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Introduction
If you haven’t heard about Bitcoin, then maybe it’s time you learned more about
it.
As a digital currency, it’s gaining in popularity and has been in the news a lot
recently. Just take a quick look at some of the places that accept Bitcoin for
payment:
WordPress – yes the favorite blogging platform of IM users everywhere
accepts Bitcoins. You can use them to buy upgrades such as ad-free,
custom designs, and other features on wordpress.com.
Etsy – kind of like eBay, Etsy is more crafty and local. And hundreds of
vendors accept Bitcoin for payment.
Namecheap – the best domain name registrar out there, and they take
Bitcoins for payment.
Overstock.com
TigerDirect.com
…and the list keeps growing
OK, so just do an internet search and you’ll find out everything you want to know
by doing a little reading. From what I can tell, Bitcoin is here and it’s here to stay.
Profiting From Bitcoin
Let’s just get right down to it. You want to make money from Bitcoins, right?
That’s why you bought this report.
Well, let me tell you straight up that trying to deal in Bitcoins directly is going to
be hard. And expensive. About a year ago one Bitcoin was worth about $21.
Today (as of the time I’m writing this) one is worth $814. And as recently as
November 2013, you could have bought Bitcoins at the low, low price of about
$200 each. So 10 weeks later you just made 400% on your investment. Can you
see why they have become so popular?
In addition to Bitcoins, there are dozens of other cryptocurrencies on the market.
Bitcoin is the first and most popular, but the other most popular ones (in order of
market capitalization) are Ripple, Litecoin, Peercoin, DogeCoin, Nxt, MasterCoin,
Namecoin, Quark, and ProtoShares. And that just rounds out the top 10.
Go to coinmarketcap.com and you can see the full list of 86 that they have
information for. The total market cap for all of these cryptocurrencies combined
is a whopping $13,182,548,476. Yeah, over $13 billion.
So how do you make money with cryptocoins? In general, there are two basic
ways to make money. You can mine them or you can invest/speculate. There are
other ways to earn as well, which is what I’m doing and how you can get in the
game. But first I’ll go over the basics of mining and investing.
Mining
First, you can mine coins. I won’t go into explicit detail, but mining is basically
using your own computing resources (called a rig) to attempt to solve a complex
algorithm which helps to verify and approve any transactions with that particular
currency.
Here is the description of Bitcoin mining from https://en.bitcoin.it/wiki/Mining:
Mining is the process of adding transaction records to Bitcoin's public
ledger of past transactions. This ledger of past transactions is called
the block chain as it is a chain of blocks. The block chain serves to confirm
transactions to the rest of the network as having taken place. Bitcoin nodes
use the block chain to distinguish legitimate Bitcoin transactions from
attempts to re-spend coins that have already been spent elsewhere.
Mining is intentionally designed to be resource-intensive and difficult so
that the number of blocks found each day by miners remains steady.
Individual blocks must contain a proof of work to be considered valid. This
proof of work is verified by other Bitcoin nodes each time they receive a
block. Bitcoin uses the hashcash proof-of-work function.
The primary purpose of mining is to allow Bitcoin nodes to reach a secure,
tamper-resistant consensus. Mining is also the mechanism used to
introduce Bitcoins into the system: Miners are paid any transaction fees as
well as a "subsidy" of newly created coins. This both serves the purpose of
disseminating new coins in a decentralized manner as well as motivating
people to provide security for the system.
Bitcoin mining is so called because it resembles the mining of other
commodities: it requires exertion and it slowly makes new currency
available at a rate that resembles the rate at which commodities like gold
are mined from the ground.
If you keep reading on that page, you’ll see the different ways that you can mine
Bitcoins. The problem today is that in order to mine them profitably, you need
very powerful and expensive hardware (see ASIC mining) that can cost five
figures. Most of us don’t have the kind of cash or technical know-how to set that
up.
The next most popular cryptocoin to mine is Litecoin. Right now one Litecoin
(LTC) is going for around $21. These are much easier to mine. While typical
mining rigs use CPU power to mine, you are limited to usually just the one CPU in
a typical computer. That’s why recently people have been switching to GPUs to
mine.
GPU (graphics processing unit) is the CPU of a graphics card. What GPU miners do
is focus all of their processing power to the GPU because they can install multiple
graphics cards on one motherboard so that they can mine much faster. And the
more computing power you have, the better chance you have of solving the
algorithm.
I was actually going to get into GPU mining, trying to mine Litecoin, by building my
own LTC mining rig. The problem I ran into was that the graphic cards themselves
are very hard to come by. And even if they are available, they are ridiculously
expensive.
I don’t think that mining is the cause of the video card scarcity (people do love
their computer games and high-end graphics you know), but due to the recent
popularity of mining with GPUs, it’s now much harder to even find the right
hardware.
The cost to build a LTC mining rig isn’t terrible. I was pricing one out by buying
each piece individually (the motherboard, CPU, memory, graphic cards, etc.) and
it came to around $1200. Not too bad really for a moderately high-end computer.
I could always use it to play the latest PC games or sell it to someone who wants
to.
And since I could not get the best graphics cards (I think the ones I priced were
still around $350 each), my hash rate (a measure of how much power I’m using to
compute) wasn’t top of the line. At my proposed hash rate and power
consumption, I think that I could have made about $20 per day mining Litecoins.
That might seem awesome at first, but that $20 depends on a lot of things,
especially the price of Litecoin. If it drops or crashes, then that $20 could go
down to $10 or even $5. Best case scenario would be about 2.5 months to get my
investment back, then the rest is profit.
But that’s a lot of work, and you have to be somewhat of a techie to get it all
setup correctly. Plus, you really have to join a mining pool so that you are joining
forces with other miners. I could write an entire book on mining and pools and
GPUs and ASIC mining, but that’s not why you bought this report, so I’ll move on.
Investing
Plain and simple, you can buy cryptocoins now and hold on to them, hoping their
value will rise when you can sell them for a profit.
It’s the same as investing in gold, silver, stocks, bonds, etc. Buy low, sell high.
On the technical side, this is a much easier way to get into cryptocurrencies. But
you still have to jump through a few loops.
First of all, you need a way to pay for the cryptocoins. You do this by signing up
with a bitcoin wallet and platform site where you can use USD (and possibly other
currencies, but since I’m in the US I’ll only talk about doing this with USD) to buy
and sell Bitcoins.
I use Coinbase. You sign up with Coinbase and connect your bank account so you
can fund your account. Once you have money in your Coinbase account, you can
use this to buy Bitcoins.
Now, they only deal in Bitcoins, but that is fine. I know I talked about other
cryptocurrencies earlier, like Litecoin, but the grand-daddy of them all is Bitcoin
and honestly if you’re going to use any cryptocoin like currency, it will probably be
Bitcoin anyway. You may buy/sell/earn other cryptos, but you will eventually
trade them into Bitcoins so you can use them.
Once you buy Bitcoins, you can then use them in one of the many exchanges to
buy other cryptocoins. BTC is like the USD of the world. You can trade almost any
currency to/from Bitcoins.
I’ll give you a quick example to clarify.
