Crypto trading is a lucrative investment because of the large profit margins made by the investors in the portfolio. The industry continues to register more enthusiasts because of its decentralization. This has enabled the traders to have more control over their finances as opposed to other global financial markets.
Alternative financial markets have numerous limitations which bar investors from direct trade to influence their profits. Cryptocurrency has broken the barrier because a trader is able to personally manage his/her wallet and earn depending on the capital and trading skills.
It is an amazing portfolio because investors transact by themselves at their convenience and comfort as long as they can access a credible online platform. Investing in cryptocurrency is very beneficial, it has advanced security features in which the block-chains are built.
Further, the industry offers a considerable hedge so that investors cannot lose their investments. Besides, the profit margins are increased due to insignificant transaction fees as opposed to other financial markets.
As common with all investments, the main goal in joining crypto industry is to make profits. This’ only possible when an investor understands the game. Several ways can be used to make more money while investing in cryptocurrency. The listed strategies here have consistently enabled most investors to widen their profit margins in short time spans.
1. Buying and holding
You can only buy or sell the electronic coins based on your capital. As a new investor, you must first buy the crypto coins of your choice initial fiat currencies. You can decide to buy the coins and hold in your wallet until the prices shoot.
The coins can later be sold in the market to make profits. There are several exchange platforms from where to buy the coins. An example of the exchange platforms best suited for beginners is Binance.
Importantly, familiarize yourself with the market rates and observe the trends when buying Bitcoins or any altcoin.
Buying and holding work in favor of investors when there are no downward fluctuations in the markets. Precautions must be taken when rates begin to go down to avoid losses.
2. Crypto mining
Crypto mining is one of the ways that earned early investors and companies massive profits. A lot of money can be made through crypto mining when an investor has the right skills and tools. Mining simply implies that you create more coins into your wallet. It is achieved with the aid of computer programs with high processing power. Depending on your capital and skills you can considerably create more coins into your wallet.
Crypto mining was a fortune at its inception. At the time were few players in the field and more coins were required in the market. Thousands of the coins were mined at very little low expenditure in the advent of the digital currencies.
Mining still works for people with powerful tools and high-value investment. It is, however, worth the shot as it guarantees quick and huge returns on your investment.
3. Trade in different coins
The secret with every business is expanding the portfolio. Confining oneself by investing on a single coin yields low returns as there are limited tributaries into the wallets. There are several cryptocurrencies to trade.
The most popular coins are Bitcoin, Litecoin, Ethereum, Ripple, Zcash, Dash, Monero, Iota, EOS and Dogecoin among others. There's always a winner in the year. In 2018 Stellar had one of the best spikes in the market. All the price predictions are pointing to an increase of +300% for December 2018. It is necessary that a trader understands the exchange rates and makes a leap at the right time. You can buy the coins when the prices are staggering and sell when the values rise.
Diversifying by trading in numerous coins is also advantageous as the industry is at times volatile. It can be an imperative escape strategy. It has some hedge on the investment. A trader also has more options to explore such as trading against fiat currencies the dollar, Euro and pounds.
4. Consider day trading
Daily trading is the buying and selling of the coins on daily basis. It is done depending on the fluctuations of the short term coin prices. The fluctuations are subject to numerous factors like global trends and rumors among many issues. A trader can purchase coins at a fair value and sell when value surges based on the market trends.
5. Use the trading bots
Using trading aids like the bots immensely contribute to the investment. Different trading companies have integrated the bots to their systems to trade for the investor. Some of the popular and preferred crypto trading bots are Crypto World Evolution, BTCRobot, Gekko, Cryptotrader, Zenbot, Tradewave, Haasbot, Gunbot and many more.
Some of the bots are unique to particular coins, considerable diligence is necessary when buying them. They effectively run an account with little or no monitoring and make quite good returns.
There are several ways that can be used by crypto traders to make profits. As highlighted, strategies like crypto mining, buying and holding, trading in more coins and the use bots are largely beneficial. They are credible and potential ways which have fetched lots of profits for many investors.