The cryptocurrency Bitcoin is on the verge of causing major disruptions to world finance and economy. There are many ways to profit from bitcoin.
The first option is mining.
Mining for bitcoins involves deploying sophisticated machines to solve complex algorithms, and getting bitcoins in exchange for the computing power deployed. The process requires a sizable investment in machinery, and consumes a lot of electricity. Joining a mining pool makes the process affordable for individuals.
In a mining pool, members share computing resources to solve algorithm blocks, and divide the proceeds among themselves. Individuals could also engage in cloud mining, where the user engages the shared processing power of a remote data center. Cloud mining offers the advantage of being able to mine bitcoins, without having to invest in software, hardware, or electricity. Faucets allow users to earn bitcoins without having to mine for it. These faucets generate revenue from ads on their web pages, and pay users a portion of such ad revenues. Users earn their ad commissions in bitcoins.
Another alternative to profit from bitcoins is to trade in the cryptocurrency. The process is similar to stock market speculation, with the idea being to buy low and sell high.
The growing popularity of bitcoins trading has resulted in the emergence of several bitcoin exchanges in the world. Coinbase, one of the most popular names, offers a one-stop solution, including a Bitcoins wallet, processor, and trading platform. Bitstamp ranks at the top in terms of trading volume.
Bitfinex, another popular platform, offers a host of intuitive trading tools, such as short selling, margin trading, and other options. Cryptsy, another platform attracting huge volumes, is noted for its flexible options. BTCChina is one of the oldest platforms, noted for its high levels of liquidity. Kraken is another popular feature-loaded trading platform. The list is endless, with several new entrants offering robust trading platforms, with innovative options.