How to Make Money Trading Crypto Currency
Cryptocurrency
Cryptocurrency has expanded since the first Bitcoin whitepaper publication in 2008. Today many people are familiar with Bitcoin and cryptocurrency terms.
Over the years, the crypto market capitalization has positively changed, and prices fluctuate, increasing roughly from $10bn in 2013 to $237 bn by 2019.
Listed below are steps on how one can make money while trading cryptocurrency.
Investing
If you want to make long term profits, this is it as you can buy and hold assets.
Although cryptocurrency is unstable over the short term, it can be profitable in the long run.
Suppose you want to make more money, it’s advisable to trade during this time.
Due to its instability in the short term, you should consider a long-term investment.
Crypto Trading Platform
Time is the only thing that differentiates trading and investment. While trading explores short term opportunities, investment focus on the long term. You need specific skills and experience, (plus a crypto trading platform) to trade cryptocurrency.
Some of the skills include the ability to read and understand charts and analyze any technical pointers.
This way of earning requires you to understand past information on trading and use that knowledge to predict future prices mostly on short term sales.
To make money, an investor can either buy or sell using actual crypto coins or derivatives, like a contract for difference (CDFs), meaning you can invest in assets without really owning them.
Staking and Lending
Staking and lending ensure that investors make money with altcoins. By staking, one locks cryptocurrency coins in the wallet and receives rewards validating transactions on a proof of stake (PoS) network.
Instead of mining, it selects validators depending on the number of stakes committed to a stake.
PoS is energy sufficient and does not need expensive hardware.
Cold staking allows investors to stake coins in an offline wallet, including tether NEO and Stellar (XLM). Investors lend coins to the network by betting, which helps it maintain security and verify transactions.
Mining
Mining is one of the oldest ways of making money, and it’s an essential part of the proof of work (PoW) consensus.
It merely verifies transactions and secures a PoW network. Through block rewards, miners get new coins for their functions.
Mining requires special hardware to perform with users who possess technical expertise with ongoing investment.
Cryptocurrency trading is a profitable venture if you want to invest in it. You should be familiar with its operations and how the market trends fluctuate over the trading period.
With the necessary skills, you can reap huge returns from your investments.
Category: Cryptocurrency
