As an investor, your priority is to get the maximum profit in the shortest possible time.
If you want to make money on cryptocurrency, then you should decide:
- which digital assets do you prefer, choose the investment method that best suits your level of experience
- how much time you can devote to the process and your technical capabilities and acceptable risk
Investing in Cryptocurrency: Some Essential Solutions
There are hundreds of digital currencies in the world, and your choice of which ones to work with will have a significant impact on your profit.
An excellent idea for a novice trader interested in making money using cryptocurrency investments is to start with well-established valuable coins, such as Bitcoin, Ethereum, and Litecoin, instead of new developing altcoins that easily take off or crash and burn.
There is a wide range of exchanges where you can buy and sell cryptocurrency, and you need to find the most reliable and secure exchange with a wide selection of cryptocurrencies, with the lowest commissions, high liquidity and availability, and with a large selection of payment options.
Where you keep your crypto capital is no less important than how you earn it.
You can use a convenient web wallet, but it is vulnerable to hacking or choose the additional security of an offline cold wallet. A cold wallet, which, although safer, makes your funds less instantly available.
How to Make Money on Cryptocurrency
There are many ways to invest in cryptocurrency, and the amount you will earn will depend on the investment method you choose.
Here are some of the most popular ways to make a profit from digital assets and their main advantages and disadvantages.
HOW TO MAKE MONEY ON BITCOIN AND CRYPTOCURRENCY MINING
By mining, you earn cryptocurrency in exchange for creating it, adding blocks to the blockchain ledger, and checking the transaction record.
This way, you don’t need to invest money first to get an income.
This form of investment requires technical knowledge and software that can solve highly complex computational mathematical problems and a considerable amount of electricity consumed.
This method is not always financially profitable.
HOW TO MAKE MONEY ON CRYPTOCURRENCY TRADING
One of the easiest ways to profit from digital assets is to buy or sell cryptocurrency directly. You buy a coin on the exchange and sell it for fiat or another cryptocurrency.
If you are looking for a quick profit, you can become a day trader, making money on fast, short-term changes in volatile cryptocurrency markets, buying cheap and selling expensive within one trading day. This strategy can be a highly profitable, but at the same time, hazardous occupation.
To follow this path, you need to know the market and spend time in front of the screen, studying the latest market trends, conducting technical analysis, and making deals.
HOW TO MAKE MONEY ON THE HODLING OF YOUR DIGITAL ASSETS
For those risk-averse and much more patient, there is always HODLing, a form of investment that involves long-term storage of your coins in the expectation that they will grow in value over time.
How Much Money Can You Earn on Cryptocurrency Trading?
Many people mistakenly believe that investing in cryptocurrency is easy money, but this is far from the case.
Making money on cryptocurrency requires research, time, and skills, and your success will depend on your commitment and investment choice.
So, how much money can you earn on cryptocurrency?
As in any other type of investment, you will face both losses and successes, and changes in fate can occur at lightning speed in the volatile cryptocurrency markets. The amount you earn will depend on your investment, the coins you invest in, and the strategy you use.
Time is also crucial. Think of the bitcoin millionaires who entered the market from the first floor, buying while the price was still affordable, just before it soared.
Your location may also matter. Depending on your jurisdiction, you may want to check whether your money earned on cryptocurrency is taxed.
As more countries develop this rapidly developing asset class, more regulation is being introduced as governments seek to establish control and get their piece of the financial pie.
The Best Way to Make Money Using Cryptocurrency
One of the most low-risk and highly profitable methods of earning money on cryptocurrency is crypto-arbitrage.
This form of investment involves minimal risk, making it popular among financial institutions, investment companies, large corporations, hedge funds, and retail investors. It makes a profit by taking advantage of temporary price inefficiency.
These are short periods during which the coin will be available simultaneously on several exchanges at different prices at the same time.
Advantages of Intelfin
Our innovative technology is designed to help you strengthen your crypto portfolio and ensure stable long-term income growth.
Intelfin offers a wide range of highly convenient and intuitive financial products and services that open the doors for everyone to invest in cryptocurrencies.
The Intelfin Global team strives to democratize the cryptocurrency and arbitration space. We believe in diverting power from large financial institutions and returning it to the hands of ordinary people.
Intelfin Global strives to create an environment in which even those who do not have a lot of experience or hundreds of thousands of available investment capital can earn on the difference in market prices, using all the advantages of the crypto universe.
We strive to help newcomers create a better future by automating and simplifying the entire process so that everyone can benefit from market opportunities, getting the maximum profit.
Learn more about cryptocurrency arbitration or visit the Intelfin GLOBAL blog to explore many other topics related to the world of digital assets.