Cryptocurrency trading is the process of buying, selling, and exchanging cryptocurrencies for other digital currencies or fiat money (USD, EUR, JPY). Trading may also include the process of taking opposite positions in an attempt to make a profit. One cryptocurrency trade can involve multiple exchanges. The significant difference between coins like Bitcoin and Ethereum is that Ethereum has intelligent contracts which allow developers to build programs on top of it. So, let’s learn how to make money with cryptocurrency.
How to Make Money with Cryptocurrency?
Like with stocks, you can purchase shares from publicly traded companies; however, instead of relying on banks or brokers as intermediaries, you rely on software systems called “wallets” to manage your transactions digitally. Wallets can represent different types of investment strategies, including long-term portfolio management and speculative day trading.
Have you ever wondered how to make money with cryptocurrency? This blog post will introduce the different ways in which one can trade and invest in cryptocurrency. It’ll also explore some of the risks involved with investing in crypto.
What are the Strategies, You Must Master In?
There are multiple strategies when it comes to earning money with cryptocurrency.
If you invested in Bitcoin at an early stage, then you could have made thousands if not millions of dollars simply because you had the foresight to invest early on; however, if you purchased any other coin besides Bitcoin and it goes up in value, then that is considered a return on your investment.
Many online trading websites like eToro allow the user to create an account and purchase or sell cryptocurrencies based upon market trends or planned actions. There are tons of tutorials available on YouTube for people who would like to trade their own accounts, my personal favorite being Crypto Crow.
This strategy is used by experienced traders who have the knowledge necessary to grasp the market patterns needed for this strategy. If you’re interested in day trading, then I’d recommend looking into Cryptonick’s channel as he offers great insight into his daily adventures in the crypto sphere. If you’re still unsure of what to do, then this strategy is probably not for you.
Click here for deeper and statistical insights into different types of crypto trading strategies.
Staking And Lending:
This is one of the most passive ways to earn cryptocurrency. By holding coins in a wallet, you can earn more of that coin by staking it or lending it out so others can use its network. The risk involved here is losing your initial investment if the price should drop drastically, but for many, this is worth the payout later on down the road. I’d personally recommend looking into LUXCore’s investment program, which offers daily returns on investments between 0% and 10%.
This strategy encapsulates buying and hold strategy in addition to someday trading and arbitrage (in-between trading exchanges). If followed correctly, this strategy has proven to be very lucrative in a relatively short amount of time. The major downside of this method is that not all cryptocurrencies can be bought on an exchange. With the current amount of traders, the future may seem bright for this trading method.
Airdrops and Forks: free money, everyone likes free money! To be completely honest, this is how I made most of my returns. Airdrops and forks are when a blockchain (or company) distributes free tokens to their users; it’s like they’re distributing dividends for holding their tokens. The most popular method for doing this is an airdrop which happens once the token hits exchanges.
This is the safest way to earn money with cryptocurrency. Well, it’s not guaranteed, but you’re all in one position. If you do this, I’d recommend CoinBase, Gemini, or Binance: these are all regulated exchanges that mean that your account will receive insurance if something happens.
The idea of a lottery in cryptocurrency may seem strange at first, but give it a little thought. If you could purchase one-millionth of 1% of tickets for any given lotto and win every single drawing, how many do you think would participate? Everyone likes to dream big, and what better place than the crypto sphere? There are plenty of different types out there to pick from when it comes to buying tickets; however, I’m not here to endorse or promote any specific one because, by all means, they could just be scams anyway. Just remember that doing your own research can save lots of heartache down the line.
Watch for trends and make sure to stay up to date on any news. If you feel like an asset has reached its highs, look at what people think of it on Reddit, Bitcointalk, or Steemit: the consensus might be different from what it seems when looking at charts alone. Also, pay attention to trading volume; while 1 BTC being traded per day may seem low compared to other assets, this could still indicate a possible long-term trend.
Cryptocurrency Trading is a very lucrative way to make money online because you are able to make huge returns without making too much effort or spending too much time. There are already many people who have earned thousands of dollars just by simply investing in cryptocurrency by learning how to make money with cryptocurrency and then letting it grow without giving their money back into fiat currency. If you’re smart about your trades and understand how things work, then this strategy could definitely benefit you financially in the long run if done correctly.