What is Trade Mining? Hints and Tips for Making Money
What is trade mining?
Recently I have heard words such as “trade mining” and “transaction mining” frequently.
Originally, mining was to ‘dig out’ Bitcoin using a dedicated mining computer, but “trade mining” trades cryptocurrency on exchanges generating a fee, part (or all) of it deals being returned to the user in place as a new token.
FCoin, a cryptocurrency exchange that launched in May 2018, introduced a mechanism called “transaction mining,” whereby the volume of transactions on the exchange became top class. In response to this, several exchanges such as CoinEX and BKEX have implemented this system. Also, at the end of September 2018, the FCoin franchise FCoinJP opened, further boosting its top class transaction volume from the first day.
Is trade mining profitable?
If its sounds too good to be true…
I made a conclusion earlier, but even if it goes well you will only be able to profit a little.
Point ①: Even if you say trading mining, you cannot make money only by trading
As mentioned earlier, trade mining is a mechanism in which a portion of the fee is returned as an exchange token. In other words, it is no different from simply buying an exchange token. To make a profit with this, it is necessary not to lose in your trading and to raise the value of the exchange token.
Let’s look at the chart of FCoinJP ⬇⬇⬇
With FCoinJP, you can receive FJ tokens when you trade mine. FJ made headlines it was first listed, but as you can see in the chart, the beautiful pump-and-dump tower has been accomplished. As of July 20th, 2018, 1 FJ token has a price of approximately 0.07 USDT.
So, if you say how profitable people are with trade mining, you can only earn profits early on from dumping the FJ tokens (assuming you got in early enough to profit). However, if you were not in profit at that point, you can buy it when the price is flat and get a “dividend” to make you total investment somewhat positive. I will explain this in detail below.
Point ②: make a gradual profits with daily dividends
Dividends can be earned with tokens that can trade mine such as with FCoinJP. FCoinJP distributes 80% of transaction fees as a dividend every daily. Both BTC and ETH are also paid out as dividends. This makes it fun to check dividends daily.
Point ③: It is important that exchanges create constant excitement
Exchanges tokens can only be traded on their exchanges, with a few exceptions. Therefore, if the trading volume of the exchange decreases, the price of the token will become difficult to attach, and the amount to be awarded will also decrease. Therefore, I think many people think that “I will be late with FCoinJP, but I will make a profit with a token that will list next time.” Regardless, you will need to know the service in detail as the exchange is likely to bring more hype for something different in the future.
Also, as there are many exchanges that terminate trade mining in a short period of time, thus it is important to check whether the exchange is still conducting trade mining.
Exchanges where trade mining can be done as of July 20, 2018
The main exchanges where trade mining is done as of July 20, 2018 are as follows. It is good practice to refer to the points above and determine which exchange to use.
* FCoinJP (Exchange token: FJ)
* CROSS Exchange (exchanges token: XEX)(TBD)
“Trade mining” benefits are: ① Value of the token can increase ② Dividend can be received ③ trade volume is increased on the exchange. If these items align, it can benefit the user.
Cryptocurrency exchanges are in a state where they are desperately trying to increase users. “Transaction mining” is one of the business models born from this. “Trade mining” is a service with attractiveness, but excitement can be very volatile, so careful judgment is required as to whether or not to participate in trade mining.