Whether you believe in cryptocurrencies or are wary of them, you can make good money with them. Is it worth investing in cryptocurrency alongside traditional assets? How to invest in cryptocurrency to get income? These are questions that most beginner crypto investors have.
Innovation, the gradual expansion of the scale of the use of digital money and the attention of investors from all over the world make cryptocurrencies one of the most attractive areas for investment. It is noteworthy that there are many ways to invest in cryptocurrencies, and most of them are available to everyone. The crypto industry is developing and gradually absorbing various industries. For example, PayPal, according to Forbes, announced the launch of a service for buying, storing and trading cryptocurrency based on a PayPal account.
Becoming a successful trader is not as impossible as it may seem for some. Watch interesting features of well-known and respected crypto developers. For example, Zignaly has binance copy trading that helps you copy the activity of successful traders.
Purchase and storage of cryptocurrency
Buying digital assets and anticipating their further growth is one of the most popular ways to invest in cryptocurrencies. According to the Bitcoin Treasuries portal, many large public companies that own Bitcoin worth hundreds of millions of dollars adhere to this investment principle. There are over 7,000 different cryptocurrencies in existence today. They can be conditionally divided into:
- cryptocurrencies with large capitalizations and relatively slow growth;
- coins, while low in value, but with great potential for growth.
Experts recommend investing most of the capital in TOP-30 coins by capitalization and allocate a small percentage for promising coins.
In addition to Bitcoin, Ether, Litecoin and XRP, there are over a thousand coins in the crypto world. The only way to figure out where to invest is to read the news and study the analysis. Boring, but very important from the point of view of the safety of your investment. Because there are a lot of scammers in this environment.
Some altcoins cannot be bought directly – only with bitcoin or ether. But whichever coin you choose, make sure the exchange or company you are using is legally operating in your country. Buy cryptocurrency only on regulated platforms, as they guarantee the legality and safety of financial transactions.
Storage can be done in three ways:
- on a special container (they are also called crypto-refrigerators)
- on special online storage (but then it is better to log into your account from a separate device, where there will definitely be no viruses)
- on a deposit with a broker (this is more convenient if you are actively trading on the exchange + assets will be protected by brokerage security tools, which is more effective than private protection of a computer or laptop)
Cloud mining
The easiest way to make money on cryptocurrencies is cloud mining. The essence of cloud mining is to rent mining capacity from a specialized company. The investor simply registers on the service, chooses the cryptocurrency that he wants to mine, and the power. After paying for the contract, it simply removes the profit from the mined coins. Investments in cloud mining provide passive income with daily payments and pay off, on average, in 3-4 months. The advantage of this investment option is the low entry threshold.
Staking
An alternative way of investing in cryptocurrencies to mining is staking. This option offers passive income from Proof-of-Stake (PoS) mining without the need to purchase expensive hardware and spend money on electricity. A regular computer is enough for staking. The reward from the generation of new blocks is distributed among the miners in proportion to the number of coins available in their wallet and their storage period. That is, the more (and longer) coins are stored on the wallet, the higher the income from participation in the process.
Trading
The cryptocurrency market is cyclical. An increase in the value of assets is always followed by a fall, and a fall is followed by an increase. Knowing how to find profitable entry and exit points from the market, you can make good profits. You can start trading with a small investment. Earnings largely depend on experience and skills. In order for trading to bring good income, you also need to devote a lot of time to trading, market analysis and the study of cryptocurrencies. You need to understand that the cryptocurrency market is young and highly volatile. Therefore, cryptocurrency trading can be considered a high-risk investment.
Crypto business
Cryptocurrencies and blockchain are promising technologies of the future. They form a favourable environment for the creation of new innovative projects. Therefore, if there is a good business idea that can be implemented on the blockchain, you can direct your investments towards its implementation. In addition, the cryptocurrency environment has its own form of crowdfunding – ICO. With its help, it is possible to collect even more investments in your project by selling tokens.