Considerations when Buying Cryptoassets
I know we all want to increase our portfolio and increase your revenue.. There are many ways to go about it and hope to simplify your journey.
How could you increase your crypto portfolio?
- Mine coins (PoW)
- Buy the coins (this includes ICO but I will not cover it here)
- Stake the coins (PoS)
Surprisingly, there are many ways you could get to the same end goal as you could see above
Let's mine:
Another terminology for coin mining is called Proof of Work (PoW)
Coin most familiar to PoW is Bitcoin.
Reference: https://en.bitcoin.it/wiki/Proof_of_work
To make it as simple as possible. Each transaction (to update the "universal" ledger) are sent to multiple independent nodes (think of them as confirmations and how to make the system trustless) and one of those confirmations will solve the algorithm and gets the privilege to update the blockchain ledger. This gets rewarded with that transaction associated with the transaction..
You could create super-duper machines to mining (but not bitcoin since you need specialize mining machine like AntMiner S9 which is loud and Bitcoin mining gets harder each day).. There are many mining out there like Monero... I do "mining" with Monero (but stopped because payout was not as good) and GRC coin (into the using PoR where R is research)... Keep in mind that you do not mine with laptop (or have a means to control) so you do not burn out your machine. I use Hashflare to mining on the cloud to lease computation to mine coins. I also recommend Genesis mining..
One drawback? A lot of energy to do what it is doing (investment and maintenance cost like electricity). You have to join mining pools (and pay fees), etc. Also, quantum computing will be able to solve the algorithm faster and could be a concern on how mining works in the future...
Just Buy the Coin:
Sometimes, it is just better to just buy (I think if I just bought and kept Bitcoin, I could have a lot of profit then using the same amount of money to bitcoin mine)... Also, buying allows you to have a diverse portfolio like Ethereum, Ripple, and Neo...
Drawback: You might have to pay fees to move your coins to exchanges to make purchases. Coins are not available in every exchange. You will need to make manage locations of your portfolio and multiple coins..
Stake:
It is similar to mining but it differs where people who hold coins and use those coins to mine and "stake" transactions and make confirmations.. You get rewards with that transaction fees by giving you more coins.
Reference: https://en.bitcoin.it/wiki/Proof_of_Stake
Why is this better? Help to prevent the monopoly problem (if one miner controls 51% of the network) and also reduces electricity and maintenance cost that would occur when mining..
Drawback: Passive income so might not give as much reward and you can't readily sell the coins while staking (or you can't stake). Also, payout rate might not be as high (good coins are 1-10% annually and based on amount of coins).
Courtesy: https://blockgeeks.com/guides/proof-of-work-vs-proof-of-stake/
Picture Courtesy of Wixlar Coins site (not endorsing - https://wixlar.com/2017/08/17/pow-pos/)
Personally, I do all three... I stake some coins (like GRC), mine BTC, and have a portfolio of coins..
If you like to help me (new customers who sign on, note, Coinbase and RobinHood is for US customers)
https://hashflare.io/r/E4B2B49B
https://www.binance.com/?ref=12988026
https://www.coinbase.com/join/5a335b11c8e14c01faa8a45b (free $10)
https://share.robinhood.com/davidr2554 (free share)
Referral to Coin Faucet & Credit I use (seem to legit with research and will confirm)
I like this and I just choose the coin and accrue activity points
https://www.earncrypto.com/earn-free-antshares/?r=166970 (I am collecting Antshares/Neo on that site but you could get various).. I have been running video activity and get .000012 - .0000014 Neo per 3 commercials (it might stop of inactivity and screensaver.. You could download apps for more points)...
Done every hour
https://freebitco.in/?r=11632932 (Free bitcoin - site with lottery and rewards.. I have been using it and seem real)
Just close out the pop-ups
https://coinfaucet.io/Account?r=i4BSdx2Ml08 (Free Ripple and similar to Bitcoin above- just close out the pop-ups quickly)
http://ethereumfaucet.info/ref/0x2173031e7874da5701233804b32fb3f5786eecb6 (Ethereum - need to connect once per 30 days)
http://neofaucet.info/ref/AYvGDKEVvXwfyP2KWHuXKCFR6krKzpRWtt (Neo - need to connect once per 30 days)
http://stellarfaucet.info/ref/GAHK7EEG2WWHVKDNT4CEQFZGKF2LGDSW2IVM4S5DP42RBW3K6BTODB4A/1095323569 (Stellar - need to connect once per 30 days)
Coins mentioned in post:
Right now aside from investing, I am working on building a mining farm. Mining is very delicate and requires a great detail of planning, preparation, and anticipation. Its almost as if its becoming a new form of digital black jack.