Author: Benjamin Lee
Bitcoin. Ethereum. Libra. Gram. These are just some of the most popular cryptocurrencies in the world. To the uninitiated, these may seem to be just a random collection of words.
However, at this point in time cryptocurrencies are amongst the most valued commodities on the market. Strange given that these digital currencies have no tangible value or physical presence in the world. Being set in an unregulated market means that prices are extremely volatile.
If that’s the case, why is everyone going crazy over crypto?
From the 2017 cryptocurrency bull-run to the recovery of Bitcoin prices in the 2nd quarter of 2019, it’s clear that cryptos are here to stay despite what the naysayers have said.
So, if you’re looking to get your hands on your own portfolio of cryptocurrencies, you’ll want to read on. In this comprehensive guide, we’ll show you how you can buy, earn and sell cryptocurrencies easily and safely.
How to Obtain Cryptocurrency
- Mine cryptocurrency
If you’ve heard of Bitcoin, chances are you’ve also heard about Bitcoin mining. No, it doesn’t involve a pickaxe or manual labour of any kind.
Instead, all of the heavy lifting in Bitcoin mining is performed by super-powerful computers that solve a series of increasingly complicated equations. The equations form a part of the blockchain and by validating these equations, the mining rig confirms the validity of transactions performed on the network.
Upon the successful solving of an equation, the miner is rewarded with a Bitcoin i.e. the equivalent of striking gold. Back in the earliest days, mining was extremely popular with investors looking to get their hands on Bitcoin.
In recent times, given the increasing complexity of the blockchain equations and the reduced amount of Bitcoins rewarded, most investors have turned away from mining.
Nowadays most massive mining operations are performed by a cluster of custom-designed Bitcoin mining machines that consume enormous amounts of electricity and space. Thus unless you have access to cheap and plentiful electricity, mining may not be the way to go.
- Buy cryptocurrency
One of the most straightforward ways to obtain crypto is by simply buying it on the market. Nowadays, there are dozens of exchanges that allow you to purchase cryptocurrencies directly.
All you need to do is to sign-up for an e-wallet and register with any crypto exchange. As long as you have a steady internet connection and a computer, you’ll be in business.
If you’re operating with a mobile device, you can always make use of the eToro app which allows you to buy and sell cryptocurrencies while you’re on the move.
Unfortunately, given the unregulated nature of the crypto industry, fraud and theft have occurred in the past which resulted in massive losses. For example, the infamous Mt Gox scandal highlights the inherent moral hazard of operating in a totally unregulated environment.
Always ensure that your cryptocurrencies are stored in a cold wallet; an offline storage system to minimize the risk of hack attacks.
- Work for cryptocurrency
In this day and age, the internet has provided us with a huge amount of flexibility and freedom. The connectivity that we’ve been given has allowed for freelance work to take off like never before.
Now with just an internet connection, skilled freelancers are able to work with clients from all over the globe with ease. This connectivity is one of the reasons why an increasing amount of freelancers and their clients have turned to cryptocurrency as a medium of exchange.
Zero transactional fees, nearly instantaneous transfer and a degree of anonymity are just some of the reasons why crypto is perfect for freelancers. Hence, if you’ve got a skill or talent that can be monetized, you should consider taking up freelance work and accepting crypto as payment.
Besides having an additional source of income, you’ll be able to obtain cryptocurrencies like Bitcoin and Ethereum which can then be traded or invested.
The world of cryptocurrency is growing at an increasingly rapid pace and with global instability, one can expect cryptocurrency adoption rates to rise in accordance. Thus, it would perhaps be prudent to get ahead by snapping up cryptocurrencies.
However, care should always be exercised when working in an unregulated market in order to avoid any untoward incidents.