Earn money cryptocurrency 2020 - Get rich with BTC & Co.!

Earn money cryptocurrency 2020 - Earn money with cryptocurrencies on the exchange. CFD trading in focus. Everything about wallet and mining. Read now.

Even if the prices of cryptocurrencies have not yet reached their record high of late 2017 / early 2018, digital currencies are popular as an investment. If you want to benefit from digital currency, you can make money with cryptocurrency in various ways. In addition to investing directly in a digital currency as an investment, you can make money with cryptocurrency by mining.

You can also participate in cryptocurrencies and their price movements without directly purchasing the digital currency. That works with CFD trading. A rather unusual option, in which you only get small amounts of cryptocurrencies, are the so-called faucets.

Table of contents

  • Earn money with cryptocurrency through direct investment
  • How to earn money with cryptocurrencies on a stock exchange
  • Make money with cryptocurrencies on the stock exchange - the wallet as a prerequisite
  • Earn money with cryptocurrencies - the prices always in view
  • Earn money with cryptocurrency through mining
  • Earn money with cryptocurrency with CFD trading
  • Earn money with cryptocurrency with faucets
  • Taxes when making money with cryptocurrency
  • Conclusion: Not all options for making money with cryptocurrency are attractive

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Earn money with cryptocurrency through direct investment

If you want to make money with cryptocurrency, you can the easiest way is through direct investment. It does not have to be Bitcoin, because other digital currencies such as Ethereum, Litecoin or Bitcoin Cash can also be traded on crypto exchanges, such as Naga Markets, on the Internet. You should find out about cryptocurrency prices, market capitalization and ranking if you want to invest your money in cryptocurrencies and later sell the digital currencies profitably.

Bitcoin ranks first in the ranking scale, but it is expensive. The price is currently between 8,500 and 9,000 euros, making it difficult for many traders to purchase one or more bitcoins. However, you can purchase shares of Bitcoin. To make money with cryptocurrency, investing in Bitcoin Cash, Litecoin or Ethereum is also suitable, since these crypto currencies are also at the top of the ranking and have a high market capitalization.

Would you like cryptocurrencies on a stock exchange purchase, you should compare the prices and conditions of the exchanges. The prices are formed on the individual stock exchanges depending on supply and demand and may differ slightly depending on the stock exchange. There are different types of exchanges. The exchanges serve as intermediaries between buyers and sellers and charge a fee for their services or for the provision of their platform. This fee is often borne half by the buyer and the seller.

Earn money cryptocurrency 2020 - Get rich with BTC & Co.!

How to make money with cryptocurrencies on an exchange

Have you chosen a cryptocurrency that you can use to make money want to earn, it depends on the choice of the right exchange. Some exchanges are limited to trading only a few cryptocurrencies, while others can trade around 100 different digital currencies. If you want to buy a cryptocurrency for the first time, you should choose an exchange that accepts fiat currency payments.

Not all exchanges allow you to pay in fiat currencies. Such exchanges only allow the exchange of one cryptocurrency for another. You should also pay attention to the indication of the prices, which often takes place in Bitcoin on such exchanges. If you trade on a German stock exchange, the prices are given in euros.

To buy a cryptocurrency, you must first register and open a trading account. It works with a little information. You must deposit a minimum amount into the trading account. You then submit a purchase request on the stock exchange. They indicate which digital currency you want to buy, at what amount and at what price. The exchange mediates to a suitable seller. You will receive a wallet on the stock exchange, on which the digital currency is kept.

Conversely, you can also submit an application on a stock exchange if you want to sell your digital currency again. Here, too, you specify the type and amount of the digital currency. If a buyer is found, it is important that the sale can take place when the price is as high as possible.

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Forex. Real earning

Earn money with Cryptocurrency on the exchange - the wallet as a requirement

If you want to make money with cryptocurrency and trade on an exchange, you need a wallet as a digital wallet. You get a web wallet from the exchange, but this so-called hot wallet is too insecure because it can be hacked. You should therefore choose a secure password.

