How can you earn income on cryptocurrency. How to start a cryptocurrency business in Russia - advantages and disadvantages of different ways to earn money General attitude of government authorities in the country towards mining

To start making money on cryptocurrencies, you need to study the information, decide on the currency for mining, purchase equipment, select a room taking into account the high consumption of electricity and the increase in air temperature during operation of the equipment, configure software, the second option is cloud (remote) mining. There are also alternative ways to make money on cryptocurrencies.

Against the backdrop of the growing rate of the most popular cryptocurrency - Bitcoin, as well as the second most popular - Ether - a real mining fever has begun in Russia and the world. In Moscow stores, prices for video cards have doubled. Gamers scold miners. “Digital gold” is mined at home and on an industrial scale, and in August 2019, Bitcoin reached its all-time high twice.

For reference: Bitcoin is both a cryptocurrency and a decentralized payment system. It was launched in 2009, then for 1 dollar you could buy 1,309.03 bitcoins, and on August 29, 2019, the cost of one coin reached $4,700 (the average price on world exchanges).

What is happening in the world of cryptocurrency mining, how to start making money on cryptocurrencies, how to calculate profitability, examples of earnings, what are mining farms and cloud mining, how profitable is it? We will analyze the answers to these and related questions in the article, but first we will tell a short story.

Mister Smith's Story

A simple software developer for a large company from Silicon Valley, who prefers to call himself Mr. Smith, learned about the existence of bitcoins back in 2010. He was attracted by the jump in the rate from $0.008 per coin to $0.08. He decided to buy cryptocurrency. Fortunately, Smith had a good salary and a burning interest in the further development of events. He was not chasing quick profits, he was ready for the long game. And at that time, only those people who were close to the topic of high technology paid attention to Bitcoin.

So, Mr. Smith purchased 20 thousand units of cryptocurrency by investing $3 thousand. It’s easy to calculate that he got the bitcoins at a price of $0.15 per coin.

I bought it and, one might say, forgot it. Smith continued to work for the benefit of the IT company where he worked. And in 2013, thanks to price surges (see chart 1), Bitcoin became the reason for numerous news. Interest in cryptocurrency has grown throughout the world.

And then lucky Smith remembered his purchase. He sold some of his crypto savings, quit the company he worked for, and began traveling the world. He flies first class and lives in five-star hotels, has a private jet and visits the world's capitals. And he still has some bitcoins left.

Considering the current price of Bitcoin, not everyone can afford to buy at least one coin, but besides buying, there is another way to extract digital gold - mining. And the variety of cryptocurrencies has long been not limited to Bitcoins alone.

What is mining and how does it work

Cryptocurrency mining is the extraction of virtual money – bitcoins and others. All other cryptocurrencies have a common name - “altcoins” - from the word “alternative”.

A computer connected to a distributed database—blockchain—solves complex cryptographic problems (calculates blocks, verifies transactions), for which it receives a reward in the form of virtual money. This is the issue of “tokens” or “coins”, which means “coin”.

The supply of bitcoins is not endless, maximum amount, which can be generated is 21 million coins. According to calculations, this will happen in 2140. It is assumed that then the reward for finding blocks will be commission fees.

To reduce the randomness factor and increase the likelihood of receiving a reward, miners are united in pools - servers to which the participants’ power is connected. The mined digital currency is distributed among the pool participants in proportion to their technological capabilities that “helped” to mine the block. And the pool owner receives a commission.

The more computers in the system, the higher the complexity of the tasks, and therefore more and more computing power is required. At the same time, as the number of participants increases, the reward for each person becomes smaller.

Currently, there are more than 1 thousand varieties of cryptocurrencies in the world (some sources give a figure of more than 2 thousand). Most of them are derivatives (forks) of Bitcoin. They are created on the basis of its program code with certain additions.

Mining as a business

The word business can be applied to cryptocurrency mining in Russia only conditionally due to the fact that Russian legislation does not yet have a single legal norm regulating this process. It is planned to introduce rules regulating transactions with cryptocurrencies into the Russian legal field at the end of 2019 or in 2019.

And yet, the excitement around household and industrial mining is growing. Russian miners continue to buy video cards, assemble farms, sell them, rent them out and, of course, mine digital money, including at home.

The advantages of such a business:

  • receiving almost passive income;
  • the opportunity to earn additional income;
  • prospects for receiving increased income if the cryptocurrency rate increases.
  • This method of income is highly risky, because the popularity of cryptocurrency, and, accordingly, its value is determined by internal demand, which is created by participants in the system.
  • There is no legislative regulation; regulations can be introduced at any time imposing restrictions on this method of earning money.
  • There are no guarantees of earnings.

What is needed for mining

How to start mining digital money? The first thing you need to do is decide on the currency for mining, then purchase the appropriate equipment and prepare a place for its installation. Please note that during operation, video cards become very hot and make noise. The equipment also consumes a lot of electricity during operation.

Depending on the amount of initial investment and currency, there are two options:

1. Mining farm is, in simple words, hand-assembled structures that consist of a motherboard and graphic cards(video cards). Such devices allow you to mine altcoins. You can purchase ready-made trusses, assemble them yourself, or order assembly from a specialist.

For mining bitcoins, conventional video cards are no longer enough: more high-tech equipment is required, but for mining other cryptocurrencies, such as ether, at home, the power that video cards can provide is sufficient.

Some miners use special steel frames or homemade metal racks as equipment cases to achieve greater air ventilation and avoid overheating.

2. ASICs (antminers) are devices (based on integrated circuits) that allow you to mine bitcoins. They can be bought from foreign manufacturers; they are more expensive than farms. These are ready-to-use installations that do not require additional equipment. To operate, they are connected to the power grid and registered online.

In the first case, video cards are connected to the motherboard. Special software is installed on the computer, and with its help, cryptocurrency mining begins. Computers work around the clock.

In addition to the cost of the farm, there are the following expenses that need to be taken into account:

  • Equipment delivery fee.
  • Cooling equipment costs. The miner consumes a lot of electricity and gets very hot during operation, so you will need additional cooling systems, such as air conditioning or fans.
  • Additional accessories: powerful block power supplies, cables, adapters. Experienced miners recommend using blocks uninterruptible power supply. This is necessary so that during power outages the process does not stop.
  • Internet and electricity costs are also included in the cost of production.

The farm owner is required to periodically monitor the proper operation of the program, and also ensure that the video cards do not overheat.

You can buy equipment in various places, from buying it second-hand from private sellers who collect mining power themselves, to buying it on foreign websites: universal (for example, Aliexpress) or specialized (for example, mainer-shop.ru).

The cost of equipment varies and depends on the manufacturer, the number of video cards, power consumption, hashing speed, and other parameters and ranges on average from 100 thousand rubles (if you assemble the farm yourself) to hundreds of thousands of dollars for serious power. Accordingly, the potential income will be different.

