Ever since Cryptocurrency popped onto the mainstream, people like you have been wondering one thing - how can I make some quick cash and take advantage of the multitude of ways people are making money in this new and exciting market?
Their are a number of different and exciting ways that you CAN make money in the Cryptocurrency market, but tread lightly - some are harder and more expensive, whereas others are easier and more accessible to the public.
Below we cover the 5 BEST ways for you to start making money in the Cryptocurrency market today.
Ok, to get started, let's talk about the cream of the crop - day trading Cryptocurrency.
Day trading is a phenomenal way that you can generate some insane profits in the Cryptocurrency market. The Cryptocurrency market, especially Bitcoin, has become world renown for its volatility swings - swings that you don't generally see in traditional financial markets like forex and stocks.
With these swings, good traders are capable of generating thousands of dollars in profit by recognizing the proper setups, understanding market structure, and executing super precise trades.
Although day trading provides you with endless opportunities of generating profit, at the same time, it ultimately opens you up to some large losses as well - which is why you need to be careful.
So day trading can be a double edged sword.
So, if you do decide to take this route - we highly recommend doing your homework. In order to succeed traders need to educate themselves on how to trade properly, and how to manage an account with proper risk management. It does take time to develop a certain level of expertise and know how in order to truly take advantage of generating profits day trading cryptocurrency, but once you develop these skills, it can be incredibly lucrative.
If you’re interested in learning how to day trade cryptocurrency, make sure to check out our membership options. We have an in depth course & trading community where we provide daily analysis and insights so that you’re covered on everything you need to know about day trading cryptocurrency profitably.
Investing in Cryptocurrency
Moving on, let's get into one of the less risky ways to make money in this market - investing in Cryptocurrency.
Investing in Cryptocurrency projects is similar to day trading in some ways - but in others it's far different.
With day trading, traders are mainly relying on technical analysis, so all you really need to focus on is the price action associated with the asset as long as you're aware of any BIG fundamental news.
Where investing differs is you need a combination of technical AND fundamental analysis.
You see, you can do all the homework you want on a project, but if you're buying the asset at all time highs, it doesn't matter how good the project is, it's not likely you're going to be raking in profits within a few months - quite the opposite in fact.
Investing requires you to be a forward thinker - meaning you see a need for the project, and thus understand its inherent worth.
The next time you're vetting a project, ask yourself, Is there a need for this? Is this something that is undervalued? Is this a project that fixes a current issue?
What you want to do is essentially convince yourself why you believe that your coin's value today will be worth 5x, 10x or 10,000x its current value in the future.
Taking it a step further, its always a good idea to do an in-depth background check on what the Cryptocurrency plans to do, what the short & long term goals are, the tokenomics of the asset, as well as the people involved in the team. You want to make sure the people working on the project you're pouring your hard earned money into have the experience and know how to develop game changing technology that has immense potential for upside returns.
Nevertheless, if you do a little bit of work and research, investing can be highly lucrative. Sure, your shares could devalue and you may lose money on paper, but no one can ever take those shares or “coins” away from you, similar to what can transpire to inexperienced day traders that lose trades and liquidate trading accounts.
Make sure to check out our latest blog on what altcoin projects we believe could yield some some phenomenal returns over the coming months.
Mining
Another way you can start generating yourself some instant profits is to start mining cryptocurrency. The main difference here is you’ll need to invest some capital upfront in order to get yourself started.
In order to begin mining, you’ll need to utilize either an ASIC miner, a GPU or a powerful CPU. With ASIC and GPU Mining, if you have access to some cheapish electricity - this could be an amazing option for you to start raking in crypto - whether thats Bitcoin, Ethereum or another altcoin. But, before you venture into this, you’ll definitely want to check the costs of electricity, and the mining difficulty to make sure this is something that will provide your with profits down the line.
Within the mining sector though, this isn’t the only option. Theirs also the option of joining mining pools or cloud based mining.
Mining pools and cloud based mining allow people to mine Cryptocurrency without having to put in the upfront investment of purchasing ASIC miners and CPUs, so you’re essentially funding someone else to do it, and in return, you’re collecting a share of the profits.
One cloud based mining platform we’ve used in the past is called - Hashflare, its been great, the platform is incredibly easy to use. It gives you the option to mine either Bitcoin or Ethereum and with Bitcoin nearing all time highs once again, cloud mining could be more profitable than ever.
Next up, one of our personal favourites - staking.
What is Staking exactly? How will it generate you income?
Simple.
Staking Cryptocurrency in a nutshell is to essentially hold a cryptocurrency to verify and support transactions on the network. In exchange for doing this, the network will provide you with a reward, similar to earning interest.
Staking is without a doubt sure fire way to earn more crypto with the crypto you already own.
Win - win.
If you aren’t participating in it already, why aren’t you?
If you think about it, you may as well have the crypto sitting in your wallet earning you some passive income while it trends in market cycles. This way, not only will you be receiving the reward for staking, but you’ll also be receiving the gains when the the project increases in value.
If you’re interesting in starting to stake your Crypto, these are a couple of our favourite staking platforms which we currently use daily:
Crypto.com (earn up to 10% p.a.) - if you stake 2500 CRO you get a $25 dollar bonus when you sign up!
Airdrops
Lastly, we have airdrops.
Airdrops are simple.
Basically various cryptocurrency projects will distribute free tokens via an “airdrop” in order to advertise the new coin. Often in exchange for the free coins, you’ll need to do something in return such as retweet a post on twitter, or sign up on a specific exchange.
What this does is basically promotes the project by making its presence known to the community, and the people who participate get some free coins in return - kids stuff.
Check out one of our favourite Airdrop websites: Airdrop Alert
In any case, the cryptocurrency market has a wide variety of different ways you can generate profits, its just dependent on your personal preferences, expertise, and financial situation.
Regardless of where you currently reside with that spectrum, their are a number of ways you can profit and take advantage of profit making in the Crypto space.
Information is the key, staking is one of the wonderful ways earn continuously. That's one of the reasons I prefer using Atomic Wallet, not only security measure but also help in making staking easier. Info concerning stakeable coins in Atomic - https://atomicwallet.io/staking