If you’ve been searching for ways to earn money while investing in cryptocurrency, then you’ve come to the right place. We’ll be taking you through a variety of ways previous cryptonauts have earned a viable income with cryptocurrency
Although I cover many ways to invest in cryptocurrency, you should choose the best one that matches your own personal needs.
I’ll be going over 8 methods of investing in cryptocurrency, which has the potential to help you generate a lot of income while only investing a small amount of your capital.
HODL (Long-term investment)
Most cryptocurrency enthusiasts prefer to HODL. This simple strategy includes holding onto a coin for a long period of time in order to generate a more sizable return on investment once the coin has exponentially increased in value. HODL has become one of the most-used cryptocurrency terms in the market.
Now you might be asking yourself, what if a bear market takes over the industry for longer than you had anticipated? Is there any other way you can invest? Absolutely!
First off, if you did your due diligence and invested in a cryptocurrency that you know has solid fundamentals and is going to be around for a very long time (like BTC) then continue to hold on to the coins that you currently have, especially if they’re in the top 20 (check coinmarketcap), until you’re at a profit. Never sell at a loss as most coins will eventually rebound as all bear markets eventually come to an end.
If you have more capital to invest, either choose to “purchase the dip” on your existing coin(s) or spread out your risk by investing in other high market cap coins like XRP, ETH, BTC, ZEC, etc. Only you’ll be able to determine which one you’re interested in according to your own due diligence and fundamental analysis. You can also choose whichever one fits into your underlying principles or aligns with your interests when investing in a coin.
Arbitrage is the process of purchasing a coin at a lower rate and selling it at another exchange for a higher rate. At some point in your life, you must have somehow got involved in arbitrage as it’s been used in retail by just about anyone who’s ever sold an item to someone else (think ….buy at a discount, then sell your marked up item to a buyer).
So many people do this successfully and expect this method to work within the cryptocurrency market. For instance, purchasing a coin from one exchange that lists it for a lesser price and selling it to another exchange at a higher price. This can typically only be done with arbitrage software which will keep you updated with the latest arbitrage opportunities. These opportunities don’t tend to last long so you have to be extremely quick to take advantage of them. Try out this free arbitrage software to get a feel for how this works.
Note….you always want to make sure there’s a fair amount of profit to be taken before you start transferring funds through different exchanges. By the time you calculate all the transfer and exchange fees, you may not be left with much profit.
Airdrops allow blockchain companies give away free coins and tokens to their respective cryptocurrency community. The good thing about this is that you don’t need to invest anything to earn free coins. However, you do need to be a temporary holder of one of their tokens in order to participate.
An airdrop is carried out in order to distribute new crypto coins (also called altcoins) to people for completing a range of tasks. This could be anything like sharing information about the blockchain projects cryptocurrency through social media or simply holding onto the company’s original crypto coin in order to receive another coin that they will be distributing in the near future. This telegram group sends notifications to its members anytime there’s an airdrop.
You can always check out the latest airdrops here.
All Bitcoin transactions require authorization before adding them to the public ledger (blockchain). These transactions are recorded on the blockchain and are usually approved by a series of computers connected.
These “blocks” of computers therefore utilize their power to solve complicated equations. Eventually, these equations become more difficult as more Bitcoin are created. The computers that successfully solve the equations get rewarded with bitcoins. This entire process is called crypto mining.
Crypto mining use to be one of the most lucrative and reliable ways to earn cryptocurrency but has quickly taken a backseat for many home mining operations during the bear market of 2018.
As Bitcoin and other high market cap coins increase in value, so will be value of crypto mining. The electrical, cooling, and hardware costs it takes to mine cryptocurrency can often times cut into profit margins while in a bear market. Being as it may, the industry will continue to grow and become more profitable during the bull markets.
If you do decide to go this route, I highly recommend you stay away from mining the top 5 cryptocurrencies. If you have enough startup capital and time to invest in this venue, I highly recommend you start mining altcoins with a high return on investment. A great place to start is CoinWarz. You’ll be able to utilize their profitability calculators in order to get a clear picture of what type of hardware you’ll need in order to mine certain altcoins for profit.
