How to get rich with cryptocurrency

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03.06.2021 13:52
How to get rich with cryptocurrency

    Cryptocurrency is one of the fastest-growing digital assets. Being blockchain-based, it allows trading and offers many ways for everyone to make money. There are several ways to make money with cryptocurrencies.

     

    WAYS TO GET RICH

     

    Truth be told, there are quite a few ways to make money from cryptocurrencies legally, beyond the obvious option of trading on exchanges. There are other ways as well, but all of them entail their risks and benefits, which every investor should soberly assess before running off and investing their money. Below are some of the most affordable methods.

     

    CRYPTOCURRENCY INVESTING

     

    There are several ways to invest in cryptocurrency: long-term investments, passive income and arbitrage investments. All options are good in their way; some require a significant investment, while others are available to users with minimal initial capital.

    The disadvantages of investing in cryptocurrency should also be noted. The money is not officially recognised by many government agencies. The lack of centralised management is a definite plus, but it also means that all cryptocurrency transactions are at the user's own risk. Another disadvantage, which often turns into an advantage for the speculator, is the high volatility of cryptocurrencies. The rate changes every day, and inexperienced investors often panic and start losing capital when there is even a slight downward trend. 

     

    LONG-TERM INVESTING - BUY AND HOLD

     

    What makes the buy-and-hold strategy attractive to many investors and financial professionals is the simplicity of its approach. Investors often don't wait for significant reversals against the latest bull market because they realise that they could miss the chance to get in the right direction. Investors who engage in long-term buying and dealing tend not to trade frequently. Those who are afraid of risk cannot trade with high volumes, so they keep cryptocurrencies in their wallets and wait for their quotes to rise.

     

    PASSIVE INCOME FROM DIVIDEND PAYMENTS

     

    Passive income is characterised as regularly collected income from certain sources that do not require intervention. Traditional dividend payments from share ownership are a source of passive income. Some analysts believe that 'portfolio income' is passive income and therefore dividends and interest are static.

    Few investors are aware that some cryptocurrencies are also a source of dividends. There are some crypto assets, too, whose ownership already provides dividends.

    •        The advantages of this strategy are that some cryptocurrencies pay dividends of 5% to 10% per annum, and you can make large profits if the price of the coin rises over time.
    •         The disadvantages of this strategy are the high risk of losing money with large investments and the need to constantly diversify your holdings.

     

    CRYPTOCURRENCY TRADING

     

    Trading cryptocurrencies is not significantly different from trading precious metals, currencies and stocks. The main objective remains the same: buy as cheaply as possible, sell at a higher price and make a profit. The main difference between cryptocurrency trading and the stock market is the high volatility of the exchange rate. Investors buy and sell quickly to make higher retail returns. If they miss the momentum, it can lead to a loss. They look at a company's current performance to achieve higher prices and book profits in the short term.

     

    •         The most common and profitable trading strategies include intraday trading, swing trading, scalping, position trading and trend trading.
    •         The advantages of this strategy are low initial investments, round-the-clock trading, independence from politics and the world economy, and high volatility.
    •         Disadvantages of this strategy are high risk of losing your deposit if you approach trading incorrectly, need for deep knowledge of market mechanisms.

     

    MINING

     

    This method is a way of making money from cryptocurrency by mining it. As already mentioned, cryptocurrency is the result of the exchange of information between millions of users. It requires a lot of computer power, which people call 'mining farms'. The simplest farms are in the form of a set of powerful video cards interconnected to form a single system running special software. 

     

    •       The advantages of mining are good profits with the growth of the electronic currency chosen for mining.
    •       The disadvantages of mining are that it requires a significant return on investment in the components, huge electricity bills are incurred and constant monitoring of the system is required.

     

    THE SAFEST WAY TO MAKE MONEY FROM CRYPTOCURRENCY

     

    When considering the above-mentioned basic methods, there's a mutual question of whether it's quick or a lot. If there is a desire to earn a lot and fast, the risks increase manifold. Relative stability implies low income.

     

    If the user is risk-averse by nature, then trading may be the fastest and most profitable way to make money from cryptocurrencies. This method entails high risks and requires a lot of involvement in the process, as well as good knowledge of the market and its dynamics. However, with the right entry point and asset, it is possible to make large sums of money and withdraw them into accounts. Investing in a variety of assets is the essence of the cryptocurrency market beyond using cryptocurrencies to pay for services and goods. It is investing and building a diverse portfolio of assets, regardless of risk or even the amount invested, that generates income. The only factors that really affect returns are the reliability of the trading platform and its functionality, and the investor's knowledge.

     

    WHICH WAY TO GET RICH WITH CRYPTOCURRENCY TO CHOOSE

     

    The probability of both making money from cryptocurrency and losing money due to extreme risks is quite high. The outcome depends on the amount of knowledge, level of skills in financial markets, chosen earning strategy, exchange rate volatility, etc. Sometimes luck is just the deciding factor. As already mentioned, if an asset's exchange rate increases tenfold in a short period, it will allow a limited group of people to significantly improve their wealth.

     

    The question "How much can I get for cryptocurrency and get rich?" is no longer as relevant for mere mortals trading in the market, as the cost of business components and competition in this field has increased dramatically, and medium and large companies are entering the market for mining and trading. Therefore, more and more people are starting to trade on cryptocurrency exchanges and are consciously taking the risks associated with market volatility and competition.

     

    BENEFITS OF MAKING MONEY ON CRYPTOCURRENCY WITH BROEX

     

    There are many platforms in the cryptocurrency market that allow you to make money. One of them, Broex, has several advantages, like the high speed of transactions, which makes sure that the coins are deposited into the buyer's account in less than five minutes. Other advantages of Broex include high security with a secure online wallet, an intuitive and straightforward interface and the lowest commissions on the market of less than 1%. The platform allows its users to trade assets from an extensive list.

     

    2021 has already proved a high return on cryptocurrencies. Bitcoin, for example, managed to grow from $28,000 to $64,000 in a couple of months. Investors can opt for a passive strategy, meaning they invest in crypto-assets and then switch to a holding strategy and earn 5-8% on their investment fairly quickly - perhaps within a few weeks.

     

    In fact, from 2017 to 2021, Bitcoin made almost 65x returns - from $1,000 to more than $64,000. That's a whopping 64,000% return in about 4 years. In the same period, Ethereum went from $10 to a whopping $4,100. That's 410 times the original investment.

     

    Broex allows you to invest in all the most popular crypto assets and earn from their trading using an extensive range of tools.

     

    Invest in cryptocurrency

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