There are numerous methods to profit from cryptocurrencies — mining, stacking, trading and others. In this article you will learn about top 5 video cards for mining Ethereum and other cryptocurrencies.
Credit in the crypto world — is it possible?
Investors often follow the HODL strategy and hold their crypto assets. But in some cases, they might need stablecoins or cryptocurrencies that can be exchanged on an exchange. In this case, crypto lending comes to the rescue. You can leave your asset as collateral and it will generate the same profit as if it were lying on your wallet. At the same time, you can operate with the coins you borrowed.
The advantages of crypto loans:
- It’s quick, since most sites don’t need to provide personal information — the loan payment guarantee is secured by collateral;
- It is reliable if you choose a site with a good reputation;
- It is profitable, because you take a loan with a low interest rate (10-18%) per annum and can repay it at any time.
Ways to mine cryptocurrencies — why is it worth it?
One of the best ways of investing in crypto — is to mine tokens. The process of mining is specialized automated calculations, for which the miner gets payment. While there are several ways to mine crypto today, video card mining is the most popular because of its reliability.
Here’s the top 5 video cards that you can use in order to mine Ethereum, Bitcoin and other cryptocurrencies:
- NVIDIA GeForce RTX 2070 SUPER;
- AMD Radeon RX 5700;
- Radeon RX 580 от AMD;
- Radeon VII Radeon;
- RX 6900 XT/6800 XT.
In order to successfully mine, it is best to buy a newer video card model with higher performance and better specifications. However, you will have to have patience, because the equipment will not pay off immediately, but for the long-term perspective of earnings video cards are perfect.
Stacking — why is it worth it?
Another way to make money from crypto, in addition to mining, is stacking. This is a more environmentally friendly and energy efficient method. Stacking is a method of passive income where users store coins on the Proof of Stake (PoS) algorithm and ensure that the blockchain works. This gives them the right to make a profit.
Stacking completely replaces mining and makes it possible to mine new blocks without using a lot of processing power. The point of stacking is to provide all blockchain operations and support the operation of the network. The holders of digital coins are rewarded for this. The more tokens a holder has, the more likely they are to become the creator of a new block.
Types of stacking:
- Limited Stacking. When working with this type of stacking, the user specifies a specific period of time for which he holds the digital asset. The duration of this period cannot be changed.
- Perpetual Stacking. In this case, the contract does not provide for a specific term of holding the coins. The user can terminate it at any time and take the cryptocurrency back. The interest is accrued until the stacker transfers the funds to another wallet or places an order to sell the tokens on the exchange.
- Decentralized Stacking. Decentralized systems are common in digital assets, with the help of which cryptocurrencies are stored, transferred, credited and exchanged. The main advantage is that no one has direct access to the finances — all transactions are performed according to predetermined algorithms automatically.
Stacking does not require technical support and constant involvement. It can be done by a single investor on any device at a convenient time. All you need to do is buy cryptocurrency and keep it in his account without reselling it on exchanges or in any other way.
Why is mining crypto on your own much cooler than trading it on the exchange?
Both mining and trading have advantages and disadvantages, and depending on your knowledge and experience, one can be better than the other. If you are technically skilled, the first option is probably best for you.
Mining pros are:
- It takes less time;
- It has fewer risks.
Trading has such advantages:
- It does not require equipment and technical skills;
- There are many digital currencies to choose from;
- You will have huge profit potential.
It appears that any method is good, based on your capabilities and desire.
Conclusion
Earnings on cryptocurrency, no matter how you look at it, is always profitable. You can use mining, stacking, trading or other ways to get richer. Even more profits can be made if you use crypto-loan platforms.
