Even today, perhaps some will not know the world of cryptocurrencies , but it can be said with certainty that it is one of the hubs for the economy in the future. In summary, cryptocurrencies have a foundation in a digital currency exchange, where security and anonymity are ensured for those who make the transitions.
There are several ways to make money with cryptocurrencies , now we will see them together.
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One way could be through the Initial Currency Offer (ICO), which in Italian is translated into “initial money offer”. Specifically, when a new cryptocurrency is issued on the market, the founder can use this system because it allows him to obtain various advantages in terms of both advertising and circulation.
Before being launched on the market, cryptocurrencies can be bought at a very low price.
In this way, the creators are able to raise funds to invest in perfecting the development, for example, of the platform before the digital currency is definitively entered. With ICOs there is the possibility of obtaining excellent earnings, but at the same time there is the risk of being able to incur some fraud such as, for example, you could invest in false projects, therefore, you must carefully evaluate before lose all your savings.
Another method of making money with cryptocurrencies involves knowing and knowing how to trade online . It is mainly based on the rule of buying and selling a currency, in this case, digital. To be able to obtain very good profits you will have to, for example, buy at a lower price, and then resell at a higher price.
Let’s start with an intro to explain well what cryptocurrencies are.
Contents Index
1 What are cryptocurrencies and how they work
2 Make money with cryptocurrencies through CFD trading
3 Top 5 Regulated Online Trading Platforms
4 Making money with cryptocurrencies on eToro
5 Social Trading to make money with Cryptocurrencies
6 Making money with cryptocurrency mining
7 Earning with Cryptocurrencies through Exchanges
8 Best Authorized and Regulated Cryptocurrency Exchanges
What are cryptocurrencies and how they work
Although the system underlying the functioning of cryptocurrencies or cryptocurrencies is not immediately understandable, it should instead be emphasized that in everyday life the use of “virtual currencies” is, as well as increasingly frequent, also and above all simple and fast, as evidenced by the number of people who use “virtual currencies” as a form of saving or to make purchases.
Cryptocurrencies were born on the internet many years ago (2009), and are in no way connected to any other currency existing on our planet.
Their emission depends solely on precise algorithms and mathematical calculations carried out continuously by millions of computers scattered here and there on our planet ( network of nodes), and no bank or government can influence normal operation.
The “minting” of new units therefore belongs only to the web and to the network of computers connected to each other in the “Peer to Peer” system .
In the jargon of cryptocurrencies we speak of “mining” to describe the activity that anyone can do and which consists in finding new units of cryptocurrency.
To do this, simply download one of the many software in circulation designed to do “mining” (cryptocurrency mining), and become part of the large computer network that continuously participates in both research and security in virtual currency transactions.
Digital currencies can be defined as fast payment systems to the extent that you can transfer money from one part of the world to another in a few seconds, anonymously and with a safety margin like all the other most popular payment systems.
Cryptocurrencies are also financial instruments used as a payment and / or savings system by thousands of savers who perceive digital currencies as a concrete earning opportunity, as evidenced by the increase that some of these digital currencies ( Bitcoin for example) has had over time.
While it is true that until a few years ago it was possible to spend “digital coins” only on the internet and only in certain channels, today there are more and more shops and businesses that accept payments in cryptocurrencies.
Some features, such as decentralization, speed, security and the ability to revalue over time that some of these coins have demonstrated (see Bitcoin), are the basis of the consolidation that digital coins are achieving.
Many countries are, in fact, formalizing the use of these coins, first of all Canada which has authorized the installation of ATMs for the purchase of Bitcoin .
Here, too, the use of these new financial instruments is becoming more and more of daily use, so much so that from Turin to Naples there are many commercial establishments and real shops that have begun to accept payments in Bitcoin (the first digital currency to be been “coined” by the internet).
Each cryptocurrency is characterized by a public address and a private key, which are a long series of numbers and letters that give each a specific identity. Furthermore, all successful transactions are copied into a sort of digital register, the so-called Blockchain , which can be consulted by all Miners .
The Blockchain is managed by a computer network that is scattered in different places in the world and, therefore, we are dealing with a decentralized system, and this means that no institution such as, for example, a bank can have the control, not even a government. In this way, therefore, even transactions take place without intermediaries, but directly between user and user.
This allows both to significantly reduce the costs of transferring digital currencies, and to make transactions much easier and faster.
From the moment you decide to invest a good or a service in cryptocurrencies, it happens that based on the valuation at the time of the transaction, the price is converted into the value of the digital currency that you have decided to use. As we have seen, each transaction takes place in a totally anonymous form, as there is no need to use your personal data and no type of credit card, and because of this characteristic, cryptocurrencies have also been used a lot for illegal activities.
Digital currencies will most likely be the coins of the future, as many online stores already accept them as a form of payment.
