What Is The Cryptocurrency, The Types of Cryptocurrency And Ways of Earning Money (Part 1)

The possibilities of the Internet are constantly increasing, for example, there is special virtual money that has a number of advantages. It is important to know what the cryptocurrency is, what its types are and how to use it correctly, in order to gain profit for yourself.

What is cryptocurrency and why is it needed?

The digital currency, which is protected by special technologies, is called cryptocurrency. It does not have a physical analog, and it is used exclusively in the network. In addition, it is worth noting that there is no way to track such money, that is, the anonymity of operations is guaranteed. A large number of people are sure that the future is for the cryptocurrency. Another important point – the course of such electronic money is not affected by external factors, for example, the political situation.

There is a way how to create your own cryptocurrency, and this information will be useful for people who have their own gaming service and want to create personal game money. In addition, it will be a great way to earn extra money. It is worthwhile to understand how the cryptocurrency works. So, the process of its creation is called mining. Its meaning lies in the fact that computers located in different parts of the world solve different problems, getting bitcoins, which can be exchanged for real money.

How to create a purse for cryptocurrency

There are different options for a virtual wallet, but the principle of its creation is almost identical. Let’s take an example of the most popular Blockchain site. To create a purse for the cryptocurrency, use the following instructions:

– Go to the official website and select the sub-item “Create your wallet”. A form will appear where you should enter your own email address and come up with a complicated password that will include a minimum of 8 characters.

– On the specified mail, there will be sent a letter where there will be a link to which it is necessary to pass to confirm an email address. As a result, the user gets access to the private cabinet.

On the main page of the wallet will appear a greeting and recommendations for the commission of important operations. An activity ribbon will appear on the page, where actions will be displayed: sending and receiving money, as well as internal transfers. In the “Settings” section you can make changes and adjust the wallet for you. In the “Security” subsection, you can specify a phrase for password recovery.

How to make money on the Cryptocurrency?

It is worth mentioning right away that there is no 100% effective way to make money with the help of cryptocurrency, but you can try. The most popular options for increasing capital include:

– Cloud mining. The user buys power from other miners. Earnings on the Cryptocurrency have such advantages: a low entry price, money pays off for 4-6 months, there are different tariff plans and you can simultaneously mine several currencies. It is important to understand that the invested money cannot be removed within a year, and you can only withdraw the Cryptocurrency, not dollars, giving it a commission. In addition, there is a risk of failure of the data center and hackers.

– Purchase of a currency on the trades. Explaining what a well-known cryptocurrency is and how it can be earned, you can not miss out on this method, which involves opening an account on the exchange where the money is transferred, and then the user buys or sells the cryptocurrency. The advantages of this option include: determining the price of entry to the market, a variety of currency and the ability to make profitable transactions by doubling the capital. As for the shortcomings, it is a difficulty in replenishing the account and withdrawing money, large commissions and the need to spend a lot of time.

– Storage of cryptocurrency. This option is suitable for lazy people because it consists of registering an electronic wallet and buying a cryptocurrency. After that, you need to forget about it for a long time, and maybe it will grow in price and then on sale, it will turn out well to earn. This is a kind of analog of a bank deposit, but only with a higher yield. The disadvantages include the risk that a purse will be hacked and the fact that for a year you will not be able to touch the currency.