Making Money with Cryptocurrencies Explained
You have probably heard of the term cryptocurrency. What you may not know is how to actually make money from it. Here’s what you need to know about the investment opportunity that is available to you.
Buying And HODL
This is the traditional way of making money with crypto. It refers to simply buying and holding a coin to make more money. The term HODL derives from the misspelling of hold, which became the norm in the crypto world. This strategy will require you to identify a crypto asset that could rise in value over time and buy it while it’s cheap. You hold it until the price of the crypto peaks and then sell the crypto for a profit.
You can get started for as low as 10USD by buying crypto from a reputable marketplace exchange, such as Paxful. With Paxful, you’ll be able to buy Ethereum as well as another crypto almost instantly, from a range of different sellers all with reviews, so you know if you can trust them.
Day trading is arguably the most common way in which people trade and make money with cryptocurrency. Day trading is a skill that not many can master, however, as many make the mistake of thinking all you need to do is simply hold an asset until the value rises, but more work needs to go on than that.
For example, as an individual looking into day trading, you should be open to learning certain analytical and technical skills. This will allow you to analyze the market in general, based on charts and data, of different listed assets. This way, you will be able to work out the best times to trade and earn money from crypto, as well as being the most rewarding.
As you may or may not know, the cryptocurrency industry is mostly unregulated, with more government intervention inevitable. For now, this allows for lots of fluctuations with things such as the price of assets and products, and how it is sold.
Most of the time, it will be up to the exchange sites and the peers themselves to set the prices, to help avoid the difference in volatility and the liquidity of assets. If you manage to do your research efficiently, you will be able to effectively make money by buying at the right time from the right place, as prices can vary anywhere from 5%-30% depending on circumstances.
What you might not know, is that you can purchase various cryptocurrencies and hold them for their dividends. It all depends on the coin you’re buying. However, you shouldn’t get too carried away with it, as the prices are volatile. Also, just like traditional stocks, not all of the coins that pay out dividends will be suitable for your portfolio.
Like other cryptos, you will have to be in a position to analyze and research certain coins. This will allow you to find the right coins and the right time to invest, in line with your investment objectives and goals.