How To Get Money Out Of Cryptocurrency?
It’s highly unlikely that there is anyone today who has never heard about cryptocurrency (what is cryptocurrency?) – it’s discussed everywhere; continually being complained about for its risks; impressive because of its high yield and rate dynamics; and considered one of the most lucrative investment options. Being a contemporary trend of internet trading, cryptocurrency is an available option for getting Internet income as well and here’s why. Cryptocurrency, especially the very first virtual currencies, shows the crazy dynamics – its rate literally zooms up, not just grows, once this topic comes up.
There are several ways to start trading cryptocurrency. Being a bear on Forex, for example (is Forex is a scam? learn here), you easily can choose through your broker the available cryptocurrency as an asset (for example, through binary brokers or Forex brokers), or sign up at a crypto exchange and test the trade in digital currencies To start trading on a crypto exchange, you have either to buy the currency or take advantage of the opportunity to perform tasks on special resources (parsing sites, solving captchas, games, etc.). Only some future traders start this way.
If you have enough money, you can easily transfer it onto a crypto exchange account after you sign up at one of the platforms and purchase the currency (this may be both expensive Bitcoin (official website) and Litecoin (official website), and less expensive currencies) at the price that is comfortable for you. For cashing in on cryptocurrency, you may go for mining (Wikipedia); with this option the special equipment will obtain the currency (the essential disadvantage of this option is heavy spending for equipment purchase including computers of high capacities). Today cloud mining is available, which is more lucrative and comfortable and lets you to lease necessary equipment and earn your income.
How do I trade cryptocurrency correctly?
How do I trade cryptocurrency correctly? This is a serious question. Cryptocurrency trading is in great demand today and attracts an increasing number of traders, both professionals experienced in financial investment market aspects and novices that have never traded before.
However, lack of skill won’t be the excuse for you to not take a stab at cryptocurrency trading; you just need to keep in mind how to do it right. Read about this below.
- Before you start cryptocurrency trading, study it. You need to understand that there’s more than just a promise of high returns – there’s a lot of risk, too. When you start trading in cryptocurrency, you take on a variety of risks (having your account hacked or your exchange blocked, possible losses, compulsive currency rate dynamics, etc.).
- Invest the minimal sum; don’t risk your entire capital as nobody can guarantee you a definite high yield for a certain deal.
- Be careful choosing a broker (this pertains to both binary brokers and Forex brokers) who offers you digital money trading; study the feedback on the Internet. All of this will prevent you from getting duped by scam artists, because there are a lot of scammers out there preying on naïve traders.
- Be careful picking a crypto exchange, too, if you decided to work just with such a platform. The services here are more advanced than by a cryptocurrency broker, but there are loads of risks as well.
- Try to withdraw part of the capital to test the withdrawal service. Unreasonably long withdrawal times should put you on alert.
- Work with cryptocurrency with a clear mind and do a reality check; apply the rules of money management and don’t panic – this is the only way you can protect your deposit from uncontrolled losses.
- Trade with a trend, but study the market carefully, and react duly, keeping in mind that the cryptocurrency market may be controlled by a group of traders who desire to make money on an artificial market trend.
- Cryptocurrency traders should use to the full extent all the trading platform options (as we already mentioned above, these are charts, indicators, transaction history, orders, trade values, etc.).
Is cryptocurrency trading a scam or the real thing?
Cryptocurrency trading – is it a scam and a scam lottery or a real way to earn money? Is cryptocurrency the future of our financial system or a scam lottery and pyramid scheme? These questions concern many of us. There are scam artists on the internet promising to help you cash in on cryptocurrency: the scam lottery reveals itself when you can’t withdraw money, get feedback from the exchange’s technical support, etc.
The issue is that there are a lot of articles on the Internet about cryptocurrency saying that it is a con and a fraud, that it isn’t material in the way that traditional currency is, that it’s not controlled or regulated by anyone. In this direction skeptics develop the idea, saying there is always a lot of noise around cryptocurrency; its crazy growth and the chance for quasi-quick money are the strawman created for naive users to be attracted and duped.
However, the truth is that this financial market is complicated and needs significant investments for it to operate smoothly. If crypto-exchanges were pyramid schemes and scams, this con would have long been exposed and the cryptocurrency capacities would become a myth, but we can see that the situation is different. There is both positive and negative feedback on the Internet today. There a lot of examples of ordinary people cashing in cryptocurrency investments.
The big concern of traders all over the world, along with continuous «media noise» and Bitcoin’s (and other cryptocurrencies) introduction to our daily routine (purchases in some shops, cafes, and restaurants all around the globe are possible with Bitcoin now) – all of this is a reflection of the fact that Bitcoin is a real thing and should be powerful enough to change our attitude toward the currency. Because of the fact that the cryptocurrency is little regulated and quintessentially anonymous, it will always be a great environment for scam lotteries and pyramid schemes. Cryptocurrency is not stable, and a big part of the reason for that is so-called currency profiteers («cryptocurrency billionaires») artificially changing the rate dynamics in a way to benefit themselves. What do the traders do who long to make money from cryptocurrency?
The answer is not that complex and relates to all existing financial markets (for example, Forex trading, securities markets, and binary trading): be careful choosing a crypto exchange or cryptocurrency broker, and don’t buy into bombastic offers and borderline bids of the scam companies expecting you to sign up at their platforms and give them all your money; study current ratings of crypto exchange brokers, read feedback from traders about crypto exchanges, monitor scam artists in cryptocurrency trading, and analyze all of the facts before you make a decision about digital currency sale/purchase.
