Cryptocurrency, aka crypto, is a decentralized digital asset/money used to buy and sell online products and services. Such a decentralization is based on the blockchain technology that is utilized on decentralized networks (distributed nodes and validators for validating, managing, and recording crypto transactions) and secured by a strong cryptography algorithm (SHA-256, Ethash, Scrypt, RandomX, etc.). For that, cryptocurrencies use decentralized institutions, such as DEXes (decentralized exchanges), as opposed to centralized institutions, such as traditional banks and PayPal, for fiat currencies [1-3]. Cryptocurrencies, such as Bitcoin (BTC), Ethereum (ETH), and Dogecoin (DOGE), are a subset of digital currency, aka digital money , and most of them can be mined, staked, and traded for profit, as investments.
The provided infographic demonstrates the life-cycle of earning and investing cryptocurrencies from:
- mining crypto through Proof of Work, Proof of Connectivity, Proof of Coverage, Proof of Credit, and Proof of Storage,
- developing and selling dApps (decentralized applications)  and NFT (non-fungible token) ,
- utilizing auto crypto trading bots and manual crypto trading through DEXes/markets,
- borrowing and lending crypto through DeFi (decentralized finance) projects , and/or
- holding crypto for a period of time through Proof of Stake.
- Purchasing miner(s) and related components are considered as risk factors in investments, a fair amount of research and understanding what mining demands are required. For more information, please check WhatToMine and WhereToMine websites.
- Electrical power consumption is considered as a risk factor in investments, a fair amount of research and understanding how the 120V/240V system works are required. For more information, please check Newegg or OuterVision power supply calculator.
- Market capitalization and fluctuation for crypto pairs are considered as risk factors in investments, a fair amount of research and understanding the analysis of crypto markets are required. For more information, please check CoinGecko or CoinMarketCap websites.
- Different crypto wallets are used in action based on their simplicity, portability, ease of access, and security. For more information, please check this article.
- Crypto wallet should match the sent, received, and earned cryptocurrency.
- Banks, PayPal, DEXes, and others networking fees should be taken into account.
 K. Ashford and J. Schmidt. “What is cryptocurrency?” Forbes.com. https://www.forbes.com/advisor/investing/what-is-cryptocurrency (accessed Jul. 24, 2021).
 J. Royal and K. Voigt. “What is cryptocurrency? here’s what you should know.” NerdWallet.com. https://www.nerdwallet.com/article/investing/cryptocurrency-7-things-to-know (accessed Jul. 24, 2021).
 J. Frankenfield. “Cryptocurrency.” Investopedia.com. https://www.investopedia.com/terms/c/cryptocurrency.asp (accessed Jul. 24, 2021).
 M. Grant. “Digital Money.” Investopedia.com. https://www.investopedia.com/terms/d/digital-money.asp (accessed Jul. 24, 2021).
 J. Frankenfield. “Decentralized applications – dApps.” Investopedia.com. https://www.investopedia.com/terms/d/decentralized-applications-dapps.asp (accessed Jul. 25, 2021).
 S. Jablonski. “Are NFTs the new crypto? A guide to understanding non-fungible tokens.” Forbes.com. https://www.forbes.com/sites/forbesbusinesscouncil/2021/06/09/are-nfts-the-new-crypto-a-guide-to-understanding-non-fungible-tokens (accessed Jul. 25, 2021).
 V. Mosinegutu. “15 Best DeFi crypto projects to look into in 2021 and their tokenomics.” Coinzilla.com. https://academy.coinzilla.com/best-defi-2021 (accessed Jul. 25, 2021).
This Cryptocurrency Investments Life-Cycle infographic is for educational purposes only and is never intended to be financial investment advice.