Capitalize on Hard Forks
Although, this applies to all cryptocurrency, we’ll take a closer look at Bitcoin for this particular case study. To continue to develop blockchain technology, hard forks play a vital role, as all projects perform better with constant updates. If bitcoin users fail to agree on how these updates should move forward, then the Bitcoin blockchain will split into two. This splitting is called a Fork
When Bitcoin Cash was created after the Bitcoin fork occurred, every Bitcoin you had in your wallet would automatically give you one Bitcoin Cash.
All you had to do here is own (or hold) that cryptocurrency in your soft or hard wallet, in order to earn another version of that cryptocurrency during a hard fork.
Automated Trading with Bots
Another method for making money investing in cryptocurrency is the use of trading bots. There are countless free and paid bots. You can visit Github and type “trading bot” or follow this link below: https://github.com/search?utf8=%E2%9C%93&q=trading+bot&type=
Before you start experimenting with trading bots, make sure that the inherent trading strategy that you’re about to trade with permits simulations or backtesting. This will allow you to better view the results of a bot along with its win/loss ratio before you start trading with your own capital.
There are a few trading bots which I can recommend since they’ve been around for quite some time. These tend to have a growing community revolved around their software as well.
Some cryptocurrency companies will reward you with dividends for connecting your wallet to their network, which will in turn make their network more secure and stable. For example, NEO provides you with a currency call GAS. Here, there’s no need to stay connected to the network, just store your NEO in a wallet whose private keys you possess on a soft or hard wallet like the Ledger Wallet (hardware) or the Neon Wallet (Software). Furthermore, some exchanges like KuCoin or Binance provide you with gas if your NEO coins are kept there. Currently, the dividend is about 4%.
Create Your Own Cryptocurrency Coin
Fortunately, there are still countless altcoins out there with use case purposes. So if you’re truly passionate about creating another cryptocurrency that uncovers a solution to a real world problem, then go for. There will be a lot of work involved including building a team, finding answers to problems, hiring staff and programmers, building your website and marketing team, among many others. It will take a lot of hard work, dedication and perseverance but can definitely pay off in the end. The long-term benefits of creating a cryptocurrency, if successful, would more than compensate you for your efforts.
BONUS TIP: Invest in Crypto Account Builders
Trading cryptocurrency may seem like an intimidating venture to those who have no experience, however I’m here to tell you that it’s not nearly as hard as it looks.
Most experienced and novice traders like to start out with (and even continue) trading micro cap coins due to their extremely profitable nature. However, you can just as quickly lose all your capital by trading these lucrative gems in the wrong manner, as well as trying to trade the wrong charts at the wrong time.
So, if you’re going to be swing trading BTC, you might as well accumulate the most profit you can in the least amount of time possible right? You can accomplish this via certain micro cap coins, which I have labeled as “Crypto Account Builders”.
Our C.A.B. membership site teaches you a few very simple trading strategies that will empower you to trade these elusive, yet highly profitable micro cap coins. Our company accomplishes this for you by…
1. Hand selecting our member’s cryptocurrency coins (we label as C.A.B.) ensuring they will trade the most lucrative and predicable micro cap coins according to our 12 Point Proprietary Crypto Account Building System.
This guarantees that each member trades with the lowest risk possible, and receives the highest chance of profit. Each coin we select has a high frequency rate of volatility which is paired with high percentage gains well above your typical top 50 cryptocurrency coins. This enables more profit for you on each swing, as well as frequent volatility. This also equates to 5X-15X the ROI within half the time it takes you to profit off of any Top 50 coin.
2. We also train each member using a simplistic and easy to follow trading system which allows you to profit off our coins within 24 to 48 hours of membership approval. No prior experience is needed.
The cryptocurrency market is a highly volatile one. It’s the main reason why you need a reliable investment strategy. In order to earn a reliable and consistent income within this emerging market, you need solid strategies which will work not only for today but for many years to come.
Try utilizing just one of the investment strategies I mentioned above to create an income for yourself while the market is still in its infancy. If you stick to your game plan as well as stay diligent in your pursuit of success, you will emerge victorious in an industry which may someday take over the financial global marketplace, leaving you in a very advantageous financial position.
I wish you all the best in your journey.