To understand whether this or that equipment will be effective for making money, it is advisable to get expert advice or study information on specialized resources.

For those who want to start mining today without technical skills (or without a serious budget), there is an offer on the market in the form of cloud mining. You invest in someone else's farm, which shares the profits with you.

How to calculate profitability

There are special calculator sites that can be used to calculate the profitability of cryptocurrencies and the payback of mining. For example: on the site asictrade.com you can calculate the income from mining Bitcoin, Zcash, ethereum, Monero.

To do this, you need to indicate the equipment, its energy consumption, the price of electricity, and the hashing speed. The system will calculate the income. However, profitability is also affected by volatility - the percentage of volatility in the cryptocurrency exchange rate. As well as an increase/decrease in its exchange rate in monetary terms. These figures are impossible to predict. Also, calculators do not take into account the increase in the complexity of a currency, because the more digital money is mined and the more expensive a particular currency is, the more the difficulty of its extraction increases. Therefore, more powerful technologies are required.

Telegram bot WhatToMineBot also helps to calculate the profitability of mining various currencies depending on the initial conditions.

The most popular cryptocurrencies: indicators

Number in the rating Cryptocurrency name and symbol Rate (as of September 1, 2019*) Average score Capitalization (available volume*current rate)
1 Bitcoin (BTC) 4 735,21 $ 94,56 78 451 373 770,78 $
2 Ethereum (ETH) 387,07 $ 86,58 36 724 264 147,33 $
3 Litecoin (LTC) 71,17 $ 80,81 3 743 824 510,64 $
4 Ripple (XPR) 0,25 $ 76,78 9 658 200 268,86 $
5 Monero (XMR) 141,13 $ 75,78 2 112 604 658,95 $
6 NEO (NEO) 33,29 $ 73,87 1 684 732 936,36 $
7 Dash (DASH) 379,32 $ 71,49 2 856 495 873,54 $
8 Lisk (LSK) 7,34 $ 70,56 805 172 200,84 $
9 Zcash (ZEC) 284,96 $ 66,35 595 078 765,26 $

Chart 2 shows growth indicators as a percentage of the leading cryptocurrencies that occupy the first three rows in the table (ether, bitcoin and litecoin). Thus, over the past year, from September 2019 to September 2019, ether has risen in price by almost 3000%, litecoin - by 2000%, bitcoin - by more than 500%.

Examples of earning money from mining

Here are a few examples of how much mining farms earn at home and on an industrial scale

Dmitry Gutov mines the cryptocurrency Ethereum (ethereum) at home. He has two farms, each with 6 video cards. The equipment is installed in a separate room in which the window is constantly open. Dmitry monitors the operation of the system, prevents video cards from overheating, and vacuums dust from the farms 1-2 times a week. It takes him 15-20 minutes a day to service the farms. At the same time, the window in the room is constantly open, but the air temperature is about 5 degrees higher than in other rooms.

With computers running continuously with 12 video cards, electricity costs naturally increase. For Dmitry they amount to 2 thousand rubles per month. One farm brings Dmitry an income of 500-600 dollars a month.

Watch a video about home mining

In 2019, Russian billionaire venture investor Yuri Milner became one of the sponsors of the Californian startup XAPO (registered in Hong Kong). The project is a payment system or a bitcoin bank that allows you to make payments in this cryptocurrency.

Russian Internet Ombudsman Dmitry Marinichev is actively developing business related to cryptocurrencies. Since the beginning of 2019, he has organized two public pools for mining bitcoin and ether (bitcoin-russia and ethermine). Users of these pools mined about 23 thousand ethers and more than 230 bitcoins. Knowing the exchange rates of these currencies (see Table 1), it is easy to calculate the amounts in dollars or rubles.

One of the largest mining farms in the world is located in China, owned by Bitmain. Every day, about 280 thousand dollars are mined from it, and daily electricity bills reach 39 thousand dollars. The farm has 25 thousand mining devices installed. 50 people work and live here: a dormitory and a canteen are equipped for them. In general, China is considered the leader in mining due to cheap labor and cheap electricity generated by coal-fired power plants.

How to mine digital money remotely

Not everyone has the opportunity to keep technological power at home, in the garage or basement. But there is an option that allows you to mine cryptocurrency remotely. This is cloud mining. Its essence is as follows: a person rents technological capacities for mining, which are located in another location. He pays for using the program for a certain time.

The algorithm of actions here is as follows:

  • When choosing a service for cloud mining, this issue must be approached responsibly so as not to run into scammers.
  • Register, read the terms of use.
  • Deposit money into the account - purchase power.
  • Start production; it can be carried out in automatic or semi-automatic mode.

To withdraw bitcoins and altcoins, there are special exchangers that allow you to exchange them for dollars, rubles or send them to electronic wallets: Qiwi, WebMoney, Yandex.Money or plastic cards.

Alternative earning options

Earning money from cryptocurrencies is not limited to their generation (mining). There are also such directions as:

  • Collection and sale of equipment for mining; on Avito there are advertisements offering to assemble a farm from your equipment for 20 thousand rubles and more.
  • Buying cryptocurrencies: earnings are ensured through rate fluctuations. Thus, ether has risen in price 38 times in a year, Bitcoin until 2011 cost less than one dollar, today its cost is close to 5 thousand dollars.
  • Renting farms for mining.
  • Creation of new cryptocurrencies.
  • Storage and maintenance of mining farms.

This is interesting: blockchain-based platform for creating decentralized online services and the cryptocurrency of the same name Ethereum (ether) was invented by a Canadian programmer of Russian origin Vitalik Buterin in 2013. At that time, the talented programmer was 19 years old. The platform was launched in July 2019.
For his idea, Buterin won a $100,000 grant for the development of the project, as well as the World Technology Award 2014, beating even Mark Zuckerberg.

In addition to the listed types of income, in Russia you can earn money by working for hire as a mining and blockchain specialist. Thus, according to the portal for searching and offering jobs HeadHunter, in the first seven months of 2019, companies posted more than 200 vacancies for specialists in mining, blockchain, and cryptocurrencies. This is 10 times more than in the same period last year.

