For some, investing in cryptocurrency is something of a fantasy, for others it is a profitable source of income.
While some are thinking about where to invest their money, someone is actively investing and breaking a big jackpot.
How to make money on cryptocurrency?
We will talk about the most effective methods in this article.
In addition, you will find out how risky such investments are, what results can be expected from them, and in which currency it is more profitable to invest.
When it comes to the best investment tools, cryptocurrencies are always mentioned. Why are they attractive?
- Modern technologies. The creation of digital money is based on unique technologies. You can use cryptocurrency in almost any country (with a few exceptions). Therefore, you can earn money in a convenient place at any time.
- Rising cost. Bitcoin and other popular cryptocurrencies are growing in price. It happens that the cost drops sharply, but after a while it increases significantly. This can be seen by looking at the ups and downs of Bitcoin over all the years of its existence. If you approach investment properly, you can easily earn income by playing only on the difference in course. Or in the long run, having bought bitcoin now and having waited a couple of years.
- Expansion. New cryptocurrencies regularly appear that may become an object of investment. Forecasting the growth of value makes it possible to improve your financial situation with minimal effort.
Where to invest
The success of cryptocurrency investments depends on the right choice of digital money. It is important to use a profitable cryptocurrency that does not lead to losses. When choosing, evaluate the following factors:
- Popularity. Find out how common cryptocurrency is among users. Great interest, accessibility on exchanges, rising cost – all this testifies to the popularity of digital money.
- Mobility. Choose a currency that can be easily moved.
- Security. A good cryptocurrency should be protected from scammers.
Many modern cryptocurrencies have these characteristics. The most common in terms of investment, of course, is Bitcoin.
This is the most valuable cryptocurrency for investors. It has existed for 10 years and has already become a certain standard for alternative money transfers, ahead of all other cryptocurrencies.
Bitcoins are safe, mobile and popular. In recent years, their cost has increased significantly, which can be seen on the chart.
How to invest in bitcoin
- Purchase. The easiest way to invest in BTC is to buy it on the exchange. We use CEX.IO – this is one of the few exchanges where you can quickly buy cryptocurrency with a bank card. For the first purchase, the most simplified interface is suitable.
- Cloud mining. You’ve probably heard that mining cryptocurrencies at home is unprofitable and mining is only possible for huge industrial farms. But it doesn’t matter! The remote mining service IQ Mining offers you to earn bitcoin by mining other highly profitable coins. The so-called “smart” mining automatically switches between the most profitable coins, which are subsequently converted to bitcoin at the most favorable rate. This mining method is by far the most profitable.
- Trading Speculative trading on the exchange requires certain knowledge and skills. Our guide will help you understand the basics of this business. The Binance exchange is by far the best for trading. It has everything: a lot of cryptocurrency pairs, a huge trading volume, low commissions and high limits. And here you can invest in other cryptocurrencies at will.
Where to start investing
- Select one or more cryptocurrencies with which you will work. The payback period and the size of income depend on this.
- Allocate funds for investment. You need an amount for initial investments and further support of investment activities.
- Create a cryptocurrency wallet. You will need it for conducting sales transactions, as well as withdrawing funds from services. We like mobile Coinomi and desktop Exodus.
- Register on the exchange. You can work on one or more sites. Read the terms and conditions to choose an acceptable option (we recommend CEX).
- Buy cryptocurrency. Wait for the right time to purchase digital money at the lowest rate. Buy currency in recession.
- Transfer the purchased currency to an offline wallet, for example, Ledger Nano S. This will provide protection against theft. You should not leave money on the exchange account if you do not plan to sell or change it in the coming days. Also, do not store large amounts on mobile and online wallets.
Before you invest your money in bitcoin or other cryptocurrencies, you need to understand the risks associated with this. Some users consider cryptocurrency another “MMM” or the so-called “bubble”. Despite constant talk about it, cryptocurrency continues to exist and actively develop for many years.
Such money is not backed up by anything other than limited emissions and community belief. But until the government passes regulatory laws, cryptocurrency investments are a lucrative business.
There is a risk of losing investments due to a sharp decrease in the value of cryptocurrency. Much depends on the foresight of the investor and his ability to resist panic.
Many countries have not adopted rules governing the circulation of cryptocurrencies. You will not be able to pay income taxes. In addition, there are countries in which digital money is prohibited.
Despite some risks, many advanced users are interested in cryptocurrency investments. This is a great chance to make good money. Use it as long as you can.