Earning with cryptocurrencies through CFD trading
Instead, by trading CFDs with Contracts for Difference , it will not be necessary to own the Wallet because in this case you will not really own the cryptocurrencies.
CFDs in particular are an agreement between the Trader and an intermediary, in this case it is the Broker , which allows both parties to earn on the difference between the price of a cryptocurrency at the time of creating the contract, and its future price when the Trader will decide to close the contract, that is, to close the trade .
A Contract for Difference indicates that that difference can go in any direction. So you can decide to invest both in the possibility that prices go up, that is, to go long ; whether prices fall, that is, go short , depending on what you think will be more appropriate at the moment. With CFDs you have the opportunity to maximize the initial purchasing power by paying only a small percentage, thanks to the financial leverage that allows you to trade expensive products with small amounts.
Like all financial investments, CFDs also present risks such as, for example, if you use Financial Leverage, the risk of losing all your investment increases more, but in any case you can also decide not to use it.
Top 5 Regulated Online Trading Platforms
The listed Platforms have been Tested and Reviewed by our Expert staff.
Platform Benefits Information Commissions Open Account
Best eToro Platform
Evaluation
⭐⭐⭐⭐⭐
Regulated:
CySEC 109/10, FCA 583263
Free Demo Account:
$ 100,000 in virtual funds
Copy Trading:
Copy the best traders
Minimum Deposit: € 50
Leverage: 1:30
Cryptocurrencies : Yes
Social Trading: Yes
Transaction cost: 0 €
Commissions on Shares: 0%
Commissions on ETFs: 0%
Crypto Fees: from 0.5%
FREE DEMO ACCOUNT REVIEW AND OPINIONS
67% of users lose money with this provider by trading CFDs.
Markets: CFD trading Forex Stock trading ETF trading Funds Cryptocurrency trading Payment Methods:Visa MasterCard American Express GiroPay PayPal Skrill Neteller SEPA transfer Sofort
xtbEvaluation
⭐⭐⭐⭐⭐
Regulated
CySEC 169/12, FCA 522157
Free Demo Account:
€ 100,000
Training Center:
Trading School
Minimum Deposit: € 250
Leverage: 1:30
Cryptocurrencies: Yes
Trading School: Yes
Transaction cost: 0 €
Commissions on Shares: 0%
Commissions on ETFs: 0%
Crypto Fees: from 0.5%
FREE DEMO ACCOUNT REVIEW AND OPINIONS
77% of users lose money with this provider by trading CFDs.
Markets: CFD trading Forex Stock trading ETF trading Funds Cryptocurrency trading Payment Methods:Visa MasterCard American Express GiroPay PayPal Skrill SEPA transfer
Plus500Evaluation
⭐⭐⭐⭐⭐
CySEC 250/14 regulated
Free Demo Account
Professional platform
Minimum Deposit: € 250
Leverage: 1:30
Cryptocurrencies: Yes
MetaTrader 4
Transaction cost: 0 €
Commissions on Shares: 0%
Commissions on ETFs: 0%
Crypto Fees: from 0.5%
FREE DEMO ACCOUNT REVIEW AND OPINIONS
77% of users lose money with this provider by trading CFDs.
Markets: CFD trading Forex Stock trading ETF trading Funds Cryptocurrency trading Payment Methods:Visa MasterCard American Express GiroPay PayPal Skrill SEPA transfer
iq optionEvaluation
⭐⭐⭐⭐
Regulated
CySEC 274/14, FCA 670182, CONSOB 4090
Free Demo Account
Minimum deposit 10 €
Minimum Deposit: € 10
Leverage: 30: 1 and 2: 1 Crypto
Cryptocurrencies: Yes
MetaTrader 4
Transaction cost: 0 €
Commissions on Shares: 0%
Commissions on ETFs: 0%
Crypto Fees: from 0.5%
FREE DEMO ACCOUNT REVIEW AND OPINIONS
77% of users lose money with this provider by trading CFDs.
Markets: CFD trading Forex Stock trading Cryptocurrency trading Payment Methods:Visa MasterCard American Express GiroPay PayPal Skrill SEPA transfer
Markets.comEvaluation
⭐⭐⭐⭐
Regulated
CySEC 092/08, FCA, ASIC
Free Demo Account
Trading Academy
Minimum Deposit: € 100
Leverage: 1:30 and 1: 300
Cryptocurrencies: Yes
MetaTrader 4
Transaction cost: 0 €
Commissions on Shares: 0%
Commissions on ETFs: 0%
Crypto Fees: from 0.5%
FREE DEMO ACCOUNT REVIEW AND OPINIONS
77% of users lose money with this provider by trading CFDs.
