What is cryptocurrency harvesting?
What is cryptocurrency harvesting and is it possible to earn money with it. How difficult this process is and whether it is worth the attention of crypto enthusiasts or are there more affordable ways to earn cryptocurrencies, we will consider in this article.
The blockchain of this cryptocurrency is formed using Proof-of-Importance (POI). This is the algorithm of the so-called proof of importance. Participants in such mining form blocks and ensure the operation of the network. As a result, they receive a reward for this – they “harvest”. Thus, the very process of ensuring the life of the NEM blockchain was called harvesting.
What is required for harvesting?
In the process of mining NEM, several factors are taken into account that affect earnings. This:
- the amount of cryptocurrency in the account that participates in mining;
- the number of transactions in this account. In other words, its activity on the network;
- the amount of time the account has been online. That is, how long coins are in this account.
In addition, there are account requirements:
- it is activated. That is, its public key must be visible on the network. To do this, you need to conduct an outgoing transaction from your account;
- on this account for a certain time must be from 10,000 active XEM. They must “ripen” before becoming active. This process needs to be studied in more detail with the help of technical instructions for working with this blockchain.
Remuneration of participants who ensure the life of the NEM blockchain network is carried out according to a given algorithm. Accounts that support the network are credited with XEM. Since they are already initially all minted in a total of 8,999,999,999 XEM, mining does not take place in real time.
Tokens are simply credited to accounts participating in maintaining the network that meet the above criteria. The more and longer the account is active, the more important it is to the network. Depending on this, accounts for confirming transactions receive a reward from commissions in the network.
The income for participating in harvesting is relatively small for the cryptocurrency industry and is approximately 4% per annum. For earning on cryptocurrency, these are quite low figures. However, harvesting is considered a long-term investment