Dealing with crypto is a mix of science, logic, and luck. It is simple to deal with, yet a bit tricky because of the constant fluctuations in the market. To handle it, you don’t need to be an expert on block chain networks. Though you need to have adequate knowledge regarding it, study the market trends and patterns, and run a demo account that almost all brokerage accounts provide.
In 2022, crypto is considered one of the best investments to take part in if you have monetary funds dedicated to it and have the patience and the courage to take risks because that is what the crypto market is all about. Remember, the loss is part of trading, and you should have the will to learn from the mistakes and start with a minimum investment so the losses don’t take a toll on you.
Due to the uncertain fluctuations in the price of Bitcoin, Ethereum, and other cryptocurrencies, this might initially become a full-time job for you. But, once you get the hang of it, you can trade at specific times, as one does in end-of-day trading. This guide will give you insight into how to make money from cryptocurrency.
HODL – Buy & Hold Strategy
In 2013, a forum member put up a post titled “I AM HODLING,” which was a misspelled version of “hold.” As 2013 was a big year for Bitcoin, Hodling was widely used in the crypto world. People also abbreviate it to “hold on for dear life,” referring to the phenomenon of the strategy in which the trader holds on to the crypto until they get a good rate of return.
This is a widely used strategy as it provides more certainty. The buy-and-hold strategy is referred to as hodling. The goal of buy-and-hold investing is to reap from the asset’s long-term revenue growth by holding onto investments for a prolonged time. Conversely, traders are significantly more active in their dealings and aim to make money by buying at deep discounts and selling at premium prices.
Investing in ALTcoins – Coins Other than Bitcoin
If you invested in Bitcoin around the time it came out, you should have made a fortune by now. Back in 2009, the price of Bitcoin was $0.0009 each. That’s not even a dollar! Marking an all-time milestone, the value of Bitcoin hit $65,000 in November 2021. As of now, Bitcoin is priced at $19,331.30.
But don’t worry if you didn’t invest in Bitcoin early on. Numerous alternative cryptocurrencies are worthwhile investments. For example, Ethereum comes right after Bitcoin in value. Right now, it is priced at $1,350. There is still time to put some money together and invest in Ethereum, as many brokerage accounts readily provide services for ETH investors. One of those brokerage accounts is the-bitsoft360-app.com. You can deal with a variety of crypto here safely and reliably.
Here are some of the best altcoins to invest in:
- Ethereum – ETH
- The Sandbox – A metaverse with an array of creator tools
- ApeCoin – APE
- Binance Coin – BNB
- Solana – SOL
Airdrops
Airdrop is a method to market new cryptocurrencies. To make people aware of their new crypto invention, the company delivers tokens to the cryptocurrency trader’s wallet, usually for free, but some do that in exchange for a small promotional service.
Generally, airdrops are promoted on the company’s social media pages, website, and crypto forums. Only specified wallets based on the blockchain network or coins stored in active wallets are used to send coins or tokens.
To receive the Airdrop, the user must have a specified amount of crypto coins in their wallet. Some platforms require the selected user to do a particular task, like promoting the currency on social media and with the people they know, getting in touch with a particular blockchain member, or writing a promotional post.
As this is a random crypto coin giveaway, this method is prone to get scammed. As you have to add the details to your wallet and some of your personal information, the fraudulent companies might steal from your wallet or misuse your personal information. Just beware of such companies.
Types of Airdrops
- Standard Airdrop – The interested participants provide their valid wallet ID, and that’s about it for most companies.
- Bounty Airdrop – You must perform a certain number of tasks to receive your finder’s fee or reward.
- Holder Airdrop – Users holding a certain amount of crypto in their wallets are eligible for this method.
- Exclusive Airdrop – People are specially selected for this method. This doesn’t depend on the number of tokens you’re holding.
- Raffle Airdrop – As the name suggests, you buy a raffle ticket, and if you’re lucky, you’ll get that crypto.
Closing Statement
Various methods describe how to make money from cryptocurrency. You have to choose according to your monetary funds, the timing when you deal, and your knowledge.