Markets: CFD trading Forex Stock trading Cryptocurrency trading Payment Methods:Visa MasterCard American Express GiroPay PayPal Skrill SEPA transfer
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Earn money with cryptocurrencies on eToro
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eToro has grown rapidly to become one of the most famous and popular brokers in the world , currently focusing on social trading and copy trading . This has allowed eToro to grow and today boasts over 10 million customers around the world. In recent years they also offer cryptocurrency trading with the possibility of investing in Bitcoin , and also offer their services to US citizens.
The key to success is their proprietary trading platform and the ease with which they allow their clients to trade in social trading .
eToro to clients worldwide to be precise in over 140 countries and is licensed by regulatory authorities in the UK, Australia and Cyprus (EU). eToro (UK) Ltd , a financial services company, is authorized and regulated by the Financial Conduct Authority (FCA) , and also authorized by the Australian Securities and Investment Commission (ASIC) .
Then we find eToro (Europe) also this an investment company is authorized and regulated by the Cyprus Securities and Exchange.
eToro offers its clients its proprietary trading platform in both mobile and desktop versions . The web and mobile platforms are modern, attractive, easy to read and intuitive.
The platform is easy to navigate and use, and novice traders will find it easy to learn. The clean, easy-to-use interface platform much loved by customers who prefer simplicity. EToro clients can choose to trade between six different asset classes. There are over 2,000 equity CFDs , over 47 forex pairs , 13 equity indices, ETFs , commodities, and major and non-cryptocurrencies.
As we have already said, the strength of eToro and the feature that helps it grow so quickly are its social trading platforms .
There are two functions of social trading : Copy trading and copy portfolio . Copy trading is the revolutionary social trading feature created by the broker. This feature allows clients to copy the trades of other traders who are on the platform. The copy portfolio was designed to be an investment fund for the broker ‘s clients .
To learn more about this revolutionary platform, you can use the demo account , which is offered for free and without time limits . This function allows you to explore the platform with all its functions including social , and all its services, all without having to risk your own funds.The demo account also allows those who are taking their first steps in trading to practice, in fact they can operate on the demo account platform, which exactly replicates the live platform .
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Social Trading to make money with Cryptocurrencies
Social trading is a new investment method to operate in online trading . It is considered an evolution of online trading, social network trading platforms are used to exchange financial information, compare and copy operations, techniques and trading strategies of other more experienced traders.
Social trading offers novice and experienced traders the opportunity to learn faster and benefit from the best and most experienced traders .
Social trading platforms such as the popular broker eToro, allow their clients many community-based tools to share and develop their knowledge, to make more informed trading and investment decisions. These tools are, the ability to see other traders’ portfolios, analyze trade history, current trades and total performance. You can read the news and see where they get their information from.
You can communicate on forums, ask questions, exchange ideas or strategies or you can develop important investment relationships. All of this can be very helpful in creating your own strategies and making informed trading decisions.
Social trading is currently used by most traders , both beginners and very experienced, this is because social trading has many benefits, first of all you have the opportunity to have profits without too much effort. You can start and participate in trading with little knowledge of the markets. You can manage your risks more effectively by following a diverse number of traders with smaller amounts.
Social trading platforms are generally simple to use and have intuitive interfaces with access to everything you need with their magnificent level of transparency.
Make money mining cryptocurrencies
Then there is also the possibility of earning with Mining , that is, producing cryptocurrencies.
To operate with Mining , one needs first of all powerful computers used to solve mathematical algorithms to generate cryptocurrencies.
To date, however, producing digital currencies in this way has become increasingly complicated, because much more computing power is required by computers.
Precisely for this reason, companies have been created that have specialized in the production of ASIC machines, suitable for mining, therefore, they are very powerful machines.
In addition, there is also the opportunity to join the Mining Pools , that is, it is a collection of Miners who form mining groups, combining the computing power of their computers. To be part of the Mining Pool you must first have a Wallet , then you will have to register on a platform to create a personal account, then you will have to download and install a Mining software on your computer , and finally set up the software with the data provided by the Mining Pool .
The gain is based on how much you have managed to contribute to the production of the cryptocurrency with your own computing power. There is also the possibility of investing in Mining without necessarily needing to manage your own hardware and software, that is, you can use Cloud Mining , which offers the possibility of using common processing power from remote data centers, which Mining for you, charging you an amount, called a contract.
Earning with Cryptocurrencies through Exchanges
Another way to invest in cryptocurrencies is to use exchanges .
Some of these platforms behave like Peer to Peer markets , where users have the option to agree directly with each other, and the terms of the agreement are handled individually. When using cryptocurrency exchanges , one must beware of the risk of being a victim of hacker attacks , or even the possibility of being scammed.
To date, for those who are registered with this type of platform, there is no legal protection, therefore, if you lose money, it will almost certainly be useless to try to get it back.
