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There are few things more intriguing right now for investors than cryptocurrencies. They use the latest technology, offer an alternative to fiat money, and have made users millions of dollars.
Consider the Winklevoss twins, Cameron and Tyler, whose names you may recognize from the 2010 film The Social Network, where they relentlessly tried to gain control of Facebook after Mark Zuckerburg “stole the idea.” They were some of the earliest adopters of blockchain technology, initiating an $11 million investment in 2013 worth at least hundreds of millions today.
Keep reading to learn for yourself how to make money with cryptocurrency and get started with your own investment that could potentially make you millions.
1. Day Trading
The cryptocurrency market is extremely volatile and can change price levels right before your eyes. Although that doesn’t sound like good news, it can be for individuals trading the market.
Typically, higher volatility means increased risk, but it also allows traders to cash in on the risk and make money. Bitcoin is by far the most popular cryptocurrency, both to invest and trade in, with the largest market cap of them all.
Cryptocurrency traders have made a living analyzing charts and banking on big returns. Luckily, there are not too many requirements to get started trading cryptos.
First, you will have to decide which trading platform you will use for investing in cryptocurrency. You will then have to fund the account and begin researching which digital currency is right for you. Taking a look at the price history and noting areas of support or resistance can be an excellent way of understanding how the price moves.
2. Invest Long Term
If you truly believe that cryptocurrencies are the future of banking, why not invest in the long term and watch the share price appreciate.
Cryptocurrency investors, particularly bitcoin investors, have learned this the hard way. Sometimes when you sell too early, the price can jump the very next day, leaving you with two choices:
- Buy at the higher price
- Wait for the price to drop
Neither sound very appealing, so if you are going to invest in cryptocurrency, make sure you are not buying at the very highest price levels.
Holding cryptocurrencies can be tough given their sudden price changes, but if you are not a seasoned trader, holding for an extended period may prove to be a more effective strategy for investing in bitcoin.
If you haven’t heard of forex yet, it’s the foreign exchange market where individuals from all over the world trade currencies. Here you can exchange U.S Dollars for Euros, and now you can even exchange for cryptocurrencies, like bitcoin.
The forex market trades all day, every day, and can be traded from anywhere in the world, making it an intriguing option for most traders. Many forex cryptocurrency brokers will also offer investors an option to leverage their position.
To leverage means to use borrowed money from your broker to increase your position. With forex trading, brokers offer high leverage, allowing its users to manage a larger amount of money.
When trading with leveraged money, it is referred to as “buying on margin.” The margin is the amount of borrowed money you are using in relation to the amount of money you have put into it. Make sure when Bitcoin trading in forex that you are managing risk, especially when trading on margin.
4. Earn It
Another option for making money with cryptocurrencies is by earning it and getting paid in digital currency.
If you own an online store or sell products online, setting up crypto merchant services is straightforward and easy to implement. Bitcoin is by far the most approved cryptocurrency, being accepted by major companies like
- Whole Foods
- And Overstock.com
On top of that, recently, financial giant Paypal announced it would allow users to buy cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. The announcement was re-assuring to crypto investors as digital currencies continue to move towards universal acceptance.
5. Write for It
Freelance writing is another opportunity for those who know the industry. As bitcoin and other cryptocurrencies become more prevalent, companies are looking for writers who can break down complex cryptocurrency ideas and translate them in a way readers will understand.
This is a great way to learn more about the industry and have an opportunity to earn digital assets.
6. Obtain Airdrops
Cryptocurrencies will have what they call “crypto airdrops” from time to time. This is when companies will deposit free tokens into user’s accounts. Companies will conduct airdrops for various reasons, but most are increasing awareness before an event like an initial coin offering (ICO).
Each year there are 100’s of ICO’s, making it hard for them to stand out and attract investors. So, they started these airdrops in an effort to spread awareness and make a name for themselves.
Investors will usually have to complete a task or have a minimum balance to qualify. They will often ask for personal information, so be aware of who you are giving that information to.
If you don’t need the funds immediately or in the near future, staking them can allow you to grow your funds. With crypto staking, you are essentially lending coins over a certain amount of time while gaining a return on the investment.
The more coins you are willing to put towards staking, the higher the return will be in the end. Staking helps strengthen the cryptocurrencies network, allowing them to grow quicker. Each blockchain might have different rules and regulations, so it’s important to check with them for requirements.
Investors looking to earn a passive income can benefit from staking cryptocurrency. Most crypto platforms have made it easy to begin, and you don’t need much equipment compared to what you would need for mining.
How to Make Money With Cryptocurrency: Ready to Get Started?
Cryptocurrencies are becoming more widely accepted among businesses and government agencies – leading investors to believe the technology is becoming adopted. Will cryptocurrencies become the way of doing finances in the future? All signs seem to be pointing in that direction.
For more tips and tricks on how to make money with cryptocurrency, check out the rest of our blog!