News 2019 from the world of mining and cryptocurrencies

To assess the relevance and opportunity to look at mining in perspective, we have made a selection of news from the world of mining:

  • At the end of August 2019, reports appeared in the media that in Russia and the European Union they were planning to build 4 thousand mining farms in the near future. The project is being implemented by StartMining. She plans to raise funds for these purposes by publicly offering tokens that will be intended to pay for services in the future - in the form of cryptocurrency. This process is called ICO.
  • The Russian Ministry of Finance has made a proposal to ban the purchase of cryptocurrency by private individuals, leaving only the possibility of their turnover on the Moscow Exchange between qualified investors. However, it is unknown whether the ban will be enforced. Let us recall that several years ago the Ministry of Finance proposed to introduce criminal liability for transactions with cryptocurrencies.
  • At the same time, Anatoly Aksakov, head of the financial market committee, said that perhaps by the end of 2019 legislation regulating the circulation of cryptocurrencies in Russia will be adopted.
  • In the Far East, they plan to use all unclaimed electricity generated by isolated power plants for cryptocurrency mining; the project has already been submitted for consideration. This was stated by Presidential Plenipotentiary Representative Yuri Trutnev.
  • On September 26, St. Petersburg will host Russia’s largest conference on blockchain, mining, and cryptocurrencies, Blockchain Life 2019. The forum speakers will be owners of blockchain startups, specialists in the field of regulation of the digital industry, and cryptocurrency experts. During the conference, it will be possible to get acquainted with innovations in the field of blockchain, mining and cryptocurrencies, invest in industry projects, and place an order for mining machines. The conference website is blockchain-life.com.

Summarizing what has been said, we can conclude that mining cryptocurrencies is a complex and risky activity. Theoretically, it can bring good profits, this is confirmed by practical examples, but there are no guarantees of earnings.

In order to make a final decision whether it is worth investing in digital money mining, watch RBC’s video about the future of the blockchain and the benefits of mining in Russia

The main purpose of financial technologies that periodically appear on the market is, first of all, to satisfy the interests of business, since the volumes of financial transactions, payments of corporations and companies in the commercial sector are tens, hundreds of times higher than all those financial flows that are associated with ordinary citizens, i.e. e. individuals. And it was almost always like this.

Who first began to use the telegraph and the well-known Morse code were stockbrokers of the Chicago and New York stock exchanges. Those who supported Bell's project to create the world's first telephone were again businessmen and stock speculators.

The same story happened with the invention of radio by Marconi, at the beginning of the 20th century. In our time, when the first computers appeared and local networks, then they were among the first to be used in financial systems, ranging from banking to international payments. For example, the first payment system appeared, which still serves banks around the world - SWIFT.

As the global Internet develops, communications based on digital technologies, there was a growing demand for financial applications and technologies that make it possible to quickly transfer money, capital, and assets from one country to another. Card systems (acquiring) also appeared under well-known names - Visa card and Mastercard card.

But the speed of such operations and the rather slow processing of financial transactions for most international payments no longer correspond to the volume of international trade and currency exchange (about 27 trillion dollars per year). With the advent, it was business that adopted these technologies and systems, even those that had not yet been thoroughly tested.

This article will talk about how and in what form cryptocurrencies are used in business, large and small, what prospects and opportunities exist for building effective business systems based on cryptocurrency or blockchain platforms.

Cryptocurrency and business - what are the benefits and advantages

Despite the fact that the first real cryptocurrency boom, which began in 2017, has slightly acquired the features of real understanding, both by the general public and business, government authorities, it is still not yet clear exactly what benefits will result from the emergence of a virtually new paradigm of interaction in the seller chain - buyer (business - client), which appeared thanks to cryptocurrencies.

However, there are already some practical and test developments (for example, a payment blockchain - a platform based on Ripple.Net), which allow us to draw some more definite conclusions about what the use of cryptocurrency in business will bring. So, we can start to identify these possibilities in order.

  1. Fast and secure transactions

Today's international transfers between banks is quite complicated, has become a complete bureaucracy, and often takes up to seven business days to transfer a couple thousand dollars to a neighboring country. Small businesses and startups that value time and capital turnover more than anything else cannot wait that long. Only blockchain can help here with its almost instantaneous financial transactions of cryptocurrencies.

Any blockchain is a distributed ledger in such a system that stores a set of data on tens of thousands of nodes (PCs connected to the network) around the world.

This means three things:

  • blockchain operates enormous computing power that allows users to transfer cryptocurrencies in just a few seconds.
  • There is no central organization to confirm and manage transactions. This way, no one can hack into the network to maliciously manipulate the files given to their advantage.
  • Direct (i.e. client-to-client or peer-to-peer P2P), transparent and cannot be compromised (forged) transactions on the blockchain are also economical. This could potentially lead to small companies, including start-ups, becoming more competitive in global markets, compared to even large monopolies that rely on time-tested but slow and expensive transfer systems, payments and financial institutions such as banks with their extremely complex decision-making and control systems. Not to mention government control bodies similar to those that exist in Russia (currency control).

At the moment, the fastest financial payment system is Ripple, which is already used by more than 100 banks and other financial corporations, including the Japanese financial concern SBI with a total capitalization of its members (more than 60 banks, investment and insurance companies) of more than 3 trillion. dollars.

The transaction speed, and in a multi-currency format, through the Ripple system (xRapid, for example) is only 4 seconds. Moreover, transaction confirmation also occurs almost instantly.

For comparison, for systems built on the Bitcoin and Ethereum platforms, this speed ranges from several tens of minutes to several hours.

  1. Transparent and sustainable management of the financial payments system

Blockchain is the cornerstone of some cryptographic platforms and allows small businesses to significantly reduce the cost of each payment in transaction systems, but this is not its main advantage. Cryptocurrencies are digital assets, which basically means they are data rather than currency in the traditional sense.

Existing business networks are inefficient, expensive and vulnerable to disruption of their stable operation and data theft. Secure, transparent and hack-resistant blockchain technology is impervious to any third-party interference and hacker attacks, can once and for all solve the problem of the safety of financial data using smart contracts.

As computer protocols Smart contracts function as immutable, self-contained, legally binding digital agreements between contracting parties - be they buyers and sellers, employers and employees. A smart contract refers to self-learning systems (neural networks).

This property of smart contracts allows the parties to optimize and digitize the management of business management processes by performing the following actions:

  • Accelerate transactions and reduce their cost, as paperwork is minimized
  • Eliminate numerous business management errors through automation
  • Reducing business cycles and increasing their efficiency
  • Reduce the risk of fraud and mismanagement
  • Increase trust between contracting parties, i.e. The arbiter between the seller and the buyer will not be a bank, not some other intermediary (broker, lawyer, notary, real estate agency), but a digital network that is not corruptible, does not suffer from a lack of competence and, moreover, does not require any money for its work. money.

Cryptocurrencies and blockchain can become key tools for business management. The security, transparency and resilience of such cyber systems allows business owners to focus on strategy and not get bogged down with routine tasks.

  1. Transparent and sustainable management. There is no need for intermediaries.

Cryptocurrencies reduce the need for intermediaries such as banks, systems money transfers, as well as legal and real estate firms. Blockchain technology has the potential to reduce even government and administrative apparatus. This can be achieved, for example, by providing citizens with control over voting using cyber systems. And there you certainly won’t be able to change or insert any data.

