Earning money from cryptocurrency: it's easier than you think!
If you haven’t been living under a rock, you’ve probably heard of the cryptocurrency craze that’s overtaken the internet by storm. While it may seem overwhelming at first, earning money from crypto currency is actually easier than you think! Read on to find out how you can join in on the action with your own crypto-earnings today!
Why trade cryptocurrencies?
Investing in cryptocurrencies can be extremely profitable and fun but is a very volatile market, so you should always know that your investment could get wiped out overnight. This means that if you invest in cryptocurrencies, make sure to only invest what you can afford to lose and trade with caution. Also, if a coin drops 50% - 80% over night (known as a bear run), don’t fret because such movements are just temporary and will almost always revert back to an upside price trend.
Where should I buy them?
The first thing to do is figure out where you should buy your coins. Coinbase, a US-based exchange, allows users to easily buy and sell Bitcoin, Litecoin and Ethereum. It also allows users to store their coins on its platform and send funds to other users on that network. Because Coinbase is based in the US, your funds are FDIC insured for up to $250,000 per account.
How do I store them?
Cryptocurrencies are stored in wallets—private encrypted keys that can only be unlocked with a password. There are many types of wallets, some more secure than others. Desktop wallets allow you to keep your coins on your desktop computer; mobile wallets offer similar functionality on mobile devices. Online wallets are like a bank account, allowing multiple coins to be stored and accessibly anywhere there’s an internet connection. Paper or hardware wallets store crypto assets offline, offering increased security and less risk of being hacked.
Should I sell right away?
The first question that you should ask yourself when deciding to sell is is now a good time? To answer that, take into account things like current prices, if your currency is trading on an exchange, and whether or not people are actively buying at those prices. If there’s no buy order for what you have, then wait until there is one before selling.
What are good trading strategies?
If you’re looking to trade for a profit, take a look at our crypto trading strategy guide. There are some really useful strategies that can help make a profit in both a bear and bull market. On top of that, there are some other useful things to note as well. On their journey to re-establish themselves in South Korea after living overseas for several years, Ian Edwards and his wife Janie had an idea: what if they could create something fun, like an escape room or treasure hunt?
What if my tokens gain in value?
If you hold onto your tokens and they gain in value, that could mean a big payday down the road. Be aware that a significant amount of crypto wealth has been lost because its owners didn’t take necessary steps to protect their holdings—meaning one wrong move could wipe out all of your hard-earned digital cash. Also be aware that taxes come into play if and when you sell your crypto for fiat currency (which is any national government’s legal tender).
What is margin trading and what are the risks?
Margin trading is a risky game. Essentially, it works by borrowing funds to amplify your buying power and increase your returns. However, these additional returns come with a significant amount of risk. Basically, by borrowing, you’re using someone else’s money to generate gains for yourself.
Finding a trustworthy platform for day trading online
You will be using multiple online exchanges to day trade crypto. You’ll need to find a platform that offers all of them. For example, GDAX offers bitcoin and Litecoin trading, but not Ethereum. Coinbase offers Ethereum and Litecoin, but not bitcoin.
Long term investment ideas. Is now the time to invest in crypto?
Many people have long-term investment strategies for their money, but not everyone takes such an approach to their crypto holdings. If you’re new to investing in cryptocurrencies and aren’t quite sure where to start, then read on for some tips on how best to grow your investment over time.