Why Has Bitcoin Dropped
The price of bitcoin and several other leading cryptocurrencies suffered huge falls at the start of December 2021.
Around $10,000 was wiped off the price taking it to $45,000. Thats a long way from the all-time high of $69,000 seen in November.
The recent turmoil follows uncertainty around the latest coronavirus variant and high inflation in the US and UK, as well as threats of further regulation for crypto investments in the future.
Cryptocurrency Meaning And Definition
Cryptocurrency, sometimes called crypto-currency or crypto, is any form of currency that exists digitally or virtually and uses cryptography to secure transactions. Cryptocurrencies don’t have a central issuing or regulating authority, instead using a decentralized system to record transactions and issue new units.
Fees When Selling Bitcoin
An often overlooked facet of mining profitability is the fees one pays to sell the Bitcoin one mines. If you are a small time miner, you may have to sell your coins on a retail exchange like or Binance. Sometimes your fees are low but sometimes your fees are high – it really just depends on the fee structure of the exchange and the state of the orderbook at the moment.
However, if you are a professional miner like F2 or Bitmain, you likely have really advantageous deals with OTC desks to sell your coins at little to no fees – depending on the state of the market. Some miners are even paid above spot price for their coins. Either way, professional mining operations deal with Bitcoin at a large scale and so they have more leverage to get deals that are good for them, and this doesnt just apply to electricity purchases.
If you think you have what it takes be mine profitably, we suggest you make sure first by using our .
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Accepting Cryptocurrency As Payment
The idea of accepting crypto as a form of payment in your business to make money and become profitable via crypto is that you can cut out the middleman and charge a lower transaction fee.
The main difference between accepting cryptocurrency vs traditional methods is having an understanding of how volatility plays into this equation since at times one can make more money on their profit via crypto than fiat currency while other times it could work in reverse and cost.
But looking at the direction things are going, it can be a wise decision to accept cryptocurrency while its still at its infant.
Because as the market value goes up, so does your entire crypto portfolio.
Imagine accepting Bitcoin, Ethereum, or any other coins as a form of payment now. And they all rise by a certain % in months or even years to come.
While the authorities and the Central banks keep printing more paper money devaluing it. Which may lead to inflation.
Whod be benefiting?
Buying And Hodling For Long Period
This is the simplest and easiest way to make money with cryptocurrency.
But it does require patience as well as an understanding of basic trading principles.
The key here is that you need to buy low and sell high a strategy far too many beginners overlook or fail to execute properly.
Buying Bitcoin, Etheruem and other top coins can be a great long-term investment if you are willing to take on some short-term volatility in order for those gains down the road to get bigger .
Buying and holding for a very long time is what I and other experts highly recommend to beginners without any crypto knowledge.
This way, you can make a lot of money without even knowing how to trade.
But you need the gift of patience.
You can hodl for as little as 6 months or as long as 10 years. Imagine those that got early into the train of bitcoin 10 years ago?
Just make sure, you do your own research and make sure the crypto assets youre buying really do have use cases in some way and backed by credible teams.
For this type of longer holding of coins make sure you get a hardware wallet to store your cryptos.
Much safer and better than online software wallets.
I recommend Trezor hardware wallet for this.
My favorite exchanges for buying long term cryptos are:
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Is It A Good Idea To Invest In Cryptocurrency
If you invest incryptocurrency, do it based on the facts, not the hype and there is a lot of hype.
Before you buy and sell digital currency, know the risks so you can judge if investing in it is a good idea for you and your personal finances. Understand how cryptocurrency works, by reading our article here.
The Bank of England would not agree that it is a good investment. Governor Andrew Bailey warned that people who invest should be prepared to lose all of their savings.
Traditional Buy And Hold
The method of making money from crypto is preferable for people who are ready to take risks. It means getting crypto assets of your choice from a crypto exchange and purchasing more when prices drop traditionally called Buying the dip.
After months or years, at a significant overall profit, the asset might be sold compared to the purchased price.