Not only the wallets of individual traders on a stock exchange, but also the entire stock exchange can be hacked. If the digital currency is stolen through hacking, there is a lot of damage. To avoid hacking, you should look for another wallet.

You can get hot wallets not only on the stock exchanges, but also on various other platforms. In addition to the web wallets, smartphone wallets are also available. The risk is that your smartphone may be stolen or you may lose it and no longer be able to access the digital currency on the wallet.

Less flexible, but significantly more secure than the hot Wallets, which include web wallets and smartphone wallets, are the cold wallets. They include

  • paper wallets as sheets of paper on which you write the code of the digital motto
  • desktop wallets, which are stored on the PC and require a lot of storage space
  • Hardware wallets that are connected to the PC like a USB stick.

The most secure and most suitable are the hardware wallets. You should keep these wallets carefully and protect them against theft and external influences such as fire and water. You will receive hardware wallets for various types of digital currency.

Earn money cryptocurrency 2020 - Get rich with BTC & Co.!

Earn money with cryptocurrency - the prices are always in view

For making money with cryptocurrency on the exchange, it is important that you follow the courses carefully. This also includes looking at the course history in the past. On the stock exchanges, but also in the ranking, you can find charts about the price trends, which you can call up over different periods. You should buy when the price drops.

Just like stocks, you should sell your digital currency when the price is high. Due to the high volatility of most cryptocurrencies, prices can change faster than stocks. Exchange rate losses can quickly occur, as the development of numerous digital foreign exchange showed in the first quarter of 2018. However, forecasts assume that the prices of digital foreign exchange will rise sharply in the future.

Various apps are available to be able to react quickly to price changes. You can find such apps for Android and iOS on relevant financial portals. With many apps, you can receive push notifications when prices change.

Due to the high volatility, you can quickly make money with cryptocurrencies, but you also have to expect losses. Direct cryptocurrency trading is suitable for those who want to make high profits in the short term and are willing to take a high risk. You should only invest an amount in cryptocurrencies that you can spare in the event of loss. In order to hedge the risk, you should also invest in other investments in addition to cryptocurrencies, for example in ETFs or shares.

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Earn money with cryptocurrency through mining

Another way to make money with cryptocurrency is mining. Mining creates cryptocurrencies that are based on a blockchain, such as Bitcoin, Bitcoin Cash, Ethereum and Litecoin. Depending on which digital currency you want to mine, you have to invest in the corresponding hardware and mining software. You need a hardware wallet and a mining computer for mining.

These computers have to be powerful and quickly become obsolete, since the tasks that have to be solved during mining are becoming increasingly difficult. Depending on the type of digital currency to be generated by mining, the transactions take different lengths of time. Bitcoin mining locates a new block about every ten minutes, while Bitcoin Cash transactions are significantly faster.

Miners are rewarded for finding the blocks and providing computing power with digital currency that they receive can sell. A high amount of energy is required especially for the minig of Bitcoin. Bitcoin mining halves the block every four years. The reward that miners receive is halved every four years. This does not have to mean that you make less money with cryptocurrency, because if the price rises, the return can be even higher. There are various options for mining:

  • Standalone mining, in which you do the mining alone
  • Pool mining, in which you join a mining pool and depending on the one provided Computing performance will be rewarded
  • Cloud mining, where you can rent or buy computing power and receive cryptocurrency as a reward.

Standalone mining, especially with Bitcoin, is always due to the high energy requirement less attractive.

Earn money cryptocurrency 2020 - Get rich with BTC & Co.!

Earn money with cryptocurrency with CFD trading

If you want to make money with cryptocurrency but do not purchase the digital currency directly, you can do CFD trading. Various CFD brokers offer trading in cryptocurrencies. CFD trading with cryptocurrencies is mostly done with the most common cryptocurrencies, but some brokers also offer a wide range of digital currencies.

