As we know it, people who invested in the cryptocurrency market years ago have made a fortune. But, bitcoin’s highly volatile nature allows crypto true-believers to make money with cryptocurrency trading even today.
Throughout this free guide, you’ll learn the most lucrative methods to invest in the cryptocurrency market. However, if you’re just getting your feet wet, it’s vital to consider the following investing tips before risking your hard-earned money:
- Do your in-depth research
- Embrace Bitcoin volatility
- Store your digital coins safely
Without further ado, these are some of the best ways to invest in digital currencies:
Probably the best bitcoin investment strategy is to adopt a long-term approach. Inside the cryptocurrency community, people have coined the term HODL to describe the buy and hold mentality. The process of long-term investing in digital currencies works similarly to stock investing.
Both cryptocurrency traders and stock traders buy with the expectation to potentially profit from the natural rise in price in the long run.
Intrinsically, the same way the stock market price tends to relentlessly move upwards crash after crash; cryptocurrency prices have exhibited the same price behaviour over time.
The main advantages of long-term investing in the cryptocurrency market can be summarized as follows:
- Maximize gains
- Minimize losses
On average, long-term investing tends to outperform active investing. However, with this investment strategy, you’re not able to profit from a bear market.
The solution to profit from falling prices in Bitcoin and other cryptocurrencies is to use something called Contract for Difference (CFD).
If you want to have the opportunity to profit from the up and down movements in the crypto space, CFD trading will allow you to speculate on the future changes in the price without owning the actual coin. At the end of the day, online trading is a better way to make money with cryptocurrencies.
Cryptocurrency CFDs have the advantage to eliminate the common risk factors associated with investing in digital currencies and offer traders more flexibility, including:
- Ability to go both long and short
- Improved liquidity
- Eliminates the risk of losing your coins
- No digital wallets are required
- Leverage up to 1:20
If you only want to take advantage of the day to day price fluctuations in the cryptocurrency market without owning the digital currency, trading cryptocurrency CFDs may be the best approach for you.
Cryptocurrency mining is another excellent way to add a new stream of passive income to your life. From Bitcoin mining to altcoins mining, you have a wide range of options to choose from. Nowadays, the process of mining has become very competitive and without the proper hardware, solution is a little bit harder to be profitable at the end of the day.
In addition to earning a passive income from cryptocurrencies, mining also offers you a smooth way to acquire bitcoins or any other cryptocurrencies without the need to directly buy the digital currency.
Alternatively, you can try online trading, which works in the same fashion as trading any other financial instrument.
The volatility that comes with the cryptocurrency market can translate into promising opportunities that everyone can take advantage of. But, like with any type of investment, make sure you implement sound risk management techniques before deploying your capital.