You’re tired of working your fingers to the bone to be a more successful person but you want to stop doing so, right? You’ve heard all the stories of crypto millionaires and billionaires, who made millions and billions from their coins. Yeah, it sounds like a swindle. But fortunately, it is not. Making money out of the crypto industry has become a second job for so many people. So, if you are thinking of doing the same you should start. You’ll often find day traders using automated trading programs like Immediate Edge that buy a particular token when it has fallen to a certain price and sell it when it has fallen to a certain price as well.
Below, we’re going to talk about some of the best ways you can use cryptocurrency – whether it be investing, holding, or even day trading – to make a good profit and supplement your income.
Is it possible to make money from cryptocurrency?
You might have doubts about whether you can make money with cryptocurrency or not. The answer is yes, you can! So many people in the world have made a lot out of cryptocurrencies. But the question is how? The answer is that they use their cryptos in different ways.
Some people invest in cryptocurrencies and hold onto them, hoping to make a profit when the price goes up (known as “hodling”). Others trade on various markets, buying and selling cryptocurrencies as quickly as possible to make a profit (this is called day trading). Still, others create their tokens on blockchain platforms like Ethereum or NEO. Also, if you have a computer with a decent processor and enough RAM, you can even use it to mine cryptocurrency.
Ways to make money with cryptocurrencies:
1. Investing:
Investing is one of the most practiced and best ways to make money with crypto. Crypto assets are especially suited to a buy-and-hold sort of investment as they have a lot of short-term volatility but an amazing potential for long-term growth.
The most effective way you can do your investment is to buy well-performing crypto through a trading platform, hold it for its price to grow over time, and sell it at a higher price to earn profit. This is known as “hodling” which means holding your coins, which can be fun but also extremely risky because there are no guarantees that the price will go up at all.
Investing in crypto assets isn’t just about making money from holding them; it’s about building wealth over time as well. It’s like investing in stocks, bonds, and other traditional asset classes that take decades or even centuries to build up their value.
2. Trading:
While HODLing is a strategy for profits in the long term, trading (commonly called day trading) seeks to exploit the daily rises and dips in the prices of cryptocurrencies to make a profit.
With cryptocurrencies, day trading could mean buying low and selling high. This type of trading is generally done with larger amounts of money and it involves multiple trades on different exchanges within an hour.
Day traders do not buy and hold cryptocurrencies for long periods because they want to take advantage of short-term price movements. They tend to trade more frequently than HODLers because they aim to make the maximum amount of money that can be made in an hour or two.
3. Mining:
The hardest but the most rewarding way to get rich using cryptocurrency is to mine the crypto yourself. There are two options for you and you can choose any one to mine cryptos.
- Solo mining:
This is where you do it all on your own and hope that you get lucky enough to find a block. The problem with solo mining is that it’s pretty much a gamble, and if you don’t have access to an ASIC miner, then it will be a lot more difficult than everyone else who does have access.
- Pool mining:
This is where you join a mining pool with other people. Here finding blocks to verify is easier than solo mining. Mining pools have been around for quite some time now, but they’ve only recently started taking off in popularity due to Bitcoin’s rising value.
Conclusion:
There are hundreds of ways to get rich using cryptocurrency. But, if you’re looking for a simple and easy-to-understand way for beginners to start making a buck using decentralized currency, this guide is exactly what you need! I have written a comprehensive guide on getting started.
After reading through the material, you will understand enough about cryptocurrency to decide if it’s worth your time and hard-earned money.