Trading Cryptocurrency with successful hands allows you to get profitability of several hundred percent per year. But if all the risks are realized, you may lose all your invested capital. There are proven strategies and hard hedging of all risks in the crypto market. Let’s try to find out whether it is possible to make money on cryptocurrency and how much such earnings can be made. Find out more about how to make money on cryptocurrencies.
Is It Possible to Make Money on Cryptocurrency?
Trading cryptocurrency on the stock exchange is a business with its own risks and rewards, where every decision either brings income or leads to losses. Earnings on cryptocurrencies are determined by several indicators, and in professional trading, it depends only on the size of the deposit.
The main thing to understand if you are going to make money on cryptocurrency is that your money can vanish at any moment. There is no guarantee that at some point the market won’t collapse. In general, there are three ways to generate income: mining, ICOs, and trading (both directions: holding and trading).
To succeed in this kind of investment, special attention should be paid to studying the current quotes of cryptocurrencies. At the moment, you can easily get into a difficult situation with counterfeit currencies, which are more like a pyramid scheme. Verified cryptocurrencies include:
- Ethereum. This asset has been developed actively since its inception.
- Bitcoin. This is one of the most liquid cryptocurrencies. Investors received more than 120% per annum during the investment of funds.
- Monero. This asset has the main advantage over other cryptocurrencies, which is the anonymity of the users and transactions.
- factors. It is based on a blockchain, which ensures the security of the data.
why invest in cryptocurrency? This is a modern asset that will be in the public eye for a very long time and will remain attractive to investors.
Cryptocurrency Earning Strategies
There are many ways to make money on crypto and generate income in the crypto space. At the same time, one should take into account the high volatility of crypto assets, due to which the risks in this industry are also high, moreover, this area requires certain knowledge and experience.
Investors working for the medium or long term use several profitable strategies at one time:
- an investment portfolio with the formation of a set of profitable coins;
- Holding – passive investment: you keep coins in your wallet until they reach the planned profitability;
- Staking is the storage of a cryptocurrency in a wallet with a commission used to support the blockchain network;
- Mining is a way of making money on cryptocurrency by mining coins on specialized equipment;
- holding option with investments in promising tokens in anticipation of their explosive growth;
- The use of referral programs.
Each strategy has its own characteristics, but the most popular option for making money on cryptocurrency is portfolio investment with brokers, including DotBig.
What Do Industry Professionals Think About Earning Money with Cryptocurrencies?
Expert opinion varies when it comes to investing in crypto. For some, it is still a speculative asset, which is not worth the risk. But there are those who believe that it is worth making a good crypto investment. Here’s what several famous entrepreneurs say:
Elon Musk, the creator and CEO of SpaceX and Tesla – “I anticipate that cryptocurrencies, in general, will boost the effectiveness of the data system that we refer to as money.” If the efficiency of money grows and there are fewer faults in the system, then this in itself will lead to an increase in the quality of life and an increase in the power of every individual, which I very much support.”
Paul Graham, Founder, and CEO of Y Combinator – “Possible future scenario: Credit card institutions are becoming more and more stringent about what transactions they process. This motivates the general public to pay with cryptocurrencies, which will ultimately kill credit cards.”
CEO of Ark Invest Cathy Wood: “Growing markets are seeing extreme inflation. Cryptocurrencies would be able to protect against this. In other words, the buying power of the population in these markets is declining. To keep at it, people will simply switch to Bitcoin and other tools.”
It is worth noting that the past year has shown that you can earn up to 200% profit on cryptocurrency investments. However, not only investing in cryptocurrencies can be profitable. You will learn more about how to make money with this asset below.
Is It Possible To Make Money on Cryptocurrency?
Investing in cryptocurrency is a risky way to make money. Yet with the right skills, you can make a lot of money with cryptocurrencies. Let us see what are the ways to increase your capital. We’ll identify the riskiest options and answer the question: is it really possible for beginners to make money on cryptocurrency, or is it only for professionals?
Even as a beginner, you can make real profits by investing in cryptocurrencies. It is, like trading, purchasing a cryptocurrency at a lower price and selling it at a higher one. With one important caveat. Investments are long-term investments. If traders typically buy and sell different cryptocurrencies daily, then investors buy, for example, Bitcoin, and store it in the medium or long term: six months, a year, three, or ten.
This option is perfect for beginners. It is not profitable here and now but it is safe. Over the years, you can get no less percentage of profit than the traders who work every day. And to pick up a good crypto asset, use the services of a crypto broker DotBig LTD. This is a reliable broker that has helpful tools for successful trading. Below you can find the frequently asked questions from investors.