Try Out The Binary Trading Approach
Binary trading has existed in the financial world for a very long time, so it only makes sense that it can also be applied in the world of crypto. This is a suitable option to make money with Bitcoin if youre willing to take risks.
As the name suggests, Binary has just two options: a trader purchases an option and an expiration time. The trade is either in the money or out of the money. Basically, youre betting on where the price is going.
For example, the price of BTC is 46,500 USD at 10 AM. You can either bet that the price will be more or less than that by 6 PM. If you bet that the price will increase and that happens, you earn the payout of a certain percentage of your investment. However, if its lower, you lose the investment.
On the other hand, you earn the options payout if you bet that the price will go down and it indeed happens. This can be a challenging way to earn BTC, but you can gain money quickly if you invest right.
Difficulty: HardSpeed: Fast
What Can You Buy With Cryptocurrency
At this point, most people still see cryptocurrencies as an investment. But cryptocurrency is quickly gaining speed and becoming more widely accepted as currency. And that could become even more popular as these cryptocurrencies keep gaining trust.
Some major retailers, like Whole Foods, Nordstrom, Etsy, Expedia and PayPal are now letting people pay using crypto. And of course, any two people who value the tokens can exchange them for goods or services with each other. And lets not forget the whole cryptocurrency digital art craze called NFTs where you buy digital art with digital moneybut thats a different story for another day.
How To Buy Bitcoin With A Credit Card
The process for purchasing Bitcoin with credit cards is similar to the one for buying the cryptocurrency with debit cards or through automated clearing house transfers. You will need to enter your credit card details with the exchange or online trading firm and authorize the transaction. In general, however, it is not a good idea to purchase bitcoin with credit cards. There are a couple of reasons for this.
First, not all exchanges allow bitcoin purchases using credit cards due to associated processing fees and the risk of fraud. Their decision to do so may work out in the best interests of customers. This is because credit card processing can tack additional charges onto such transactions. Thus, in addition to paying transaction fees, you will end up with processing fees that the exchange may pass onto you.
The second reason is that credit card purchases can be expensive. Credit card issuers treat bitcoin purchases as cash advances and charge hefty fees and interest rates on such advances. For example, American Express and Chase both count purchases of cryptocurrencies as cash advance transactions. Thus, if you purchase $100 worth of Bitcoin using an American Express card, you will pay $10 plus an annual percentage fee of 25%. What’s more, the credit card company also limits you to $1,000 worth of bitcoin purchases per month.
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Why Would Someone Want A Virtual Currency
A cryptocurrency is a good choice for an online payment method because of its security. A cryptocurrency cannot be counterfeited or reversed arbitrarily by the sender, as can happen with a check or credit card transaction.
The transaction is also anonymous although it is publicly available on the blockchain, the only information that can be seen is the amount sent and who it went to, not who sent it.
What Is A Long
Long-term investing is a method that typically holds an investment for more than one year. Typically, long-term investors are also passive investors. In other words, you dont buy or sell large quantities in a short period. Long-term investors can invest in stocks that increase in value, or they can invest in funds or ETFs for the long term. But in general, long-term investing is more of a set-and-forget approach.
Strategies for long term investment:
There are a few different strategies, but the overall theme is about Buy and Hold. Keeping this in mind, here are some strategies for long-term investors.
- Value investing A strategy where an investor tries to buy a cryptocurrency for lower than its intrinsic value.
- Growth investing Investing in companies that you believe will exceed the overall market cap.
- Dividend investing Investing in firms that pay out dividends.
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Understand What Youre Investing In
As you would for any investment, understand exactly what youre investing in. If youre buying stocks, its important to read the prospectus and analyze the companies thoroughly. Plan to do the same with any cryptocurrencies, since there are literally thousands of them, they all function differently and new ones are being created every day. You need to understand the investment case for each trade.
In the case of many cryptocurrencies, theyre backed by nothing at all, neither hard assets nor cash flow. Thats the case for Bitcoin, for example, where investors rely exclusively on someone paying more for the asset than they paid for it. In other words, unlike stock, where a company can grow its profits and drive returns for you that way, many crypto assets must rely on the market becoming more optimistic and bullish for you to profit.
Some of the most popular coins include Ethereum, Dogecoin, Cardano and XRP. Newcomer Internet Computer recently burst onto the scene, too. So before investing, understand the potential upside and downside. If your financial investment is not backed by an asset or cash flow, it could end up being worth nothing.
Bonus: You Only Invest In Cryptocurrencies
This last mistake comes as a surprise, but why invest only in cryptocurrencies? Its wise to diversify your portfolio not only amongst cryptocurrencies, but stocks, bonds, and other assets as well so you should check the 50/25/25 rule.
