Cryptocurrency is spreading like fire all over the globe, and its popularity is ever-growing. Making money in crypto is much more than simply buying, holding, and selling currencies at a later time. There are several ways how investors can make profits while working with crypto, and given below are five such tips:
1. Be mindful of trading fees
The trading platforms and exchanges you use to buy and sell cryptocurrency may feature questionably high transaction fees and hidden costs. Many exchanges feature additional costs associated with withdrawing a certain amount into your bank, service fees, and base fee. These exchanges may also charge for deposits, and you should be careful of the exchange you choose to trade to save some serious cash. Swyftx is an exchange with minimal transaction fees, and the fees for swyftx deposits are low too.
2. Invest in new coins in their early days
The easiest bet for anyone to make money trading crypto is buying the newest altcoins as early as possible. People who bought Bitcoin in its early days are now millionaires, and those who jumped on Ethereum at its onset have also made a fortune. Some of the growing cryptocurrencies that have your money’s worth include Dogecoin, Lucky Block, and Ripple.
3. Hold on a long-term basis
If you are looking to make serious profits in crypto, holding should be your best friend. Holding is another easy way for beginners to get the most bang out for their buck, and this concept is similar to that of buying shares and letting them be for the long run. While the number one benefit of holding is immense profits, in the long run, another often overlooked benefit is that you wouldn’t have to worry about price fluctuations in the short term.
4. Earn through staking
Staking is another easy-to-understand concept in the realm of cryptocurrencies, and it essentially refers to users making passive income by locking their tokens for a certain amount of time. This locking would mean that the user would not be able to sell their tokens until the due date. Staking earns users interest for the period that their tokens are locked away, and this is similar to how people earn interest on their savings accounts.
5. Indulge in day trading
Day trading essentially refers to trading cryptocurrencies daily and taking advantage of short-term price fluctuations in the crypto market. However, day trading requires you to have low to medium knowledge of price analysis of cryptocurrencies, and for you to invest a lot of time and energy into it. The catch here is to have multiple open positions in a day if you are hoping to make any profits at all. To day trade, you will have to look for a regulated exchange that supports multiple markets and also has minimal trading fees, or else any profits you make will be deducted in commissions.
The above-mentioned five methods are a great summary of how beginners can make profits in the realm of crypto. The above five strategies are likely to help you fix your base in the world of crypto, and you would be earning serious profits in no time.