Top Ways to Make Money by Trading Cryptocurrencies

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You might have heard about the emerging e-commerce sensation, cryptocurrency and how it is attracting hundreds of hefty investments from around the globe with the only purpose of making big profits. Even the most popular social media website, Facebook also recently announced to introduce its own cryptocurrency, Libra. The idea is vehemently followed and is gaining quick dominion in the field of e-commerce.

This sizzling new investment opportunity is attracting great investments but not all of the investors are successful in creating profit, rather they fall into some sort of scam and lose all their hearts to reinvest.

In reality, there exist not many methods through which you could make a legitimate profit with your cryptocurrency; especially when governments around the world see this as a looming threat in the trade market. So, to make the job easier for you and save you from any existing threat of scam, we have researched through many practically applicable methods to come up with these remedies to ensure secure and profitable investment opportunities.

BUY AND HOLD STRATEGY

One of the most common ways of making extra bucks out of cryptocurrency is ‘Buy and Hold’ strategy. In this investors tend to buy any of the popular cryptocurrencies Bitcoin, Litecoin, Ethereum, Ripple, etc. and hold in possession until their market value rises. This strategy can also be related to the stock markets where investors buy shares and hold them until their prices escalate, so as to gain a big profit out of their investment. 

To master this strategy, you would require to gain good insight into the trends of the market and recognize volatile assets. Trends and value can shift rapidly, also surprisingly at times. So keeping a keen eye on the marketing current is really essential to convert regular profits.

Cryptocurrencies like Bitcoin and Ethereum are prone to maintain during regular price fluctuations; therefore, they can be trusted and considered safe investment assets in the arena. However, you may trade in any other cryptocurrency of choice about which your instinct suggests may rise in value sooner.

All you need is to analyze the market keenly and keep your cards intact at the time of opportunity.

Possessing an intelligent mix of coins might also be helpful and could save you in case one of your assets plunges down the market expectations. Here you can check Degiro review, where Degiro is a popular online broker that allows you to invest in UK shares.

DIVIDENDS PAY OFF

Not many are aware of this strategy to buying a cryptocurrency and holding it until the dividend actually pays off. 

The most complacent thing the coins paying their investors a dividend is that you never really have stake them in a wallet to avail their benefits.

Just like ‘Buying and Holding’ strategy, you must be a keen observer of coins and their market trends. COSS, CEFF, NEO, and KUCOIN are the few coins that offer investors a good reliability portfolio in this regard.

MASTER YOURSELF ON MASTER NODES

Master nodes are primary nodes that encourage the operations of various others to perform their role in executing a blockchain operation. This way you will know a great deal about how to make money trading cryptocurrencies. It might be a technical subject for many but existing in a volatile market with the intent to earn big was never going to be an easy option. 

A master node is a full node of a cryptocurrency that manages and maintains a real-time record of blockchain’s states of activity. Though the idea is a little hard to comprehend by a layman as it is of technical nature; here is a simplified brief about it and how it could benefit an investor. 

Several cryptocurrencies tend to offer good bucks to the operators maintaining a real-time record of their native blockchain activities. The process is technical in nature and requires proficiency to maintain a specific count of coins under the master nodes. Several crypto developers pay to maintain a real-time record as node operators of the activities on their native blockchains. Since the process is complex and requires one to maintain a certain minimum number of coins under their master nodes, crypto platforms prefer outsourcing the service to master node operators at a fee.

DASH and PIVX are the two examples of stake cryptos that retain master nodes.

STAKE CRYPTOS

Another way to make healthy profits through cryptocurrencies is by staking. It has the potential to offer an investor a double earning capacity utilizing price appreciation and dividends from particular coins upon staking their digital assets.

This technique is based on carrying coins in a live wallet which later allows an investor to earn coins as a result of securing the particular network of crypto.

NAV Coin, PIVX, Neblio, and Decred are the few examples of coins that can be staked and profited using this technique.

PREDICT THE RIGHT WAY

One of the main reasons for the rapid increase in the price of cryptocurrencies is its tokens supply. The old school’s laws of economics apply here as well that if an asset has a scarce supply while staying high in demand then ultimately its value shall increase.

In the present day and age of mass media when news plays an integral role in altering the behaviors and perceptions of the people, it becomes crucial for the investors to keep an eye on the latest happenings related to their niches. The news plays an equally important role in the arena of cryptocurrencies. Any talks or announcement about a cryptocurrency could well impact the buying and selling behavior. It causes the price of coins to increase or dive down the nose.

Crypto owners achieving roadmap targets within the deadlines can influence investors to buy cryptocurrency ensuring better confidence and market reliability. To precisely calculate the cryptocurrency supply and market capitalization you can use this formula: Marketcap/Circulating Supply = Price. Similarly, to make a calculated prediction you can also utilize cryptocurrencies market cap. However, an increase in cryptocurrency’s circulating supply could affect the predicted price but narrowly.

CONCLUSION

We know that 95 percent of the public do not consider the new technological invention of modern times as a proper currency of trade rather than a financial commodity or you can say a highly potential asset of the near future.

Hence, the value of these cryptocurrencies comes from their capabilities to penetrate the future trade of the world.