Great allure lies in the rising cryptocurrency market with the promise and availability of a decentralized way for everyone on the network to make money. Cryptocurrencies are the some of the hottest investment assets flying around backed up by a strong and still uncompromised network. So far, the digital currency is holding on well as a rising alternate monetary system.
How do I make money in the Cryptocurrency market?
There are three ways with which you can make profit from cryptocurrencies. They include:
- Ownership of the cryptocurrency tokens
- Trading in cryptocurrency
- Bitcoin Mining
Ownership of Cryptocurrency
Two of the most promising virtual currencies are Bitcoin and Ethereum. These digital tokens have a chance of one day becoming the major world currencies possibly edging out the use of traditional currencies such as dollars and Euros.
Ownership of any of these Crypto-coins means that you will own part of the Bitcoin or Ethereum network. It means that if ever cryptocurrency becomes fully globally accepted, the value of the coins will rise making you much profit.
It’s important to note that this is a long-term strategy pegged on the success of cryptocurrencies in a silent monetary revolution. In the recent past, users of this strategy have been very successful with the price of the cryptocurrencies appreciating up to 20-fold in just one year.
However, this strategy has been dented by the volatility of the cryptocurrency market which has then sent the currencies tumbling by more than half their previous value.
Trading in Cryptocurrency markets
Just like stock markets, The trade involves purchasing the tokens at low bitcoin prices and selling them when prices are higher. This requires monitoring of your cryptocurrency markets to make a profit through the trade of the tokens.
To begin trading, set up an account with a reputable online exchange. Once verified, deposit payments through your bank or via bank transfer to your bitcoin exchange who will then credit the amount to your account.
Note that exchanges charge a small percentage as transaction fees. With the money now in your exchange account, you can buy any of the listed cryptocurrencies. Beginners can also choose to hire a Cryptocurrency trade broker whose primary duty is to manage, store and trade the bitcoins on your behalf and at a profit.
For individuals wondering what exactly to look out for when trading, here are a few tips:
- Use prediction markets. These are sites that allow users to copy trades from the smartest and most experienced of members.
- Learn to ride the tide. Just like stock markets, crypto-assets have a long-term trend it follows for months or years. Learn to ride the trend for long-term gains
- Do both technical and fundamental analysis. This will be key in your ability to predict the trend giving you an idea on when to buy bitcoins and when to sell.
- Swing trading. The value of Bitcoin and other cryptocurrencies rises and falls within a very short time. Traders can take advantage of these short rises and falls to make money.
The vast cryptocurrency network is maintained by a network of computers working to index all transactions into the ledger. An individual can invest in the purchase and running of these rigs and get rewarded in bitcoins depending on the computational power provided in solving a given block.
Although making money with the trade of bitcoins seems easy, it is highly recommended that you only invest what you are willing to lose. A safe place is also required to keep your private key which holds access to your cryptocurrency.