Small businesses can enjoy the benefits of cutting out intermediaries - more high speed operation, fewer errors, and significant reductions in product and service costs thanks to powerful blockchain smart contracts.

Smart contracts (or smart contracts) ensure the fulfillment of obligations between counterparties without going to court. After completing a task, smart contracts cannot be canceled or changed, forged, or issued retroactively.

The moment small businesses begin to use strengths smart contracts, they save their hard-earned rubles, dollars or euros by reducing bank commissions, and they don’t even need to have a lawyer on staff. It is not surprising that many companies are striving to bring blockchain to the world of not only financial or investment corporations, but also small businesses.

  1. Impressive investment opportunities

While there are many practical uses for cryptocurrency tokens, it should not be underestimated that they can be used to preserve and grow the financial assets of individuals and companies.

Just imagine that if you had purchased one BTC in 2010, when its price was less than one US dollar, today you would have about $10,000. If you bought 100 ETH, you would have $2 million in your household budget or you could buy a new production line for your “little candle factory.”

Although most countries do not yet recognize cryptocurrencies as financial and investment instruments, the regulatory landscape for cryptocurrencies is changing rapidly. Japan, Singapore, Iceland, France, Holland, South Korea, Australia and New Zealand, countries of Southeast Asia, Canada, the USA and other countries are making a significant contribution to the legalization of cryptocurrencies (though not all of them). Thus, it makes sense to purchase cryptocurrency now to reap huge investment rewards later.

Cryptocurrencies are quickly gaining momentum in popularity and have the potential to be the next big investment gold or “digital gold.” For example, such well-known financial and digital “whales” as Barclays, IBM, Cisco, Bosch and BNY have already begun to use this technology.

Your business, even the smallest one, will never become a corporation in the future if you do not start using cryptocurrencies right now. You can still take advantage of this opportunity before it's too late.

Companies using cryptocurrency in their business

To make all of the above more convincing and not look like a fairy tale, below is a list of companies that, to one degree or another, use cryptocurrencies and blockchain technologies in their business.

  1. Overstock

In August 2017, Overstock.com announced they were accepting cryptocurrency as a form of payment for the items they sell. They will accept not only Bitcoin as payment, but also Ripple, Ethereum, Litecoin, Dash and even Monero.

This company uses a dedicated digital asset exchange processing firm called ShapeShift to complete transactions. It converts currencies via the blockchain in seconds with no setup required account, i.e. payment is made from a regular client application downloaded via the network.

  1. Expedia

Expedia is another of the largest companies that accept cryptocurrencies in the form of Bitcoin. However, their payment system has its own characteristics. Once a financial transaction begins with Expedia using Bitcoin, it cannot be reversed.

  1. Subway

Subway is another large company (or rather, retail chain) that now accepts cryptocurrencies.

She followed suit by allowing Bitcoin to be sold to purchase food.

  1. PayPal

Bitcoin is accepted by PayPal as a form of payment. The payment system is launched through payment applications such as GoCoin, Coinbase and BitPay. Pay Pal is one of the first companies to begin accepting cryptocurrencies (only Ripple for now) as payment for transactions made through them.

They are also considering using Ethereum as well as other tokens in the future.

  1. Shopify

Another wholesale and retail network using cryptocurrency. The client can customize his own online store through Shopify just like other platforms like eBay or Etsy. Already in 2013, Shopify became one of the well-known companies that accept cryptocurrency (there was only one Bitcoin back then).

  1. Microsoft

There is an opinion in the professional community that Microsoft began accepting Bitcoin as a payment currency back in December 2014. Over the last year they announced that they would stop accepting Bitcoin and that they had switched to Ethereum.

This may not be the first time they have stated that they will no longer accept Bitcoin. A similar announcement was made in 2016. But this was also refuted. Time will tell if Microsoft will continue to accept cryptocurrencies other than Ether for its software products.

  1. Pizzaforcoins

Pizzaforcoins is one of the first companies to accept cryptocurrencies. In fact, they accept over 50 various types cryptocurrency.

They started working in this direction at the beginning of 2013. This is a real business where the only form of payment is the dozens of cryptocurrencies that they accept. Of course, this business format does not allow it to be made accessible to everyone, but, nevertheless, the very fact of using crypto as a means of payment will attract not only tourists, but also new regular customers.

As a conclusion, I would like to note that we have witnessed a global race for efficiency in the market using cryptocurrencies - their application and investment. And only the business that will win in this competition will understand in time that the time of banks with clerks, tax inspectors with their paper reports, the time of officials and various intermediaries has passed once and for all. And that the time has truly come when a business will always work directly with the client, even if he is on the opposite side of the Earth.

Do you want to make money from mining? Then you will need certain investments and a business plan on how to organize the process. And if you consider that with the increase in the market value of cryptocurrencies, manufacturers of computing equipment for their extraction also raised prices, it becomes obvious that all investments need to be thoroughly protected. As a result, the organization of mining farms has turned into a completely trivial investment process, funds for which may well be borrowed. And start the process like this: draw up a business plan for a mining farm.

Investments in cryptocurrency mining

Mining has long been a type of entrepreneurial activity. Of course, here it is:

  • revenue prospects with variable, but quite predictable factors;
  • costs with a completely understandable structure, as well as the possibility of reducing them;
  • there is growth potential and a tendency to increase the value of the extracted product - cryptocurrency block headers.

Like any project that potentially generates money, a mining farm startup will require initial investment. Before throwing yourself into the pool headlong and breaking piggy banks, extracting the last savings from the bins, it seems reasonable to make a calculation, draw up a business plan for a mining farm, in order to at least, theoretically, be convinced of the return on the invested funds, and most importantly, determine the deadlines after which can be focused on payback and net profit.

To maintain the required level of mining, project organizers have to acquire more and more computing power. The size of investments is growing by leaps and bounds. Mining farms that generate significant revenue become large-scale projects, more reminiscent of appearance high-tech plants than the research centers of the first enthusiasts.

However, this is only the case with the very first cryptocurrencies. And new altcoins, for the most part, have not yet become so complicated that they require significant scaling or high-performance computing centers (which are ASICs) for their own production. Some tickers can even be mined on the CPU; some require video cards (graphics GPU processors). But the main thing is that the road to mining is open even for small entrepreneurs, who, with their farms, create that very decentralized cryptocurrency system, the implementation of which was pioneered by Bitcoin.

All the more in demand is a preliminary calculation of profitability and break-even point, because with a decrease in the scale of production, any change in external parameters can lead to a catastrophic drop not even in profit, but in revenue for a fairly significant period, which can make the project unprofitable.

Due to the significance of these factors, it seems reasonable to consider them in more detail, so that those wishing to invest in creating their own farm have an idea of ​​what they are dealing with and what they should be wary of.

