Cryptocurrency is not for everyone. Only those people with an appetite for risky investments would dare to join the industry. Some people who are simply taking chances without studying the risks may end up with substantial losses. But there’s always a workaround to turn the odds in the investor’s favour.
Veteran investors once started with the same goal of earning more money until they became adept at handling risks and making more profits. As you take their shoes, the fundamental question is how to acquire investment returns. This digital trading platform offers various opportunities for such a purpose, and they’re up for grabs by anyone interested.
Enough research on the platform and protocols may be an essential job for new participants. You have to learn about your options on a cryptocurrency and what rules you have to observe as you get involved in the process.
There are plenty of articles online where you can read everything you need to know about the industry. It takes time, but it could be worth it. A much more effective way would be to absorb the wealth of trading information on a reputable platform like Bitcoin Loophole.
Once you fully understand the basics, it’s time to explore strategies to make some money from the following alternatives.
Table of Contents
Buying and Holding Cryptocurrency
This method of making money from cryptocurrency might be preferable to other alternatives for long-term investors. This would generally involve buying more cryptocurrency from a chosen exchange platform when the prices of such assets drop.
Once they are held in custody for months or years, and the prices eventually increase, the investor may decide to sell them for a considerable cost to make some profits. However, experts warned that before going into this business, it is crucial to read the coin’s whitepaper at the outset. This document contains essential information about the crypto’s stability and whether it could stand in the market.
Day Trading with Cryptocurrencies
Since not everyone has enough funds to keep locked away as a form of cryptocurrency investment, another alternative is investing with a short-term approach. This would involve buying and selling coins fast and dealing with price swings throughout the process.
Hence, unlike buying and holding cryptos, day trading entails higher risk. Experts recommend this method for people who have the confidence to time the coin markets. Buying coins at a lower value and then selling them at a higher price requires timing; hence, some people consider purchasing coins at different price points, also called dollar-cost averaging.
Arbitrage between Cryptocurrencies
Trading one cryptocurrency for another is an alternative to making money from this digital platform. It may also involve trading the same crypto on different exchanges. Generally, this strategy is preferred by investors who are accustomed to day trading and have a higher risk appetite.
This would essentially mean hands-on trading and could pose imbalances in the market, affecting investment profitability. A more complex option is transferring value between three currencies on the same exchange to get a larger quantity with the first coin. Investors may opt for this method when the value of a newer asset rises or falls in a shorter period.
Staking or Earning Interest in Cryptocurrencies
Investors who can afford to hold a large number of cryptocurrencies would normally prefer earning interest and fees. This can be acquired under the terms of not being able to sell their coin for a long time, which entails some risks.
On the other hand, earning fees, also called staking, would involve locking up a sizable stake for the long term to demonstrate an investor’s confidence in proof of a stake-based coin. Another venue for accumulating interest comes from lending platforms and crypto exchanges, where investors can loan out coins and get nominal interest in a fixed timeframe.
Directly Earning in Cryptocurrency
Interested individuals who have no capital to invest in cryptocurrencies have the option to earn cryptos directly. One way to do this is by signing up to a crypto exchange, like Coinbase, that offers a small number of free coins upon joining their platform. Some employers prefer to pay wages in cryptocurrencies rather than fiat money due to certain transaction fees. Although this may not entail large profits, it is still a good alternative to earn cryptocurrencies and start with small capital.
Risk Note
Cryptocurrency is a highly speculative asset. When you decide to buy one, make sure that you are familiar with the rules and protocols of the platform. You can explore the ways mentioned above to earn more money. The beginning may prove challenging, but as you eventually adjust, you might be able to increase your chances of making large profits.
