Strategies To Increase Profits in Cryptocurrencies


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If you want to know how to make money with cryptocurrencies, you are certainly part of the group of people excited about Bitcoin’s nearly 120% yield in 2021.

Over the past few years, not only Bitcoin but also many virtual currencies have been attracting attention from the market. In fact, some analysts who recently questioned the viability of digital currencies as a way to make money today recognize some of them as serious projects with huge growth potential. increase.

It’s not hard to see why it’s getting so much interest. Even with high volatility, cryptocurrencies are outperforming stock exchanges around the world.

Technological development on an increasingly rapid scale has caused paradigm shifts in almost every field. There is turmoil on all fronts, especially in the financial sector. Cryptocurrencies are the result of this process.

crypto profit

What is cryptocurrency?

A cryptocurrency is a digital currency that exists only virtually. A new kind of money.

The classic definition, given by Satoshi Nakamoto, who created Bitcoin in 2009, is “a point-to-point electronic money system.” It’s a concept defined in the white paper that created Bitcoin, and can obviously be extended to all other cryptocurrencies that have come after it.

Today, if you want to pay someone online, you have to use your bank or payment application to make the transaction.

The cryptocurrency proposal is to allow this payment to be made online directly to the recipient without the use of traditional financial intermediaries. This is what makes Bitcoin and other cryptocurrencies so disruptive. With digital currency, you can do exactly the same things online as you do with physical money.

Cryptocurrencies: As easy as money

For a quick understanding of what cryptocurrencies are, consider a common situation. For example, taking a bill out of your wallet and paying for coconut water at a beach street vendor.

You and the coconut water seller did not verify your identity in advance to make the transaction.No bank or government would know that you bought the coconut water using the R$5.00 you had in your wallet. I don’t know. Right? Plus, after giving the street vendor his R$5.00, he gives you a coconut and a leaf. There is no way to cancel the transaction and get the banknotes back.

This is exactly the principle of cryptocurrencies. Pay in kind, between people, anonymously and irreversibly. But instead of physical banknotes, we use digital currency.

How to make money with cryptocurrency?

There are several ways to make money CryptocurrencyHowever, it is important to understand that it is a highly volatile and risky asset, so first you need to learn deeply and understand the principles, risks and opportunities.

There are good digital currency projects on the market. But with over 15,000 cryptocurrencies in the world, he is naive to believe that there are no bad projects or even scams of opportunistic attempts.

It requires attention and a lot of research. You can then assess whether any of the methods of making money in cryptocurrency comply with your financial plan.

  1. mining

Mining is the digital production process of cryptocurrencies. This is a complex process involving knowledge of algorithms in addition to the need for supercomputers and specific software.

Those who act as miners receive a portion of the cryptocurrency as a reward, so actual compensation activities require high computational power to solve thousands of equations per second. The cost of one mining rig is about US$15,000. Therefore, it is advisable to fully evaluate whether the cost is worth it compared to the time it takes to get the return on investment.

In addition to spending a lot of time both on research and the activity itself, to be worth it, in the case of Brazil, in addition to dollars, you need to keep several computers turned on 24 hours a day . Equipment prices also imply higher costs associated with power consumption.

It is also possible to work as a miner in a company that specializes in this activity. In this case, the profit will be the current money in the form of salaries. The labor market for programming professionals, cryptography professionals, and other related activities is growing significantly.

  1. trade

Trading in cryptocurrencies is a very common activity. Many people take advantage of the volatility of digital currencies to differentiate between buying and selling over short time intervals. on the same day or many times.

This kind of activity requires a more disciplined and consistent way of monitoring the market in addition to minimal knowledge of graphic analysis. Starting a trade without these prerequisites exposes you to a very high risk.

In addition, it is important to pay attention to the speed of operations. Otherwise, your profits may be completely consumed.

Due to the high volatility of cryptocurrencies, traders can suffer large losses, especially if they are beginners with no technical background. So be careful and study the topic deeply above all else.

crypto profit

  1. Long-term evaluation

The easiest way to appreciate cryptocurrency and make money is to buy it and save it for the long term. The valuation history of most integrated currencies is impressive. Take Bitcoin, for example, since its birth 12 years ago, the currency is already worth more than 65,000 times.

Nevertheless, the volatility of cryptocurrencies and their unpredictability as a project should be emphasized. Thousands of digital currencies cease to exist every day at the same time as the number of digital currencies grows exponentially.

There are currently around 20,000 cryptocurrencies on the market. But moreover he has already vanished with 7,000 people standing in his way.

Therefore, know the project behind each cryptocurrency you are looking to buy and understand if the rationale for the project makes sense to you and if it really has the potential to continue in the medium to long term. is very important.


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Conor the Tech Veteran
He previously spent 6 years publishing research on tech stocks, and believes in using a combination of fundamental, technical, and quantitative analysis. Prior to a career in tech stocks journalism he was a technology and semiconductor analyst with a research team.

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