Mining as a business

Any business depends on various conditions and factors. The mining business is no exception here. Let's try to list the most significant parameters.

Complexity

This capricious indicator has already been mentioned above. All of us, when we were schoolchildren, had occasion to solve, perhaps not even particularly ingenious, but cumbersome mathematical equations, where you just need to sequentially execute standard algorithms. Computing devices do something similar during the mining process, be it CPUs, GPUs or ASICs. What is any unit of cryptocurrency? This is one of the results of solving a giant system of equations. The number of solutions is limited and countable, but finding each subsequent root of such an equation is more difficult than finding the previous one.

The cryptocurrency system is created in such a way that the intensity of production only decreases over time. This is due to economic reasons: after all, presumably, everything will be drawn into the mining process large quantity computing power, and a large-scale increase in productivity (in the absence of complication) can lead to temporary inflation of virtual money. So from the perspective of the developers of the cryptocurrency system, this principle embedded in program code cryptocurrency, looks quite natural and justified.

But for those who want to enter the industry by organizing their own mining farm, this feature is an extremely unpleasant obstacle. Not only does difficulty work against you – constantly reduces the productivity of your mining center, – So this complexity also grows exponentially. That is, not evenly, but with sharp jerks and upwards without falling.

Recommendation: you should start mining those cryptocurrencies whose difficulty is on the flat part of the mining difficulty curve. That is, the angle of inclination of the tangent to the curve at a given point (this is characterized by the tangent of the angle of inclination of the tangent) should be less than 45 degrees to the abscissa axis (the tangent should be less than 1). The profitability of mining and its productivity directly depend on the difficulty. For example, for Bitcoin at the current date (01/15/2018), the yield of 1 Th/s is ideally just over $2.0.


Market rate of virtual coin

The second most important factor influencing the profitability of cryptocurrency mining. In 99% of cases, computing equipment is purchased for fiat money, to be more specific, for US dollars. And when mining cryptocurrency, an entrepreneur in most cases will most likely sell it for traditional money, because for example, it is customary to pay for electricity in the currency of the country where the farm is located. The growth of the cryptocurrency exchange rate gives mining literally a second wind.

In many ways, the growth of the cue ball for miners was comparable to the beginning of the rise in oil prices in the 2000s for the whole of... Russia. At a price of $80 per barrel, something that just recently seemed utopian, namely the development of the northern shelves, immediately becomes possible and profitable. To mine Bitcoins, high-performance computing centers - ASICs and (“concentrated” GPU processors), which were previously too expensive for mining, began to be purchased en masse.

An increase in the market rate of the mined cryptocurrency can really give impetus to the development of a mining farm. But its fall can lead to stagnation of the project and even loss of profit. The reason for this is the following: along with the growth of altcoin exchange quotations, everything related to the infrastructure of its production is growing, primarily computing equipment. If the price of cryptocurrency decreases, it will not become cheaper. Let’s assume that you won’t be able to purchase new mining components, but old capacities purchased at high prices will greatly extend their payback period.

Recommendation: when deciding to purchase computing power, pay attention to whether the cryptocurrency exchange rate is “overheated” and whether it is about to fall inevitably. If the answer is yes, then when purchasing equipment... bargain!

Electricity cost

The most influential variable influencing the cost of mined altcoins is the cost per kilowatt hour of electricity. Back in mid-2016, this was almost the determining factor for the entire mining procedure in general. However, since then, the cost of virtual coins of all types has increased significantly and the price of a kilowatt has lost its system-forming importance.


But as she grows, she can fall. Therefore, it is strongly recommended to consider access to cheap energy at the business planning stage. Possible measures:

  • If the farm is located in an apartment or country house, you should take care of purchasing a home battery(produced by Tesla, for example) in order to be able to include a nightly tariff for energy consumption, where the cost per kilowatt hour is several times lower. At the same time, it will be possible to solve the problem of power supply interruptions;
  • sometimes it makes sense to consider the possibility of placing a mining farm (including medium and mini-format) on the territory of some research institute or other enterprise that has electricity benefits. At the same time, it will be possible to solve the problem of cooler noise.

Recently, a project was launched by miners-heaters who propose not to throw away heat from microcircuits, but to use it for heating apartments. A completely profitable project that contributes to the decentralization of cryptocurrency mining in principle. Why is this not a real way out?

General attitude towards mining by government authorities in the country

Despite the fact that this item is placed at the very end of the list, it is the most important, fundamental and key. If cryptocurrencies are actually being persecuted, then it is quite possible that a reasonable solution would be not to create a farm within a given jurisdiction at all, but to try to do this in countries with a more lenient legal climate.

And if you don’t want to go anywhere, then take care of security measures, namely, make sure that no one knows about your farm. But remember: the speed of the “knock” exceeds the speed of sound!

Room

Space requirements begin when the truss reaches the size of several racks. In terms of ASICs, this is at least 36 pieces. It should be based on the standard that 1 such production unit must account for at least 2.2 m 3 of room volume. Of course, this is not a dogma, and the standard is very conditional.

We need a supply of air in order to ensure its normal circulation, and most importantly, so that it has time to cool down after removing the heat from the microcircuits. The operating temperature of the cards themselves is from 70 to 80°C. You need to make sure that the air temperature does not rise above 40°C (but preferably not above 30). Otherwise, the farm is in danger of overheating and failure (for a long time).

Naturally, to maintain a “comfortable” operating temperature, the room needs to be constantly cooled. It is considered normal if up to 45% of all energy costs are spent on cooling.

Some miners place their farms at home, but on balconies. In winter, it is possible to achieve significant energy savings due to the absence of the need to cool anything (it’s already cold on the balcony, the main thing is that it is glazed). In addition, it is automatically possible to solve the problem with noise, which, in the case of a farm of 12 ASICs, exceeds 65 decibels.

Equipment

The required mining equipment depends entirely on what mining algorithm is intended to be used. And this is directly dependent on the chosen altcoin (for mining).


SHA-256 and Scrypt

It is proposed to consider the most popular algorithms with reference to the virtual coins mined with their help and the equipment used.

