How to make money with cryptocurrency? What is the best way to invest in cryptocurrency? Today, let’s deep into these questions.
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.
- Pros:
- Easy to start
- Beginner-friendly
- Cons:
- Take a long time
Day Trading
If you are interested in making money with cryptocurrency in a faster way, then you can try crypto 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 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. So day trading requires investors more knowledge and skills. You can try to practice with a demo account on Mitrade, which provides a 50000 USD practice account. Once you have much trading experience, you can decide to trade in real account.
- Pros:
- Relatively low cost
- Cons:
- Need more skills
- Much time and energy
Cryptocurrencies 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, crypto wallets, and much of electricity. For most people, mining is a highly specialized industry that is not suitable for individual investors. Most Bitcoin mining is done in a large warehouse where there is cheap electricity. 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. In the early years, the bitcoin miners were able to earn coins relatively quickly. But by 2019, cryptocurrency mining is more complicated. Many professional miners have built huge arrays to mine, making it harder for smaller miners. Of course, you can join a bitcoin mining pool to be more effective, but that comes with a fee. I also find out some crypto miner app in the crypto industry, claiming to help you mine crypto coins. It’s more like a hobby mining. Don’t rely on the app to make great money for you.
- Pros:
- Earning potentials is higher
- Cons:
- High cost to start
- Relatively difficult
Arbitrage
Some investors also use the way of arbitrage to make money with cryptocurrencies. This means when you buy a digital coin in crypto exchange and then sell it on another crypto exchange. But honestly, crypto arbitrage is rare that probably won"t make you get rich quickly.
- Pros:
- Instant profit
- Low requirements for entry
- Cons:
- Good opportunities are rare
- High risk of losing profits due to the high volatility in the cryptocurrency markets
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. 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. Crash games are among the games where you can earn the most income.
- Pros:
- Easy to earn Bitcoin
- Cons:
- Have to spend much time
- Quite a small amount
