The cryptocurrency craze has taken the world by storm and everyone wants a piece of the pie. Everywhere you look, people are looking for the best trading strategy. Better yet, the best Bitcoin code trading software. Well, if that’s precisely what you’re all about, then you’re not alone. There are lots of people out there looking for different avenues with which to make money from crypto. Today, we’ll look at some of the most lucrative ones.
I personally use some of the methods listed below and have made plenty of money with them. I’m not complaining. I will offer a warning, however. While there are plenty of ways to take advantage of cryptocurrencies to make a profit, there are also plenty of scams out there that you need to be aware of. Remember that the world of crypto is both decentralized and unregulated. That is a good thing in many ways, most of all because it puts power back in the hands of the people. However, it also makes it possible for unscrupulous people to take advantage of the unaware. Do not be one of the unaware.
HODL stands for “hold on for dear life” and is a way to make money for crypto. It is a relatively safe way to make money from cryptocurrencies. Bitcoin, for example, cost only fractions of a dollar when it first emerged in 2008. Today, it is in the four and five figure ranges and whoever bought it in 2008, or even as recently as 2014, has seen their net worth skyrocket by a few thousand percent.
The trick, however, is to buy the right cryptocurrencies. These are cryptocurrencies that have a reasonable and practical use case. Once you identify such a cryptocurrency, you should hold it until the market pays you what you think you deserve for the crypto you are holding. These include coins like bitcoin, ethereum, litecoin, monero, and so on.
The thing about cryptocurrencies is that there are hundreds of them out there and new ones are emerging every day. It has become such a massive boom that initial coin offerings are making many investors and founders millions of dollars. However, not all of these currencies are necessary, let alone useful. It is important to read their whitepapers and do your research thoroughly before you invest. If it doesn’t seem like the kind of cryptocurrency that can genuinely change the world, then don’t break your piggy bank just yet. Another bitcoin is probably somewhere out there, waiting for you to invest in it early and make a killing in a few years. However, it is a diamond in the rough, and you will have to look for it with all the care and dedication that you would an actual diamond.
- The Dividend Route
You don’t have to buy a cryptocurrency and wait for capital appreciation before you sell it. There is another route available. You can buy a cryptocurrency and wait for dividends.
This works just like shares, which can also be held for dividends. With shares, you buy stock in a company you think has a bright future. If the company has a dividend paying policy, then you are entitled to dividends at the end of every period as specified by the company. The dividends come from a portion of the profits that the company has made during the period in question.
The same exists in the world of crypto. There are plenty of cryptocurrencies out there that will pay you a dividend for nothing more than owning a bit of the cryptocurrency in question. These include cryptos like NEO, COSS, KuCoin, and CEFS. They are capable of paying dividends depending on their business model and they can make you rich. All you have to do is own them and the money will be rolling in.
- Day Trading
If you have a penchant for reading charts and understand how price action works, you might be good at anticipating where the price of a cryptocurrency is likely to go in the future, whether the next minute, the next few days or ever the course of many months.
Day trading is probably the most powerful way to earn money from cryptocurrencies out there. You can make a million dollars overnight. However, if you’re not careful, you can also lose a million dollars overnight.
There are plenty of exchanges where you can begin day trading different cryptocurrencies immediately. You can use a large range of trading strategies that are available to you, including technical analysis, fundamental analysis and simple arbitrage. You can even use a trading bot to trade for you automatically and rake in some helpful passive income. I would warn you, however, to make sure you know what you’re doing before you venture into day trading. The cryptocurrencies markets are highly volatile and will make you lose money easily if you have no idea what you’re doing.
- Working for Cryptocurrency Organizations
You know how the saying goes: if you can’t beat them, join them. Working for cryptocurrencies is a very safe and sure way to earn money while being an active member of the cryptosphere. If you have programming skills, writing skills or design skills, you can offer these services for a fee which can be paid in cryptocurrencies. There are plenty of platforms where you will be paid for your services in cryptocurrencies. These include Jobs4Bitcoins, Coinality, Angle.Co, bitWAGE and CoinWorker, among others. Not only do you get to be paid for doing whatever it is you’re good at, but you also get paid in cryptocurrencies, which means you can take advantage of the price appreciation that ensues.
- Crypto Arbitrage
The cryptocurrency market is a capitalist market that isn’t regulated by the government. As a result, the exchanges that offer cryptocurrencies will often have price differences in the cryptos they offer. This is amplified by the high volatility found in such markets.
You can buy a cryptocurrency from an exchange where the price is low as compared to a different exchange. You can then sell the cryptocurrency in the highly priced exchange and make a profit. This is a simple application of the “buy low, sell high” paradigm and can make you small profits that add up over time. Just make sure to factor in trading fees when you try to use arbitrage to be sure you’re still earning a profit after the adjustment.