Characteristics

Algorithm
General info The most common algorithm, used in 90% of cases. This is what ASICs work on. In addition to Bitcoin, it is used to mine:
  • Namecoin;
  • Zetacoin;
  • Peercoin
 With its help you can get:
  • Dogecoin;
  • Bottlecaps;
  • digitalcoin;
  • Franco
Leader among ASICs in performance Bitmain antminer s9 ASIC Miner BW-L21 Litecoin
Hashrate size 13.5 TH/s 550 MHS (megahash)
Chip type BM1387 28nm LTC ASIC chip
Number of chips, pcs. 189 144
Operating frequency, MHz 600 684
Network connection interface Ethernet Ethernet
Cooling characteristics 2 fans 12038 2 x 120mm x 38mm fan, 3000 rpm
Energy consumption value, kW 1,32 0,95
power unit Bitmain APW3 1.6 kW ATX at 1500W
Power interface Ten 6-pin PCI-E connectors

Ethash Algorithm

This algorithm was specifically designed for mining the Ethereum cryptocurrency, which has become a kind of potential substitute for Bitcoin. Ether is mined by GPU processors - video cards produced by two world leaders - NVidia and AMD. Here is their ranking by performance:

  • AMD Radeon R9 295X2 1018MHz/1250MHz 57.68 Mh/s;
  • NVidia GeForce GTX 1080 Ti Founders 1582MHz 32.04 Mh/s;
  • XFX Radeon R9 390 Black Edition OC 1050MHz/1500MHz 29.89 Mh/s;
  • AMD Radeon R9 Fury X 1050MHz/1500MHz 29.71 Mh/s;
  • NVidia GeForce GTX 1070 Ti Founders 1506MHz 27.35 Mh/s;
  • AMD Radeon R9 Nano 1000MHz/500MHz 27.11 Mh/s;
  • Sapphire Radeon RX 580 LE Nitro 1411MHz/2000MHz 26.45 Mh/s;
  • AMD Radeon RX 480 1266MHz/2000MHz 24.86 Mh/s;
  • EVGA GeForce GTX 1080 FTW2 iCX 1860MHz 23.50 Mh/s;
  • PowerColor Radeon RX 570 Red Devil 1320MHz/1750MHz 22.50 Mh/s;
  • Sapphire Radeon R9 380X Nitro 1040MHz/1500MHz 21.38 Mh/s;
  • XFX Radeon RX 470 1256MHz/1750MHz 20.35 Mh/s;
  • EVGA GeForce GTX 1060 FTW+ 1860MHz/2002MHz 19.16 Mh/s;
  • ASUS GeForce GTX 1050 Ti STRIX OC 1493MHz/1752MHz 12.03 Mh/s;
  • XFX Radeon RX 460 1220MHz/1750MHz 11.93 Mh/s.

Equipment collection

You don’t need to think that in order to mine Bitcoins you only need ASICs (or video cards for Ethereum). You will need full-fledged computers, just a graphics function
the processor in it will be incredibly bloated. It can be compared to a bodybuilder who pumps up his muscles, but does not “pump up” his head much... However, he still has it.

So for mining instead of a video card mother card connect a distributor with 7 or more sockets into which GPU processors are inserted. Besides, in motherboard the processor is also inserted, RAM and all other components. The distributor has a limited number of connections, so if you need to connect more GPU processors, this means that you will need more motherboards (in other words, you need another computer, albeit without a monitor).

Assemblies made from such quanta represent full scaling when constructing a mining farm.

What to do with income

You don’t need to think that once the mining process starts, your life will become miserable. It will, of course, improve significantly, but in order not to be left in the cold, the process needs to be managed. We are not talking about technical services (this goes without saying), first of all we mean financial management.

In no case should we forget about the growing complexity of mining. You always need to monitor it and react sensitively to it. How? Through the purchase of new computing devices and components. The optimal increase in mining capacity is 5% per month, if you count not by hashrate, but by actually mined virtual coins! (how can the Russian economy compete with you with its growth at a record... 1.2% at the end of 2017). How much additional capacity needs to be purchased for this is determined empirically, taking into account the increase in the complexity of mining.

The order of distribution of mined funds is as follows:

  • first we pay “for the light”;
  • then we set aside for the purchase of equipment, based on the above “standard”;
  • everything that remains after this can be used as profit (that is, used to pay off a loan taken to finance a business plan, for current consumption, etc.).

If you don’t follow this “budget rule,” then very soon your farm will first begin to stagnate and then completely degrade, which we under no circumstances wish for you to do.

Cryptocurrency appeared in 2010, and gained popularity 7 years later. New users buy bitcoins and set up mining farms in the hope of making easy money. Traders trade crypto on exchanges, making money on the difference in rates, and entrepreneurs organize related businesses. It is still possible to enter the cryptocurrency market, but you will need creativity, determination and start-up capital.

Is it possible to start a business on cryptocurrency?

Cryptocurrency only exists in digital form and has no material equivalent. But it can be exchanged for regular money in accordance with the current exchange rate. The first and main cryptocurrency on the market is Bitcoin. Its rate is 14 thousand dollars and continues to grow.

System participants carry out payment transactions and are responsible for servicing them themselves, creating processing centers based on video cards and special devices. Transaction processing is called mining, occurs without user participation and is paid in hundredths of a bitcoin.

The algorithm for cryptocurrency transfers is based on blockchain technology, when the transaction is processed not by a single server, but by the computers of system participants

Cryptocurrency is decentralized; it is not stored on a server or in the accounts of a financial institution. The exchange rate cannot be regulated by banks or government agencies - it is formed due to the supply and demand of system participants. The higher the demand and the lower the supply, the higher the rate.

Users with large assets can easily influence the cryptocurrency rate by simply buying and selling it. By selling a significant part of the asset, the owner reduces the demand for it and thereby lowers the price. When buying, the reverse process occurs.

You can make money on cryptocurrency in different ways:

  • Serving payment transactions of users (mining). The method is losing relevance because powerful equipment is needed to process one transaction. Low-power mining rigs have the lowest priority in the system, which means that the chance of “catching” and processing a payment transaction in order to earn a pretty penny is approaching zero.
  • Buying and selling crypto. In addition to Bitcoin, there are other cryptocurrencies on the market - Dash, Etherium, Litecoin, the rates of which are dynamic. The resale of cryptocurrencies occurs by analogy with ordinary currency speculation - you buy at a low price, and sell when the exchange rate rises.
  • By opening a currency exchanger and receiving a commission for transactions. What is needed here is a competent programmer who can build a system to protect translations from theft.

Other ideas for earning money are related to related products and services: selling video cards and mining devices, introducing cryptocurrency into banking systems, developing and improving trading tools.

Cryptocurrency on the global and Russian markets

Predictions regarding virtual digital currency vary and depend on the supply and demand situation. In May 2017, America's pension fund BitcoinIRA, which accepts cryptocurrency, noted an increase in the number of transfers in Bitcoin. The president of the fund counts a virtual coin good tool to diversify the company's financial portfolio, but does not advise making long-term bets on it. So far, investments in Bitcoin bring 30% monthly profit, but exchange rate fluctuations reach 90%.

The five most stable cryptocurrencies in the world include: Bitcoin, Litecoin, Ethereum, Ripple, and Bitcoin Cash.

In Argentina, the currency is popular due to demand from buyers wanting to hedge against inflation, which was 720% in 2016. In Nigeria and China, it has become a way to circumvent restrictions on the purchase of foreign currencies.