The stock market is indeed a safer bet than crypto, so if you want to be conservative, put say 15% of your investment funds into crypto. If you hold safe stocks and bonds with the remaining money, then you should be pretty safe.
Disclaimer: we do not know your financial situation, nor are we financial advisors.
The world is your oyster, so dont be afraid to invest in different markets and niches.
Well, you made it to the end, congratulations we hope that you learned something about a crypto investment strategy that can suit you!
Although there are plenty of mistakes to avoid, most of them are common sense and require no memorization. Simply being aware of them should be enough to make you think of and improve your cryptocurrency investment strategy.
Which mistake from the list prevents you from making more profits? Which one do you make again and again? Do you make mistakes that arent listed? Let me know in the comments!
Lastly, here are more resources you might like:
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Tips From Experts: How To Invest In Crypto Currency Safely
Investments are always risky. Experts say cryptocurrency is one of the riskier investment choices in the market. However, digital currency is also the hottest asset.
Currently, the global cryptocurrency market cap is $2.66T and it is expected to rise impeccably. If youre willing to invest in digital currencies, the following tips will help you make educated choices.
The Risks Of Buying With Cryptocurrencies
Investing and making a purchase in cryptocurrencies such as Bitcoin is risky .
Their value is highly volatile and City watchdog the Financial Conduct Authority has warned investors should be prepared to lose all their money.
Investing in cryptocurrencies is not a guaranteed way to make money.
You should also think carefully about making purchases with a cryptocurrency.
For example, Bitcoin has had wild price fluctuations in recent months and the price can change on an almost hourly basis.
The price of a Bitcoin was at $40,258 on January 9, according to Coindesk, but fell to $34,214 just three days later.
That’s a 15% drop.
These price swings are risky for a business as you could sell an item for a Bitcoin at one price and the value may drop soon after, leaving you with less money from a sale.
Similarly, the price of Bitcoin has soared by more than 21% since the start of this week so it can be hard for a shopper to get an accurate idea of the price of an item if its value changes on a daily basis.
Even after following these tips, it is always worth remembering that crypto can be riskier than other investments because they are volatile and speculative.
Their prices of ten rise and fall very quickly, sometimes seemingly for no reason.
Many cryptocurrencies have a short track record, making them difficult to understand and predict.
And this type of investment is also not protected by regulators which means you have nothing to fall back on if things go wrong.
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What Are The Most Popular Venues To Buy Bitcoin
The most popular venues to buy bitcoins are cryptocurrency exchanges, brokerages , and payment services like PayPal. You can also buy Bitcoin from peer-to-peer exchanges. For indirect ownership of bitcoin, you can invest in companies that hold the cryptocurrency on their balance sheet, such as Tesla, Inc. or MicroStrategy Incorporated .
Greyscales Bitcoin Investment Trust
Founded in 2013, Greyscales Bitcoin Investment Trust has become a leader in the cryptocurrency industry. In becoming a trusted name in a rapidly growing sector, Greyscale emphasized democratizing Bitcoin for the masses. While Bitcoin is already decentralized, Greyscale gives more people more access to the up-and-coming digital currency. More specifically, Greyscale is an investment platform on the capital market that builds transparent, familiar investment vehicles for a growing asset class with unlimited upside.
Greyscale owes its current success to making Bitcoin more accessible to everyone. In fact, Greyscale helped bridge the gap between the informed and the uninformed. To do so, Greyscale made it easier than ever to invest in Bitcoin. For example, Greyscale allows investors to hold Bitcoin in certain IRA, Roth IRA, and other brokerage and investor accounts.
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How Cryptocurrency Investing Works
If you want to invest in cryptocurrency directly, then you can use a cryptocurrency exchange. Here’s how to buy cryptocurrency through an exchange:
As an investor in cryptocurrency, you need to decide how much of your portfolio to allocate to digital assets.
A best practice among investors is to periodically review your entire portfolio to perhaps rebalance your holdings. That might mean increasing or scaling back your crypto exposure, depending on your investment goals and other financial needs.
How Many Cryptocurrencies Are There What Are They Worth
More than 15,000 different cryptocurrencies are traded publicly, according to CoinMarketCap.com, a market research website. And cryptocurrencies continue to proliferate. The total value of all cryptocurrencies on Dec. 17 2021, was about $2.1 trillion, having fallen off an all-time high above $2.9 trillion weeks earlier. The total value of all bitcoins, the most popular digital currency, was pegged at about $868.7 billion.
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There Are Tons Of Cryptocurrencies
By now you know the original cryptocurrency, Bitcoin, whose $1 trillion-plus market value accounts for about half of all money invested in cryptocurrency. You may have also heard of Ethereum and Litecoin, which have gone more mainstream now that you can buy and sell them as easily as sending your friend a Venmo request for dinner.
