You hear a lot of mixed things about cryptocurrency. There are people out there that claim it’s an easy way to make thousands overnight, while others will tell you it’s a quick way to lose all of your savings. The thing is, it’s like any other investment and there will always be winners and losers. The other important thing to understand is that there are a lot of different ways to make money from it.
Investing in cryptocurrency (buying and selling it as the price goes up and down) is one of the most common. There have even been investing games, like crypto celebrities, in the past, which people made a lot of money from. But if you don’t like the idea of investing, you could consider mining instead.
Cryptocurrencies are “mined” by computers that solve complex mathematical equations to unlock more currency. You’re probably thinking, why doesn’t everybody just do that and get free money? Well, there’s a bit more to it than that and there are some significant downsides. To help you decide whether it’s right for you, here are the pros and cons of mining cryptocurrency.
You Can’t Use A Normal Computer
The mining process is very complex and requires a lot of computing power, so you’re not going to be able to do it on your laptop. In fact, you need an incredibly powerful computer that is set up specifically to mine crypto, and even then, it will be a slow process. In order to get a decent amount of money, you need huge farms with massive servers.
You Can Get Somebody Else To Do It
The good news is, there are people out there that have all of the necessary hardware and software set up and you can get them to do the actual mining bit for you. You can buy the hardware and then pay a monthly hosting fee (get cost and pricing quotes here) and in return, you get your crypto. This gets around the technical issue and means that almost anybody can mine their own crypto.
Prices Fluctuate A Lot
This is a pro and a con at the same time. Crypto prices go up and down a lot, which means you might be making loads of money by mining it. But it also means that the price can drop overnight and suddenly it’s all worthless. If you are paying out money each month for hosting services and the value of your crypto is relatively low, you could be losing out. That said, it’s a risk like another other investment and as long as you are smart, you can still make money.
There’s A Lot Of Scams
If you are going to go with a hosting service to manage your mining for you, it’s important to do your research first. There are plenty of legitimate companies out there but there are also a lot of scammers looking to prey on people that don’t really know what they’re doing. As long as you are careful, you should be fine. Just make sure that you know who you are giving your money to.
It is possible to make money from cryptocurrency mining, but it’s important that you do it through a legitimate company and you are aware of the potential risks before you start.