The who and who that came after Bitcoin.

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Tech and Anything in between.

We’ve talked about Bitcoin and its underlying technology – The Blockchain – and like the internet, blockchain has so many use cases. After Bitcoin, many have come utilizing the same technology some with the same principles, but with few tweaks, approaches, and improvement. Examples include; Aeternity, Ethereum, Bitcoin Cash, Ripple, Ethereum Classic, Lisk, Binance coin, Tether USD, Golen, and more 1000 more. They are called Cryptocurrencies. Currencies utilizing cryptographic security techniques.

It’s important to note that, any coin that is not Bitcoin is called an Altcoin (Alternative coin).

“So if any coin that is not Bitcoin an altcoin, how is Bitcoin cash an altcoin?” must be a question at the back of your head. This happens through a process called Hard forking. Cryptocurrencies run on a Blockchain which at its core is a software/system but distributed. Like any other system, there is a need for constant updating, adding and removing old unnecessary features or fixing issues and bugs.

Hard forks occur when a section of the developer team is not happy with the recommendation of the other section of the team. If both sides don’t come to a consensus then they’re left with no choice but to split into two totally different teams, so that each can advance its recommendations and solution of how they think is best for the system to work.

If Bitcoin’s aim is to create a new financial revolution that is not controlled by any person, organization or state, then why have so many coins?

  • The answer is that, each blockchain has – its own protocol, consensus, features, community – but most importantly it own use case. For example,
  • R3 Corda – allows institutions to make transactions directly from smart contracts thereby reducing cost friction from business transactions.
  • Hedera Hashgraph – to build apps for digital currencies and platforms for online payments.
  • EOS – aims to provide decentralized application’s hosting, smart contract capability, decentralized storage of enterprise blockchain apps and solve scalability issues with Bitcoin and Ethereum.
  • NEO – used to build blockchain decentralized applications. Powered by the Delegated Byzantine Fault Tolerance mechanism, NEO  works better than other blockchain platforms. 
  • Stellar – Stellar is a distributed ledger network build to facilitate cross-platform asset transfer. The blockchain platform allows the developer to build solutions for the banking and finance industry like wallets, smart devices and much more.
  • OpenChain – Openchain is an open-source blockchain platform best suited for industries that want to handle their digital assets.  A secure and scalable application powered by a partitioned consensus where you can have a single authority in validating transactions. 
  • Ethereum – an open-source platform for decentralized applications.
Read Also  The biggest event in Crypto-land. The Bitcoin halving.

The list could go on and on but one thing in common, they all have inbuilt tokens/coins. The essence of each blockchain having its own coins is that the coins act as fuel, they power anything that happens in that blockchain and its community. That is, whatever you’re doing or developing on one blockchain you won’t need to outsource.

Coin trading and exchanging.

Whether as a developer or a trader looking to make profits, you’ll find yourself glued to your trading platform waiting for the next coin jump to reap a percentage of what you’re holding as profits. We have specialized apps called exchanges. An exchange lists all crypto coins and maintains order books of all buy and sell offers. By utilizing the Double coincidence nature of trading – I have a goat and you have money, I need the money and you need the goat. To get the goat we have to exchange/trade at an agreed price/value. – The exchange facilitates this trading by listing users who are selling one coin for another coin making it easy for people across the world to exchange value in digital coins and maintaining their order books.

Read Also  The biggest event in Crypto-land. The Bitcoin halving.

The world-leading Bitcoin and crypto exchange Binance made about $100M in the last half of 2019. Others include; coinbase pro, poloniex, Bitstamp, Bithumb, Gemini and so many more.

Making profits.

When it comes to making money with cryptocurrency, most people will probably think of it in the context of a simple investment product. You buy Bitcoin, hold on to it, and hopefully, at a later date, you’ll be able to sell it for a better price and cash out the profit.

But while it’s possible to earn passively from cryptocurrency, when seen as part of a comprehensive ecosystem, you’ll quickly find that there are many more ways to engage with this, making the most of price movements and different revenue models. 

Read Also  The biggest event in Crypto-land. The Bitcoin halving.

So let’s look into the different ways you can make money with crypto;

  • Buying and holding is the most straightforward way to make money with crypto. It’s important to realize, however, that there are hundreds of different cryptocurrencies that each derive their value in different ways. The most important point here is to study various currencies and buy the ones you truly believe hold the potential for long-term growth. 
  • With some currencies, simply holding them is enough to generate a moderate income. For keeping them in circulation, you may receive dividends for Neo, KuCoin, Neblio, or Komodo. 
  • Day trading is perhaps the most active way to engage the market. It entails trading different currency pairs and taking advantage of small – or sometimes significant – price movements. Here, perhaps, it’s less about studying the underlying protocol or business model as much as it is about engaging in technical analysis to come to a view on the market. 
  • Micro-tasks – Another way to earn money with crypto is by getting paid in crypto. There are some websites (eg. Bituro, earn.com, Coin Bucks) that specialize in this. You may be required to fill in a survey, test an app, debug a website, or click-through ads. 
  • Arbitrage – Similar to day trading, this method enables you to earn a profit price movements but more specifically price differences – trading arbitrage often means you’re engaging multiple markets and taking advantage of market inefficiency.  For example, you may buy Bitcoin on one exchange for X amount of money, and quickly sell it on another exchange where it’s selling at a premium. Another way is to buy Bitcoin with, say, USD, sell it for another fiat currency, and then exchange that currency for USD. This method requires you to study different markets closely, and it generally requires you to move large amounts of assets for it to be truly lucrative. 

Good luck on your next crypto adventure!!!!

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