Joe wants to buy Litecoins. At around $21 each, he feels that the price is
good and the long term potential for profit is high. He has read where LTC
might reach $100 by the end of 2014.
Joe opens an account at Coinbase. He verifies his bank account and
deposits $800 into his Coinbase account.
Joe then uses Coinbase to buy Bitcoins directly at their current buy price.
Since right now it is exactly $800.00, he gets exactly one BTC.
Joe then opens an account with Cryptsy, a cryptocurrency exchange.
Within Cryptsy, Joe creates a new deposit address. This is a long
alphanumeric string like 17jUWvAWa79boxmgdnEtf4JLv4CBUW8b3D.
Joe then goes back to Coinbase and chooses to Send Money. He copies the
deposit address from Cryptsy, the amount he wants to send (in this case
1.00 BTC) and clicks to send the money.
After a period of authorization for this transaction (could be 15 minutes or
longer) he goes back to Cryptsy and sees that he now has a balance of 1.00
BTC.
Within Cryptsy, he goes to the LTC/BTC market to buy LTC.
The price per LTC is currently 0.02629412 so he can buy 37.95 LTC with his
1.00 BTC. This includes a 0.20% fee (in BTC). I figured this out just by
putting in different amounts for how much LTC I wanted to buy until my net
total was just barely under 1.00, since that is all I had to invest.
Joe clicks on Submit Buy Order and he buys 37.95 LTC. At around $21 that
is worth $796.95, so he paid around $3 in fees. Not too bad.
At this point you have a balance of 37.95 LTC at Cryptsy. You can use this to buy
any cryptocurrency that trades on Cryptsy.
You now have two options: leave the balance at Cryptsy, or withdraw the balance
to a local wallet.
Wallets
When dealing with cryptocurrencies, there are two types of wallets: online and
offline.
Online wallets like Coinbase let you store your BTC or USD with them so that you
have it available to trade using the cryptocurrency exchanges.
Online exchanges will store your cryptocoins as well, so that you can buy/sell at
will without having to worry about sending or receiving coins in order to make
transactions.
If you do a lot of trading, it’s not unreasonable to keep these online balances filled
to whatever amount you need to trade. It saves time and you don’t have to
worry about constantly funding your account.
If you want to make a one-time trade to hold on to some cryptocoins for the
future in hopes that the price will rise (kind of like investing in gold or silver coins,
or even stocks for that matter) then you might want to store those coins in an
offline wallet on your PC (or even off your PC, i.e. on a flash drive or even paper).
All cryptocoins have a wallet associated with them. Well, at least I think so. For
Bitcoin, the wallet is what allows you to transact with other users. It gives you
ownership of a Bitcoin balance so that you can send and receive bitcoins. Just like
email, all wallets can interoperate with each other.
Once you install the wallet (there is a different program/wallet for each
cryptocoin which you need to install separately), you can generate an address to
send or receive cryptocoins.
So now, you can (within Coinbase, Cryptsy, or other online wallet or exchange)
send whatever coins you have to an address that you generate with your local
wallet. Once that transaction gets processed, the coins are now held in your local
wallet.
Many people do this as a security measure so that if an exchange crashes, or
worst case goes out of business or gets shut down for some reason, you won’t
lose whatever coins you had stored with them.
Personally, if I’m in this for the long term, I would recommend keeping all of your
cryptocoins offline. In fact, I even copy the data file from my PC to a flash drive
(or even multiple flash drives for security, or in case one fails) and then delete the
data file on my PC.
Why do this? Well, if you get hacked, the hacker can steal that data file and get
ALL of the coins in that wallet. And if you’re dealing with thousands of dollars’
worth of cryptocoins, even tens of thousands, then you probably want to make
sure your money is safe. It’s like a safe deposit box.
Let’s continue our example with Joe:
Joe just bought 37.95 LTC on Cryptsy and wants to store this offline in his
Litecoin wallet.
Joe goes to https://litecoin.org/ and downloads and installs the LTC wallet.
When Joe runs the wallet for the first time, it takes hours to sync, since it
needs to download all of the previous transaction blocks. Once this is done,
Joe is ready for the next step.
Joe generates a new address within the LTC wallet to receive coins.
Within Cryptsy, Joe chooses to withdraw his LTC to his local wallet. He does
this by going to his Account Balances, hovering over Litecoin, and choosing
Withdraw LTC.
Joe puts in 37.945 as the amount since there is a .005 LTC withdraw fee.
Joe then enters the withdraw address that he created from his offline LTC
wallet installed on his PC. After entering his password and captcha, he
processes the withdraw.
Joe opens his LTC wallet on his PC and lets it run. Eventually it processes
his transaction and his offline wallet is now credited with 37.945 LTC.
OK, that may have been too long and drawn out for some of you, but I wanted to
go through the entire process, showing you everything that is involved when
you’re dealing with buying and selling cryptocurrencies.
Other Ways to Make Money with Cryptocoins
Now let’s get to the meat of this report. Hopefully you’ll be much better
informed on what is required of you to deal with cryptos, because it’s not always
simple for someone who has never done this before.
Other than mining or buying cryptocoins directly, there ARE other ways to make
money with crypto.
Faucets
A faucet in the alternate currency world is basically a website that gives you a
small amount of the coin for free, whether because of the advertising revenue
they have on the site, various clicks they get, or because they are interested in
promoting their crypto-currency & if someone has a stake in that crypto-currency
then they are more likely to promote it.
Personally, I stay away from them. I liken faucets to the “earn credits by surfing”
programs, or “complete surveys to earn points” programs. They just seem like
scams to me. Just take a quick look at most faucet sites. They are spammy, full of
ads, and my personal opinion is that they are a complete waste of time.
What free coins you get are probably worth a fraction of a cent, and if you want
to spend hours per day on the hundreds of faucet sites (or cryptocoin lottery
sites) trying to earn maybe a buck, then by all means go ahead. I’ve got better
things to do.
I really can’t comment any more than that, and this is just my personal opinion
since I have not looked into it more, but my time is valuable and I’m certainly not
going to waste it on faucets. Do research and form your own opinion, though.
Cryptocurrency-Specific Ways to Earn
OK, that probably sounds a little vague. But if you look at the list of cryptocoins,
they all have different purposes.
For example, Ripple is actually an internet protocol for making financial
transactions. So it’s like PayPal, but it’s not controlled by any organization. As
HTTP is the protocol for displaying web pages, RTXP is the protocol for making
transactions on the internet. And the market cap for Ripple is over $2 billion.
They even have altcoins that serve different functions, such as:
Tickets – also called LotteryTickets, it gives random rewards for each block
solved
Sexcoin – an altcoin that can be used for adult websites and services
Craftcoin – used as portable in-game currency for Minecraft servers
Devcoin – to support open-source projects by programmers, hardware
developers, writers, musicians, painters, etc. worldwide
Ok, so pay attention to that last one. More specifically, because it supports
WRITERS.
Earning Devcoins by Writing
OK, so sorry that it took so long to get to the real how-to of this report, but I think
it’s important to understand at least the basics of crypto and what you will need
to do to earn cryptocoins and then turn that into cold hard cash!
