Cryptocurrency is a digital currency, used to buy goods and services. Cryptocurrency is highly volatile. The market is open 24/7. Therefore, it is ideal for trading and earning some passive income on the side. We are going to discuss how you can make some money while trading in cryptocurrency.
Bitcoin is the most famous and volatile cryptocurrency in the world. It was invented by an anonymous person or group of people using the name Satoshi Nakamoto, in 2008. Like every other cryptocurrency, Bitcoin is a decentralized digital currency, without a central bank or any financial institution. These transactions are verified by a network of computers or nodes and recorded in a public ledger called the blockchain.
Here is a list of 5 ways to make a living out of the Cryptocurrency market
Cryptocurrency mining means when multiple users of powerful computers come together to solve a complex mathematical problem. It’s a race, between all the users, to see who will solve the block fastest. As a result, the candidate is rewarded in the form of freshly minted cryptocurrency.
Bitcoin was created as a reward for mining back in January 2009. Back in the day, mining was not as complicated as it is now. People used to mine thousands of bitcoin using their home computers. Mining in today’s BTC scenario requires a powerful computer system with top-tier equipment, that can cost you a bit.
Read our previous article: Cryptocurrency – The New Trend
One can join the Bitcoin mining pool or mining cloud. Bitcoin mining pool is a collaborative group of miners that combine their computing power to solve complex mathematical problems. Bitcoin mining cloud is the same thing, but instead, they use the cloud to connect their computing power. Then they split the mined coin.
Buying and Holding
Buying and Holding cryptocurrency is the tradition and most beginner-friendly way of investing in any type of cryptocurrency. This is known as HODLing in the market. HODL means Hold On for Dear Life.
Holding means purchasing cryptocurrency and hoping that its price will spike in the future. It doesn’t matter how long it may take. It could be a couple of weeks, months, or years before you decide to sell them. And you know, good investment means good profit.
One can purchase cryptocurrencies with the help of mobile wallets. A lot of mobile apps provide a platform for buying and selling these currencies as demanded by the user.
Some of the apps are as follows:
WazirX is a simple mobile application for Android & iOS that allows users to trade in cryptocurrencies.
Go to the WazirX download page to download the application and begin trading within minutes. WazirX is founded by Nischal Shetty, and owned by an Indian company.
Binance is another mobile trading app. Managed by Changpeng Zhao, Binance is an e-wallet that provides various trading options.
Trading is simply the fast-paced equivalent of the process of HODLing. It means making use of the volatile nature of a particular cryptocurrency. Analysis and future predictions are done by using technical indicators. The timeframe depends upon various factors like the indicators being used or the type of trade.
It requires knowledge and practice of the market, so be sure to do homework before giving it a shot.
Mentioned below are some trading concepts:
- Day Trading: It is a trading strategy in which entry and exit of positions take place on the same trading day. This is known as Intraday trading. As the trading takes place on the same day.
Intraday traders make use of the rapid change in the price of a particular high volatile cryptocurrency. Technical indicators help them in the prediction of the price.
Day trading requires knowledge and practice of the technical indicators.
- Swing Trading: HODLing a long-term process and Intraday trading is a short-term process. Swing trading is kind of in the middle.
For instance, Swing traders will buy low, just like HODlers, wait long enough to see their holdings increase in price, and then sell high. The difference is, their holding time isn’t as long as HODLers and isn’t as short as intraday trading.
- Arbitrage: It simply refers to buying and selling the same asset on different markets. For example, a Bitcoin Arbitrage Trader buys bitcoin from exchange A and then sells it at exchange B for a higher price.
Making money using these methods requires a lot of practice. Don’t expect to get it right on the first try. Just do your research and figure out a trading strategy that is best for you.
Accepting Cryptocurrency as a Payment
Many businesses are now beginning to accept payment in cryptocurrency, like bitcoin. Cryptocurrency is a digital currency that can be used worldwide. There is need to convert it to other currencies. It can provide a global reach, secure payment option, and speed up the entire payment process.
Bonus Coins or Tokens
Participating in Bonus coins or airdrops is one of the easiest ways to earn cryptocurrency. The best part is it requires no investment. All you have to do is to join the airdrop or bounty program of a cryptocurrency and perform some simple tasks to earn some free or bonus coins.
Also, you can earn bonus tokens by investing in cryptocurrency during ICO, as new projects often give bonus tokens to early investors.
In a summary
There are many ways to earn from cryptocurrencies as there are more than 4000 cryptocurrencies, with different volatility nature.
People usually trade in Bitcoin, as it is the most volatile and secure cryptocurrency there is which makes it ideal for intraday trading, HODLing, and mining.
It is entirely up to you to decide what you will do to earn cryptocurrency.