Did you know cryptocurrency has the potential to make you a millionaire in a short amount of time?
Cryptocurrencies like Bitcoin and Litecoin and have taken the world by storm. It’s a potential gold rush for investors from all walks of life. Regular people are becoming millionaires overnight. Rags to riches stories are becoming commonplace.
So are you ready to become a millionaire courtesy of the cryptocurrency craze?
Read on to learn the basics and how to make money with cryptocurrency.
So what exactly is cryptocurrency? This is important to know before you start investing your hard-earned money.
Cryptocurrency is a digital exchange medium. It uses encryption to control monetary units and verify fund transfers.
Cryptocurrencies use blockchain technology, which allows users to share a digital ledger. This ledger shares across a network of computers.
No central authority manages these ledgers. This allows for anonymity and independence from the major financial institutions or governments.
Cryptocurrency originated and evolved over the last few decades. Bitcoin was the first available cryptocurrency starting in 2009. There have been thousands of other coins since.
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The Top Cryptocurrencies
There are countless cryptocurrencies available today besides Bitcoin. Here are some of the most popular.
- Bitcoin Cash (BCH)
- Ethereum (ETH)
- Ripple (XRP)
- Litecoin (LTC)
- Monero (XMR)
- NEO (NEO)
- Cardano (ADA)
- EOS (EOS)
- ZCash (ZEC)
- Dash (DASH)
- Stellar (XLM)
- mIOTA (IOTA)
Sometimes the lesser-known currencies can provide a greater opportunity for return on investment.
Which cryptocurrency will be the next Bitcoin? What currency will surpass Bitcoin? Only time will tell.
You’ll also need an exchange platform to trade cryptocurrency. Top exchange platforms include Coinbase, Cointree, Uphold and Binance. Each platform has different pros and cons including which currencies they support.
To Mine or Not to Mine?
One way to earn Bitcoins is to mine them with your computer. You can also mine other cryptocurrencies by lending your computer’s processing capabilities.
Verifying public ledger transactions online takes a lot of computing power and electricity. There is no other cost besides your cable internet connection.
Mining is a less lucrative option than it was years ago. It isn’t worth the required time, hardware and utilities. I’d recommend that you focus more on buying and selling crypto instead.
How to Make Money with Cryptocurrency
The best way to make money from any investment is to buy low and sell high. That is investing boiled down to its essence.
The same principles apply in cryptocurrency. It doesn’t get much simpler than that.
Bitcoin and other cryptocurrency prices are lower than they were a year ago. That means there is plenty of potential opportunity for upside.
Bitcoins cost $20,000 less than a year ago. Now they cost around $6,000. You have a better chance of making real money now.
Buy in bulk at today’s low prices and sell after a big rally.
Don’t forget about the trading fees and delay times, though.
Short-Term Versus Long-Term Investment
Cryptocurrency traders should also considthe er investment time frame and market outlook.
If you are looking to make money fast, day trading is going to be necessary. Look for brief instances of value fluctuations. Then you have to make aggressive moves.
If you are in it for the long haul, your trading style needs to be much more patient. Don’t dump your holdings if the price drops. You also can’t sell everything even after a major price increase.
Rome wasn’t built in a day. You don’t have to try and become a cryptocurrency millionaire overnight.
Increase Investment to Scale Up
Another major factor is your initial investment
If you have $100,000 to invest and the price of Bitcoin increases by 50%, then you made a cool $50,000. But if you can only invest $1,000, then you would only make a measly $500. The more money you have, the more you can scale up your possible profits.
To make a million dollars, you will need to bet big to win big.
The Big Short
If you think that Bitcoin or other cryptocurrency prices will go down then you could always short it. Shorting means you are betting against a specific cryptocurrency. You are wagering that its price will go down. When prices go down, your return goes up.
Want to know how to make money in cryptocurrency and becoming a multi-millionaire? Be a proactive pessimist.
Invest in Cryptocurrency Companies
Want to know how to make money with cryptocurrency in a different way?
Invest in cryptocurrency technology or cryptocurrency-related companies instead.
You could invest in websites or mobile applications that help others to buy and sell crypto. Consider investing in a cryptocurrency marketing or public relations company.
Think outside of the box. There are new companies popping up everywhere that need investors.
During a gold rush, sometimes the people selling the shovels make as much money as the gold miners.
Build Long-Term Wealth and Diversify
It’s great to make money trading cryptocurrency. You can also make more money by reinvesting your profits. Invest the rest of your profits in stocks, funds and real estate.
Diversifying your investments reduces risk. Never put all your eggs in one basket.
Become a millionaire by trading cryptocurrency. Then become a multi-millionaire by expanding your portfolio.
Bullish on Bitcoin
Bitcoin and other cryptocurrencies have survived plenty of criticism. They have survived attacks from regulators and governing bodies. Despite ongoing challenges in the cryptocurrency space, the outlook remains positive.
It’s accepted that blockchain technology and cryptocurrencies are here to stay. It’s a matter of when they’ll go mainstream and which currencies will dominate the market.
Cash in on Crypto
Now that you know how to make money with cryptocurrency, it’s time to start investing! And be sure to read our other insightful cryptocurrency articles to help hone your trading strategy.