For the past years, many analysts and folks hail cryptocurrency to be the ‘currency of the future.’ This statement not only came from the crypto community but experts and analysts outside the industry as well. It has the potential to finally ease transactions and revolutionize the way we move our money.
But aside from all of these economic potentials, profiting as ‘early-adopters’ of new technology is not a new thing. Like how the internet changed Zuckerberg and Bezos’ lives, crypto users have these possibilities, too. Whether you are a trader or investor, making money off cryptocurrency trading is undoubtedly at the top of your list.
So, in this quick read, we will give you five ways on how to make money off cryptocurrency trading. Plus, we’ve also added some tips for all the newbies out there. Let’s get started!
1. Be A Crypto Miner
Everybody in the cryptocurrency realm is thankful for miners. Because of miners, cryptocurrencies, such as Bitcoin, have been running and having ongoing success. Not only they get rewarded with Bitcoin, but they also keep our coins sustaining. However, mining crypto is a passive form of income. After the hi-tech equipment’s initial setup, it is now a slow accumulation of cryptocurrencies.
Essentially, mining refers to verifying crypto transactions onto a blockchain and solving algorithmic hash problems to unlock new blocks. Both of these processes produce digital money for a miner.
2. Start Trading Different Cryptocurrencies
One of the reasons that cryptocurrency trading is so good is that Bitcoin, the most prominent cryptocurrency, is very volatile. With this, the price moves up and down within a single day. Thus, good traders always have their eyes patterns and predict coin’s trajectory to go up. With this know-how, they can buy before and sell the coin when the price will fall. This technique now leads to huge profits. It is clear that with the correct trading decisions, a person can gain lumps of money. But also, they can make that money disappear quickly. So, only invest what you afford to lose.
3. Buy and Hold
Probably, when you first heard of Bitcoin, you are thinking of buying and holding one. If we are going to look at it, it is considered one of the popular ways to make money in the cryptocurrency realm. Buying and holding, or called “Hodling”, is also one of the easiest ways to profit. The buying and holding technique are not specific to cryptocurrency as it works with other assets, like stocks or shares. It only involves buying a cryptocurrency, like Bitcoin, Ripple, Litecoin, or Ethereum, and holding onto that asset until it appreciates. From there, you can make a move to sell it and take the profit.
4. Accepting Crypto Coins
In the past decade, the acceptance of cryptocurrencies has been growing steadily. It is not only individuals interested in using and investing in them; it is also retailers that are now rushing to receive them. This again presents an exciting way to make money with cryptocurrencies. Also, it is one way to earn cryptocurrency, and all without even having to buy Bitcoin.
5. Invest in Trading Bots
Because of trading’s fame and profitability, many cryptocurrency trading bots are developed to make the process a little easier and less energy-intensive.
Trading takes quite a lot of attention and focus. It can also be time-consuming and require a mastery of the skill to be incredibly successful. There is unending learning that goes into trading, and to start with, it would be a good move to invest with a trading bot.
Some Friendly Reminders for Newbie Traders
1. Don’t Just Get in Because of Pressure!
Do not just get in because you fear missing out. This is one of the several reasons why many traders fail in cryptocurrency. From an external perspective, it is not fair seeing people make huge profits within a few minutes from pumped-up coins.
Beware of that moment when the signs seem to be screaming at you, saying you should jump in. At this precise moment, the giants and schemes are watching and smiling while you buy the coins at low prices.
What typically follows is that these coins end up in the hands of new and small traders. And what happens next is that red candles start popping up due to oversupply, and losses start trickling in.
2. Enter Each Trade With Intention
Although obvious, you need to have a purpose for getting into trading cryptocurrency. Whether your intention is to day trade or scalp, you must have a sense for starting to trade.
Trading of digital currencies is a zero-sum game – it always and must even out. You must realize that winning and losing come in sets. Someone wins because someone else loses.
The cryptocurrency market is well-ordered by the large ‘whales’, just like those who place thousands of Bitcoins in market order books.
And these whales have patience. They wait for beginner traders like you and me to make a single mistake that puts our investment to their banks due to needless mistakes.
So, whether you are a scalper or day trader, sometimes you are at an advantage not gaining anything on a trade than rushing into losses. From our experience, we can suggest you that you could only stay gainful on certain days or periods by keeping off some trades.
3. Be Smart With Your Risks
Risk is tangible – you can literally divide or multiply them with your investments. This is true of market profits when you start trading cryptocurrencies. Remember that wise trader never go in the direction of massive profits.
They would rather wait, be patient while gathering small but safe profits from regular trades. Think carefully about investing less of your portfolio in a market that is less liquid. These high trades come with more tolerance, while the profit target points and stop loss will be allocated further from the buying level. Click here to know more about cryptocurrency trading!
Did we tell you something new about how to make money off cryptocurrency trading? If yes, congratulations as you learned something new today. Make sure to share these five ways and 3 tips with your friends to let them know the wonders of cryptocurrency trading.