With the growing popularity, digital currencies have become a sought-after asset. More and more users began to be interested in the question of how to make money on cryptocurrencies. There are also new options for their use as a means of payment. Today, using cryptocurrency, in various countries, you can pay for hotel room rent, university studies, and even buy an airplane.
When Bitcoin became popular, it received the status of an investment vehicle. Since the number of BTC coins is initially limited (21 million), this cryptocurrency is not subject to inflation. And every year a large number of new crypto projects appear, with different levels of potential. Their popularity and cost is directly related to their effectiveness and benefits to the community.
For example, Ethereum is not deflationary like Bitcoin. That is, the number of Ether coins is not limited. But on the basis of its blockchain, smart contracts work, which greatly facilitate the implementation of virtual transactions. Plus, numerous useful applications and games are created on the basis of Ethereum. All this makes it a sought-after blockchain project.
The popularity of blockchain games is growing rapidly. Developers create applications that use the computing power of a PC to make them work. There are already projects that have attracted millions of investments. For example, games that allow you to buy plots of virtual land. Hundreds of thousands of dollars are often paid for such square meters. Purchased plots can be advertised or sold at a higher price.
Some companies and startups issue tokens that allow you to buy a stake in their business. Depending on the conditions, token holders can receive shareholder rights or dividend payments.
Crypto technologies are constantly evolving, offering more and more opportunities for their use every day. And the popularity of blockchain projects is also growing rapidly, capturing more and more new markets.
How to use cryptocurrency
The use of digital currencies can be different:
- calculations within a separate project;
- payment for transactions on the cryptocurrency exchange;
- capital preservation;
- making a profit from the growth in value;
- payment for services or goods;
- active trading as a way to make money.
To conduct transactions to external accounts and receive funds from other users, you will need to select a special wallet. Also, to work with some coins, you need to download their blockchain to your PC. But this condition is not always necessary.
If you are transferring small amounts, you can work with web wallets. In this case, everything will happen online, without installing programs on the computer. When you have to transfer or receive tangible amounts of funds, it is better to choose among hardware and desktop wallets.
To send digital currency, you just need to follow a simple sequence of actions:
- Get the public key (address) from the user who accepts the payment.
- Enter the received address in the wallet interface.
- Confirm the transfer.
- To receive cryptocurrency, you just need to transfer your public key to the sender.
Every transaction on the blockchain must be signed by the user sending the funds. For this, a private key is used, which is stored in the wallet.
Also, to buy and exchange cryptocurrencies, you can use the exchanger https://godex.io/exchange
Cryptocurrency trading
You can make a profit on the change in the value of virtual assets. To do this, you need to have an understanding of the behavior of the "market crowd" and the ability to analyze fundamental news. These are the basic skills of a trader.
Negative news has a tangible impact on the quotes of digital money. For example, if a politician or the head of a large company speaks out in a bad way about a separate blockchain project, then the value of the cryptocurrency based on it will noticeably fall. Not everyone will be able to easily withstand such a drawdown.
It is worth going into crypto trading only if you are ready to thoroughly immerse yourself in the streams of information. Because the news will have to be monitored daily. Plus, events need to be properly analyzed - incorrect conclusions lead to heavy losses.
To understand the features of asset value formation, you need to take the market history of popular coins and carefully study the periods of their strong ups and downs. With a competent analysis, you can identify the reasons for a sharp change in quotations.
One of the varieties of such earnings is P2P trading. In this case, transactions are carried out directly between users, without the involvement of intermediaries.
