Getting Started: Gimme the Brass Tacks. What Does This Do For Me?

 Gimme the Brass Tacks

What is this thing anyway?

The Helium IoT Hotspot is a small, low power radio beacon working on the LoraWAN network, with a radio frequency of 915mHz in North America.  It utilizes other frequencies in other parts of the world, due to varying communications regulations.

You plug it in, do a simple setup/configuration via the Helium app and then just leave it be.  You never need to touch it again.

For doing this you get regular payouts in a crypto currency called HNT, which is the means of transaction across this network.

Helium (He) vs Helium (HNT)

See the post on this: He vs HNT

This is for the Helium IoT network and its utility token Helium HNT.  This has nothing to do with Helium He, the gas.

What does this do for me?

For most people absolutely nothing.  These hotspots are providing a service that someone ELSE uses.  You, as the hotspot host, are just providing space, electricity and an internet connection.

Other people, usually a business, utilizes the Helium network to operate their devices, which they are usually selling as a service to their customers.

Why Would They Pay Me?

Well they gotta pay someone for this.

Its pretty much exactly like how the cellular towers work.  Some guys builds a cell/radio tower, then rents space out to companies that need to put a radio beacon/transmitter on there (like AT&T).  Then that company sells access to that transmitter to its customers (like for your cell phone).

So in this case, they decided to make this a distributed network, and divide out the revenue accordingly.  It actually works better in this case as well, since they can have a much smaller grid spacing and a much more defined location data for certain types of these devices (like the pet tags or key finders).

Technically speaking the devices are also processing and verifying transactions across the Helium network, but you can ignore that unless you really want to get deep into the Helium Blockchain.

How do I cash out?

This is the easy part, well relatively easy.  You take the HNT that is deposited into your wallet and sell it on the open market, then transfer the proceeds into your bank account.

If you are into crypto currency already, this part is easy-peasy.  If you do any online investing, then this part is pretty much exactly the same as that.

If you don't do either, then its really just a few simple steps that you'll repeat every month or so.

Getting hooked up on the exchanges is probably the most difficult part, but they have simple phone apps that make it as easy as possible.  Submit a few documents proving who you are, wait a few days and bingo you are ready to roll.

See my other post about the specifics: Crypto Wallet Setup

Do I have to cash out?  Can I use the HNT for something else?

No you don't and generally speaking no you can't.

HNT as a crypto currency is only used to transact business across the Helium blockchain.  The people that will transact in HNT are those who are utilizing the network for their devices.  Its called a Utility Token in the crypto world.  It does not have a general transactional purpose.

That said, of course anyone can use any kind of asset for commerce with any other willing party.  If you have HNT and someone wants it, and they have some kind of product or service that you want, you can easily trade with them.

Some people are also simply investing in the HNT tokens in hopes for increased appreciation of the value.  That is a crypto currency investment strategy that is beyond the scope of this post.