The best way to invest in cryptocurrency? Today, let’s deep into these questions.
Even if cryptocurrency investment has been an irreversible trend, it’s still not easy to make money. Though some people have earned some money by good luck before 2 years, nowadays most of the winners will take profits by their deep analysis, great skills, and rich experience.
Ways You Can Make Money with Cryptocurrency
1. Long Term Investing
This is the easiest way to make money with cryptocurrency. Many people decide not to trade cryptocurrencies, but instead buy a certain number of coins and then put them in their wallets until the price rise so that they can make profits.
The premise of long term investing is that you have researched and believe the cryptocurrencies you invest will get more market share after some time.
Although there are many different digital coins, we recommend that you pick the safe and highly liquid currencies, such as BTC, LTC, and XRP. These coins have been popular on the market. If you invest in a new crypto coin, it may be cheap, but the coin is likely to disappear after the trial of the market.
Currently, many people earn a big profit from Bitcoin, because they bought Bitcoin in the year of 2011 or 2012, and they hold these digital coins for several years even if the price of bitcoin had raised to 8,000 USD.
2. Trade crypto CFDs
Any product with price fluctuations can be traded in the form of a Contract For Difference. CFD actually is just a financial tool. With CFD, you can do leverage and margin trading on bitcoin.
You can be a buyer or a seller. You only earn the difference between the ups and downs. It's popular to use CFDs to hedge physical portfolios for investors, especially in volatile markets.
This makes this a very profitable way to make money, you don't buy or own a real cryptocurrency, but you just hold a contract and keep it in circulation. With cryptocurrency CFD, you are able to trade 0.1 bitcoin with a small deposit as an initial margin.
Pros:
Low cost to start
Increase profits through the use of leverage
The ability to open long/short positions without restriction
Easy trading from anywhere with computers and mobile
3. Day Trading
If you are interested in making money with cryptocurrency in a faster way, then you can try day trading, which is a trading strategy where investors buy and sell orders for multiple times in one day.
The high volatility of Bitcoin and other cryptocurrencies makes the crypto market like a roller coaster, which is ideal for day trading, as during the day you will have enough ups and downs to get a good profit.
Ideally, you'll look for a low-priced opportunity to buy in and then sell it at a higher price. Though this may be a small income, in the long run, this can bring considerable profits to investors.
Day trading is a skill just like anything else. If you take more time to understand how it works, then it may be a full-time adventure.
Of course, no one will win in every trading, but the goal of day trading is simply to win more times.
Pros:
Relatively low cost
4. Mining
Mining your cryptocurrencies may be more difficult than the other ways, but it may be more profitable when you mine successfully.
Although the mining process can be done from a computer, you still need basic software, specific hardware, a crypto wallet, and much of electricity. For most people, mining is a highly specialized industry that is not suitable for individual investors.
Sometimes, the hardware is also expensive. For example, during the bull market in 2017, the price of GPU raised steeply, while as the market collapses, you can buy good mining equipment with less cost.
5. Arbitrage
Some investors also use the way of arbitrage to make money with cryptocurrencies.
This means when you buy a digital coin in cryptocurrency exchange and then sell it on another cryptocurrency exchange at a higher price. If you can do this soon, this may be an easy way to make money.
But honestly, crypto arbitrage is rare that probably won't make you get rich quickly
6. Cryptocurrency faucet
If you are finding an effective way to get profit from small amounts of cryptocurrencies, then Crypto faucet may be the best choice.
Crypto faucet is like a dripping faucet, actually is a website, releasing small amounts of cryptocurrencies such as Bitcoin every few minutes. Of course, you need to do some tasks according to the website requirements.
The crypto faucet website will make money with advertising and traffic. While you’re waiting on the page, there will be advertisement placements.
ICO
ICO means Initial coin offerings which are similar to crowdfunding. ICO allows entrepreneurs to raise funds by creating and selling their virtual currency without risk capital.
It is the potential to make a huge return on your investment, but it also brings huge volatility and risks.
ICO has a lot of pitfalls. You have to be careful about choosing the right ICO. If the ICO coin is not very valuable, you will run the risk of losing money.
Therefore, you’d better invest only when you think the project is good enough, and only invest in what losses you can afford.
Pros:
Opportunity to invest in perspective enterprises at an early stage
Low entry threshold
No commission, no taxes
8. Crypto gaming
This is also a fairly common way to earn Bitcoin, playing games to receive BTC, it is similar to joining the Bitcoin taps above. There will be new titles released and they need to have more people download and play games to make the game more popular, these games will award BTC prizes to users when downloading and playing. Your job is simply to have a phone and download these games, then sit and play. After completing the game, you will receive a certain amount of BTC.
9. Be a blockchain developer
Blockchain development is not much different from regular web development. Many developers have developed their own distributed application (DAPP) on some platforms, such as Ethureum and NEO. Then, you can earn money by displaying ads, purchases, subscriptions, etc. within the app.
However, creating and maintaining a common blockchain is not easy. First of all, the code is public and visible to everyone. Anyone can view the code and check for errors and vulnerabilities.