4 simple steps to making money with cryptocurrency
Cryptocurrencies have been around for nearly two decades. That doesn’t mean that it’s too late to get started. The sooner you start investing in cryptocurrency the better returns you will witness.
Cryptocurrencies are so unlike any other form of investment that many people are too intimidated to get involved. Our aim today is to talk you through the four simple steps that will get you started in making money from cryptocurrencies.
Research types of cryptocurrency
The first step is the most time-consuming step (and probably the most boring step) but it is not something you should rush.
You would never jump into a traditional investment without a vast amount of research. And cryptocurrency should be no different.
Take the time to look into both new and existing types of cryptocurrency. Make sure you know what currencies are growing, what are shrinking, and which ones are on the verge of collapse.
Think about whether you want to put your money behind a new form of cryptocurrency, or whether you want to back a well-established giant (like Bitcoin). Both of these have their benefits, but if you only have a small amount to invest with you will get more bang for your buck with newer currencies.
Listen to the currencies that the experts are talking about. Read articles from this year (the market changes so quickly, you need to make sure your information is up to date).
Find the right place to buy it
Once you have decided which Cryptocurrency you want to invest into then you will need to find the right place to buy it. Many people see purchasing cryptocurrencies as a Wild West situation, or as an exclusive club.
It is quite the opposite. Cryptocurrency is one of the most accessible forms of investing. Anyone can do it. The process of buying it is also very civilized. Yes, you may come across the occasional cowboy who is trying to scam you. But there are many well-trusted and regulated trading platforms out there.
The right place to buy cryptocurrency really is an established trading platform. Not only do they offer an unrivaled level of security, but they also offer many bonuses for using their platform. For example, the Bitcoin trading platform Binance offers binance bonus for signing up for their service.
Taking advantage of these offers can lead to a bigger wad of cash in your pocket.
Find the right place to store it
Many people are under the misconception that you don’t need to store cryptocurrency. Cryptocurrency is not a physical object, so why do you need to worry about storing it? Well, cryptocurrencies are still vulnerable to theft, despite not being a physical item.
Many people have lost thousands of dollars because they haven’t stored their chain links correctly. So, how do we recommend storing cryptocurrencies? Well, in a crypto wallet, of course.
No, these aren’t physical wallets. They are a type of software that allows you to rent out a secure location online to store your cryptocurrency. These wallets provide top of the line security and some will even allow you to take out insurance on your cryptocurrency – against theft and hacking.
Some crypto wallets we really love are:
- Ledger Nano X
Learn when to sell it
This is definitely the hardest step on this list. But it is undoubtedly the most important step. Learn when you should be selling your cryptocurrencies.
When it comes to this final step, cryptocurrencies are very similar to stocks and shares. There is no set ‘right time’ to sell and the markets can be unpredictable. These types of investments are always a risk on some level. But taking risks is what leads to the best rewards.
The key to getting this step right is to do your research. We’re sorry that it isn’t something more glamorous. However, if you get this step wrong then all the hard work you put into the other three steps will have gone to waste.
So, how can you tell when a cryptocurrency’s value has peaked or is about to drop? There is no definite way to tell. However, there are many cryptocurrency experts watching the market closely and putting out regular reports on when to sell.
Keep an eye on reports like this from experts. Study the market for yourself. Remember that there is always a risk that comes with this kind of investment. And accept that you won’t always get this choice right.