There are several different ways to make money off the cryptocurrency space. Here are a couple ways:
• Leverage trading is used by traders in the crypto space to generate the most amount of income.
• A type of leverage trading commonly used in crypto is called margin trading
• When you are margin trading you’re predicting which way the market’s going to move either up or down, so predicting the value of that alt coin or bitcoin if its going to increase or decrease.
• With this type of trading you can enter the market and risk a lot more money which can yield in a bigger gain if the trade is successful and moves in the right direction predicted.
- Assuming the trade goes in the right direction you predicted then you are able to capitalize off that and generate a profit for yourself high or low depending on how much money you risked for that specific trade.
• Staking your crypto is another great way to make money off this space.
• Staking involves putting away and holding a portion of your cryptocurrency for a period of time as a way of contributing to the blockchain. In doing this you are able to earn different types of rewards.
• By staking some of your funds, you make the blockchain more resistant to attacks making it that much stronger and safer for users.
• This can be extremely profitable and is an excellent way to earn passive income for long-term believers in crypto.
• When you lend or stake cryptocurrency in exchange for interest and other rewards.
• How your returns work is you get a certain percentage back on your money at the end of the year.
• The network relies on people, within the community coming together to verify crypto transactions and prevent fraud thru mining and you can collect rewards for supporting the network.
• If we use bitcoin as an example miners will commit their computing power to verify which transactions are valid and which are potential fraud. The mining algorithm will then determine which blocks are going to be added or rejected on the blockchain.
• Approximately every 10 mins a new block of transactions is verified and is broadcast into the network. After this occurs the miners receive a certain number of bitcoin as a reward. The more people who are mining the more decentralized the network becomes which then creates, trust, safety and efficiency.
• Without miners people would not be able to submit transactions within the network.
Long term investing
• Building up a crypto portfolio for long term investing is a great way to see returns on your money long term.
• When building a crypto portfolio you invest a certain amount of money into different coins that you have researched and have potential for long term growth.
• As crypto rises and the prices of those specific coins increase then your investment in those assets increase as well.
• If you have a certain amount of money in a specific coin and that coin increases in value overtime then so does the amount of money you invested into it therefore generating a profit.
Flipping Alt coins
• Flipping alt coins refers to investing in these coins before they are listed on exchanges and then quickly selling them for a profit when they start trading on the exchange in the secondary market.
• You are able to purchase a certain quantity of alt coins at a price with the hope of shortly selling it later for a higher price. This is very useful during times of high volatility and price spikes in the market.