Crypto DApp Miners
Not your traditional type of miner….
(NONE OF WHAT I WRITE IN MY ARTICLES IS TO BE TAKEN AS INVESTMENT ADVICE. I am not an advisor for this nor am I suggesting any financial action on your part. DYOR)
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Traditional Crypto Mining
In traditional crypto mining you usually need to own a piece of equipment to process complicated equations & get rewarded with that particular crypto token(s) as a reward for solving those equations.
Usually the more expensive/ powerful equipment you use the better. You would need to leave it online & running 24/7 to get the best results. Depending on your mining rig you could use A LOT of power, which would go against the tokens that you earn, with thus mining rig. Then you must decide if it’s worth the cost of running the rig. (Risk/Reward)
When I’m talking about Crypto DApp Miners, I’m not talking about these traditional mining rigs.
What!?!?!?
With DApp mining the only hardware that is involved is whatever device you use to get online & connect to the DApp. You don’t have to leave it turned on burning power 24/7. (I mean you can but that won’t effect your earnings in this case.)
What/How???
Basically, the way it works is this:
- Make a deposit into the DApp using whatever coin that DApp uses. This deposit will be “Locked” forever & can not be withdrawn. (Basically you are paying for the opportunity to use the DApp.)
- Earn a certain percentage of your deposit back on a daily basis. This percentage changes constantly, depending on other people buying, selling, compounding, & the current Total Locked Value (TVL). Usually, the site states that you will earn up to a certain percentage daily.
- Compound or withdraw your earnings. Compounding adds your earned amount to your personal TVL on the site. Withdrawing moves your earnings from the site to your personal wallet.
- Continue compounding your earnings until conditions are met so that you can withdraw.
- Withdraw as often as you can to make back you initial deposit. Sometimes their are certain requirements that must be met in order to make a withdraw, like after 5, 10, or 15 compounds, etc. If you don’t meet those requirements then you may not be able to withdraw or may be “taxed” on the withdraw.
- Once you withdraw the total amount that you deposited then you have made ROI (return on investment). Congratulations! Now, any other deposits you get are pure profit. Keep up the good work!
- Continue making withdraws as often as you can which then will increase you ROI & make you a lot of money, potentially…
Be carful though as investing in these types of crypto programs are VERY HIGH RISK.
If the project fails before you get your deposit back then you lost money. If the TVL of the project goes down then so does your earnings. If the Developers scam (Rug) you before you make ROI then you lost money. If the project doesn’t have more deposits coming in than withdraws then the TVL will go down & take your earnings with it.
It is best to do a lot of research before investing in these types of miners (or any miners in general). Then, only deposit money that you are willing to loose. If you do lose it then “No Biggie.” If not then you could earn a lot on your investment, as these projects usually have very high APR.
(One website I use to help with my research in MoonArch…)
It is also good to not “put all your eggs in one basket” & spread the investment around in several of these miners. I generally use only 1 wallet per project. That way if it is a scam & they try to drain my wallet then it will only be that 1 wallet & not all my crypto, in my other wallets.
In the following articles, I’ll go through each of the miners that I have invested & how they performed for me. The good, the bad, & the ugly.
Stay tuned till next time…
Follow me. I’ll follow you. Lets see what happens…