First of all, go here: http://devtome.com/doku.php?id=devcoin.
Download/install the Devcoin wallet.
Then, go here: http://devcoin.org/get-devcoin.html.
You’ll see a link for “earn Devcoins by writing”. Click on that. At the very top of
that page is a really good “getting started” link to learn more about how it works.
There are four steps you need to go through to get set up:
1. Get the Devcoin wallet
2. Request an account on Devtome and give them a sample of your writing
3. On your userpage, post your wallet address so you can get paid!
4. Write your articles
That’s it.
You can write fiction, non-fiction, poetry…whatever. They do have requirements
such as no plagiarism, erotica, scammy stuff, etc. And they want good formatting.
No crap!
I was even able to take a few articles that I posted on one of my websites and
repost them to my Devtome account for credit. I did provide a proper reference
to my site, which is even better for me!
What they don’t want is a bunch of outsourced garbage, poor formatting or
grammar, copying/pasting some PLR articles that you have, or anything else
where they think you are trying to game the system.
For Round 31 (see the devtome page for what that means), I wrote six articles.
Two were copied right from one of my blogs. They don’t care as long as it is
YOUR work and you can reference it. I even had to edit those posts so the admins
could see that it was really mine.
One article was basically me rambling on about fantasy football . It ended up
being the longest of my articles, and it was fun to write.
One article was something I had posted on my Dropbox as fiction fodder. I had a
crazy dream one night and remembered most/all of it, and so the next morning I
put it all down on paper (i.e. Word) and saved it to my Dropbox in case I wanted
to use it for a short story at some point. Well, I did.
The last two articles were short stories (two or three pages each) that I wrote and
posted on fictionpress.com years ago. Again, I had to verify that they were
actually mine and I wasn’t stealing them from someone else, but once I did that I
posted the source as a reference and they were accepted.
How You Get Paid
Take a look at the Generation Share section here:
I won’t go into details (it’s all on the site) but in round 31 everyone got 144,810
DVC per share. And at the prices at that point in time, each share was worth
about $61.
Devcoins are paid out each round to various groups. The admin gets a cut each
round. They give shares to people who do marketing. They give shares to
Devtome writers. They also have bounties and ratings. I’m not even sure what all
those entail as far as how you earn with them. All I’m concerned about is the
Devtome writers’ shares.
Go here: http://dvccountdown.blisteringdevelopers.com/
That is a DVC countdown clock. It shows the shares earned per round and other
info. On the bottom you’ll see this:
You’ll see for Devtome that there were a total of 512 shares allotted. So for
everyone that had articles during the last round posted and approved on
Devtome, you got a certain percentage of that 512 shares.
First of all, they look at word count. The more words, the more shares, plain and
simple.
But recently they have instituted a popularity index using Google Analytics. So if
your article on Devtome gets a lot of views and people stay on your page longer
than for other articles, that article is worth more. So if you write good stuff that
people want to read, you’ll get rewarded for it.
The takeaway here for me at least is that I want to post longer articles. First of all,
if people actually are reading the articles, then they will obviously take longer to
read my (longer) articles. At least longer than a short piece of flash fiction. And
so my popularity index rises.
They have the formula all broken down, but we don’t need to go into details here.
Just know that if you write crap, people will immediately see this and stop
reading, and you will get even less of a share, even if it’s a longer article. Garbage
in, garbage out.
So write high-quality, longer articles about interesting subjects and you’ll be fine.
If you consider that I published only six articles, two of which were copied/pasted
from my blog, three of which were written years ago on another site (all proper
references sited of course), and only one was written in about 30 minutes as
more of a rambling, you’ll be shocked to see how much I earned for less than an
hour of work.
My username on Devtome is cryptowonk. On the countdown site referenced
above, you can put in my devtome username and round (31) to see how many
shares I got. Here’s a screenshot:
So you can see that I got 7.0 shares. Since each share was worth about $61 at the
time that the round was over, I made $427. Who else wants to make $427/hour
in their job?
Actually what I earned was 144,810 DVC per share x 7 shares = 1,013,670 DVC.
At this exact moment, one DVC is worth $0.00054, so that equates to $547. Nice,
huh?
Getting Paid
Now comes the bad news. Well, not really. I’ll take $527 for an hours’ worth of
writing any day.
If you look at the countdown page
(http://dvccountdown.blisteringdevelopers.com/) you will see that the payment
round won’t be complete until Feb 27. That’s because of how altcoins are
processed. Each block is only so long and they each have to be mined so that all
the transactions get approved. That takes time.
So by Feb 27th at the latest (my transaction could be confirmed today or a couple
weeks from now) I will get 1,013,670 DVC sent to my Devcoin address.
To see if I’ve got paid, I run the DVC wallet on my PC every few days. It syncs all
of the latest transactions and if mine were in the latest blocks, then I will see
those DVC in my wallet.
Turning DVC into USD
Ok, so I got over a million DVC. That’s great and all, but it does me no good if I
can’t spend them or convert them into something useful, like BTC or even better
USD, right?
Now you see why I went through the process of online wallets and currency
exchanges for Joe (my previous example).
I’m not a speculator, but if you wanted to you could analyze the charts of all of
the major altcoins and see which ones have the greatest potential for gain and
then convert all of your DVC into that. Or you could put it all into something
more popular like LTC or BTC. Or you could cash out to USD.
For purposes of this report, let’s assume that you want to cash out to USD (or
your local currency if you’re in another country).
Once I get the DVC into my local wallet, I need to find an exchange that deals with
Devcoin. Fortunately, the previously mentioned exchange – Cryptsy – will allow
you to buy and sell DVC for either LTC or BTC.
But right now I just have all of my DVC in my local wallet, so I need to send that to
my Cryptsy account. Here is a step-by-step breakdown of the process.
1. First, you need to login to Cryptsy, then click on the Balances icon at the
top.
2. Scroll down until you see Devcoin, then hover your cursor over it to bring
up a menu:
3. Click on “Deposit / Autosell DVC”. The deposit address will be blank, so just
click on the button to generate a new address:
4. Copy that deposit address (yours, not the one above – unless you want to
send ME coins
).
5. Now open my local DVC wallet and send coins to that deposit address.
6. After six confirmations, the deposit will go through and you will see your
coins show up at Cryptsy.
7. Now that you have your DVC at Cryptsy, you need to convert them to BTC.
a. Why? Because Coinbase only deals with BTC. Once we have BTC at
Coinbase, we can convert/cash out to USD.
8. Click on the Trade icon at the top of Cryptsy.
9. Scroll down until you see the DVC/BTC Market and click on that.
10.Here you’ll see a box where you can sell DVC for BTC.
11.In Amount DVC enter your total. For me it will be 1,013,670. It will
calculate the total BTC you can buy, the transaction fee, and the net total
BTC that you will receive. For the current prices as of this writing, here is
what mine would look like:
(Since I don’t have any DVC in my account (yet) it shows that I have 0.0 DVC
available. )
12.Once you submit the sell order, it will have to match your sell order with
other people’s buy orders and then process the transaction. Right now I
see a buy order for more than what I’m selling, so this should go through
pretty quickly.