But there are a ton of other cryptocurrencies over 9,000 of them, according to CoinMarketCap.com that you likely havent heard of, and more being mined every day.
You had to be pretty lucky to have chosen Dogecoin years ago over, say, Feathercoin. As financial writer John Paul Koning points out, Feathercoin was a much more serious cryptocurrency created with the intention of mass adoption as opposed to as a joke that is currently valued at around $12 million while the meme cryptocurrency Dogecoin is worth $50 billion.
Sure, if a group of people are randomly flipping coins, a few of them are going to flip ten heads in a row, says Chris Kuiper, vice president of equity research at CFRA Research. Similarly, if you have a whole bunch of people on Robinhood trying to day trade altcoins, some of them will do really well.
How To Buy Cryptocurrency On A Centralized Exchange
The exchange serves as one of the most critical functions in the crypto ecosystem. It basically acts as a portal between the fiat world and the crypto world the on-ramp if you will. Centralized exchanges help you buy Cryptocurrencies in exchange for fiat money . Coinbase is a perfect example of this kind of exchange. Coinbase lets you exchange your fiat for crypto with its easy to use app.
If youre wondering why you have to go through the lengthy and arduous process of signups and verifications to purchase crypto, the answer lies in the various Know Your Customer and Anti-Money Laundering laws that centralized exchanges are legally obligated to comply. Some exchanges avoid this process by simply not allowing you to deposit your fiat dollars into the exchange, and limit transactions to be between crypto-to-crypto, as opposed to the fiat-to-crypto that requires AML laws to be observed by the exchange.
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Buy If Mfi = 100 And If The Subsequent Candle Is Bullish
We can now wait for the third MFI reading above 100. It doesnt necessarily have to be the third MFI = 100 reading, you can take every other MFI = 100 readings. If your time doesnt allow you to catch the third 100 reading on the MFI indicator, you can simply pick the next one as long as all the other technical conditions are satisfied.
Next, we also need the candlestick when we got the MFI = 100 reading to be a bullish candle. The close of this candle needs to be near the upper end, giving us a candle with very small wicks.
This brings us to the next important thing that we need to establish when day trading cryptocurrency, which is where to place our protective stop loss and where to take profits.
How Much Money Can You Make
Lets now consider the amount of money a person can make from cryptocurrency. Is there any direct answer as to what specific amount it can be? No, people make various amounts depending on multiple factors. You can make as low as $100 within a particular period, say one day, or earn even up to a million. It all depends on how you do it, the route you take, and your determination. But, all is possible in using this currency to make money. Remember, like any other trade, there are also losses and sometimes unbearable for those who lose hope fast.
For instance, if you use $ 6000 on a Bitcoin miner and a year later it mines $ 10000, youll end up with a total of $4000 as a net return. The value of Bitcoin at your investment time will highly determine the resulting amount you get.
If today, it is $15,000 per coin, and in the next three years it rises to $21,000, youll have made some money. Therefore, the amount you make in crypto depends on the coin value, how much you invest, the selected coin, and the method/strategy you use. A practical example is Bitcoin in 2011, if you bought one from the prominent exchanges at $10 and sold it today, the profit you would have made is $990. Meaning if you spent $10,000 to purchase 1000 BTCs back then, in 2020, you could sell them each at $1000, making you a millionaire.
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What Are The Risks Involved In Cryptocurrency Investing
As with any investment, crypto could potentially help investors build extraordinary wealth, though one big turn could mean losing an entire investment in a short period of time. But crypto has other risks, too: its still relatively new , and with governments still debating regulations, theres no telling what will happen in the future.
So, before jumping on the crypto bandwagon, we generally recommend investors consider these risks :
Ingenious Ways To Make Money With Cryptocurrency
Remember, Aladdins magical lamp, which had the power to make anyone impeccably wealthy. Well, today we call that thing crypto, it does the same thing. Right investment and the patient can get your extraordinary benefits and make you super-rich.
Bitcoin is the perfect example to prove it.
We know what happened with Bitcoin is something that happens only once in history.
One who had invested 19,000 dollars in Bitcoin right at the peak of the 2017 bull run found their investments falling down 75-80%. However, the believers still keep the investments and earn 300% more on their investments after three years.
Since then, lots of people are showing their interest in the crypto market and investing. According to Cryptominati Capital Crypto space is attracting investors, entrepreneurs, and individuals to invest and make new projects.
But, things are not like that. It is not as easy as it used to be now, but patience and an analytical approach will yield good returns. The crypto market has now turned into a fierce Wild West to get into the market with unpredictable components.
In this blog, you will read what cryptocurrencies are and the easiest way to make money with cryptocurrencies with less risk than complex strategies.
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