Can You Make Money with Crypto? Here’s How to Start
Can you make money with crypto? Of course, you can, if the time and environment is the right one. But that being said, it’s hard to manufacture the right timing and situation to make money with crypto.
Take the case of Tommy and James, two brothers in Westchester, New York who became overnight millionaires.
The two brothers, their mother, and their sister initially put in $600, but soon invested a grand total of $7,900. In less than a year that became almost $9 million.
Can it happen to you? Keep reading to see if you can duplicate their success!
You Can Make Money With Crypto
All cryptocurrencies do not rise at the same rate, or by the same amount. This is also true of stocks in, say, the S&P500 or FTSE100 indexes. While the index may rise and fall together, individual stocks those indexes track rise and fall at different levels and prices.
This affects the overall price of the index the same way that the Ethereum price affects the overall price of the cryptocurrency ecosystem.
How to Make Money With Crypto
It’s not difficult to make money with crypto. It’s always moving upward year over year, despite various dips and falls in individual cryptocurrencies.
The hard part is making profits of a high enough level and in a short amount of time as possible, like Tommy and James. How did they do it?
They had a strategy.
Strategies for Making Money With Cryptocurrencies
Some of the strategies are similar between crypto and stocks.
- Arbitrage or scalping
- Technical analysis
- Algorithmic or bot trading
- Range trading
Holding or “holding” — as the cryptocurrency community, especially the Bitcoin community, call it — is one of the most effective ways to almost insure your crypto grows (if it’s the right one).
Arbitrage and scalping is the practice of taking advantage of small differences between markets. In regulated stock markets, this trading style is limited and sometimes banned outright.
Technical analysis takes advantage of mathematically analyzed statistics to predict future trends. This analysis is either manually managed, or goes into algorithmic or bot trading.
Range trading deals with buying low and selling high between an acceptable price range.
The Best Cryptocurrencies to Buy to Make Profits
You can make a lot of money with meme coins, but the biggest and best advice is to only buy what you aren’t willing to lose.
Investing in a meme coin can make your valuation explode overnight. You can take those earnings and further diversify those earnings by seeding money into other coin projects in the hope of replicating that success.
You could also take that money and invest it in something less volatile and more stable, like Bitcoin.
Memecoins and other volatile products are excellent for creating wealth quickly, but you also lose it quickly. More stable products still offer growth, but unless you have something to substantially grow, you’re not looking at much.
Buying and Selling Smart
Ultimately, if you want to make money with crypto, you have to sell the crypto. It’s not always easy to move that kind of money or to get it all back in fiat money.
You also have the question, do you even want to convert it to fiat? And how do you keep it safe and secure?
Keep browsing our articles to find out all things related to cryptocurrency!