13.After the transaction goes through, I will have 0.67712142 BTC in my
account at Cryptsy. Now I need to send that to my Coinbase account so I
can cash it out.
14.Login to Coinbase. On the left side, click on Account Settings. Above where
it has your name/email/etc on the page, you’ll see “Bitcoin Addresses”.
Click on that.
15.Create a new address. I like to then go into Details and give it a label. For
this transaction, I would enter “DVC from Cryptsy”:
16.Copy that new address from Coinbase and go back to Cryptsy.
17.Again, click on Balances and scroll down to BTC. You should now see your
balance in BTC. In my example, it would be 0.67712142 BTC.
18.Hover over where it says Bitcoin and choose “Withdraw BTC”.
19.In the popup box, enter your exact amount of BTC, which is the number in
#17 for my example. Copy and paste in the new address from Coinbase in
the BTC Withdraw Address. Enter your password and captcha.
20.Cryptsy will assess a 0.0005 BTC transaction fee and show you the net:
21.Once I click on Process Withdraw, the money is sent to my Coinbase
account.
22.Go to Coinbase to confirm the transfer. You’ll see the balance in your
account once the transfer is complete.
23.In Coinbase, click on Buy/Sell on the left side. Then in the main area of that
page, click on Sell Bitcoin and enter how much you want to sell. In this
example, I’m cashing everything out and not leaving anything in any of my
accounts at Cryptsy or Coinbase.
24.The “pay out method” that I blacked out is just my bank account info. Once
I sell the Bitcoin, I will get $536.83 transferred to my bank account.
Lather, Rinse, Repeat
The key to making this work consistently is just to keep writing. It’s really not that
hard. Write about anything you want! Just don’t give them crap.
Some Caveats
Just to be up front about this, you do know that this is not a get-rich-quick
scheme, right? If you have the patience to work the system and do it right, this
can be a nice extra income stream for you for a long time to come.
Be aware that each round for Devcoin is about a month long. So you can write
and submit your articles, and at the end of the round (about once a month). It
then takes about 3 weeks to get paid. So there is some lead time, but if you keep
doing this consistently, you’ll get paid monthly like clockwork.
Here is how Devtome explains it:
:
After a round ends, which you can see at the Devcoin Countdown, another
2700 blocks need to be created before earnings start being paid out. Each
round lasts approximately a month, then there are approximately 21 more
days before you start getting paid. On your first round, especially if you
posted articles at the beginning of the round, this might seem like a long
time. If you post articles every round, what will happen is that you will get a
steady payout every month. Once the payout block begins, your full
earnings (your number of shares times how many Devcoins are in each
share this round) will be disbursed over the course of the next round until
all your shares are paid out, because each share is deposited individually in
a kind of round robin.
Conclusion
To sum up my experience, I copied two articles from one of my blogs, reposted
two previously published short stories from fictionpress.com, published a short
story I just had stored on my hard drive, and then actually only wrote some
ramblings about fantasy football and posted that.
Less than one hour of actual work.
Profit more than $500.
The potential here is outstanding, if you do it right and don’t try to cheat the
system. But if you act in a professional manner, post only original content written
by you that is useful, informative, and engaging, then this can be a huge source of
income for you!
Oh yeah, one of the best parts about all of this is that if you hold your coins,
whether that means the DVC that you earn, or if you hold onto the BTC or LTC (or
any other cryptocurrency that you exchanged into), as the value of these altcoins
rise, so does your net worth!
If I don’t cash out the 0.67662142 BTC at Coinbase and instead just hold onto it
(whether in an online wallet like Coinbase, or even at an exchange like Cryptsy) if
the value of BTC rises, then your coins will be worth even more.
For example, let’s say I hold onto my BTC and two months from now Bitcoin takes
off and goes to $1200. Now I want to cash out because I have a need for some
cash (USD), so I go into Coinbase and transfer to my bank account.
Instead of the $536.83 that I would have received if I cashed out as soon as I
could, now I would get more: $1200/BTC x 0.67662142 BTC = $811.95, an extra
$275.
Of course, the price of BTC could fall, too. No one knows. If you want to
speculate and you think that prices will rise, whether that is short or long term,
then hold on to your coins and cash out when you think the time is right. But if
you need the cash and don’t want to gamble on the market, then just cash out
and enjoy your payday!
If you have any questions, I’d be happy to answer them in the thread (I’ll update
the FAQ as needed) or reply to you personally.
Cheers!
Rob
[email protected]
p.s. For the previous round (30) each share was worth $221, not just $61. This
means that my 7 shares would have been worth $1547 – three times what mine is
now worth! Since you never know what the value of DVC will be, the same
amount of work that you do (in my case 6 articles) could be worth $500 or $1500!
FAQ
Q: Can this really be done without any money at all to start?
A: Yes. It’s free to set up the Coinbase and Cryptsy accounts, and it’s free to get a
Devtome account. All you have to do after that is write your articles and publish
them. As long as they fit the (very basic) criteria for the site, they count toward
your earnings. The only time money is really involved is linking your bank account
to Coinbase and withdrawing the cash.
Q: Can I outsource my writing?
A: I’m sure you can if you want to, but I would be careful. If you get lower quality
articles, then they may not be accepted and/or they won’t get that much traffic
on the site.
Q: Can I use PLR articles?
A: Like most people recommend, any PLR articles should definitely NOT be used
as copy and paste material. It is wise to rewrite them in your own words. My
feeling is that for the time it takes me to rewrite one, I could have just written one
from scratch.
Q: Won’t my earnings depend on the price of DVC?
A: Yes and no. You get so many allotted shares based on your word count and
other factors discussed in the report. Each share is worth X amount of DVC.
Those shares have intrinsic value, but to turn them into USD (cash out) you have
to convert them to BTC (or LTC) and then into USD.
Q: Can this get saturated?
A: Possibly. Since each round there is a set amount of DVC that are handed out
each round: 180,000,000. The number of DVC/share is determined by the
number of receiver lines (which is determined roughly by the number of
articles/words that you submit), so with more people getting shares, each share
could be worth fewer DVC.
Q: Is there a limit to what I can submit each month?
A: Yes. Words are limited to 50,000 for each round. You can write more, and the
overflow will go towards next round’s payment. So if you wrote 70,000 words,
you’ll only get paid for 50,000 this round, and you already have a 20,000 balance
to start out the next round.
Q: Where I can get more detailed information on how/what to write?
A: http://www.devtome.com/doku.php?id=devtome_writers
That link will take you to the Devtome writers page where it has links to all sorts
of articles to answer most/all of your questions about how to write, what things
to write about, the formatting that they require to publish, etc.
You also agree that the author(s) are not responsible for any consequences resulting from using
the information herein.
The Author has strived to be as accurate and complete as possible in the creation of this report,
notwithstanding the fact that he does not warrant or represent at any time that the contents
within are 100% accurate due to the rapidly changing nature of the Internet as well as
other factors.
While all attempts have been made to verify information provided in this publication, the
Author assumes no responsibility for errors, omissions, or contrary interpretation of the subject
matter herein. Any perceived slights of specific persons, peoples, or organizations are
unintentional.
