Crypto assets can be traded 24 hours a day, so you can always find time to invest in crypto. Investing in crypto is not for the faint of heart, but if you are willing to take on more risk than usual in exchange for greater returns, it may be worth your while. Crypto trading is an excellent option for all those looking to make solid money from part-time or full-time working. You need a device with an internet connection, and you are set to start trading right after you sign up on a trading platform called bitcoin circuit .
Most cryptocurrencies are decentralized with no central authority like a government or bank that could block your account or close down your trading platform. That means you will never lose money due to fraud or theft from lack of security on an exchange. However, investing in the stock market or other assets (such as real estate or gold) requires a certain level of expertise and a deep understanding.
Making Money with Crypto Trading
Many new investors in cryptocurrency are interested in earning passive income, not just the interest of speculative gains. Several currency networks have a fixed supply and an inflation rate that mitigates currency deflation. This can be good for those seeking a steady return without the volatility of other assets. It is now possible to earn a passive income from currency investments and guidelines to minimize your risk.
You can start earning by diversifying your investments using a cryptocurrency portfolio tracker. The best way is to choose the top-performing cryptocurrencies by market capitalization and then allocate a percentage of your portfolio to each one based on their market cap. For example, investing $10,000 into one type of crypto asset gives you 10,000 units of that crypto asset. If you choose to invest 10% of those units into another crypto asset, you will receive 100 more units.
Crypto as an Investment
The second way to make passive income is to sign up platforms for mining free cryptocurrencies. Mining cryptocurrencies is an energy-intensive process, and it usually costs more money than it makes. New miners, however, still see mining as an investment, and they hope to earn enough to repay the cost of their mining equipment and then some. Mining cryptocurrencies will most likely not be profitable.
But if the price goes up by a factor of 10 or more, you will have earned a decent return on your investment. So investing in cryptocurrency can potentially give you a better return on investment (ROI) than any other asset class out there. Crypto’s volatility might make it seem like an unreliable capital source, but that’s where buying the dip comes in.
Few Recommended Currencies
For those seeking a steady return, the plus sides of each option outweigh the negatives and may be suitable for you. The decision as to which currency to hold depends on your personal preference. A list of the best cryptocurrencies for you to invest in is shared here.
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- Bitcoin (BTC) – As the most widely held and accepted currency, it has the highest number of people working on improving it. As a result, the bitcoin supply will be capped at 21M in 2140, after which no additional Bitcoins will ever be produced.
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- Ethereum (ETH) – The second most valuable coin in terms of market capitalization, ETH is a profit-making machine for those who understand ETH makes more sense than BTC. With ETH, you can create smart contracts and decentralized applications (DApps) on the Ethereum platform with minimum effort and wallet space.
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- Ripple (XRP) – The third biggest cryptocurrency by market capitalization, Ripple is not mined like Bitcoin or Ethereum are; instead, each time a transaction occurs, it is locked in, and another transaction takes its place.
When you sign up on a platform to invest in crypto-assets and cryptocurrencies, it is unnecessary to sell them later. You hold onto the coins until you are ready to cash out into fiat currency. A currency network with a fixed supply will suffer from diminishing purchasing power over time. To be clear, this effect is already accounted for when pricing assets, so it’s not something new to the crypto world.