How to Make Money with Cryptocurrency

Posted by Frank Gogol

So you’re interested in getting into crypto and want to turn Bitcoin into cash. You’ve heard all of the success stories – people making millions of dollars by getting in early and selling when the prices are high. Or perhaps you have friends who make a steady income by mining cryptocurrency.

Everyone gets into the cryptocurrency field to make money, but not all end up doing that. A lot of people either simply give up along the way, or lose money because they do not properly understand how to make money with cryptocurrency. 

The cryptocurrency industry is still in its early stages of development. As the crypto-assets increase in price, more people come into the industry. These newcomers are always trying to figure out how to make money with cryptocurrency.

The good news is there are many ways of making money with cryptocurrency. Since 2011 there has been consistent growth in developer activity, social media activity, and the number of start-ups created in the cryptocurrency industry.

Here we take a closer look at how to make money with cryptocurrency.

Can You Make Money With Cryptocurrency?

Yes, you can make money with cryptocurrency. Given the inherent volatility of crypto assets, most involve a high degree of risk while others require domain knowledge or expertise.

Trading cryptocurrencies is one of the answers to how to make money with cryptocurrency. Although the daily average volume of cryptocurrency trades is just 1% of the foreign exchange market, there is a lot of volatility in the crypto market. So there is the potential to do short-term trades.

Even though the crypto market is relatively small at the moment, there is great growth potential. So you can also make money with cryptocurrency by investing for the long term.

Essentially, there are quite a few methods for you to make legitimate money with cryptocurrencies, other than the obvious way of trading. 

Let’s take a look at 6 strategies for how to make money with cryptocurrency.

6 Strategies for Making Money with Crypto

If you are wondering how to make money with cryptocurrency, look no further!  Strategies for making money with crypto rely on three mechanisms. 

Firstly, you can invest or trade in the crypto exchange market. You can do this without owning any crypto yourself, like investing in gold on the stock market.

Secondly, you can use the coin you already own to stake and lend coins to the system or other users.

Thirdly, you can participate in the blockchain system by mining or receiving coin rewards for work done in the system. 

Based on these three mechanisms, here are the six strategies for making money with cryptocurrency.

1. Investing

Investing is the long-term strategy of buying and holding crypto assets for some time. Crypto assets are generally well suited to a buy-and-hold strategy. They are extremely volatile in the short term but have tremendous long-term potential for growth.

The investing strategy requires you to identify more stable assets that will be around for the long term. Assets such as Bitcoin and Ethereum have been known to show a long-term price increase and can be considered a safe investment in this regard.

2. Trading

While investing is a long-term endeavour based on the buy-and-hold strategy, trading is meant to exploit short-term opportunities.

The crypto market is volatile. This means the prices of assets can increase and decrease in price dramatically over the short term. 

To be a successful trader, you need to have the proper analytical and technical skills. You’ll need to analyze market charts on the performance of the listed assets so that you can make accurate predictions about price increases and decreases. 

When trading, you can either take a long or short position, depending on whether you expect the price of an asset to rise or fall. This means you can make a profit regardless of whether the crypto market is bullish or bearish.

3. Staking and Lending

Read more https://www.stilt.com/blog/2021/06/how-to-make-money-with-cryptocurrency/

Published by Azuni Blogger

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