In practical advice books, like anything else in life, there are no guarantees of income made.
Readers are cautioned to reply on their own judgment about their individual circumstances to
act accordingly.
This report is not intended for use as a source of legal, business, accounting or financial advice.
All readers are advised to seek services of competent professionals in legal, business,
accounting, and finance field.
Distribution, transmission, republication, or resale
of this document is strictly prohibited.
Introduction
If you haven’t heard about Bitcoin, then maybe it’s time you learned more about
it.
As a digital currency, it’s gaining in popularity and has been in the news a lot
recently. Just take a quick look at some of the places that accept Bitcoin for
payment:
WordPress – yes the favorite blogging platform of IM users everywhere
accepts Bitcoins. You can use them to buy upgrades such as ad-free,
custom designs, and other features on wordpress.com.
Etsy – kind of like eBay, Etsy is more crafty and local. And hundreds of
vendors accept Bitcoin for payment.
Namecheap – the best domain name registrar out there, and they take
Bitcoins for payment.
Overstock.com
TigerDirect.com
…and the list keeps growing
OK, so just do an internet search and you’ll find out everything you want to know
by doing a little reading. From what I can tell, Bitcoin is here and it’s here to stay.
Profiting From Bitcoin
Let’s just get right down to it. You want to make money from Bitcoins, right?
That’s why you bought this report.
Well, let me tell you straight up that trying to deal in Bitcoins directly is going to
be hard. And expensive. About a year ago one Bitcoin was worth about $21.
Today (as of the time I’m writing this) one is worth $814. And as recently as
November 2013, you could have bought Bitcoins at the low, low price of about
$200 each. So 10 weeks later you just made 400% on your investment. Can you
see why they have become so popular?
In addition to Bitcoins, there are dozens of other cryptocurrencies on the market.
Bitcoin is the first and most popular, but the other most popular ones (in order of
market capitalization) are Ripple, Litecoin, Peercoin, DogeCoin, Nxt, MasterCoin,
Namecoin, Quark, and ProtoShares. And that just rounds out the top 10.
Go to coinmarketcap.com and you can see the full list of 86 that they have
information for. The total market cap for all of these cryptocurrencies combined
is a whopping $13,182,548,476. Yeah, over $13 billion.
So how do you make money with cryptocoins? In general, there are two basic
ways to make money. You can mine them or you can invest/speculate. There are
other ways to earn as well, which is what I’m doing and how you can get in the
game. But first I’ll go over the basics of mining and investing.
Mining
First, you can mine coins. I won’t go into explicit detail, but mining is basically
using your own computing resources (called a rig) to attempt to solve a complex
algorithm which helps to verify and approve any transactions with that particular
currency.
Here is the description of Bitcoin mining from https://en.bitcoin.it/wiki/Mining:
Mining is the process of adding transaction records to Bitcoin's public
ledger of past transactions. This ledger of past transactions is called
the block chain as it is a chain of blocks. The block chain serves to confirm
transactions to the rest of the network as having taken place. Bitcoin nodes
use the block chain to distinguish legitimate Bitcoin transactions from
attempts to re-spend coins that have already been spent elsewhere.
Mining is intentionally designed to be resource-intensive and difficult so
that the number of blocks found each day by miners remains steady.
Individual blocks must contain a proof of work to be considered valid. This
proof of work is verified by other Bitcoin nodes each time they receive a
block. Bitcoin uses the hashcash proof-of-work function.
The primary purpose of mining is to allow Bitcoin nodes to reach a secure,
tamper-resistant consensus. Mining is also the mechanism used to
introduce Bitcoins into the system: Miners are paid any transaction fees as
well as a "subsidy" of newly created coins. This both serves the purpose of
disseminating new coins in a decentralized manner as well as motivating
people to provide security for the system.
Bitcoin mining is so called because it resembles the mining of other
commodities: it requires exertion and it slowly makes new currency
available at a rate that resembles the rate at which commodities like gold
are mined from the ground.
If you keep reading on that page, you’ll see the different ways that you can mine
Bitcoins. The problem today is that in order to mine them profitably, you need
very powerful and expensive hardware (see ASIC mining) that can cost five
figures. Most of us don’t have the kind of cash or technical know-how to set that
up.
The next most popular cryptocoin to mine is Litecoin. Right now one Litecoin
(LTC) is going for around $21. These are much easier to mine. While typical
mining rigs use CPU power to mine, you are limited to usually just the one CPU in
a typical computer. That’s why recently people have been switching to GPUs to
mine.
GPU (graphics processing unit) is the CPU of a graphics card. What GPU miners do
is focus all of their processing power to the GPU because they can install multiple
graphics cards on one motherboard so that they can mine much faster. And the
more computing power you have, the better chance you have of solving the
algorithm.
I was actually going to get into GPU mining, trying to mine Litecoin, by building my
own LTC mining rig. The problem I ran into was that the graphic cards themselves
are very hard to come by. And even if they are available, they are ridiculously
expensive.
I don’t think that mining is the cause of the video card scarcity (people do love
their computer games and high-end graphics you know), but due to the recent
popularity of mining with GPUs, it’s now much harder to even find the right
hardware.
The cost to build a LTC mining rig isn’t terrible. I was pricing one out by buying
each piece individually (the motherboard, CPU, memory, graphic cards, etc.) and
it came to around $1200. Not too bad really for a moderately high-end computer.
I could always use it to play the latest PC games or sell it to someone who wants
to.
And since I could not get the best graphics cards (I think the ones I priced were
still around $350 each), my hash rate (a measure of how much power I’m using to
compute) wasn’t top of the line. At my proposed hash rate and power
consumption, I think that I could have made about $20 per day mining Litecoins.
That might seem awesome at first, but that $20 depends on a lot of things,
especially the price of Litecoin. If it drops or crashes, then that $20 could go
down to $10 or even $5. Best case scenario would be about 2.5 months to get my
investment back, then the rest is profit.
But that’s a lot of work, and you have to be somewhat of a techie to get it all
setup correctly. Plus, you really have to join a mining pool so that you are joining
forces with other miners. I could write an entire book on mining and pools and
GPUs and ASIC mining, but that’s not why you bought this report, so I’ll move on.
Investing
Plain and simple, you can buy cryptocoins now and hold on to them, hoping their
value will rise when you can sell them for a profit.
It’s the same as investing in gold, silver, stocks, bonds, etc. Buy low, sell high.
On the technical side, this is a much easier way to get into cryptocurrencies. But
you still have to jump through a few loops.
First of all, you need a way to pay for the cryptocoins. You do this by signing up
with a bitcoin wallet and platform site where you can use USD (and possibly other
currencies, but since I’m in the US I’ll only talk about doing this with USD) to buy
and sell Bitcoins.
I use Coinbase. You sign up with Coinbase and connect your bank account so you
can fund your account. Once you have money in your Coinbase account, you can
use this to buy Bitcoins.
