Even in the most profitable area, there are useless, unprofitable, and sometimes fraudulent projects, and digital currency is no exception. This article describes 6 methods of crypto earning that should be avoided.
This is one of the oldest ways to get cryptocurrency for free. Originally conceived as a way to attract people’s attention to bitcoin. But over time, it turned into advertising services for beginners, including dubious projects.
After registering for the service, you must enter the captcha and pick up your prize. Amounts are small and range from 5-20 Satoshi. More often it is very rare and practically does not affect the overall picture. The frequency of receipt depends on the tap and ranges from 5 minutes to an hour.
If you accept that you will spend a minute on a single tap and the average amount will be 10 satoshi, then for an hour of continuous collection you will gain 600 satoshi, or 4800 for an eight-hour working day, provided that you register on dozens of sites. At the current exchange rate, this amounts to 0.5 dollar per day, or a little more than a 20 per month, if you crane for seven days a week.
At their core, they are similar to cranes and are often posted on the same sites, but here you need to not only enter captcha, but also perform certain actions – click on a certain number of banners, watch an ad, take a survey.
They pay more for applications, the amount of reward can be tens or even hundreds of Satoshi, but it also takes several times more time – it takes 5-10 minutes for each application. So your monthly income will be in the range of 20 to 30 dollars, provided that you do this all day.
They differ from ordinary casinos in that bets and winnings are credited in cryptocurrency. Most often it is bitcoin, but there can be ether, lightcoin and other digital coins. It is impossible to consider such casinos as a reliable source of income; it is rather an option to spend time for a gambler.
The scheme is simple – promises of large incomes attract the first investors, colossal profits begin to be paid out of the money collected, advertising is simultaneously being launched, luring new victims. For some time, the funds of new investors allow dividends to be paid to old-timers, but since the pyramid has no other income, sooner or later it collapses, leaving the majority without money.
In the cryptocurrency world, three types of Ponzi schemes are most often found:
1 Ponzi Tokens
You are offered to buy the nth number of tokens that will bring a good income. At the same time, these digital coins are not used as a means of payment, the project itself does not offer any useful services, and therefore new token buyers are the only source of income. As a rule, such schemes have a powerful referral program.
The most famous example of a ponzi token is Onecoin. Bitconnect cryptocurrency is also often accused of ponxy, which, however, does not prevent it from entering the TOP20 with a capitalization of a billion dollars.
2 Ponzi Funds
In this case, you will be asked to invest in a fund investing in cryptocurrencies and promising one hundred, two hundred, or even a thousand percent per annum. In principle, such profitability on individual successful crypto projects is possible, but even professionals working in the market for more than a year will not be able to say exactly which startup will succeed. Fraudsters do not bother at all with the search for profitable investments, but, having collected a certain amount, disappear.
3 Ponzi Mining
Here you will be offered to buy computing power for cloud mining cryptocurrencies with a very high profitability and payback period of a couple of months. Of course, there are no ASICs and rigs, payments are made at the expense of new miners, after some time, the organizers of such “mining” disappear.
Among the characteristic features of Ponzi mining, it is worth mentioning a low entry threshold ($ 5-10), the promise of a free hash for registration (up to 100 gigahashes), profitability significantly exceeding the income of real cloud mining operators.
Hackers have long become the main evil of the computer world, the media regularly write about thefts in the millions of dollars, and since bitcoin is a product of information technology, it can be theoretically hacked.
The organizers of the bitcoin doublers claim that they managed to find the vulnerability, but to use it, you need real bitcoins. You are asked to send a certain amount to the military-technical cooperation, promising to return twice or three times as much the next day. But by sending bitcoins to the specified address, you can say goodbye to them.
Fraud exchanges, wallets, applications
You should also be careful when using new wallets, applications, exchanges and exchangers. Most of them intend to work honestly, offering customers new convenient services and opportunities, but scammers are also found. So, having stumbled upon a new exchange with super-profitable courses, you should not immediately get a lot of money there, start work with the amount that you are ready to lose.
How to make money on cryptocurrency?
Even in such a promising and rapidly growing field as cryptocurrency, not everyone is guaranteed to earn money, and choosing the wrong approach will lose time, money, or both. I must admit that the days of fast space crypto-earnings, when you could mine hundreds of bitcoins on your home computer or buy a couple of pizzas for their value, are far in the past.
Now this is a huge business, where billions of dollars are spinning, and to get your piece of the pie, you need to invest and act wisely. You can learn everything yourself, but it’s much easier and faster to use the knowledge and experience of experts who have been mining, trading, and investing in cryptocurrencies for many years.
And you will not only quickly learn for yourself, but you will also be able to take advantage of the knowledge of specialists who will tell you which coins are profitable to buy right now, so you will start earning money in the process of training.
Harnil Oza is CEO of Hyperlink InfoSystem, one of the leading app development companies in New York and India, having a team of the best app developers who deliver the best mobile solutions mainly on Android and iOS platforms. He regularly contributes his knowledge on leading blogging sites like app development companies.