Bitcoin is set to break its own record once again with an all-time high value. Every time it seems like Bitcoin has crashed and people lose interest, it roars back and climbs to new heights. And that's when people usually regret not having bought some after the last crash when the price was low.
This often leads to them thinking that now it's too late to buy and have a realistic chance at making a lot of money from the investment. The reality is that there are many ways of making money from Bitcoin and other cryptocurrencies besides just buying low and selling high in a passive way.
From Bitcoin mining to blogging there are a lot of ways to take advantage of the soaring popularity of cryptocurrency to make money. In this article, we will go over several of them.
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1 - Day trading
Once you have learned how to buy Ethereum or your cryptocurrency of choice, you can start day trading in a very similar way people do with stocks. Day trading stocks means that over the course of the day, many are bought and then sold later in the day for a profit. At least that's the goal. It works by taking advantage of incremental changes in value that add up when you deal with the volume.
Day trading cryptocurrencies work around the same concept it's just that there are some differences in strategy and how the process works. The challenge is in seeing the minor fluctuations over the course of the day and understanding what it means in the big picture. This helps you decide when to buy and sell.
However, there is one major difference between day trading stocks and cryptocurrency that makes the latter more of a challenge. When day trading stocks there is a protective measure against runaway losses in the fact that the market closes at the same time every day.
There is no such market for cryptocurrency as it is always on and people all over the world in different time zones can buy and sell at any hour they prefer. This means that a cryptocurrency coin that is sold late in the day could keep gaining steam overnight and end up being less valuable than you would like. At the same time, the gains can be really big and that is the draw.
To do so effectively involves researching and understanding the way the crypto market works so you can buy and sell from a position of knowledge and not emotion.
2 - Swing trading
Swing trading is very similar to day trading in how things work. It's the same concept of understanding trends so you can take advantage of fluctuations in the market and make profits off of them.
The difference is in how long the currency is held. It could be bought and sold in one day but often they are held for a few days or even months. This is a bit of a better option for most over day trading because of the fact that there are no opening and closing hours of the market. If there is a coin trending up it doesn't always make sense to sell it by the end of the day.
There is a lot more volatility with cryptocurrency than there is with a traditional stock. This is what makes it very attractive to traders because reading chart patterns allows them to know when to hold and when to sell. Of course, the idea is always to buy low and sell high but the trick is knowing if a currency is falling further or if it has hit its peak for growth.
3 - Blogging about cryptocurrency
The above methods of making money involve quite a bit of risk. It takes some capital to get started and it has to be money that can be lost without cueing a major financial disaster since the volatility that allows for huge profits can also lead to huge losses.
A very good way to make money without any upfront investment is blogging about cryptocurrency. The only thing that there is a risk of losing is time. It can take a long time to start making money as a blogger. Luckily, if you decide to give up after a while it won't cost you financially.
Blogging is a good way to make money generally, but it can be even more lucrative to be a crypto blogger since the commissions are so high with the exchanges that people use to buy and sell. What makes it difficult is the fact that the topic is very saturated right now with other bloggers.
With the right strategy and some perseverance, there are still ways to carve out a piece of the pie for yourself. Look for low competition topics to start blogging about to gain some authority and get some free traffic by using SEO methods.
A good way to gain authority is to have a holistic approach to blogging. This involves having a very wide umbrella under which to operate. Start out with a blog, but then expand into podcasting and using Youtube to make videos. When you find a sub-niche to operate within under the parent topic of cryptocurrency then you can become an authority on that subject by using various mediums.
4 - Mining
Truth be told, mining is not nearly as easy a way to make money now as it was in the past. The halving that happens with Bitcoin gives the miners an ever-smaller share of the profits.
The way it can work now is that you can invest in a good mining operation and then join a bigger pool of miners and share in the profits. This gives you an opportunity to make some money without a huge upfront investment. It also means smaller profits, but they are completely passive so it can still be a decent money maker while you sleep.
You can reinvest the profits to purchase a more powerful mining system and this will give you a larger share of the profits as you go.
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