If you are reading this post right now, it’s either because you have done a lot of research on cryptocurrency, or you are starting fresh without any clue or whatsoever.
But the main question that is still in your mind is “can I make thousands or millions by mining or trading cryptocurrency?” After all, money is a driving factor and everyone yearns to be sky-high rich at some point in their lives.
Speaking of making money through cryptocurrency trading, investment and mining, there’s good news and bad news.
The Good News: Yes, you can make a lot of money through Cryptocurrency trading, investment, and vice versa. Top it off with an instinct to pull your jewels from the market at the right time, you are looking for a very safe and sound business.
The Bad News: Crypto is finite. Remember that time when Bitcoin had a boom and every Joe on the block had a rig set up somewhere in their basement to mine coins?
People did get lucky at one point and a lot of those “Joes” made a pretty penny by holding on to those itty-bitty coins for 8 – 10 years. However, the well went dry as the market developed a mass frenzy to mine and hold on to Bitcoins.
It was like that great American gold rush era when people scrambled to make millions off of those nuggets.
Right now, the best bet is to play it safe with any kind of Cryptocurrency. Whether it’s trading, investment opportunities or selling at any point, have a business plan by your side. Without a mentor to fall back to, or someone who either went through a huge loss or profit situation, you cannot count on your instincts anymore
So, the big spiel is, yes, it is possible to make money off crypto. However, don’t get caught up in Ponzi schemes and investment opportunities without any sign of light at the end of the tunnel.
So, What Is Cryptocurrency?
Cryptocurrency is like digital cash, based on blockchain technology, that can be exchanged online for products, property, or even services. However, it possesses no innate value and cannot be redeemed for any other commodity.
The top five currencies in the market are Bitcoin. Ethereum, Tether, Binance Coin and Cardano, and Around 5000+ Currencies in circulation according to Investing.com.
How Much Is Cryptocurrency Worth?
The total value of all cryptocurrencies keeps on fluctuating from highs to low. In an article written by nerd wallet
” The total value of all cryptocurrencies on May 27, 2021, was more than $1.7 trillion — down from April high of $2.2 trillion, according to CoinMarketCap. The total value of all bitcoins, the most popular digital currency, was pegged at about $735 billion — down from April high of $1.2 trillion.”
What is Blockchain?
As a great supporter of blockchain and decentralization, we think that we should all do our best to make the cryptocurrency world more accessible – i.e. if we really want the “average” (whatever that means) person to realize how impactful this technology can be.
We probably all agree on the fact that getting started with cryptocurrency has never been so easy as it is today. However, our ultimate goal must be to show that to people who right now have no idea what crypto is, or to people who are not as “tech-savvy” as some of us might be. That’s the only way everyone can really gain access to cryptocurrency.
Cryptocurrency, Bitcoin, Ether are all blockchains. Blockchains are basically a spreadsheet (LEDGER) that is duplicated multiple times across a network and updated regularly simultaneously. There is no centralized version of this ledger.
It is hosted simultaneously by thousands/millions of computers. These ledgers will update on their own, Bitcoin as an example automatically checks itself every 10 minutes.
Each of these 10-minute increments of transactions (in bitcoins case transactions would be sending or receiving bitcoins from one person to another for goods or services) are called BLOCKS. For these blocks to be confirmed, accepted, and updated to the ledger nodes are required.
How to Make Money with Cryptocurrency – 20 Mistakes to Avoid Before and When Getting Started:
Making money on the cryptocurrency markets is not easy, but it is within the reach of most people.
Everything takes time and you should not be too rushed.
Start by building solid substantive foundations.
You should create your own investment strategy.
Your goal at the beginning of the investment route should be not to lose your invested capital.
Regularity is very important in science because it allows you to consolidate your knowledge.
In order to earn money from the cryptocurrency markets, you can not under any circumstances fall out of the investment rhythm.
Each of your open positions must be supported by in-depth analysis.
Gambling in the game, no knowledge, will help you to avoid high losses
The basic principles of risk management require that the Take profit order should be at least twice as long as the Stop-loss order.
The theory alone is not enough, you have to practice a lot on the demo account.
Most people who lose their assets are guilty themselves. This is the brutal truth.
To invest, you must first and foremost be well prepared from both a theoretical and practical point of view.
The key to success is it’s a systematic approach to trading and dedicating hundreds or even thousands of hours to gaining experience.
Don’t believe in hyped stuff and don’t join any Telegram pumping groups. They will profit, you won’t. This is one of the most important things to keep in mind. Lots of people want to shill their coins. Do your own research. It’s so easy to be carried away by the hype train.
DYOR (do your own research), as mentioned above. It’s so important. What does it mean? Google the coin you want to buy. Look at the charts. Look at the news websites and read every good information that you can find. And then:
Decide what you want to do. Do you want to just buy some coins and hold or do you want to trade? Trading is a lot riskier and you will probably lose your money if you don’t know exactly what you are doing.
One of the best beginner strategies: DCA: Dollar-cost average. Don’t put all the money you want to throw into crypto in at one moment. Buy something every week. This will eradicate all the little dips. You are averaging the price. Keep some money aside and if a major dip happens, buy some more.
If you really want to start trading: Don’t try to gamble. There are so many good tutorials out there. You need to know exactly what you are doing or you will get burned. Look at all those charts floating around of liquidated leverage traders. Who in their sane mind would trade 100x?
This is ridiculous. Don’t use more than you are willing to lose. This is especially for trading. I’ve read that only 2 out of 10 people make profits with trading leverages. And even those struggle to get as many gains as pure HODLers.
20. Don’t buy high and sell low: We mean that, literally!
People have made the same mistake before you, and they’ll continue to do so. This happens when investors are made to believe that they will eventually hit jackpot on their next sale when the supposed coin value is at an all-time high.
However, the market is unpredictable because Cryptocurrency is speculative.
Last time in 2019 and 2020, the pump was insane and many fell to the belief that it will go on like this forever. People were so hyped up on their own feelings at that point. However, it was a bubble that popped very soon.
At the End of the Day, It’s Possible to Make Money with Cryptocurrency But Beware of the Shenanigans
As we said earlier, Cryptocurrency is a speculative form of money. Since it’s not physical and doesn’t follow any major rules from financial institutes, it goes through its fair share of ebb and flow relationship.
A friend of mine at the office (*No, It’s not Fred) makes very small subtle level investments in LiteCoin and other currencies. If he feels that it’s not the right time to sell, he pulls out. So on and so forth, but the point is that the dude’s playing it for the long haul.
And so, should you.
Last time, Bitcoin reached a phenomenal $18,000 value, but it tanked at the same speed at which it escalated in the stock market. Other than that, many governments also have their fair share of grudge against Cryptocurrency for numerous reasons.
It’s a jungle out there and you need to whack the weeds to make way. Play smart, play safe, and good luck out there.