Cryptocurrency is a very exciting way of making money, mainly because of its unpredictability. There are lots of different cryptocurrencies for you to invest in, from those in the mainstream like Bitcoin to more obscure cryptos like TrumpCoin.
Making money from cryptocurrency isn’t as straightforward as people might have you believe, however. There’s a lot of preparation required to get started, from learning to read financial charts to studying individual currencies. You need to prepare, otherwise, you won’t succeed.
This article will explain how you can start making money from cryptocurrency this year:
Research Cryptocurrencies
Before you can begin making money from cryptocurrency, you need to extensively research cryptocurrencies. There are lots of different cryptocurrencies available for you to buy, as already mentioned. Ideally, you should find a currency that offers high rewards, but low risk. This isn’t easy but is possible. At first, you should avoid altcoins and pump ‘n’ dumps. As you become a more experienced trader, you will be able to turn pump ‘n’ dump schemes into lucrative moneymaking solutions. At first, however, you need to avoid them like the plague.
Funding Crypto
If you are on a budget and can’t afford a sizable crypto investment, you could consider using a crypto lending service, like CoinLoan. According to this CoinLoan review, you can take out loans against collateral in cryptocurrencies, stable coins, and fiat currencies. Crypto loans are usually approved immediately, provided that collateral is offered. If no collateral is offered, then a crypto lender may ask to perform a credit check. A loan is a great way to get started trading, although you should spend your money wisely. You will be responsible for repaying your loan. If you lose your money, you will still have to repay it.
Find a Platform
If you want to become a crypto trader, then you need to find a platform to work with. There are many different platforms. Not all are worth using. Some platforms are to be avoided. If you have a platform that you are interested in using, then you can check out its reviews on Google or Trust Pilot. It might also be worth networking with other crypto traders in online crypto communities and asking them for their recommendations. If they advise against using a platform, then it’s usually best to take their advice. Crypto traders tend to be very forthcoming when it comes to giving advice on platforms, though still conduct your own research to ensure there is no bias influencing their recommendation.
Create A Wallet
A crypto wallet is a must-have. You mustn’t get into the habit of storing your cryptocurrencies in the wallets provided by crypto platforms, because they are easily accessed by hackers. A crypto wallet is a secure online wallet, where you store your crypto. Most experts would advise against using online wallets, instead recommending offline wallets. You should never share your wallet’s password with anybody else, and you must keep it written down on a piece of paper somewhere where it can’t be accessed by other people.
Read Financial Charts
If you want to become a master trader, you need to learn to read financial charts. If you can’t read charts, then you won’t be able to predict changes in the market, nor will you be able to determine when a good time is to pull out [or buy into] a trade. There are lots of online courses that explain how to read financial charts. You can also read books, watch videos, and read online guides if you don’t want to sign up for a course.
Practice Demo Trading
Once you have registered on a platform, you should have access to demo trading. Demo trading is when you trade with virtual money. Most platforms offer demo trading. If the one that you are using doesn’t offer it, then you should be able to find it on another platform, even if you don’t use that platform. There are also online services that offer demo trading simulations. These simulations are a very effective way of familiarizing yourself with crypto markets, which can be very unpredictable. Demo trading is usually free, wherever you do it.
Attend A Masterclass
A masterclass is a class that is taught by a master trader. There are lots of these classes online, some better than others. If you are going to attend one of these classes, then make sure that you do your research so that you can find the class that will be most useful to you. You can do this by reading reviews, financial magazines, and asking other crypto traders that you know for their advice. Some masterclasses are free, so it is worth considering them if you aren’t fully sold on spending money on a masterclass yet. If the content and information that you receive seem worthwhile to you, then you can go ahead and sign up for a paid class.
Deposit Your Money
Once you are sure that you are ready to trade, you can go ahead and make a deposit. When you are first looking for a platform, it’s important to consider deposit processing times. You need to find a platform that offers instant deposit processing. There’s nothing as annoying as having to wait for your deposit to process is. You can find out how long a platform’s deposit processing takes by reaching out and asking the platform, reading the useful info pages on their website, or by speaking to other crypto traders that use the platform. Make sure to also research withdrawal times.
Make Small Trades
When you have deposited money, you can go ahead and start trading. When you first start trading, make sure that you pace yourself. You shouldn’t rush into it. Make sure you know exactly what crypto you want to invest in, and what you’re doing. If you make silly trading decisions, you may turn yourself away from wanting to trade in the future. Small trades are best to start with, so you don’t lose too much money.
Making money from trading isn’t difficult, as long as you do your research and practice. Make sure to stagger yourself when you first start, so that you don’t blow all of your investment at once. This is especially true if you are using money from a loan to invest.