Nearly one in 10 Americans now own some type of cryptocurrency.
The most popular cryptocurrency is Bitcoin, as it brought the technology to the forefront. But other cryptos like Ethereum and Litecoin are growing in popularity too.
While older generations are skeptical of digital currency, younger people are embracing it. In fact, nearly one-third of young adults prefer putting their money into crypto over stocks and bonds.
However, regardless of your age, it’s never too late to dive into the world of crypto. Read on to find out how to make money with cryptocurrency starting today!
Use a Passive Investment Strategy
Before you can make any money with cryptocurrency, you have to get some first.
To buy Bitcoin or Ethereum, for example, create an account on a trusted digital currency exchange platform like Coinbase. After you link your bank account, you’ll be free to buy cryptos.
- Also Read | How to Make Money Online with Currency Trading
Be diligent with your research to avoid pump and dump scams. Steer clear of cryptos that skyrocket out of nowhere. False news stories about price increases are another common red flag.
After you own cryptocurrency, wait and keep tabs on the market. Consider that some cryptos, such as NEO, pay dividends.
Much like with traditional investments, patience is key. The crypto market is significantly more volatile than the stock market. Negative press often causes prices to plummet in the short-term.
Go All-In with Day Trading
However, it can also be very profitable–that is, if you have top-notch analytical skills.
Day trading cryptocurrency offers a few unique perks compared to stocks. For one, you can perform trades throughout the entire week, including the weekend. Plus, fees are almost nonexistent.
Some good exchanges for day trading crypto include Bittrex, Binance, and Bitfinex.
But most people who are thinking about making money from cryptocurrency are better off buying and holding. If you wish to day trade, make sure you understand the risks and have enough confidence in the market.
Build a Crypto Mining Rig
In order to verify transactions, someone has to mine cryptocurrency. What motivates people to do so is the fact that they receive cryptocurrency in return for their work.
Less than a decade ago, you could mine Bitcoins with a run-of-the-mill desktop. Nowadays, the process requires a high-powered, custom rig.
As a result, you’ll need to invest a few thousand dollars in hardware alone. You also need to prepare for extraordinarily high electricity costs.
Crunch the numbers to check whether you can even profit from a venture like this.
Final Thoughts on How to Make Money with Cryptocurrency
Keep in mind that, while there’s a luck factor involved, your long-term success hinders on how much research and learning you’re willing to do.
If you want to learn how to make money with cryptocurrency, avoid doing it on your own. Finding the right community helps you build your knowledge and stay up-to-date on crypto news.
Are you on the lookout for more tips on saving money and boosting your income? If so, be sure to check out to the finance section of our blog today!