FREQUENTLY ASKED QUESTIONS
Whether you are a crypto veteran or first time investor you will I'm sure be used to encountering business jargon and cryptocurrency is no different. To help you navigate the world of blockchain technology and cryptocurrencies you may wish to first familiarise yourself with the most common crypto slang terms and hopefully gain some amusement along the way Cryptocurrency Slang - An Illustrated Glossary for Beginners | 99 Bitcoins
ARE THERE ANY FEES I NEED TO BE AWARE OF?
For cryptocurrency mining investments we do charge a small annual service & maintenance fee equivalent to 2.5% of your investment.
Note we do offer the ability to reduce this fee to a very nominal 0.5% for all investors who choose to make a matched renewable energy investment to offset the electricity costs associated with their investment.
IS THERE A MINIMUM AMOUNT OF MONEY I NEED TO INVEST?
While there is no minimum investment amount per se we would strongly encourage you to invest in increments equivalent to a minimum of one whole share. Currently this equates to a minimum investment of £900 sterling (although we do of course accept investments in a variety of cryto assets). Our preferred crypto currencies for receiving payments are either Bitcoin, Ethereum, Litecoin or either USDC/USDT stable coins.
WHAT IS CRYPTOCURRENCY MINING AND HOW DOES MY INVESTMENT GENERATE AN INCOME FROM IT?
A number of cryptocurrencies function using the Proof of Work (PoW) consensus mechanism including the biggest (by market cap) and most well known of all cryptocurrencies, Bitcoin (BTC). This means that a large number of very powerful computers are required to combine their computing 'hash power' in order to solve extremely complex cryptographical (hence 'crypto) algorithms in order to either conduct transactions on a PoW blockchain such as Bitcoin as well as to create new 'coins'. In simple terms this means that our super computers used for mining generate income from both mining new coins (a small percentage of which goes to every miner as a block reward) as well as an additional element paid as a further coin reward that is effectively a transaction fee which in the world of traditional finance would have been paid to the centralised processing (clearance) bank and/or a card issuer such as Visa or Mastercard.
These 'mining rewards' are generated both from the process of creating new coins as well as a % of the transaction fees all users pay when performing transactions on the blockchain.
As these payments accrue at a steady and generally reliable rate* (subject to normal elevated crypto coin price fluctuations) this results in our company being able to offer a reliable income stream from mining adjusted to reflect monthly variances in the underlying coin prices and overall market conditions (including any adjusted interest rates in crypto savings accounts).
If you wish to know more about different consensus protocols and crypto mining generally (including how this works at a technical level and the need to ensure crypo functions as a decentralised validation network) then you can find out more here What is Crypto Mining | Definition and Meaning | Capital.com
You can also learn more about the specific crypto currencies our computer data servers are helping to secure and from which we derive our income at Litecoin - Open source P2P digital currency and Home - Kadena