Cryptocurrency has become a global phenomenon that was designed to help people conduct financial transactions using digital currency. Many people continue earning profits from cryptocurrency which is flexible and widely available. If you desire to become one of the investors, here is how you can make money trading cryptocurrency.
Buying a cryptocurrency and holding it
You can start by investing wisely by selecting proper unicorns. A safe method of gaining from cryptocurrency is purchasing a good one and keeping it until it obtains a market share that is fair. Some of the cryptocurrencies that have high value include Ethereum, Litecoin, and Bitcoin. Over time, these cryptocurrencies will appreciate against other fiat pairs like EUR and USD.
If you are limited in electricity, you can stake your cryptocurrency over a Wi-Fi connection. The crypto coin can validate the transactions you make on a blockchain. From this, you get rewards due to putting your currency in a pool. You can hold these crypt coins using a live wallet. This earns you a dual benefit as the price keeps on appreciating. Try staking using noteworthy coins such as Neblio. PIVX and NAV coin.
If you have at least 1000 coins, you can also run master nodes and gain a passive income from it. A master node is a computer wallet that stores a block-chain copy in real time. Your initial investment allows you to sit and wait for your reward in the form of crypto for a master node contribution that portrays your blockchain transaction.
Your rewards come from various cryptocurrency networks due to the tasks performed by the master node. Its functionality is, however, not available in all currencies. You can find it in currencies such as PIVX and Dash.
You can make money by mining cryptocurrency where you invest in mining equipment such as GPUs and ASIC. Get cheap electricity to run the mining equipment and supporting hardware. You need the technical knowledge to secure your hardware and software equipment.
During cryptocurrency transactions, you need to ensure that the information is authentic for you to update your blockchain from the operation. This opportunity allows you to compete with different crypto miners to solve mathematical problems that are related to the block that contains transaction data. If you solve the problems and authorize a transaction, you earn yourself a reward.
How to make money from day trading
Crypto is volatile in that the market keeps on fluctuating according to the choices of the investors. The concept of day trading is simple. You only need to buy low currencies and sell them high when you reach your target. Day trading is short-term since you can decide to hold your asset for a few hours or seconds. The concept is to sell the asset within the same day you bought it with the hope of gaining some profit.
For you to day trade, you need to familiarize yourself with the different technical charting strategies to apply them during different day intervals. You should seek opportunities for you to gain within a short period. The primary methods used in day trading are chart analysis and speculation.
During speculation, you predict a precise movement of the price based on a particular event. In a chart analysis, you have to study the movement of the price and predict how it goes looking at its history. You can analyze charts looking at the way they move every hour.
Short selling cryptocurrency
This permits you to borrow some amount from a broker for you to trade. Short selling involves the leverage factor that determines if you make a profit or a loss. There are different bitcoin exchanges that you can use to conduct margin trading such as AVAtrade and BitMax.
Compounding profit in cryptocurrency
As an investor, you should purpose to make at least a 1% gain on a single basis. This is manageable as cryptocurrencies keep on moving down and up by the same percentage each hour. If you understand the indicators and patterns in the cryptocurrency market, you can remain consistent in gaining 1% profit daily. At the end of the year, the gain accumulates to a large amount of money.
What affects the cryptocurrency market?
The following factors make the cryptocurrency market volatile
New rules keep on coming up about how to trade cryptocurrencies. Governments and central banks have an impact on the market since they are responsible for regulations. Strict rules sometimes make the prices to drop.
Bitcoin faces competition from upcoming trading options that have different features and strengths. This affects the value of cryptocurrencies as it tries to keep up with the competition. There are also new platforms and technology that seem to be more valuable in the market.
Unfortunately, scammers exist in cryptocurrency that affects its image. Some people conduct illegal transactions that harm its image. Negative stories regarding cryptocurrencies also intimidate some investors.
With over 12 years of experience in the financial industry, Owain has strong finance professional skilled in Investment Properties, Insurance Risk Management , and Real Estate Transactions.
MBA, Columbia University.