Today, most likely, everyone has heard about cryptocurrencies. However, many people who are far from understanding digital assets still do not fully understand where the cryptocurrency comes from. Meanwhile, blockchain technology is penetrating deeper into many large companies. Thanks to the blockchain, many successful projects are being created that are rapidly developing. In this article, we will tell you where and how the cryptocurrency comes from.
Creation of a token on the blockchain
Today, anyone who wishes can create their own token on the blockchain. Despite the fact that the blockchain existed long before the advent of the crypt, it was digital assets that attracted a lot of people’s attention to the technology. Many investors and companies use blockchain every year in a variety of areas. As a result, this led to the fact that the demand for platforms where you can create tokens has greatly increased.
The leader among such platforms is the Ethereum blockchain. The platform is designed in such a way that even a beginner will intuitively figure out how to create a new cryptocurrency. The Ethereum network is open source, which means that all source information and documentation is in the public domain. The creation of a token begins with a visit to the GitHub website, where you need to download the source code of the smart contract. The smart contract will specify the parameters of the future token. A large number of projects have been launched on the basis of the Ethereum network.
Creating a token is not a difficult process, but you need to understand an essential nuance – in order for the coin to become in demand, you will need a good development team, constant development of the project and a considerable investment in advertising.
Staking
During staking, the holder of digital assets “freezes” them and puts them into circulation to the exchange to support the operation of the blockchain network. In return, the user receives a reward in the form of interest. Staking can be compared to a traditional banking system, where you can open an account or deposit with a bank that will pay annual interest. Staking rewards are paid out as a percentage and depend on supply and demand. This way you can earn passive income. This attracts retail investors and they keep the blockchain running.
Unlike traditional mining, the energy efficiency of staking is much higher, since the Proof-of-Stake algorithm significantly reduces the need for blockchain mining with powerful computer hardware. Many blockchains, including Ethereum, have implemented the PoS protocol to ensure the operation of networks, due to concerns about the problem of not environmentally friendly mining of cryptocurrencies and their active implementation.
Staking has become quite popular lately because you don’t have to do anything to make a profit. You just need to purchase coins and keep them in your wallet. Such a process does not require the connection of powerful equipment, which makes the entry threshold for staking much lower than in traditional mining. In addition, the cost of some coins is quite low, and users with a small deposit can earn on their storage.
Mining
Mining is the oldest and most time-tested way of mining cryptocurrencies. With its help, digital assets are mined by generating new blocks that make up the cryptocurrency. Mining is the only way to mine cryptocurrencies with the Proof-of-Work algorithm. With its help, miners are responsible for confirming transactions and adding new blocks to the blockchain, for which they receive a reward in the crypto network.
Mining solves complex computational problems by selecting the only correct hash, which is a cryptographic cipher. The hash is always unique, it can only be found by selecting numbers, and this, in turn, is a rather complicated and long process. It should also be understood that if you decide to start mining, you will have to spend a lot on expensive equipment with high capacities. Moreover, if you decide to mine individually, then getting a new block will be quite problematic.
Although mining is a popular way to passively earn crypto, it carries risks for both users and the blockchain. The profit from mining is always different and completely depends on the growth in the popularity of the crypt. When the coin becomes cheaper, then the mining process becomes more difficult. This pattern allows blockchains to control the rate at which new coins are issued during mining. To determine which cryptocurrency is profitable to mine, you first need to calculate the mining difficulty.
Conclusion
Today, there are different ways to mine cryptocurrencies. Investors, in turn, have more and more opportunities to earn money. This can be creating your own token, staking or mining coins using special equipment. In the first case, the user needs to think about the promotion of the project and ways to develop it. The second option is suitable for people who do not want to bother too much and just support the blockchain network. However, do not forget that the digital asset market is extremely volatile and coin rates change quite often. In the third case, cryptocurrency mining at home is considered an occupation for patient users and requires large investments. But to start trading on the top exchanges today, we recommend you to pay attention to the trader’s assistant – trading bot. One of the leaders in this segment is RevenueBot. The service provides the opportunity to create trading bots on the largest cryptocurrency exchanges: Binance, Bittrex, Bitfinex, Exmo and others. Creating a bot is free of charge, the service will not take commissions until the client begins to make a profit from trading the bot. With the help of deep settings of the bot, the service’s clients implement trading strategies that are problematic to experience in normal trading. We will immediately indicate: the bot does not have access to customer funds on the exchange, but trades using API keys, that is, the account will remain out of access. RevenueBot has over 35 thousand customers who earn money thanks to trading bots.
Why should I choose this service?
- Pay the commission only after making a profit.
- The bot settings open up a variety of ways to make a profit.
- Inside RevenueBot, a marketplace is implemented where customers can buy a ready-made bot so as not to bother creating their own, or sell their own if the configuration has shown efficiency. Also, the services of a mentor (an experienced customer of the service) are purchased on the marketplace, who is ready to answer the questions of newcomers. Over time, you can become a mentor yourself, getting additional profit for this.
- Regular updates of the service’s features that optimize the trading process.
- The presence of the RevenueBot referral program allows you to earn money on trading, even without resorting to trading. Attract new customers for the service and get up to 30% of the profit they receive every month (but not more than 15 USD).
This is a small list of the advantages of the service. You can continue to list the positive qualities of RevenueBot, but why do this if you can go to the official website of the service and see for yourself everything? It is highly recommended to make decisions faster, because the crypto market does not stand still, but grows at exorbitant steps. Who knows how much profit is missed by someone who does not dare to come and start trading with RevenueBot.