How to make money by investing in cryptocurrency

How to make money by investing in cryptocurrency

How to make money by investing in cryptocurrency

Thousands of people have invested in cryptocurrency. How do you learn how to make money from it?

Cryptocurrency is a haven in times of financial instability

 Cryptocurrencies are the most stable financial instrument. After the stock market collapsed, and many national currencies lost stability, as well as commodity prices, the rate of bitcoin.

 the largest digital currency in terms of capitalization - a few days after February 24 showed rapid growth and by March 28 the limit of 2022 was updated at about 48 thousand dollars. 

The rate of the second largest cryptocurrency Ethereum (Ether) on this day exceeded $3.4K for the first time since January 6.

Investors have become part of the global trend: the analytical service Kaiko reports that in the first week after the start of the special operation. 

the trading volume of the BTC/USD pair on the world’s largest exchange Binance reached a record 2 billion, and the average transaction amount increased significantly.

 Representatives of the international platform EXMO also reported a large influx of funds into client accounts.

However, it is not easy for beginners to understand the workings of the crypto market - even the procedure for registering on the exchange and replenishing the account with an unprepared user can take several days.

 In addition, cryptocurrency trading itself is a very complex process that requires a lot of time, knowledge, and extensive experience.

The easiest way to make money is to invest in the long term

The classic strategy for passive earnings, available with any amount of capital, is to invest in the most successful cryptocurrency. It consists in buying the best coins and keeping them in the account until the profit on their sale appears satisfactory. 

This method of earning does not require the investor to be deeply involved in the market.

The main feature of this method is long-term. Cryptocurrency shows high profitability when investing for a long time. For example, from 2017 to 2022, the price of Bitcoin increased by 4.7 thousand percent. 

However, the cryptocurrency market is cyclical: about every two years, it is marked by a 50-80 percent panic crash with several months of stagnation after that.

That is why experts advise long-term planning periods - at least four years, and also insist on a clear trading strategy in which the investor does not react to short-term changes in price.

 In addition, when choosing an investment strategy, you should take care of the safety of your investments - this is especially important in conditions of sanctions when some foreign exchanges restrict customers' access to their cryptocurrency accounts. 

To protect money, it is recommended to store coins in a hardware wallet (cold).

Determining the most successful cryptocurrencies with a fixed value is very simple - you just need to get acquainted with the classification of currencies by market capitalization. For example, such a list can be found on the Coinmarketcap portal created by the world's largest cryptocurrency exchange Binance, or any major exchange (Binance, FTX, Coinbase). 

However, as in the case of the stock market, in the cryptocurrency industry, there are investment funds in which the most liquid digital assets are collected.

This money is suitable for those who do not have experience in cryptocurrency trading and do not consider it necessary to spend time studying them. 

When choosing a crypto fund, you should carefully study the history of its work and reviews: among the largest and most reliable are Arrington XRP Capital, BlockTower Capital, Brian Kelly Capital Management, Digital Currency Group, Fenbushi Capital, Galaxy Digital Assets Fund, MetaStable, Pantera Capital.

 It is better to avoid money that promises the highest returns in a short time: scammers can manage it.

You can even make a profit by simply storing the coins in your account

Another popular method of passive earnings is steaks, which are basically storing coins in a wallet for a fee. The operation of the network (blockchain) of some cryptocurrencies is provided by the Proof-of-Stake (PoS) algorithm: in this case, users can get a reward just for owning a coin. 

The advantage of staking is that it does not require expensive equipment and large computing power, as is the case with mining. More information about how the PoS algorithm works can be found in binance exch

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