Despite the current decline in the cryptocurrency market, it can still offer good opportunities for making a profit. We will talk about how to make money with cryptocurrency in 2018.
Investment
Investing in cryptocurrencies implies investing in various assets for a long or medium term. This method is convenient because it allows you to enter the market with minimal investment, as well as gain experience which is priceless for the cryptomarket.
In order to invest successfully, you will need the following skills. First, the basic knowledge in technical analysis so that you can assess the current market state and find the right entry and exit points.
Secondly, learning how to track information flows. The price rate of cryptocurrency is heavily dependent on the positive or negative news, and some news may single-handedly turn the market upside down. As such, you gotta keep your finger on the pulse.
Thirdly, it is necessary to at least have a minimum understanding of the technologies that stand behind the cryptocurrencies as well as their application areas. This will help identify assets with good prospects for growth.
By combining this knowledge, you can develop your own investment strategy and enter the market. However, you need to start with small amounts and never invest more than you can afford to lose. And don’t just bet on a single cryptocurrency — there must be several assets in the investment portfolio.
Trading
If the investment seems too calm for you, or you’ve already gone through this stage, you can try cryptocurrency trading. This will require an initial investment of at least several thousand dollars.
This method of making money will not be a walk in the park, and it will require permanent employment, speaking of 2-3 hours a day. You’d have to follow the news, understand the technology and be a technical analysis pro. This way, you’d be able to correctly calculate short-term market fluctuations, which last from one day to a week or even more. Basically, you make earnings off of this difference.
Also, traders practice margin trading, when they loan the money from the stock exchange, as well as going for scalping, which is making a profit from short-term price fluctuations within a few hours. We strongly recommend that you try these profit methods before you become a professional.
And do not believe various analytical bloggers and signal channels — think only with your head and fact check any information.
Mining
Mining in 2018 is a business for people who understand the process behind the acquirement of cryptocurrency, and for those who are ready to invest in their own mining farm. You will need to buy equipment, find a room, and get ready to pay electricity bills. The minimum market entry threshold is at the level of $2000-$3000, provided that at least a small farm is used.
It is necessary to plan ahead which cryptocurrencies will be mined because the choice of equipment directly depends on this. Correctly planned mining farm allows you to earn several different cryptocurrencies, and switch between them depending on the change in profit yield.
There are two strategies for mining. The first involves mining leading cryptocurrencies such as Bitcoin or Ethereum. You make a profit every day, gradually returning your investment. The second strategy is to mine not-so-known cryptocurrencies expecting that their value will grow several times. But for this strategy, you’d need to correctly assess the prospects of these coins, so as not to waste electricity.
Regardless of the mining strategy, you would still have to learn how to buy, store and sell your assets safely.