What is Cryptocurrency

A Cryptocurrency is an online version of money, a digital asset to be precise. The name is derived from the Cryptography, which is used to encrypt transactions and control the production of the currency. It is a strictly monitored process, as it uses the Blockchain Technology.

To put it very simply, Blockchain technology is a distributed database that is used to used to manage & maintain a growing list of data blocks, using a P2P network collectively. These data blocks may be situated in different locations and not connected to the same Processor. A database is a collection of records. A distributed database is one which may be located in different locations and not be attached to a common Processor – but it may be located in the same or different physical locations and dispersed over a computer network. In a Blockchain, once a piece of data is recorded, it cannot normally be edited or changed.

Though neglected earlier, banks and financial institutions and companies are getting increasingly aware of its importance. Rather, they have a fear of losing their market of ‘digital cash‘ to the new currency.

While the security and ease of exchange make it an ideal medium of monetary exchange for the future, few know about Cryptocurrencies, and it is believed that these are unsafe. Although a recent surge in the price of Bitcoins and simultaneous boasting of the same on social media generated a lot of interest, it could still be years before it enters the mainstream.

 

How can I earn Cryptocurrencies?

Mining

Mining cryptocoins can be quite complex and is usually not recommended for beginners. The process entails the use of sophisticated machines that are expensive and consume quite a lot of electricity to solve mathematical algorithms in exchange for coins. Bitcoin miners enable bitcoin transactions by sharing their processing power. In exchange for enabling the bitcoin network to function, they are rewarding with new bitcoins. This is what “mining” refers to.

Cloud mining

Cloud mining is the process of mining cryptocoins using a remote datacenter with shared processing power. Cloud mining is beneficial to individuals as it allows them to carry out their mining activities without having to manage the mining hardware.

It enables you to earn coins without mining software, mining hardware, bandwidth, electricity or other offline issues. However, there is a cost associated with cloud mining as a service.

Claiming Faucet

If you who enjoy playing games or simply don’t mind looking at a few ads, you can visit bitcoin faucet websites. These websites generate revenue from ads placed on their pages and pay out a small amount of the ad revenue to its users. All you need to do is sign up with your bitcoin address and start earning a few cents worth of bitcoin every day.

While it is a very slow way to earn bitcoins, these sites allow anyone new to bitcoin to get obtain bits of the crypto-currency for free.

Buying

Of corse you can buy coins for real money. Some traders or online wallets enable to buy coins with credit card, bank transfer or other money transfer service.

Trading

If you love the financial markets and regularly trade online then day-trading bitcoin could be a way for you to make money with bitcoin.

When it comes to bitcoin trading, the basic speculation strategy applies. You buy when the currency is low and wait for the price to increase before you sell it a higher price to generate profit. It is important you understand market trends and price dynamics if you want to make successful trades and as bitcoin is primarily headline driven it is important to follow bitcoin news closely when actively trading the digital currency.

Investing or Multiplying

If you have coins, you can invest to HYIP (High Yield Investment Program).

First of all you should never invest into any online program with money you aren't prepared to lose. I've heard of people selling their cars or investing life savings, only to lose it all in the end. So don't invest your life away on these high risk programs. HYIP stands for High Yield Investment Program, a Ponzi-type program which promises an attractive rate of interest for a relatively short time investment. The typical period of a HYIP investment cycle is between 30 days and 60 days.  

Gaming

You can play and earn coins with some free online dice or bar games or you can play in online casinos.

 

Do you want to earn free cryptocurrencies? We collected many interest sites to help you to get free coins, mining coins or invest your coins.