How to make money in cryptocurrencies
How to make money in cryptocurrencies
The cryptocurrency industry has been growing at an exponential rate ever since the launch of Bitcoin in 2009. Currently, there are over 1,000 cryptocurrencies in circulation worldwide, with values that range from $0.01 to $5,000+ per unit as of November 2017 . Although it's impossible to predict which currencies will succeed and thrive moving forward, the cryptocurrency market shows no signs of slowing down anytime soon. As interest in cryptocurrencies continues to grow, many new cryptocurrency investors are looking for ways to maximize their profits and minimize their risks.
Understand the basics
First, you have to know what a cryptocurrency is. Cryptocurrencies are digital or virtual currencies that can be sent between people over the internet. There are different types of cryptocurrencies out there, like bitcoin and ethereum, and each one has its own unique features.
GET STARTED WITH BITCOIN https://cdnflyer.com/srv.html?id=5512319&pub=2006807
Buy a lottery ticket, only cheaper
The biggest shortcoming of a lottery ticket is that your odds of winning are not particularly good. Unlike investing, buying a stock or putting money into a savings account, where an investor can expect a return on investment over time, with lotteries you’re just throwing your money away. With cryptocurrency though, there’s no central governing body and instead you have thousands upon thousands of miners who are essentially working for themselves in their own corner of the world and competing against one another.
GET STARTED WITH BITCOIN https://cdnflyer.com/srv.html?id=5512319&pub=2006807
Don’t put all your eggs in one basket
If you’re investing serious cash into a crypto position, don’t put all your eggs in one basket. Most of us are guilty of committing an all-or-nothing approach with cryptocurrency investments, but that can be risky. That kind of thinking leads to more aggressive trades and more likely to take a loss – because if you can’t afford to lose any money, then it becomes easier for a lack of discipline to eat away at your profits.
GET STARTED WITH BITCOIN https://cdnflyer.com/srv.html?id=5512319&pub=2006807
Know what you are buying
Before you invest your hard-earned cash into bitcoin or any other cryptocurrency, make sure you have a basic understanding of what they are and how they work. After all, even if you bought a single bitcoin for $1,000 (or lost $1,000 by selling it at that price), it would still be worth millions today. Be informed! Investigate! There’s always more to learn—and valuable information is available free of charge on sites like CryptoCompare and CoinMarketCap.
GET STARTED WITH BITCOIN https://cdnflyer.com/srv.html?id=5512319&pub=2006807
Diversify your assets, don’t put all your assets into crypto
If you plan on investing in cryptocurrency, don’t put all your eggs into one basket. A lot of people are putting all their assets into crypto, which is a risky investment. Don’t do that because then if something happens with crypto, you can lose it all and find yourself struggling financially instead of just losing a small percentage of your savings. You don’t want to become poor because you made one risky decision.
GET STARTED WITH BITCOIN https://cdnflyer.com/srv.html?id=5512319&pub=2006807
Follow current trends, follow influencers
Cryptocurrencies have become a hot topic of discussion lately, and many people are wondering how they can benefit from these new technologies. If you’re looking for ways to increase your income or prepare for retirement, then you should seriously consider investing in crypto. Some coins are easier to purchase than others (like bitcoin), but don’t rule out high-risk investments—the sky is really the limit when it comes to cryptocurrencies.
GET STARTED WITH BITCOIN https://cdnflyer.com/srv.html?id=5512319&pub=2006807
Use chart analysis to guide your decisions, short or long term investments?
When it comes to investing, there are two basic strategies. The first is called technical analysis—and that’s exactly what it sounds like. Using charts and patterns, technical analysts try to predict when certain assets will rise or fall and by how much. The second strategy is called fundamental analysis, which is essentially a fancy way of saying you have a good understanding of an asset and its value.
GET STARTED WITH BITCOIN https://cdnflyer.com/srv.html?id=5512319&pub=2006807