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Personal investments: How to buy cryptocurrency

How can one get cryptocurrency. Photo: bitcointalk.com

How can one get cryptocurrency. Photo: bitcointalk.com

Cryptocurrency can be produced (mined), bought, or obtained conditionally free of charge, that is, in exchange (as gratitude) for certain actions.

Cryptocurrency mining

Cryptocurrency mining can be done in different ways, but this always requires a lot of computing power. Nowadays, specialized companies with powerful computing farms are engaged in mining on an industrial scale. But this can be done at home, although the earnings will not be large.

Home mining options:

  • with a video card (GPU);
  • browser-based (using JavaScript scripts)—there are special sites that provide such functionality;
  • with a hard disk (PoC)—in this way you can obtain only certain cryptocurrencies, but you do not need to buy equipment, and the power consumption is low;
  • with an Android smartphone—you need a miner application and a lot of electricity. The efficiency of such mining is low, and the smartphone overheats and wears out quickly;
  • cloud-based—you need to pay for a part of the mining capacities of a third-party manufacturer (choose a tariff plan) and regularly get profit.

Buying cryptocurrency

Cryptocurrencies can be bought for ordinary (fiat) money on a cryptocurrency exchange (there are at least 500 of them now) or on a specialized exchanger. The choice of option depends on the purpose of buying digital currency.

If the goal is to trade cryptocurrency and often use it for various transactions, then it is better to buy it on the exchange, where it can be kept.

The advantages of this method are the following:

  • possibility to use purchased coins for trading;
  • protection of investors, since most of the largest crypto-exchanges have already entered the legal field;
  • possibility to convert bitcoins into stablecoins at any time (they are bound to regular currencies or physical goods).

If the cryptocurrency was bought for the purpose of long-term investment and will not be used in the near future, then it is better to put it in the so-called cold wallet.

Conditionally free obtaining of cryptocurrency

All of these options are marketing tools blockchain projects (cryptocurrency providers) try to attract new users with. As a rule, the prizes are small (the equivalent of a few dollars). However, there are times when startups donate tens of thousands of dollars in their coins.

How to get cryptocurrency for free:

  • Airdrop—a direct, free distribution of cryptocurrency. Usually you need to register and make a couple of simple actions (like, write a comment, make a test transaction, etc.);
  • faucets—the so-called cryptocurrency faucet is a site where you can get cryptocurrency for free by performing the simplest tasks (viewing promotional materials, entering captcha, etc.). Examples of faucets: Freebitcoin, Satoshi Hero, and AdBTC;
  • bounty—unlike an airdrop, where the user performs the simplest actions, bounty programs are a comprehensive set of tasks that are often performed for a long time and more than once. This can be writing information articles, making video reviews and video tutorials, likes and reposts on social networks;
  • online games—cryptocurrency is earned while playing. Examples of such games: Bitcoin Bounty Hunt, Bitcoin Pop, and Bitcoin Solitaire.

There are a lot of similar options. For example, the joint educational project Coinmarketcap earn by the exchange Binance and the analytical service Coinmarketcap allows you to get cryptocurrency for free for studying new projects.

The snapshot mechanism is intended for those who already have cryptocurrency. Its approach is based on the fact that sometimes projects allow you to get cryptocurrency as a reward for holding certain tokens (coins).

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