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In the last couple of years, the rise in the value of the Crypto-currency has attracted a lot of attention from everyone who wants to earn on the Internet. Crypto currency is digital money protected by cryptographic encryption and is not dependent, for example, on rising oil prices and the stability of major world currencies. Cryptoboom has developed quite rapidly, so for most Internet users, bitcoins and their ilk are still a "dark horse" and require scrupulous study.
We earn on the crypto currency: what is cryptotrading
On the market, newcomers begin to come up with the question of how and how much they can earn. Today in this niche you can consider 5 main types of profit:
- Trading
- Mining
- ICO
- Proof of Stake
- development of its own crypto currency.
Trading as a type of trading on the stock exchange is the most popular way of earning money on the market. For this, it is necessary to have the initial capital, from which it is planned to start trading. The optimal entry threshold is determined by itself, but the standard amount is +/- $ 500.
In order to start trading, you also need:
1. Register on one of the exchanges, having studied the list of the most stable and popular ones.
2. Open the account (it is best to do it in bitcoins - the most powerful crypto currency).
3. Study the market carefully, choosing the most promising projects for investment.
4. Regularly expand and update the contents of your portfolio.
Active and passive cryptotrading
In crypto-trading, there are 2 areas of tactics: active and passive.
Active trading - daily trading on exchanges on the principle of "bought - sold - got the result". The outcome of the trade directly depends on the fluctuation in the growth of the currency at a certain point in time.
Advantages: the possibility of obtaining significant profits at the same time.
Disadvantages: high risk, permanent employment.
Passive trading - long-term investments for several months in any project / projects and patient expectation of income. In this case, much depends on how thoroughly you studied the niche and chose the right project.
Advantages: lack of permanent employment; a lower risk than with active trading.
Disadvantages: a multi-month diversion of funds; the possibility of loss due to the "drawdown" of the course in a given period of time.
Advice to beginners:
Beginners should start with passive trading. The most important thing is to choose the correct currency for investing. The most stable today are bitcoin and etherium. Equivalent investment in both currencies will help to significantly reduce your risks.