In Russia, cryptocurrency is used for illegal trading on the darknet. Anonymous sites accept bitcoins as payment for illegal goods and services: weapons, forgery of documents, narcotic substances.

The darknet is an anonymous network in which connections are possible only between trusted users.

Bitcoin is not used for everyday purchases because:

  • the transaction can be processed in a few minutes or days - the speed depends on the amount of the commission;
  • The virtual currency exchange rate is not stable.

Out of 500 online trading platforms, only 3-5 stores accept cryptocurrency.

Among the forecasts regarding the crypt, there are two extremes - it will become a global world currency, replacing other money on the market, or it will collapse according to the Mavrodi pyramid principle. So far, the first forecast looks optimistic, and miners continue to buy virtual coins, ensuring the stability of the system.

Government regulation can also affect the development of the cryptocurrency market. Governments of different countries have already begun to issue legislation defining the possibilities for the use and exchange of bitcoins, as well as other digital currencies.

How to make money - business options

For now, it is possible to start a business on digital currency, and if you really want to join the market, draw up a business plan, focusing on one of the proposed options for earning money. Do not hesitate to make decisions and at first operate with amounts that you are ready to lose.

Mining farms

A mining farm is a device based on several video cards or ASIC boards, assembled to process payment transactions that users make in Bitcoin. The essence of making money is this - you launch a farm, and it starts searching and servicing transactions. For each processed transaction, you receive shares of Bitcoin in your virtual wallet. The amount received depends on the power of your equipment.

It is better to install home mining farms on the balcony so that they do not overheat during operation

Advantages of mining:

  • passive income does not require user participation;
  • complete anonymity;
  • a variety of ways to withdraw money;
  • There are no restrictions for withdrawal.

Disadvantages of business:

  • high competition - due to powerful industrial farms that intercept transactions, it is almost impossible to earn bitcoins at home, the business does not pay off;
  • high electricity consumption - 24 kW/day. for a farm of 6 video cards;
  • Video cards heat up during operation and require a cooling system.

Despite the shortcomings, the cryptocurrency mining business is of interest to advanced users. If you want to join the mining community, launch a farm and start collecting crypto. Don’t chase Bitcoins, but choose another currency that has enough power from your home equipment to collect. You can exchange the received digital money for bitcoins through the exchange.

How to assemble and launch a farm:

  1. Decide on the currency you will collect - the mining algorithm and the set of equipment depend on this.
  2. Buy equipment: video cards, motherboard and processor, HDD, coolers, housing, wires. Build a farm. Install operating system and transaction servicing software. Make settings depending on the selected mining client and method of collecting currency.
  3. Register on a cryptocurrency exchange and create a Bitcoin wallet, for example, on Multibit.

Before starting work, calculate the payback of the business, taking into account the costs of electricity and equipment - for home farms it is 1–3 years. The amount of initial investment in the business is 140,000 rubles.

Video: how to set up a mining farm

Trade

Cryptocurrency speculation is a risky business, the essence of which comes down to buying digital money at the minimum price and selling at the maximum. You earn from the difference in rates.

Business advantages:

  • the ability to quickly increase start-up capital;
  • there is no minimum threshold to enter the business.

Disadvantages of Speculation:

  • risk of losing capital completely;
  • the need for quick decision making;
  • constant monitoring of cryptocurrency rates and changes in the market;
  • exchange interfaces are lagging, technical support is slow and reluctant.

When choosing an exchange for trading cryptocurrency, evaluate its history - if there were failures, but the exchange compensated participants for losses, then it is stable

How to start making money by reselling cryptocurrency:

  1. Select the exchanger you will work with. Use the service to evaluate the rating of exchange sites - localbitcoins.net. Exchange exchanges are divided into two types - the first work only with cryptocurrencies, the second allow you to exchange digital money for real currencies.
  2. Open an account and create a cryptocurrency wallet. Create complex passwords for each account and enable two-step authentication.
  3. Exchange rubles for a pre-selected currency. Invest in 1-2 different currencies - this will reduce the risk of losing all your money at once.
  4. Fund your account and start trading. Trading takes place 24 hours a day, so it is unrealistic to constantly monitor exchange rate changes. The optimal time to enter the exchange is at 8.00 - at this time the Asian session begins, as well as at 18.00–19.00, when the American session begins. The average number of transactions per week is 1–2, do not count on more.
  5. Gradually you will develop a trading strategy. Common strategies: buying a “breakout”, when the price of a currency fluctuates in a narrow range and then sharply goes beyond the border; margin trading; leverage

Popular pairs for trading are Bitcoin/USD and Etherium/USD. The rest of the cryptocurrencies move in the risk on/off system. You can track changes in rates on coinmarketcap.com. The main rule of trading on the stock exchange: “patience is the key to profit.”

Exchanger as a business

To register an exchanger you will need permission. You can obtain a document by obtaining an expensive Japanese license or by registering a business in a country where the cryptocurrency market is not prohibited, but is also not regulated by law.

The essence of the business is that you open an online exchange office, set the internal rate and take a commission for carrying out transactions.

Advantages of the exchanger:

  • almost passive income;
  • earnings are guaranteed and do not depend on the cryptocurrency rate.

Disadvantages of business:

  • high costs for obtaining a license - 30–100 thousand dollars;
  • additional investment in software;
  • financial responsibility for user transfers;
  • high competition, it’s difficult to start without a reputation;
  • if the exchanger is hacked and the cryptocurrency is withdrawn, you will have to return part of the funds (and ideally the full amount) to users from your savings.

Users can monitor the reliability of Bitcoin exchangers - it’s difficult to promote a new one in the big competition

How to open an online cryptocurrency exchange:

  1. Solve legal issues: get a license, open a company, hire a director and lawyers.
  2. Develop a script for the exchanger to work. Think over the algorithm for the operation of a personal user account with which the client will exchange currencies.
  3. Create a trading platform where traders can post their offers, or turn to off-the-shelf software providers.
  4. Work out the transaction protection algorithm.
  5. Launch an advertising campaign and start earning the first interest, and at the same time your reputation.

The threshold for entering the business is high - 200–500 thousand rubles. subject to working without a license in a region where such activities are permitted. The cost of the license will increase the cost of the project by 1–2 million rubles.

Earnings on related products and services

The main idea of ​​investors in the Bitcoin community is to introduce cryptocurrency and strengthen its position in the market so that people can pay for any goods and services with digital money. The policy of government agencies in relation to crypto is different - prohibit, regulate, limit.

Investors are ready to pay for ideas aimed at strengthening Bitcoin, they are ready to pay for:

  • educating the population - production and distribution of video courses and other materials about cryptocurrencies;
  • technological developments for making payment transactions and exchanging digital currencies, for example, an application for mobile devices;
  • services for exchanging crypto for fiat (real money) for a small percentage.

