Since cryptocurrencies became a reality and positioned themselves as a form of investment — and as a good way to make money -, attention has focused on bitcoin.
However, also from the beginning, Ethereum has taken a firm position in second place to become one of the pillars of the cryptoverse.
Ethereum is an impressive option that every day gets more popular in the market. For that reason, in this article we elaborate everything you need to know to introduce you to this concept and explain you how it is possible to make money with Ethereum.
Going through questions like: what it really is, why does it have an attractive value, what is Ethereum mining and were to do it.
So, what is ethereum and how can it help me to increase my earnings?
Ethereum as a platform:
To be fair, Ethereum is a cryptocurrency but also a platform. In fact, the name of Ethereum actually only refers to the platform, while the virtual currency is called Ether, just as Bitcoin (capitalized) is the platform and bitcoin (lowercase) the currency.
Ethereum is based on blockchain technology. A type of technology that serves to decentralize transactions. The idea is to make it unnecessary for a third person to certify them.
When we talk about formal currencies, this third person is usually the bank or credit card. But with blockchain technology the users themselves are the ones who validate this process, hence the talk of decentralizing the economy.
Ethereum seeks to apply blockchain technology to any area, not just currencies. Thus, for example, it would be useful for voting systems, gambling, insurance … For this, it created what are called smart contracts, with which it is the users themselves who validate the operations and ensure the reliability of the contract, which cannot be modified nor cancel without the agreement of the entire community.
What is ether?
The ether is the cryptocurrency of Ethereum. The payment that developers receive for writing applications on the platform and also the miners for providing resources (which are their computers) to the Ethereum blockchain. As the platform grows and evolves, the currency takes on more value and therefore its sustained growth.
In the beginning, 60 million ethers were generated plus 12 million thought for a development fund. Over the years, ethers have continued to be created at a rate of 18 million per year.
That is what makes an ether a good investment, with each passing year it is more complicated to obtain a complete piece and its value increases.
How to obtain Ethereum?
There are two ways to have Ethereum in your possession: mine ether or buy ether. The first requires that we use some computer in our power to work to generate earnings for us.
To get on the subject, let’s review this concept of cryptocurrency «mining» and then we´ll focus on some of the most interesting places to do this.
Ethereum Mining, what is it really?
To explain it simply, cryptocurrency mining is a process by which it seeks to solve complex mathematical problems.
Miners are a fundamental part of getting every cryptocurrency system to operate within a Blockchain network. Thanks to the contribution of their time and computing power to solve those mathematical problems, they provide something called a «proof of work» for the network, thus verifying Ether transactions.
For each verification that the miners perform, they are paid with a fraction of this cryptocurrency. In this way, the system endures.
As more and more miners unite, problems automatically become more difficult to solve, which means that more time and computing power is required to solve them and the rewards become smaller. However, as the value of the Ether continues to increase, the rewards received by the miners remain quite substantial in value, which makes them a great investment.
In addition, many people see mining as an ideological incentive, a means to directly support and sustain the network.
It is one of the leading companies and offers the best solutions for cryptocurrency mining. Genesis provides its powerful mining platforms to both digital currency experts and those who are new to the crypto industry.
It has its origin and headquarters in Hong Kong but its mining centers are established in different locations between Europe, America and Asia. In this way, Genesis takes advantage of the low electrical costs of these places to achieve efficient mining and offer the most competitive prices.
Although the company shares photos and videos of some of its mining facilities — for example that of Reykjavik, in Iceland -, the exact locations of the rest of its mining centers are not disclosed for safety reasons.
Genesis Mining is possibly the number one cloud mining company in the world, something possible thanks to the capacity of its founders.
NuVoo Mining is another of the main mining companies in the network. It is a Canadian firm whose purpose is to provide necessary tools to generate cryptocurrencies in the cloud.
This company has a good location for its mining activities (Montreal, Canada), which translates into a lower cost of electricity. In the end, those benefits reached the client who now enjoys hash energy plans with no electricity costs to pay.
As soon as we register with this company, we receive access to the high-level security web panel from where we can manage our NuVoo services. The interface is extremely wide and detailed. Also, the company has taken as a priority to invest in security systems to protect its customers.
It is another company dedicated to cloud mining. Founded in 2016 during the outbreak of cryptocurrencies, CCG Mining seeks to satisfy users who wish to mine in the cloud with low investment and very little money. CCG presents us with the option to mine different cryptocurrencies.
It is a very stable site and there are strategies that we can apply to improve performance and maximize earnings.
Its interface is very simple, so it is a good option for the inexperienced.
This company is one of the new players in the market which can carry certain risks but also many opportunities.
The million dollar question: can mining make me rich?
To be honest, we cannot promise you that you will get rich by investing in cryptocurrencies. However, there are no bad expectations in the future and it is likely to generate many profits if you have the constancy, dedication and resources.
There are a lot of success stories in these types of investments: it is certainly something worth considering.
As we have talked throughout this article, as time goes by it will be more complex to get into the world of mining. Therefore it is best to seize the moment.