How To Make Money with Cryptocurrency
If you are new to the Cryptocurrency market, then it can be an overwhelming and confusing place. Everyone you talk to will have a different opinion on it and how you should navigate the market.
Should you sell or hold? Should you buy the big coins or invest in something smaller? Should you listen to the celebrities that are advertising coins on their Instagram.
Here are 6 foolproof tips that will help you to make money with Cryptocurrency:
#1 - Do the obvious = buy when it's low, sell when it's high
When it comes to Cryptocurrency trading you need to think strategically. The markets are very unpredictable and can be easily scared.
You want to buy when it's low and sell when it's high.
Previously, we would have advised people to buy and hold. However, over the last year, we have seen people like Elon Musk step into the market. With just one appearance on SNL, Musk wiped millions of dollars off the Cryptomarket overnight.
The worst part is that because of the way the market works, this is not something he can be punished for.
So, when you start buying Cryptocurrency, remember that the market is not reliable and it is not invincible. All bubbles burst eventually. You just have to sell before they go pop.
#2 - Protect your investment = get a Cryptowallet
Is this the most important piece of advice on this list? Probably.
The world of Cryptocurrency is not crime-free. It doesn't have the same level of security as international banks. It is possible for hackers to steal your Cryptocurrency even if the Cryptocurrency isn't physical.
Therefore, we recommend using a Cryptowallet.
This term can be a little confusing because some Crypto buying services are also Cryptowallets. While other services require you to provide your own wallet.
A Cyptowallet is an encoded area of RAM that allows you to store your Cryptocurrency or blockchain locations.
If you use a Cryptowallet service, they will usually insure your money. so that you get some of it back, even if it is taken.
#3 - Don't buy into influence scams
If you have been on any form of social media for long enough, you will probably have come across an influencer trying to get you to invest in a certain coin, or have seen people complaining about influencer crypto scams.
In recent months a few huge influencers (including Adain Ross, one of Twitch's biggest streamers) have been called out for participating in 'Pump and Dump scams'. They are paid by a company to advertise the coin. As the influencer's followers buy the coin, the company then sells their shares in the coin at a high. The value of the coin then drops and the followers have lost their money.
Even if the influencers didn't make any of the money on the coin themselves, they will have been paid good money to the company to advertise it.
For this reason, we recommend avoiding coins made or recommended by influencers.
#4 - Trust the experts
Instead, seek out experts in the Crypto Fields to trust. They are more likely to have a genuine interest in you making a profit, rather than making a profit at your expense.
#5 - Buy coins that offer dividends
Not all coins function in the same way. The self-made aspect of Cryptocurrency allows for experimentation and for new ideas to be explored.
There are some coins that will pay you just for holding on to them. These coins are a good idea for two reasons.
Firstly, the longer you hold on to the coins the more money you will make, and you will have still made some money even if the coin fails.
Secondly, a reward like this indicates that the creators of the coin want the coin to be around for a long time, and not just be a quick money-making scheme.
#6 - Shop around
We have touched on the fact that the Cryptocurrency market is unregulated.
A key element of this is that sellers decide what price to set for coins. But each seller will most likely have a different price. If you are smart, you can make this work for you.
If one website is selling an 'examplecoin' for $30 per coin and another website is selling them for $5 per 'examplecoin'. Then you can make a $25 profit on each coin by buying from one website and selling to another.
You should also shop around when you are looking for long term coins.