Cryptocurrency trading – where to start?
Really, where do I start trading cryptocurrency to make good money and not be disappointed? You need just a few things to start.
- Study cryptocurrency trading aspects and read books about trading.
- Learn how to monitor the situation with cryptocurrency ratings and be alert to dynamic changes of currencies, including major digital currencies.
- Choose a trading platform. Do you want to trade in a crypto exchange or in a cryptocurrency broker terminal (through binary brokers or Forex brokers)? Each of these options has its own features, so you have to think hard. Apart from this, study the feedback about the platform you want to work with.
- Trade on a demo account, it will let you prepare for real trading while not using your own money.
- Work out a trading strategy; test indicators and lucrative trading systems using the demo account.
- Apply the rules of money management which will let you minimize your risks.
- Open the real account in the exchange or with a cryptocurrency broker and start your first trading steps.
Can I cash in on cryptocurrency zero-base?
Yes, it is possible to cash in on cryptocurrency zero-base! And though getting Bitcoins in 2017 was more complex than a few years before, there are still ways, and you can start cryptocurrency trading with no investment. Answering the question, you need to buy or earn cryptocurrency first then trade. In this part of our article, we will talk about how to get cryptocurrency with no need to invest your own funds. Today there are several ways to obtain cryptocurrency for trading. These are:
Performing tasks on special resources, so called Bitcoin cranes, where the players are paid by Bitcoins completing simple missions. It’s the easiest and most popular way to get digital money. And while the income is not high, the orders are not hard either (entering captcha, browsing websites, adverts, etc.). Examples of such cranes: ADbtc (website), freebitco.in (website), BonusBitcoin (website), BattleBitcoin (website) etc. Here we refer to the automated way of getting income through crane sites, too. This is a unique chance to obtain profit with no continuous missions or actions.
Referral programs let their participants win extra income by attracting concerned partners.
Bounty-companies ICO is one of the popular ways to obtain cryptocurrency. ICO is the calling investments together in exchange for the cryptocurrency of new startups. Many new coin companies give out free digital coins for registration with their services, and since projects may go up in price by a fair amount of money in just over year, you better not miss such a chance, especially since registration takes little time and you may sign up with several similar projects at once.
Some Bitcoin games offer their users real digital money that you can withdraw. You can play and get satoshi in your account at the same time. The examples of fair games are Stake (the most in-demand game platform, website), BitKong (website), etc.
How much can I cash in on cryptocurrency?
The question of how much one can make while trading cryptocurrency is crucial for many traders. Our answer is: when trading cryptocurrency you can cash in as much as you want (usually traders’ shares in Internet trading results exceed 120-150% of investments). The income size of cryptocurrency trading will depend on many things: your positive trading experience in financial markets (for instance, whether you traded binaries or on the stock exchange), your knowledge and skills in cryptocurrency trading, the currency you picked for trading, your trading method (mining, including cloud mining, trading in the crypto exchange, etc.), and the sum you are ready to invest.
Standard cryptocurrency trading (crypto exchanges, cryptocurrency brokers’ terminals) may bring you unlimited income (up to 100-150% of the invested sums made through active day trading), but it depends on the strategy and invested sum. How much can you cash in on mining? In this case your income will be affected by the following factors: currency choice, its price and complications, safety of the equipment, etc. Costly equipment purchase is the item of the most expenditures. But according to information we got studying information on the Internet, the equipment’s rate of return will take around 300 days. You can start a farm of cryptocurrencies for mining, which will secure you a monthly profit of 30,000 to 80,000 RUB.
Money management by cryptocurrency trading
The trader shall follow the rules of money management dealing with any financial market (in binary trading, in Forex, and in the stock market); cryptocurrency trading is not an exception. Chasing after fantastic profits you are the most vulnerable here to losing your capital and being left with nothing. If you would like to trade cryptocurrency and obtain high incomes, keep in mind the basic rules of money management, which magnify your capital gains:
- Use your cash on hand for investments as trading borrowed funds is psychologically harder;
- Deposit a sum as low as practicable and do not trade your entire capital. This is for you to have the chance to put right the wrong and bounce back in case you lose;
- Start increasing the invested sums little by little;
- Take the market trend into account, monitor sentiments of market players (subscribe to newsletters of special resources, read messages of chats related to the issue, offered by crypto exchanges; remember analytics, perform technical analysis, test trading strategies, keep your eye on the data order book containing the information of market buyers and sellers);
- Buy coins when the currency rate runs down, sell – when it starts going up; this is the way you can obtain secure income;
- Do not be greedy and don’t try to wait for maximum growth of the currency as there are big «manipulators» in the market able to invest currency (by buying or selling it) to change its dynamics in a way that benefits them (for instance, one trader possessing 50 million dollars can boost or «rain down» the currency rate) and make your trading complicated if you can’t monitor the market situation and react on it in a timely manner;
- As for the mental atmosphere while cryptocurrency trading in the exchange, here you need certainly to keep in mind that the right attitude will let you take a reality check and react on it in time. If your investment is losing, don’t try to bounce back, don’t panic – you can always recoup (where is it possible today if not in cryptocurrency trading?!), better to leave the market and learn from it, so you will save your capital.