Now, they only deal in Bitcoins, but that is fine. I know I talked about other
cryptocurrencies earlier, like Litecoin, but the grand-daddy of them all is Bitcoin
and honestly if you’re going to use any cryptocoin like currency, it will probably be
Bitcoin anyway. You may buy/sell/earn other cryptos, but you will eventually
trade them into Bitcoins so you can use them.
Once you buy Bitcoins, you can then use them in one of the many exchanges to
buy other cryptocoins. BTC is like the USD of the world. You can trade almost any
currency to/from Bitcoins.
I’ll give you a quick example to clarify.
Joe wants to buy Litecoins. At around $21 each, he feels that the price is
good and the long term potential for profit is high. He has read where LTC
might reach $100 by the end of 2014.
Joe opens an account at Coinbase. He verifies his bank account and
deposits $800 into his Coinbase account.
Joe then uses Coinbase to buy Bitcoins directly at their current buy price.
Since right now it is exactly $800.00, he gets exactly one BTC.
Joe then opens an account with Cryptsy, a cryptocurrency exchange.
Within Cryptsy, Joe creates a new deposit address. This is a long
alphanumeric string like 17jUWvAWa79boxmgdnEtf4JLv4CBUW8b3D.
Joe then goes back to Coinbase and chooses to Send Money. He copies the
deposit address from Cryptsy, the amount he wants to send (in this case
1.00 BTC) and clicks to send the money.
After a period of authorization for this transaction (could be 15 minutes or
longer) he goes back to Cryptsy and sees that he now has a balance of 1.00
BTC.
Within Cryptsy, he goes to the LTC/BTC market to buy LTC.
The price per LTC is currently 0.02629412 so he can buy 37.95 LTC with his
1.00 BTC. This includes a 0.20% fee (in BTC). I figured this out just by
putting in different amounts for how much LTC I wanted to buy until my net
total was just barely under 1.00, since that is all I had to invest.
Joe clicks on Submit Buy Order and he buys 37.95 LTC. At around $21 that
is worth $796.95, so he paid around $3 in fees. Not too bad.
At this point you have a balance of 37.95 LTC at Cryptsy. You can use this to buy
any cryptocurrency that trades on Cryptsy.
You now have two options: leave the balance at Cryptsy, or withdraw the balance
to a local wallet.
Wallets
When dealing with cryptocurrencies, there are two types of wallets: online and
offline.
Online wallets like Coinbase let you store your BTC or USD with them so that you
have it available to trade using the cryptocurrency exchanges.
Online exchanges will store your cryptocoins as well, so that you can buy/sell at
will without having to worry about sending or receiving coins in order to make
transactions.
If you do a lot of trading, it’s not unreasonable to keep these online balances filled
to whatever amount you need to trade. It saves time and you don’t have to
worry about constantly funding your account.
If you want to make a one-time trade to hold on to some cryptocoins for the
future in hopes that the price will rise (kind of like investing in gold or silver coins,
or even stocks for that matter) then you might want to store those coins in an
offline wallet on your PC (or even off your PC, i.e. on a flash drive or even paper).
All cryptocoins have a wallet associated with them. Well, at least I think so. For
Bitcoin, the wallet is what allows you to transact with other users. It gives you
ownership of a Bitcoin balance so that you can send and receive bitcoins. Just like
email, all wallets can interoperate with each other.
Once you install the wallet (there is a different program/wallet for each
cryptocoin which you need to install separately), you can generate an address to
send or receive cryptocoins.
So now, you can (within Coinbase, Cryptsy, or other online wallet or exchange)
send whatever coins you have to an address that you generate with your local
wallet. Once that transaction gets processed, the coins are now held in your local
wallet.
Many people do this as a security measure so that if an exchange crashes, or
worst case goes out of business or gets shut down for some reason, you won’t
lose whatever coins you had stored with them.
Personally, if I’m in this for the long term, I would recommend keeping all of your
cryptocoins offline. In fact, I even copy the data file from my PC to a flash drive
(or even multiple flash drives for security, or in case one fails) and then delete the
data file on my PC.
Why do this? Well, if you get hacked, the hacker can steal that data file and get
ALL of the coins in that wallet. And if you’re dealing with thousands of dollars’
worth of cryptocoins, even tens of thousands, then you probably want to make
sure your money is safe. It’s like a safe deposit box.
Let’s continue our example with Joe:
Joe just bought 37.95 LTC on Cryptsy and wants to store this offline in his
Litecoin wallet.
Joe goes to https://litecoin.org/ and downloads and installs the LTC wallet.
When Joe runs the wallet for the first time, it takes hours to sync, since it
needs to download all of the previous transaction blocks. Once this is done,
Joe is ready for the next step.
Joe generates a new address within the LTC wallet to receive coins.
Within Cryptsy, Joe chooses to withdraw his LTC to his local wallet. He does
this by going to his Account Balances, hovering over Litecoin, and choosing
Withdraw LTC.
Joe puts in 37.945 as the amount since there is a .005 LTC withdraw fee.
Joe then enters the withdraw address that he created from his offline LTC
wallet installed on his PC. After entering his password and captcha, he
processes the withdraw.
Joe opens his LTC wallet on his PC and lets it run. Eventually it processes
his transaction and his offline wallet is now credited with 37.945 LTC.
OK, that may have been too long and drawn out for some of you, but I wanted to
go through the entire process, showing you everything that is involved when
you’re dealing with buying and selling cryptocurrencies.
Other Ways to Make Money with Cryptocoins
Now let’s get to the meat of this report. Hopefully you’ll be much better
informed on what is required of you to deal with cryptos, because it’s not always
simple for someone who has never done this before.
Other than mining or buying cryptocoins directly, there ARE other ways to make
money with crypto.
Faucets
A faucet in the alternate currency world is basically a website that gives you a
small amount of the coin for free, whether because of the advertising revenue
they have on the site, various clicks they get, or because they are interested in
promoting their crypto-currency & if someone has a stake in that crypto-currency
then they are more likely to promote it.
Personally, I stay away from them. I liken faucets to the “earn credits by surfing”
programs, or “complete surveys to earn points” programs. They just seem like
scams to me. Just take a quick look at most faucet sites. They are spammy, full of
ads, and my personal opinion is that they are a complete waste of time.
What free coins you get are probably worth a fraction of a cent, and if you want
to spend hours per day on the hundreds of faucet sites (or cryptocoin lottery
sites) trying to earn maybe a buck, then by all means go ahead. I’ve got better
things to do.
I really can’t comment any more than that, and this is just my personal opinion
since I have not looked into it more, but my time is valuable and I’m certainly not
going to waste it on faucets. Do research and form your own opinion, though.
Cryptocurrency-Specific Ways to Earn
OK, that probably sounds a little vague. But if you look at the list of cryptocoins,
they all have different purposes.
For example, Ripple is actually an internet protocol for making financial
transactions. So it’s like PayPal, but it’s not controlled by any organization. As
HTTP is the protocol for displaying web pages, RTXP is the protocol for making
transactions on the internet. And the market cap for Ripple is over $2 billion.
