Some people make a fine living by "flipping" houses or by trading stocks on the market. On the other hand, some people earn money by trading in cryptocurrencies. Cryptocurrencies are the Internet community's way of showing the middle finger to the banks and centralized authorities. What that means is that cryptocurrencies function like digital assets representing means for exchange that uses cryptography. Simply put, it's a digital currency used in a decentralized ledger that can't be controlled by any organization. That way, people can exchange digital currencies and assets without a middleman or government bureaucracy.
Cryptocurrencies are based on Blockchain technology, which makes transactions secure, trusted and unrestricted. Furthermore, if you are tech savvy or know how to navigate markets, you can make a lot of money by trading in cryptocurrencies. There are hundreds of cryptocurrencies online and each one has their own and unique cryptocoin. Here are a few tips on how to make money trading cryptocurrencies.
Mine some cryptocoins
First things first, mining cryptocoins is not a profitable venture, which means you won't head off to California for a gold rush and get rich or die trying. But, mining cryptocoins gives you the potential to earn cryptocoins or parts of them at least and then sell them if their price goes up at one point. Basically, what you do is offer your hardware for bookkeeping services to the coin network.
Mining is basically accounting where you verify transactions and get rewarded for it. How much you will earn depends on the hardware you offer. For instance, you can earn a dollar or two per day as a portion of a coin if you offer average computer hardware. If you invest around $3,000 - $5,000 into hardware you may earn $50 per day. As mentioned, not really profitable, but each portion of a cryptocoin is worth something. Get enough pieces and you have a whole coin. If a price of a cryptocoin goes up on the market you can sell it for profits.
Do the research first
Each cryptocurrency has its own community and you need to get in touch with them so they can provide you with details such as, supply, demand, the amount of coins on the market and other technical data. All that technical stuff affect the price of the coin and that information will prove invaluable once you start the exchange. You'll need to follow graphs and learn how to navigate the market so you can determine when a coin is getting "pumped" which is the highest value and when it's going to get "dumped" which means falling to the its lowest price.
It is a scheme used by those with buying power to influence others to buy high. However, if you can spot the pattern you can benefit from it instead of losing. That way you'll be able to predict the rise and fall of cryptocoin and capitalize on an opportunity. Moreover, social networks such as Twitter house cryptocurrency communities and they also provide good info about the market. It's important to listen in and keep up with the trends in order to take an advantage in the right moment and sell digital currency online for a profit.
Work the market
Buying and selling cryptocoins is much like the stock market only with less stress and confusion. First, you have to obtain a cryptocoin or a portion of a cryptocoin by either buying one or mining one. You don't need to buy a whole coin just a small portion will do for starters. Next step is to find a suitable coin exchange and start working the numbers. As mentioned, you buy coins after a "dump", which is the moment when a coin reaches it maximum price and then drastically falls to its lowest.
On the other hand you'd want to sell coins after the price starts to grow rapidly, because rapid growth means that coin is "pumping" and that it will reach its peak soon. If you can't determine when the coin will reach its max, then sell as soon as price goes above the original investment. That way you'll ensure profit and eliminate the risk of losses.
Cryptocurrency is gaining popularity in the digital world. Some see the benefit in "sticking it to the man", while other see the potential for profit. Nevertheless, this new market holds a great opportunity and it's up to you to take an advantage.
