Making Money with Cryptocurrency

For those who know where to look, the exciting world of crypto offers money-making opportunities. Although the market as a whole remains extremely unpredictable, new investors are seeing this trend and beginning to learn how to profit from cryptocurrency.

How to make money with cryptocurrency

• HODL

The term HODL refers to the practice of purchasing cryptocurrency and keeping it for a longer period of time. The word was coined in 2013 after a member of BitcoinTalk made a semi-coherent post that went viral. In the message, the user said that the best strategy in bad market conditions is to hold on to your coins, despite the fact that the rest of the market sells in response to fear.

We can see a long-term trend for price appreciation when looking at Bitcoin, Ethereum, and other common currencies. While looking at historical trends, even if the market goes through bullish and bearish cycles, the price of these cryptocurrencies still ends up higher than its previous peaks.

The essence of HODL is that you bet on the fundamentals of a cryptocurrency and the development of the crypto industry as a whole by buying and holding cryptocurrency for longer timeframes.

• Swing Trading

Cryptocurrency trading comes in a variety of forms. Swing trading, on the other hand, is by far the most common and comes closest to instant gratification. In a nutshell, it's a trading system in which a person looks at candle charts and uses price indicators to figure out when the best time is to buy and sell cryptocurrencies.

Swing trading can include dozens, if not hundreds, of entries and exits (trades) every day, and it necessitates a great deal of focus to be effective. Also with stop-loss mechanisms and open instructions in place, this is not a procedure that can be run on autopilot.

Swing trading is based on local highs and lows, with the aim of buying low and selling high in the short term.

Many trading platforms now allow you to trade using leverage. In a nutshell, swing trading helps traders to benefit more from smaller price swings. It is, however, much more dangerous to succeed.

• Inital Exchange Offering

Shortly after the ICO bubble burst due to a lack of regulatory oversight, Initial Exchange Offerings (IEOs) became common. The public praised the modern, more promising fundraise model as a safer way to acquire new coins.

Binance was the first exchange to introduce IEOs, and several other prominent trading platforms have since followed suit. The public's enthusiasm for IEOs is so strong that customers must enter a lottery to be considered.

IEOs are almost always highly profitable, regardless of the network on which they are hosted. If you manage to invest a small amount of money in new cryptocurrencies, you might see a significant increase in value in a short period of time (usually hours).

Coin offerings are intermittent, implying that they are not long-term. As a result, one might argue that investing in IEOs is purely a matter of chance rather than a strategy. Although you might not be able to participate in all IEOs, it is a good strategy to have in your back pocket just in case.

• Staking

Staking is one of the first strategies you'll come across while searching for ways to make money with cryptocurrencies. Staking is a mechanism in which an investor merely retains or temporarily locks his coins in order to gain passive income.

With multiple options being launched in the crypto markets, staking has become a lot more "colorful."

• Flexible staking – You can unlock your coins at any moment, but you'll get a lower interest rate.

• Locked staking – You won't be able to open your coins, but you'll earn more interest.

• Defi staking – Put your coins in a smart contract and gain the most interest.

The procedure can be compared to a highly lucrative savings account that pays a high rate of interest on the coin you want to store for a longer period of time.

Users can stake their coins for a short or long time and gain up to 25% per year in interest.

Users who want to engage in Yield Farming, which is also becoming accessible on centralized exchanges, will raise this amount by up to 60% or more.

• Referrals

You should think beyond the box instead of focusing on how to make money by buying and selling cryptocurrency. Building a referral list is one of the easiest ways to receive a reasonably consistent sum of money on a monthly basis (affiliate marketing).

The aim is to get as many people to sign up as possible by using your exclusive referral code. Here are some inventive ideas to assist you in achieving your goal:

• Using social media sites, establish your authority (groups, channels, pages, etc.)

• Organize meetups to teach people about cryptocurrencies and how to make money using it.

• Use your referral code to introduce your friends and family to cryptocurrencies and assist them in signing up.

When a customer joins using your referral code, you'll get a cut of the commission they pay when they trade. Although the sum is small (often less than 1/1000th of the trade), it can easily add up if a large number of people make several trades on a regular basis.

When it comes to making money with cryptocurrency, referral income is neither the most lucrative nor the most straightforward route. It does, however, provide some extra revenue to augment your current earnings.

Conclusion

Cryptocurrency is sometimes free and not. DYOR is always a good start when wanting to make money out of your cryptocurrency.