How to make money with cryptocurrencies in 2021
Even today, perhaps some will not know the world of cryptocurrencies, but it can be said with certainty that it is one of the hubs for the economy in the future.
In summary, cryptocurrencies have a foundation in a digital currency exchange, where security and anonymity are ensured for those who make the transitions.
There are several ways to make money with cryptocurrencies, now we will see them together.
One way could be through the Initial Currency Offer (ICO), which in Italian is translated into “initial money offer”. Specifically, when a new cryptocurrency is issued on the market, the founder can use this system because it allows him to obtain various advantages in terms of both advertising and circulation.
Before being launched on the market, cryptocurrencies can be bought at a very low price.
In this way, the creators are able to raise funds to invest in perfecting the development, for example, of the platform before the digital currency is definitively entered. With ICOs there is the possibility of obtaining excellent earnings, but at the same time there is the risk of being able to incur some fraud such as, for example, you could invest in false projects, therefore, you must carefully evaluate before lose all your savings.
Another way to make money with cryptocurrencies is online trading . It is mainly based on the rule of buying and selling a currency, in this case, digital. To be able to obtain very good profits you will have to, for example, buy at a lower price, and then resell at a higher price. When dealing with Forex Trading , it will be necessary to own the Wallet , that is, the digital wallet, where your cryptocurrencies will then be kept.
What are cryptocurrencies and how they work
Although the system underlying the operation of cryptocurrencies or cryptocurrencies is not immediately understandable, it should instead be emphasized that in everyday life the use of “virtual currencies” is, as well as increasingly frequent, also and above all simple and fast, as evidenced by the number of people who use “virtual currencies” as a form of saving or to make purchases.
Cryptocurrencies were born on the internet many years ago (2009), and are in no way connected to any other currency existing on our planet.
Their emission depends only on precise algorithms and mathematical calculations carried out continuously by millions of computers scattered here and there on our planet ( network of nodes), and no Bank or Government can influence normal functioning.
The “minting” of new units is therefore only up to the web and the network of computers connected to each other in the “Peer to Peer” system .
In the jargon of cryptocurrencies, we speak of “mining” to describe the activity that anyone can do and which consists in finding new units of cryptocurrency.
To do this, simply download one of the many software in circulation designed to do activities of “mining” (undermining cryptocurrency), and become part of the largest network of computers participating uninterruptedly both research and safety in the virtual currency transactions.
The digital coins can be defined fast payment systems to the extent that it can transfer money from one part of the world in a few seconds, in an anonymous manner and with a safety margin on a par with all the other more known payment systems.
Cryptocurrencies are also financial instruments used as a payment and / or savings system by thousands of savers who perceive digital currencies as a concrete earning opportunity, as evidenced by the increase that some of these digital currencies ( Bitcoin for example) has had over time.
While it is true that until a few years ago it was possible to spend “digital coins” only on the internet and only in certain channels, today there are more and more shops and businesses that accept payments in cryptocurrencies.
Some features, such as decentralization, speed, security and the ability to revalue over time that some of these coins have demonstrated (see Bitcoin), are the basis of the consolidation that digital currencies are achieving.
Many countries are, in fact, formalizing the use of these coins, first of all Canada which has authorized the installation of ATMs for the purchase of Bitcoin .
Here, too, the use of these new financial instruments is becoming more and more of daily use, so much so that from Turin to Naples there are many commercial establishments and real shops that have begun to accept payments in Bitcoin (the first digital currency to be been “coined” by the internet).
CFD trading with cryptocurrencies
Instead, by trading CFDs with Contracts for Difference , it will not be necessary to own the Wallet because in this case you will not really own the cryptocurrencies.
The CFD in particular an agreement between the trader and a broker in this case is the Broker , which allows you to earn both parties on the difference between the price of a cryptocurrency at the time of the creation of the contract, and its future price when the Trader will decide to close the contract, that is, to close the trade .
A Contract for Difference indicates that that difference can go in any direction. So you can decide to invest both in the possibility that prices go up, that is, to go long; whether prices fall, that is, go short, depending on what you think will be more appropriate at the moment. With CFDs you have the opportunity to maximize the initial purchasing power by paying only a small percentage, thanks to the Financial Leverage that allows you to trade expensive products in small amounts.
Like all financial investments, CFDs also present risks such as, for example, if you use Financial Leverage, the risk of losing all your investment increases more, but in any case you can also decide not to use it.
The Social Trading to earn with Criptovalute
Social trading is a new investment method to operate in online trading. It is considered an evolution of online trading, social network trading platforms are used to exchange financial information, compare and copy operations, techniques and trading strategies of other more experienced traders.
Social trading provides traders novice to those experts the opportunity to learn more quickly and benefit from the trader the best and most experienced.
Social trading platforms such as the popular broker eToro, allow their clients’ many community-based tools to share and develop their knowledge, to make more informed trading and investment decisions. These tools are, the ability to see other traders’ portfolios, analyze trade history, current trades, and total performance. You can read the news and see where they get their information from.