Mining, staking, trading, which methods are profitable?

The world of cryptocurrencies is perhaps the area that is making the most money for its investors today despite a fall or crypto-crash in cybercurrencies last May due to the collapse of Terra Luna. So how can you be sure that you are making the right choice by investing your time and money in these digital currencies? Which operation is the most interesting between mining, staking or trading cryptocurrencies?

What is mining?

Mining is the action of creating, securing and validating crypto-currencies or rather the set of transactions that will form a block that is added to the blockchain. Each job is remunerated in proportion to the work provided by the minor. Indeed, the algorithmic calculations are so complex that it requires enormous power and energy consumption to operate the servers in charge of mining.

Mining cryptocurrencies requires a lot of investment and it is better for a miner who does not have the necessary funds (which are important) to join a group or community of miners, but this also does not guarantee that the miner will win money. Lately, with the fall of Bitcoin, many miners who did not have the capital to mine at a loss have gone out of business. Most of the miners who continue to mine the benchmark currency are those who have been BTC experts for several years and have enough to last until the price rises. For those who wish to start mining now, it is rather recommended to stick to a crypto-currency that promises a good evolution in the future, but without being one of those that are currently worth too much.

What is staking?

Staking uses proof of stake or Proof of stake on blockchains, which has nothing to do with the proof of work blockchain used by Bitcoin miners to secure and validate transactions. Staking, on the other hand, consists of blocking funds to maintain the blockchain. The created nodes that serve as collateral will validate the transactions. When an investor does staking, he therefore leaves his assets as collateral on these blockchains and in return, he receives episodic income. If investors are interested in this practice of proof of stake, it is because the annual interest can go up to 25%. However, it can also be very random and expensive, as in the case of Terra’s Luna token which lost 100% of its value. Of course, not all crypto-currencies are in the red and it is still possible to do staking without too much risk. This activity requires less technical means than mining and can be practiced by joining a staking pool bringing together investors (such as a stock market investment fund).

A good option: trading

The last way to make money with cryptocurrencies is online trading. More exactly an online copy trading platform. This very simple solution allows traders to follow the trading operations of an excellent trader present on the platform, to subscribe to him and to copy his trading strategies (scalping, day trading, investment, etc.).

For this, sites like AvaTrade make copy trading available to users of their interface. Trading robots are configured according to the desired orders (volume of securities to buy, price, stop loss, etc.). The trader no longer has to do anything and this generates less stress for him (he does not stay in front of his interface to follow the prices on a daily basis, does not place an order at a loss, etc.), allows him to minimize the risks and maximize his gains (the positive results of good traders will also be his).

Of all the actions related to cryptocurrencies, trading seems to be the one that can make money without taking too much risk and without really investing a lot of money, time.

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