How to earn a profit using cryptocurrency
It is still possible to earn a profit with crypto. Although there has been a big drop in the price of Bitcoin there is still potential. In 2014 many believed that the end of cryptocurrency has come when the value decreased dramatically. However, 2017 turned out to be the best year for this technology.
In this article you will find out more about different tactics for earning a profit.
Trading
This might be the toughest, but most profitable way to work with crypto. All you have to do is buy a coin at a low price and then manage to sell it at a higher one. This also affects the fluctuations on the market. As you might be able to guess, the toughest part is knowing when to purchase and sell. By analyzing the market you might be able to understand what the movement of the market will be, given the current situation. With experience and knowledge your predictions will slowly but surely become better.
As a beginner, you can choose to study the market by yourself or hire a professional. Working with an advisor is a better choice if you can afford it. It is not enough to just predict the value of the crypto – you will most probably lose your funds in this way.
Holding and rent
Unlike normal money, some coins tend to go up on their own. Coins are constantly being issued. With every creation of a new block, there is a reward. There is no limit to the total amount.
With Bitcoin this reward is reduced by 1/2 every 4 years. When the blocks reach 21 million the emission will stop. Then miners will receive only user commissions.
It is a good idea to hold crypto in cold wallets which are products for very secure offline storage.
Mining
The main points behind the blockchain technology are connected to transactions that form blocks, miners who are calculating a key for every block and rewards in the form of blocks which are given to the first miner who succeeds in finding the key.
You will need an enormous computing power in order to solve the puzzle. You might decide to invest in an application-specific integrated circuit which is more expensive, but has more power. Their main goal is mining. You can also join a group of miners and work together, afterwards splitting the rewards.
IEO and bounty
Initial Exchange Offering is when a previously private coin appears on the market for public sale for the first time. The demand will define the price at which you can purchase it. Since developers will need money to start, some projects begin collecting funds even before IEO. The price of the coin depends mostly on the demand. This is why promotion is crucial. There is a bounty program that is working well for creators. It consists of sending coins to bloggers, commentators, etc. in order to promote the crypto. For some projects the execution of some easy tasks will be enough to earn you a profit. All this is described in detail in the conditions.
Referral programs
If you bring new users you will get bonuses for them.It is as simple as that. Your rewards in the world of crypto will be coins. It is an easy way to earn some money without investing funds. You should do your research carefully in order to avoid being scammed.
Conclusion
Holding and trading is the best option for knowledgeable traders who have enough funds. If you are just starting out, you should first study the market. When it comes to IEO – research the project to minimize risks.