The recent explosion in cryptocurrency is notable in terms of historic moments for the recent digital age. Evolving from a niche internet hobby into a global financial movement, Crypto has taken the world by storm. It has attracted seasoned investors and big businesses as well as newcomers and novices.
If you are new to crypto and just starting out with it, but looking to make money, then some of the tips below may well help you to kick-start your crypto journey. There are a few popular strategies that can be easily adopted and used to help beginners make money with crypto.
1. Trading
The easiest and most simple way to make money with cryptocurrencies is by trading. The two main methods would be through Day Trading or Swing Trading. Day Trading is where a person with crypto makes multiple trades in a single day in a bid to try and seek out the highest return from their investment. Swing Trading is not quite as responsive, requiring the trader to hold onto the asset for days or weeks to catch a price trend or moment where larger-scale fluctuation is happening, and trying to jump on this in order to get profits.
Other ways of trading crypto could be through the purchase of actual items using cryptocurrency in a bartering fashion, much in the same way you could do with fiat currencies, such as investments in NFTs. Or, you could ‘trade’ crypto by playing on iGaming sites and online casinos that use cryptocurrencies. This can be a fun and interactive way to gain profits in your crypto. There are lots of trusted UK casinos not on GamStop that support digital assets, and this can be a great way to participate in online gambling using your crypto to gain profits. However, it’s worth mentioning, just like if you were to step into a casino in Las Vegas, knowing how to play the games is imperative to ensure this is a worthy investment. You still need to have your strategy for this to be a worthwhile crypto trading space.
2. Buying and Holding
Another easy way of gaining profit from cryptocurrencies is through buying and holding. In much the same way investors have been operating for a long time with fiat currencies. It sees investors buy a cryptocurrency they believe will rise in value over time. During the next few months or years they hold on to it and sell the crypto they have when there is a significant increase than the purchase price. The idea is to sell at exactly the point before any significant downturns in the market.
Bigger, more stable cryptos such as Bitcoin and Ethereum are favoured for this strategy due to their long-term growth trends.
3. Start small and leave out emotions
Just like anything, when it comes to entrepreneurship, you want to start small and work your way up. You should give yourself time to learn the ways of cryptocurrency and start with a small amount of money so you don’t lose everything all at once. Markets can be volatile and testing the waters without risk attached is important for beginners to learn their strategies. In the same vein, when it comes to this sort of trading, you don’t want to do it based on emotions. Having patience and doing your research is without a doubt going to result in better profits.
4. Use loss-stop orders
A great way for beginners in cryptocurrency to buffer and feel more secure when starting their money-making journey is to implement the use of loss-stop orders. This tool automatically sells your crypto when it reaches a certain point. This limits losses and ensures that you have a level of security in the ever-changing market.
5. Track market news
This may seem self-explanatory, but staying informed about the market is crucial for remaining successful when trading cryptocurrency. Trends and social media buzz give you regular indications of how the market is doing, which can impact prices. Knowing how cryptocurrency works and how external factors are likely to affect prices can keep you on top of the market and make more informed choices about any trades you are undertaking.
