The second methodology for how to earn bitcoins and cryptocurrencies is called offering. The term offering means participating in an ICO, or an “Initial Coin Offering.” The ICO is the equivalent of an IPO (Initial Public Offering) when a company’s shares are listed on the stock exchange.
Just as the IPO is used to gather financial resources useful for the development of a company, an ICO is used to finance a launch and development project relating to a new cryptocurrency. ICOs are therefore launched by start-ups who want to create and develop their cryptocurrency but must collect the massive capital necessary to launch and develop it.
The process of an ICO, however, unlike that of an IPO, is still completely unregulated. So much so that in some states launching an ICO has become illegal, at least pending regulation. In exchange for financial resources, ICO subscribers become the first owners of the new cryptocurrency.
As you may have guessed, participating in an ICO can make you earn a lot if you choose the right start-up. But in most cases, it could go wrong, and you could participate in one of the many ICOs launched by start-ups that will not see their project realized. And you will lose your money. So this earning methodology is certainly very risky. Indeed it is a real bet.
You could consult some document that explains how the new cryptocurrency is different from the others, and therefore why it could be successful. But there is still a very high risk of failure.
How to earn bitcoins and how to earn cryptocurrencies: Mining
The third methodology about how to earn bitcoins and how to earn cryptocurrencies is called mining. The system will then award you a commission for the work done. While at the beginning of the BTC era, it was relatively easy to participate in the mining process through your PC, today, it is no longer so.
The process has become much more expensive in terms of leading software, hardware, energy costs, etc.
Always calculate the costs / earnings before starting
How to earn bitcoins and how to earn cryptocurrencies with mining? The basic rule is to calculate potential costs and earnings before starting.
Costs can be those of mining equipment, software, hardware, energy, cooling, etc.
Consider a pool mining
Pool mining is a community of several cryptocurrency miners who pool their resources. In this way, the costs are shared, as well as the profits, of course.
How to earn bitcoins and how to earn cryptocurrencies: Lending
The fourth methodology regarding how to earn bitcoins and cryptocurrencies is called lending.
The incredible technology behind virtual currencies allows anyone to become a real mini-bank. In my view, this is quite impressive.
From a practical point of view, lending is managed through a system called P2PL, “Peer-To-Peer-Lending.”
P2PL allows you to lend cryptocurrencies to other people, without going through any intermediary.
Lending is, however, an activity that offers very low percentages of earnings. Be careful, therefore, be wary of those who promise you stellar earnings with lending. It’s probably a scam.
Lending is often required by large traders to be able to trade short. For this, they require a loan: through the loan at a certain price at a certain moment. They manage to open a bearish position on a cryptocurrency.
How to earn bitcoins and how to earn cryptocurrencies: Staking
The methodology regarding how to earn bitcoins and how to earn cryptocurrencies is called staking.
For the disturbance of having kept still and parked, a certain amount of cryptocurrency earns a commission. In this case, however, avoiding spending money, time and energy to acquire very powerful software and hardware as happened in the case of mining.
The problem with stalking is that it can only be done on certain cryptocurrencies, usually those that have been out for a very short time and which are at high risk of failure and/or failure.
Conclusion: First of all, because staking cannot be done on the best known and capitalized cryptocurrencies. And secondly, because you have to rely on companies that you never know if they are reliable. In short, if you want to stack on new virtual currencies, it is good to invest only a little money and to estimate that this could go wrong.