They even have altcoins that serve different functions, such as:
Tickets – also called LotteryTickets, it gives random rewards for each block
solved
Sexcoin – an altcoin that can be used for adult websites and services
Craftcoin – used as portable in-game currency for Minecraft servers
Devcoin – to support open-source projects by programmers, hardware
developers, writers, musicians, painters, etc. worldwide
Ok, so pay attention to that last one. More specifically, because it supports
WRITERS.
Earning Devcoins by Writing
OK, so sorry that it took so long to get to the real how-to of this report, but I think
it’s important to understand at least the basics of crypto and what you will need
to do to earn cryptocoins and then turn that into cold hard cash!
First of all, go here: http://devtome.com/doku.php?id=devcoin.
Download/install the Devcoin wallet.
Then, go here: http://devcoin.org/get-devcoin.html.
You’ll see a link for “earn Devcoins by writing”. Click on that. At the very top of
that page is a really good “getting started” link to learn more about how it works.
There are four steps you need to go through to get set up:
1. Get the Devcoin wallet
2. Request an account on Devtome and give them a sample of your writing
3. On your userpage, post your wallet address so you can get paid!
4. Write your articles
That’s it.
You can write fiction, non-fiction, poetry…whatever. They do have requirements
such as no plagiarism, erotica, scammy stuff, etc. And they want good formatting.
No crap!
I was even able to take a few articles that I posted on one of my websites and
repost them to my Devtome account for credit. I did provide a proper reference
to my site, which is even better for me!
What they don’t want is a bunch of outsourced garbage, poor formatting or
grammar, copying/pasting some PLR articles that you have, or anything else
where they think you are trying to game the system.
For Round 31 (see the devtome page for what that means), I wrote six articles.
Two were copied right from one of my blogs. They don’t care as long as it is
YOUR work and you can reference it. I even had to edit those posts so the admins
could see that it was really mine.
One article was basically me rambling on about fantasy football . It ended up
being the longest of my articles, and it was fun to write.
One article was something I had posted on my Dropbox as fiction fodder. I had a
crazy dream one night and remembered most/all of it, and so the next morning I
put it all down on paper (i.e. Word) and saved it to my Dropbox in case I wanted
to use it for a short story at some point. Well, I did.
The last two articles were short stories (two or three pages each) that I wrote and
posted on fictionpress.com years ago. Again, I had to verify that they were
actually mine and I wasn’t stealing them from someone else, but once I did that I
posted the source as a reference and they were accepted.
How You Get Paid
Take a look at the Generation Share section here:
I won’t go into details (it’s all on the site) but in round 31 everyone got 144,810
DVC per share. And at the prices at that point in time, each share was worth
about $61.
Devcoins are paid out each round to various groups. The admin gets a cut each
round. They give shares to people who do marketing. They give shares to
Devtome writers. They also have bounties and ratings. I’m not even sure what all
those entail as far as how you earn with them. All I’m concerned about is the
Devtome writers’ shares.
Go here: http://dvccountdown.blisteringdevelopers.com/
That is a DVC countdown clock. It shows the shares earned per round and other
info. On the bottom you’ll see this:
You’ll see for Devtome that there were a total of 512 shares allotted. So for
everyone that had articles during the last round posted and approved on
Devtome, you got a certain percentage of that 512 shares.
First of all, they look at word count. The more words, the more shares, plain and
simple.
But recently they have instituted a popularity index using Google Analytics. So if
your article on Devtome gets a lot of views and people stay on your page longer
than for other articles, that article is worth more. So if you write good stuff that
people want to read, you’ll get rewarded for it.
The takeaway here for me at least is that I want to post longer articles. First of all,
if people actually are reading the articles, then they will obviously take longer to
read my (longer) articles. At least longer than a short piece of flash fiction. And
so my popularity index rises.
They have the formula all broken down, but we don’t need to go into details here.
Just know that if you write crap, people will immediately see this and stop
reading, and you will get even less of a share, even if it’s a longer article. Garbage
in, garbage out.
So write high-quality, longer articles about interesting subjects and you’ll be fine.
If you consider that I published only six articles, two of which were copied/pasted
from my blog, three of which were written years ago on another site (all proper
references sited of course), and only one was written in about 30 minutes as
more of a rambling, you’ll be shocked to see how much I earned for less than an
hour of work.
My username on Devtome is cryptowonk. On the countdown site referenced
above, you can put in my devtome username and round (31) to see how many
shares I got. Here’s a screenshot:
So you can see that I got 7.0 shares. Since each share was worth about $61 at the
time that the round was over, I made $427. Who else wants to make $427/hour
in their job?
Actually what I earned was 144,810 DVC per share x 7 shares = 1,013,670 DVC.
At this exact moment, one DVC is worth $0.00054, so that equates to $547. Nice,
huh?
Getting Paid
Now comes the bad news. Well, not really. I’ll take $527 for an hours’ worth of
writing any day.
If you look at the countdown page
(http://dvccountdown.blisteringdevelopers.com/) you will see that the payment
round won’t be complete until Feb 27. That’s because of how altcoins are
processed. Each block is only so long and they each have to be mined so that all
the transactions get approved. That takes time.
So by Feb 27th at the latest (my transaction could be confirmed today or a couple
weeks from now) I will get 1,013,670 DVC sent to my Devcoin address.
To see if I’ve got paid, I run the DVC wallet on my PC every few days. It syncs all
of the latest transactions and if mine were in the latest blocks, then I will see
those DVC in my wallet.
Turning DVC into USD
Ok, so I got over a million DVC. That’s great and all, but it does me no good if I
can’t spend them or convert them into something useful, like BTC or even better
USD, right?
Now you see why I went through the process of online wallets and currency
exchanges for Joe (my previous example).
I’m not a speculator, but if you wanted to you could analyze the charts of all of
the major altcoins and see which ones have the greatest potential for gain and
then convert all of your DVC into that. Or you could put it all into something
more popular like LTC or BTC. Or you could cash out to USD.
For purposes of this report, let’s assume that you want to cash out to USD (or
your local currency if you’re in another country).
Once I get the DVC into my local wallet, I need to find an exchange that deals with
Devcoin. Fortunately, the previously mentioned exchange – Cryptsy – will allow
you to buy and sell DVC for either LTC or BTC.
But right now I just have all of my DVC in my local wallet, so I need to send that to
my Cryptsy account. Here is a step-by-step breakdown of the process.
1. First, you need to login to Cryptsy, then click on the Balances icon at the
top.
2. Scroll down until you see Devcoin, then hover your cursor over it to bring
up a menu:
3. Click on “Deposit / Autosell DVC”. The deposit address will be blank, so just
click on the button to generate a new address:
4. Copy that deposit address (yours, not the one above – unless you want to
send ME coins
).5. Now open my local DVC wallet and send coins to that deposit address.
6. After six confirmations, the deposit will go through and you will see your
coins show up at Cryptsy.
7. Now that you have your DVC at Cryptsy, you need to convert them to BTC.
a. Why? Because Coinbase only deals with BTC. Once we have BTC at
Coinbase, we can convert/cash out to USD.
8. Click on the Trade icon at the top of Cryptsy.
9. Scroll down until you see the DVC/BTC Market and click on that.
10.Here you’ll see a box where you can sell DVC for BTC.
