Reading this article is enough proof that you have a special interest in cryptocurrency. Maybe it’s because of the numerous success stories all over the internet – testimonies of earning millions in dollars within a short period. Possibly, you have a friend or relative who seems to earn a living by trading with cryptocurrency, and you are not sure how to go about it.
Indeed, crypto is among the new investment opportunities with great global acceptance and growth. All people attempting to join the cryptocurrency field has a common goal – to make maximum profit. However, not all benefit from it. Many have lost their money either because they lost patience or failed to master their way into understanding the trade.
Understanding what a cryptocurrency is, the do’s and don’ts of the trade, and determining the best cryptocurrency for you are the only way to make a livelihood out of it. Here is a set of tips for Jack Lavinia, a cryptocurrency guru who has managed to make money consistently for many years.
Choose your niche
“I had to do research, and finally, I settled on investing using bitcoin. However, I have friends who have excelled in trading Ethereum and AMP,” says Jack. Indeed, the cryptocurrency field is vast with different crypto, including:
Every cryptocurrency has its specific characteristics, determined by the ideas and goals of the founders. It is thus important to take time and learn more about each other. However, to start trading, you must create an account with one or more exchanges and trading platforms. The most popular include:
Each of these hosting platforms is unique, and you require some time to understand how they work. Free accounts are good for newbies, but as expected, host platforms with maximum potential charge a fee to own an account.
Come up with a strategy.
In explaining the various opportunities present in the cryptocurrency field, Jack explains that “In my experience, earning from cryptocurrency involves strategically taking advantage of three main opportunities: Trading cryptocurrencies in the exchange market, mining, and lending out crypto to other investors.” Jack further breaks down his journey into the following strategies:
- a) Investing
Like any other investment, the main idea is to buy assets at a favorable price and sell them at a profitable rate in the future. This makes trading in crypto more of a long-term investment plan. To be safe, one must identify assets that have stood the test of time, and there is evidence of growth over the years. Crypto assets such as Ethereum and Bitcoin are rated top, with statistics showing a steady and stable increase in price.
- b) Trading
Unlike investing, trading allows you to earn within a short period- say daily. It involves an in-depth analysis of the market trends and making correct predictions on how crypto prices keep changing. Using various software apps analyzes cryptocurrency field trends, one makes predictions as to whether the price will increase or decrease. Without the technical know-how, trading can be equated to gambling, but with understanding and precaution, you get profit regardless of whether the prices rise or fall.
- c) Content creation
Knowledge is power. With many people interested in cryptocurrency, there is a huge demand for helpful content. The competition for relevance and growth between different cryptocurrencies and host platforms also creates an opportunity for the creation and curation of related content. Sharing expert tips and marketing content posted by blockchain-owned social media platforms is a common way of getting rewards. Often, cryptocurrency content creators are paid to use the crypto they choose to promote.
- d) Lending
This strategy shares the same concept as lending your money to a bank by depositing cash in a fixed account for a while and allowing the bank to invest the money and pay you some interest. Referred to as staking, you lock your assets in a crypto wallet and allow the system to use the coins as security when validating transactions. You then receive profit as a reward. Other platforms allow you to lend coins to other investors and earn interest.
- e) Mining
A process that requires a lot of resources and vast experience in this field, mining involves generating new cryptocurrency. Using specialized equipment, miners confirm and validate each crypto transaction and are rewarded by adding the new cryptocurrency assets to their crypto wallets. The ultimate goal is to gain more than what is spent in the whole process of mining. An expensive endeavor, mining is done by companies or groups of crypto investors who bring their resources together.
“If there is a character every trader must have, it is the art of patience. Without it, you have no future in the cryptocurrency field”, Jack is careful to note. As many experts note, the cryptocurrency field is very volatile, and every decision you make is a huge risk. Trading crypto requires patience and vast knowledge of how the blockchain works. Understanding the relationship between its network sizes, governing protocols, and the overall trends in the market take time and cannot be mastered in a single day. Jack summarizes his success as having the “courage to risk, investing only what I can afford to lose, maintaining high focus, and having a teachable attitude.”
You have the potential to become the next millionaire by investing in cryptocurrency. The advantages of a cryptocurrency over other traditional currencies include:
· Fraud-proof systems
· secure transactions blockchain that prevents identity theft
· Instant money transfers and payments as you control your income directly
· Easy access to your account regardless of location and time
Do you feel ready to start your cryptocurrency journey? There are countless money converter and forecasting tools on the internet you can use to learn more and make small but sure steps into the world of unlimited opportunities. Indeed, the only distance between you and success is fear. Conquer it.