How to make money with cryptocurrencies
With the advent of crypto-currencies, making money is the biggest craze now, even much more than before. Millennials are more infatuated with money and it definitely helps that we’ve been in a bull market. With the rise of social media, it is much more prevalent to show money off. Well cryptocurrencies are a great way to make money (or loose it if you jump without understanding them). 2017 saw a crazy influx in prices of different cryptocurrencies that no one could believe. We finally saw a nice correction so making money is clearly in sight. Making money in cryptocurrencies is not the easiest task as it is a very volatile market. You can wake up and see 30% of your gains disappear overnight. Volatility is a risk factory you have to take in before putting any money on the table.
Another thing to remember is that you want to make sure you never put more money into an investment you’re willing to lose. You want to take every investment with a grain of salt. With that said, always do your own research. Never speculate because that is a very easy way to lose your money. Always look at the different aspect and technical information.
Capital gains in cryptocurrency are the best way to earn your money. Equity markets are based off of capital gains and having patience will help you in the long run. When you get emotional with your investment, you automatically lost. Treat investments how you do when they’re running up. Just how you don’t care about taking your money out then, don’t do it when it is going down. Taking profits is good but make sure you plan for it. Always know when you’re entering in a stock or crypto and when you’re exiting along with your profit taking. Becoming emotional can cause you to make impulse decisions which can lead to selling too early. In a bull market, everyone is a genius but in a bear market everyone panics. This is why they say panic sellers have weak hands because they can’t hold onto their
When it comes to cryptocurrencies, passive income is still a viable option. Passive income can come in many ways but for Bitcoins, there are different ways to go about it. Mining and staking are the two most common ways to earn passive income. Mining is using specific hardware equipment to solve difficult mathematical equations. Not only do you unlock more coins this way but you are also helping confirm transactions on the blockchain. Staking is the act of keeping your coins in your digital wallet and keeping your wallet open on a device like a computer. There are other forms of income like getting airdrops or forked coins that you already held.
Day trading is the hardest way to go about investing your money. You have to sit in front of a computer while checking different analysis charts and you can still be wrong. You are also not making huge increments of money either. Training yourself to learn the stress of the market going up and down is hard. A story about a person investing at the peak of the market was published of how he only invested money at the peak of each cycle. Over the years, he had still made more money than someone trying to time the market.
Alex has been very deep in the cryptocurrency space for the last 3 years soaking in everything there is to know. With such a new industry popping up, Alex is constantly sharing about the latest news and updates in cryptocurrencies on CoinPupil. To learn more about him and his work, read here.