Despite the current decline in the cryptocurrency market, it still provides good earning opportunities. But do not wait for an easy walk, as in the fall and winter of last year. 2018 requires knowledge, patience, planning, and initial investment to generate income on a cryptobank. And how to apply them correctly, read our article.
Investment
Investing in cryptocurrencies means investing in various assets for a long or medium term. This method is convenient in that it allows you to enter the market with minimal investment and gain experience, without which there is nowhere on the crypto market.
To successfully invest you will need the following skills:
- Basic knowledge in technical analysis to evaluate current market conditions and to choose the right points for entry and exit.
- The ability to track information flows. A cryptocurrency rate is highly dependent on positive or negative news, and some may single-handedly turn the market around. Therefore, you need to constantly keep abreast.
- It is necessary to at least minimally understand the technologies that stand behind cryptocurrencies and their areas of application. This will help identify assets with good growth prospects.
By combining this knowledge, you can develop your own investment strategy and enter the market. But you need to start with small amounts and never invest more than you can afford to lose. And do not bet only on one cryptocurrency, there should be several assets in the investment portfolio.
Trading
If the investment seems too calm, or you have already successfully passed this stage, you can try to do cryptocurrency trading. This will require an initial investment of at least several thousand dollars.
This type of earnings will require special knowledge and constant employment, at least 2-3 hours per day. You need to follow the news, understand the technology and be a professional in technical analysis. So you can correctly calculate the short-term fluctuations of the market, which last from one day to a week or more, and earn on this difference.
Also, traders practice margin trading when they take money into loans from the exchange, and scalping, earning short-term price fluctuations for several hours. We strongly advise against trying these trading methods before you become a professional.
And do not trust various blogger analysts and channels with signals - think only with your head and check any information.
Mining
Mining in 2018, this is a business for people who understand cryptocurrency mining and are ready to invest in their own mining farm. You will need to buy equipment, find a place and prepare to pay electricity bills. The minimum threshold for entering this market is at the level of 2-3 thousand dollars, subject to the collection of a small farm.
It is necessary to determine in advance which cryptocurrency will be minted, because the choice of equipment directly depends on this. Properly planned mining farm allows you to mine several cryptocurrencies and switch between them depending on changes in profitability.
There are also two strategies for mining. The first implies the extraction of leading cryptocurrencies, for example, Bitcoin or Ethereum. When you make a profit every day, gradually returning your investment.
The second strategy is to extract the little-known cryptocurrencies in the hope that their value will increase several times. But for this you need to correctly assess the prospects of these coins, so as not to waste electricity.