 or more, Coinbase will give you US$10 worth of free Bitcoin and will also give me US$10 worth of free Bitcoin for referring you.
It is good to use 2-factor authentication on everything you do regarding your cryptocurrencies, this just add an extra layer of security if your smartphone or computer gets lost, stolen or hacked. Google has a good app you can download for 2-factor authentication.
Once you have some cryptocurrencies, it is best NOT to keep them on the exchange, you want get them into your own Wallet.
What’s a Wallet? A Wallet is where you keep or store your cryptocurrencies. There are many different types of wallets that offer different advantages and disadvantages. You can read more about Wallets here. The Wallet I use and recommend is a hardware wallet called Ledger Nano S
How Do You Make Money With Bitcoin and Crytpocurrencies?
There are basically 4 different ways you can get and make money with cryptocurrencies, which we will explore here.
The first way to get cryptocurrencies is to mine them. I know this might seem a bit strange, how do you mine a digital currency, well it’s actually similar to mining gold, just without the picks and shovels, instead you use computer power to solve complex equations. Here is quick video that explains how mining works.
There are a lot of different services and ways you can mine cryptos. For example, you could build your own mining rig or machine, you also want to make sure it is going to be profitable because in some cases the return you get from mining is not always worth the time and energy spent, sometimes it might just be better to spend what you were on the mining to just buy the crypto you want.
A good way to figure out what coins and tokens are worth mining, is to use a miner calculator like https://whattomine.com/calculators
If you do not want to build your own mining rig or machine and still want to mine cryptocurrencies you can join Mining services and share in the mining pools with lots of other people.
Minergate is a cloud mining service that allows you to mine on your own computer or even your Smartphone. I do not use my smartphone so I do not have any experience with this, ione of my friends is and he hasn’t had an issue, although I have read articles where people have had issues mining on their phones, so be cautious if you are going to go down that path.
With Minergate you can simply create a free account, download their program to your computer or smartphone and start mining. This uses your computer power so depending on how powerful your computer or phone is will determine how fast you can mine cyptos. I downloaded Minergate to my desktop 3 days ago to see how it works and just let it run in the background, at the time of writing this, I have received 0.001977459012 Moreno which equals around US $0.17515.
Minergate is just one of hundreds of mining services, I mentioned then first because I know you you can get started for free. One of the biggest crypto mines is Genesis which is located in Iceland and has been around since 2013. For mining I personally use a Cloud mining service called Hashflare.io
HashFlare provides cloud mining on the following algorithms:
SHA-256, which is used to mine Bitcoins;
Scrypt, which is used to mine Litecoins*;
ETHASH, which is used to mine Ethereum;
X11, which is used to mine DASH.
*payouts are provided in BTC using the current exchange rate taken from Coinmarketcap.com.
SHA-256 and SCRYPT contracts last 1 year (365 days) and are subject to maintenance and electricity fees (MEF).
ETHASH, EQUIHASH and DASH contracts last for 1 year (365 days) and are not subject to any fees.
Their website is great, easy to use and the customer support has been helpful anytime I have needed them. You can withdraw every 24 hours, which is important to me as I want to be able to access my money whenever I want and they have a great re-investment plan so you can compound your returns. Open a free account with Hashflare here
The second way you can get Bitcoins and other Altcoins and Cryptocurrencies is to simply buy them. Like I mentioned at the beginning on this article, one of the most popular and easiest ways to buy Bitcoin, Ethereum and Litecoin is CoinBase.com or BTCMarkets.net
The third way you can make money with Bitcoin and Cryptocurrencies is to trade them. Some of the benefits of trading Bitcoin and other cryptocurrencies is that they are a global market and trade 24 hours, 7 days a week. The market place is extremely volatile which creates opportunity but also brings a lot of risk along with it.
To trade Bitcoin or other cryptocurrencies, you need to find an Exchange – A bitcoin exchange is a digital marketplace where traders can buy and sell bitcoins using different fiat currencies or altcoins. A bitcoin currency exchange is an online platform that acts as an intermediary between buyers and sellers of the cryptocurrency. Keep the following things in mind when looking for an Exchange.
Regulation & Trust – Is the exchange trustworthy? Could the exchange run away with customer funds?
Location – If you must deposit fiat currency, and exchange that accepts payments from your country is required.
Fees – What percent of each trade is charged?
Liquidity – Large traders will need a Bitcoin exchange with high liquidity and good market depth.
Personally I do not trade Bitcoin or Cryptocurrencies, so I do not have much experience in this area.
There is a fourth way I know of how to make money with Bitcoin and cryptocurrencies, which is to build promote a cryptocurrency MLM type business opportunity tied into Bitcoin and Cryptocurrencies.As you can tell from my blog, I am not opposed to MLM and business opportunities, I am actually involved with a couple of companies and proudly promote them. I also love Bitcoin and Cryptos however for me personally I do not want to mix these two worlds. For this reason I do not participate in these schemes so I can not comment or recommend any.
There is 4 ways you can make money with Bitcoin and cryptocurrencies. I would love to hear your thoughts, or if you know of any other ways to make money with cryptocurrencies let me know in the comments.
If you found value in the article, please share it with your friends on social media.
My goal with this blog is simple: To help you build a lifestyle internet business so you can earn enough money to quit your job so you can spend your time ding more of the things you love.
If you are currently stuck, struggling and completely spinning your wheels when it comes to making money online, then click here and discover the same simply 4 step formula that I use and is allowing average, ordinary people finally breakthrough and start making consistent income online.
Photo is graffiti street art in Byron Bay, Northern NSW