11.In Amount DVC enter your total. For me it will be 1,013,670. It will
calculate the total BTC you can buy, the transaction fee, and the net total
BTC that you will receive. For the current prices as of this writing, here is
what mine would look like:
(Since I don’t have any DVC in my account (yet) it shows that I have 0.0 DVC
available. )
12.Once you submit the sell order, it will have to match your sell order with
other people’s buy orders and then process the transaction. Right now I
see a buy order for more than what I’m selling, so this should go through
pretty quickly.
13.After the transaction goes through, I will have 0.67712142 BTC in my
account at Cryptsy. Now I need to send that to my Coinbase account so I
can cash it out.
14.Login to Coinbase. On the left side, click on Account Settings. Above where
it has your name/email/etc on the page, you’ll see “Bitcoin Addresses”.
Click on that.
15.Create a new address. I like to then go into Details and give it a label. For
this transaction, I would enter “DVC from Cryptsy”:
16.Copy that new address from Coinbase and go back to Cryptsy.
17.Again, click on Balances and scroll down to BTC. You should now see your
balance in BTC. In my example, it would be 0.67712142 BTC.
18.Hover over where it says Bitcoin and choose “Withdraw BTC”.
19.In the popup box, enter your exact amount of BTC, which is the number in
#17 for my example. Copy and paste in the new address from Coinbase in
the BTC Withdraw Address. Enter your password and captcha.
20.Cryptsy will assess a 0.0005 BTC transaction fee and show you the net:
21.Once I click on Process Withdraw, the money is sent to my Coinbase
account.
22.Go to Coinbase to confirm the transfer. You’ll see the balance in your
account once the transfer is complete.
23.In Coinbase, click on Buy/Sell on the left side. Then in the main area of that
page, click on Sell Bitcoin and enter how much you want to sell. In this
example, I’m cashing everything out and not leaving anything in any of my
accounts at Cryptsy or Coinbase.
24.The “pay out method” that I blacked out is just my bank account info. Once
I sell the Bitcoin, I will get $536.83 transferred to my bank account.
Lather, Rinse, Repeat
The key to making this work consistently is just to keep writing. It’s really not that
hard. Write about anything you want! Just don’t give them crap.
Some Caveats
Just to be up front about this, you do know that this is not a get-rich-quick
scheme, right? If you have the patience to work the system and do it right, this
can be a nice extra income stream for you for a long time to come.
Be aware that each round for Devcoin is about a month long. So you can write
and submit your articles, and at the end of the round (about once a month). It
then takes about 3 weeks to get paid. So there is some lead time, but if you keep
doing this consistently, you’ll get paid monthly like clockwork.
Here is how Devtome explains it:
:
After a round ends, which you can see at the Devcoin Countdown, another
2700 blocks need to be created before earnings start being paid out. Each
round lasts approximately a month, then there are approximately 21 more
days before you start getting paid. On your first round, especially if you
posted articles at the beginning of the round, this might seem like a long
time. If you post articles every round, what will happen is that you will get a
steady payout every month. Once the payout block begins, your full
earnings (your number of shares times how many Devcoins are in each
share this round) will be disbursed over the course of the next round until
all your shares are paid out, because each share is deposited individually in
a kind of round robin.
Conclusion
To sum up my experience, I copied two articles from one of my blogs, reposted
two previously published short stories from fictionpress.com, published a short
story I just had stored on my hard drive, and then actually only wrote some
ramblings about fantasy football and posted that.
Less than one hour of actual work.
Profit more than $500.
The potential here is outstanding, if you do it right and don’t try to cheat the
system. But if you act in a professional manner, post only original content written
by you that is useful, informative, and engaging, then this can be a huge source of
income for you!
Oh yeah, one of the best parts about all of this is that if you hold your coins,
whether that means the DVC that you earn, or if you hold onto the BTC or LTC (or
any other cryptocurrency that you exchanged into), as the value of these altcoins
rise, so does your net worth!
If I don’t cash out the 0.67662142 BTC at Coinbase and instead just hold onto it
(whether in an online wallet like Coinbase, or even at an exchange like Cryptsy) if
the value of BTC rises, then your coins will be worth even more.
For example, let’s say I hold onto my BTC and two months from now Bitcoin takes
off and goes to $1200. Now I want to cash out because I have a need for some
cash (USD), so I go into Coinbase and transfer to my bank account.
Instead of the $536.83 that I would have received if I cashed out as soon as I
could, now I would get more: $1200/BTC x 0.67662142 BTC = $811.95, an extra
$275.
Of course, the price of BTC could fall, too. No one knows. If you want to
speculate and you think that prices will rise, whether that is short or long term,
then hold on to your coins and cash out when you think the time is right. But if
you need the cash and don’t want to gamble on the market, then just cash out
and enjoy your payday!
If you have any questions, I’d be happy to answer them in the thread (I’ll update
the FAQ as needed) or reply to you personally.
Cheers!
Rob
[email protected]
p.s. For the previous round (30) each share was worth $221, not just $61. This
means that my 7 shares would have been worth $1547 – three times what mine is
now worth! Since you never know what the value of DVC will be, the same
amount of work that you do (in my case 6 articles) could be worth $500 or $1500!
FAQ
Q: Can this really be done without any money at all to start?
A: Yes. It’s free to set up the Coinbase and Cryptsy accounts, and it’s free to get a
Devtome account. All you have to do after that is write your articles and publish
them. As long as they fit the (very basic) criteria for the site, they count toward
your earnings. The only time money is really involved is linking your bank account
to Coinbase and withdrawing the cash.
Q: Can I outsource my writing?
A: I’m sure you can if you want to, but I would be careful. If you get lower quality
articles, then they may not be accepted and/or they won’t get that much traffic
on the site.
Q: Can I use PLR articles?
A: Like most people recommend, any PLR articles should definitely NOT be used
as copy and paste material. It is wise to rewrite them in your own words. My
feeling is that for the time it takes me to rewrite one, I could have just written one
from scratch.
Q: Won’t my earnings depend on the price of DVC?
A: Yes and no. You get so many allotted shares based on your word count and
other factors discussed in the report. Each share is worth X amount of DVC.
Those shares have intrinsic value, but to turn them into USD (cash out) you have
to convert them to BTC (or LTC) and then into USD.
Q: Can this get saturated?
A: Possibly. Since each round there is a set amount of DVC that are handed out
each round: 180,000,000. The number of DVC/share is determined by the
number of receiver lines (which is determined roughly by the number of
articles/words that you submit), so with more people getting shares, each share
could be worth fewer DVC.
Q: Is there a limit to what I can submit each month?
A: Yes. Words are limited to 50,000 for each round. You can write more, and the
overflow will go towards next round’s payment. So if you wrote 70,000 words,
you’ll only get paid for 50,000 this round, and you already have a 20,000 balance
to start out the next round.
Q: Where I can get more detailed information on how/what to write?
A: http://www.devtome.com/doku.php?id=devtome_writers
That link will take you to the Devtome writers page where it has links to all sorts
of articles to answer most/all of your questions about how to write, what things
to write about, the formatting that they require to publish, etc.