A good business idea is a smartphone application that allows you to monitor the mining situation and exchange cryptocurrencies

It is difficult to prove yourself in these areas, but success depends on your creativity.

Traders are also interested in the development of the market - they can pay for the development of new payment instruments and programs for the resale of bitcoins, analytical services and exchange aggregators that allow trading on several platforms simultaneously.

The idea of ​​a new mining device that is powerful and accessible to ordinary users will definitely be appreciated. The main thing is to protect your development with a patent!

  • Basic Concepts: Bitcoin
    • Bitcoin faucets
    • Bitcoin - Applications
    • Bitcoin - casino
    • Cryptocurrency ponzi schemes
    • Bitcoin - doublers

Not everyone can make money on cryptocurrencies. The days of quickly mining Bitcoin on a PC are long gone. Nowadays, mining on powerful video cards often turns out to be unprofitable. Now cryptocurrencies are a huge business in which billions of dollars are turned over, but entering this niche and getting your income is no longer so easy.

Basic Concepts: Bitcoin

Among electronic money, there are several main types of coins. There are more than 4,500 thousand altcoins, but we will never know about many. The most popular coin remains Bitcoin. The appearance of bitcoins is not controlled by government institutions, but the number of coins is limited and the exact size of the issue (21 million coins) is known in advance. The last Bitcoin will be mined in 2140.

How to earn Bitcoin or altcoins

Mining is the extraction of cryptocurrency using mining farms specially created for this purpose.

  1. Solo is prey. The miner buys equipment, mines coins, and, accordingly, the income he earns remains with him.
  2. Working in a team called a pool. The miners combine their efforts, connect all the equipment, extract electronic money and divide all income in accordance with each person’s share of participation.

Setting up a mining business is not difficult. For this purpose it is necessary:

  1. buy equipment: ASIC or computer with several video cards

2. organize mining yourself or connect to a pool;

3. receive rewards in the form of electronic coins.

The main problem is the cost of equipment. In 2009, it was possible to receive bitcoins on personal computer. Since 2011, interest in cryptocurrency has grown significantly, and mining on a PC has become a thing of the past. Powerful video cards were used, then ASIC devices.

Everything depends on the power of the farm: on large farms, mining efficiency increases.

  • it is necessary to minimize the cost of electricity consumption and at the same time increase its efficiency. This is achieved by installing several video cards on one computer and creating unified system cooling - or simply by purchasing an ASIC;
  • if you plan to mine cryptocurrencies alone and create a farm at home, then forget about mining bitcoin, time simple ways passed. Home farms will not be able to provide normal income. Professional options are usually much more expensive, which limits a beginner’s choice to altcoins;
  • If you don’t have large funds, start mining other coins. If you start mining little-known cryptocurrencies, you need to monitor their rates and switch to those that are growing in price. After acquisition, they should be exchanged for Bitcoin or the dollar, due to their depreciation;
  • Keep in mind: it is impossible to accurately predict how much you will earn from mining in six months or a year.

8 dangerous ways to earn income from cryptocurrency that you should not use

There are fraudulent projects in any area of ​​business. Digital currency is also on their list. Below are ways to mine cryptocurrency that you should not do.

Bitcoin faucets

The method of receiving cryptocurrency is free. It was originally conceived as a means of attracting attention to Bitcoin. But as it develops, it is used as an advertising project for beginners. A beginner needs to register, enter the captcha and collect his winnings. The winning amounts are small: from 5 to 20 satoshi. The collection period depends on the faucet and ranges from 5 minutes. up to 1 hour. If we calculate that it takes 1 minute to enter 1 faucet and the earnings are 10 satoshi, then the income for 1 hour will be 600 satoshi. And in an 8-hour working day you will earn 4,800 satoshi, subject to registration on dozens of sites. As you can see, the income is small, even if you do it seven days a week. The danger of this method– loss of time, which you can use more productively, get money and simply buy cryptocurrency.

Bitcoin - Applications

They are identical to faucets, but here you need to not only enter the captcha, but also perform the specified actions. Bitcoin applications are available on both Android and iOS. To get a few satoshis, you need to click on the required number of banners, watch an advertising video, and take a survey. A one-time payment for this type of earnings is tens and hundreds of satoshi. Somewhat more than you can get from a tap, but the time costs will increase. Each application will require you to spend from 5 to 10 minutes per collection, provided they are stable. Your monthly income will be several thousand rubles, despite the fact that you will be working on applications all day long. The danger, as with taps, is low exhaust.

Bitcoin - casino

There is no need to consider it as a means of generating income. This is most likely a pastime for gambling people. Bets and winnings here are made in cryptocurrency. The danger of this method is that the casino is always in the black.

Cryptocurrency ponzi schemes

Similar schemes appeared in Russia under the name MMM or other financial pyramids. Promises of high returns attract people to invest money. The first investors have enough money to pay enormous interest. Advertising is used, the number of participants in the pyramid is growing. However, at a certain stage the money runs out and millions of people become victims. In the world of cryptocurrency, there are three types of ponzi schemes. The danger is scamming money.

Ponzi crypto tokens

The client is offered to purchase a certain number of tokens, which supposedly will be very profitable. In reality, there is no working project and no value behind them.

Ponzi crypto funds

Information appears on the Internet with an offer to invest cash in a certain fund that invests in cryptocurrency and promises to receive an income of several hundred, or even a thousand percent per annum. The profitability indicated above can be obtained on individual crypto projects, but even experienced investors and traders cannot know the size of the profitability in advance. Having collected a sufficient amount, the scammers disappear.

Ponzi crypto mining

Fraudsters will recommend purchasing equipment for cloud mining with high profitability. Payments are made at the expense of newly joined miners. After some time, the scammers disappear. The main signs of deception are: low entrance fee (a few dollars), profitability that exceeds the income of well-known cloud mining operators.

Bitcoin - doublers

The organizers of the Bitcoin doublers claim that they have found a way to hack the system, but in order to do this, it is necessary to list real Bitcoins. Bitcoin users are asked to send several electronic tokens, assuring that they will return two or even three times as much the next day. But once you send bitcoins to the specified address, you will never see them again. As for Bitcoin itself, its code has been available since its inception, it has been studied by thousands of specialists and not a single hacker has found a way to hack the system. The danger is losing money.

New exchanges, wallets, applications

You can also lose your coins through an exchange or wallet. You should be extremely careful when working with new exchanges and applications. Send small amounts to them, those that you won’t mind parting with. But carry out the main operations with an exchange that has a decent turnover and has been operating for at least one year (although this does not provide a 100% guarantee). It is recommended to store large amounts of cryptocurrency in cold storage wallets.

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