You deposit a margin as security and select a cryptocurrency. You bet on rising or falling prices. You can move large amounts of money thanks to the lever. The higher the leverage, the lower the margin. High leverage is possible with the lever, but there can also be high losses that significantly exceed your stake.

If the money in the trading account is not sufficient to cover the loss, the broker can request an additional payment. If the trader does not comply with this margin call, the position is closed. In order to avoid high losses for private traders, various brokers do not offer positions with additional margin for private traders. The position is closed if the money in the trading account is insufficient to cover the loss.

The profit or loss is calculated by multiplying the change in price by the lever. To avoid high losses, you can hedge your position with a stop loss. You will suffer a loss if the price does not develop, but avert higher losses.

Just like buying cryptocurrencies directly, CFD trading is extremely risky due to the high volatility. You should therefore only invest money that is not urgently needed.

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Earn money with cryptocurrency with faucets

Various faucets are available on the Internet a stake in digital foreign exchange. Often it is Bitcoin, but Bitcoin Cash or other digital currencies are also given as a reward. Faucet is the English word for faucet or gas pump. You have to register with a faucet and open a wallet with a partner to deposit the digital currency.

The operators of these faucets are rewarded for advertising with digital currency. It is mostly advertising for brokers, cloud mining and other services related to digital currency. You can make money with cryptocurrency by regularly visiting the website of the Faucets and clicking on the advertisement. You will be rewarded for your clicks.

The reward is extremely low, so this form of making money with cryptocurrency is hardly worth it. You can also make money with cryptocurrency in the faucets with other activities, such as recruiting friends, taking part in reviews or performing various tasks.

You should watch out for hidden risks, because it can quickly happen that You end up in a subscription trap and ultimately even lose money, since such a subscription often cannot be canceled so quickly. The aim of these faucets is to win customers for the advertising partners. Therefore, you should take a close look at such offers, so as not to ultimately conclude a contract for cloud mining or a dubious pyramid scheme.

Earn money cryptocurrency 2020 - Get rich with BTC & Co.!

Taxes when making money with cryptocurrency

Would you like money with cryptocurrency earning and reselling the digital currency you've purchased, don't forget taxes. Taxes on profits from the sale of digital currency are different from taxes on the sale of shares. For tax purposes, profits from cryptocurrencies are treated in the same way as profits from the sale of art and valuables.

If you keep the acquired cryptocurrencies for at least one year, you do not have to pay any taxes on the sale, no matter how high your profit

You have to pay taxes if you sell the cryptocurrencies within a year of the purchase. An allowance of 600 euros applies. The taxable amount is taxed at your income tax rate. If the profit from the sale of the cryptocurrencies falls below the 600 euro limit within a year, you do not pay any taxes.

However, you have to pay taxes if you sell cryptocurrencies within a year after the purchase and also art or sell valuables and the profit exceeds $ 600.

If the total profit from digital currencies and valuables is higher than € 600, you will have to pay taxes regardless of how high the profit from cryptocurrencies is. If the profit is only one euro higher than 600 euros, not only the one euro is taxed, but you pay taxes on the entire amount, i.e. on 601 euros.

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Conclusion: Not all ways to make money with cryptocurrency are attractive

You can make money with cryptocurrency in different ways, including even with a trading robot like Bitcoin Profit. It is almost classic to buy digital currency on a crypto exchange and sell it later when the prices have risen again. However, you can also make money from cryptocurrency by mining. Mining is hardly worth it anymore, as a lot of energy is required and powerful computers are required.

CFD trading in cryptocurrencies, in which you do not acquire the digital currency directly, promises high profits, but it can also be too high Losses come. The rewards at Faucets are hardly significant when it comes to making money with cryptocurrency. If you sell the cryptocurrencies you purchased, you should not forget the taxes.

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