Well-established crypto coins like Bitcoin, Ethereum, and Litecoin rise and fall daily, but if we look at the chart, we find these coins have maintained an upward trend across the year. New coins like Chia are more likely to debut at a higher price due to the hype. Later, it loses value and requires a long time to recover. Sometimes they are likely to disappear if there are not enough buyers in the market or the utility of the function performed is insufficient.
It is vital to read the whitepaper for that coin before deciding which cryptocurrency to use as a long-term investment. It will give you a fair idea of the origins and purpose that it serves and provide enough data to allow it to stand the test of time.
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Earn Money By Writing Blogs On Cryptocurrency
You can earn money by writing blogs and articles on Cryptocurrency. Cryptocurrency is one of the most trending things on the planet at this time. The buzz that Cryptocurrency is making is becoming very hard for people to ignore.
It is extensively covered by mainstream media. People want to know more about Cryptocurrency and especially on Bitcoins. Only a few people are informed about what Cryptocurrency truly is not many know about this niche. You can use this to your advantage and start writing informative blogs on Cryptocurrency and educate people about the pros and cons of Cryptocurrencies.
If your blogs garner traffic, then you can monetize them and earn money from them. How much you earn will depend on how frequently you can publish the blogs and the rate of monetization. I hope this answers your question How much money can I make with Cryptocurrency.
The Best Way To Make Money With Cryptocurrency
One of the lowest-risk, highest-return methods of making money from cryptocurrency is through crypto arbitrage. This is a form of investing that involves minimal exposure, making it a popular choice with financial institutions, investment firms, major corporations, hedge funds and retail investors. It generates profits by taking advantage of temporary price inefficiencies. These are short intervals in which a coin will be available on multiple exchanges simultaneously, at different prices at the same time.
Here at ArbiSmart, our EU licensed, fully automated crypto arbitrage platform is connected to 35 different exchanges, which it scans 24/7 looking for price differences on hundreds of coins. Within seconds, it buys the coin on the exchange where the price is lowest, and then sells it on the exchange where the price is highest, to make a profit, before the market can adjust to resolve the temporary inefficiency.
Whether the market is in a bull or bear trend you can continue to generate steady profits from price inefficiencies as regularly as ever, making this form of investing a great hedge against the possibility of a crypto market crash.
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Wait For The Money Flow Index To Reach The 100 Level
An MFI reading of 100 shows the presence of the big sharks stepping into the markets. When buying, smart money cant hide their footsteps. They inevitably leave tracks of their activity in the market and we can read that activity through the MFI indicator.
Technical indicators arent always right, so in order to fine-tune our day trading strategy, weve added a few more conditions. Namely, during the current day, we need to skip the first two MFI readings of 100 and study the crypto price reaction.
The price needs to hold up during the first and second 100 MFI reading.
If the price drops after the first two MFI 100 readings, then this suggests that most likely were going to have a down day.
Lets now determine the appropriate place to go buy Bitcoin and what are the technical conditions that need to be satisfied.
What Is A Cryptocurrency Broker
Cryptocurrency brokers take the complexity out of purchasing crypto, offering easy-to-use interfaces that interact with exchanges for you. Some charge higher fees than exchanges. Others claim to be free while making money by selling information about what you and other traders are buying and selling to large brokerages or funds or not executing your trade at the best possible market price.
While theyre undeniably convenient, you have to be careful with brokers because you may face restrictions on moving your cryptocurrency holdings off the platform. With some, for example, you cannot transfer your crypto holdings out of your account.
This may not seem like a huge deal, but advanced crypto investors prefer to hold their coins in crypto wallets for extra security. Some even choose hardware crypto wallets that are not connected to the internet for even more security.
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Way#7 Work For Cryptocurrency Companies
This is a common way of earning from the sector. Anyone can work for a cryptocurrency company at any capacity you can be a digital marketer, content creator, web designer, among other things. All you have to do is to identify their needs and show them how your skills can help solve a problem.
The best thing about working for crypto platforms is that youre likely to work remotely, allowing you to benefit from the flexibility of working from your own space.
Other than that, most crypto firms offer very competitive packages, and if you happen to come by a chance to work with any legit ones, dont hesitate to take up the opportunity.
Below are a few examples of platforms that pay in digital assets for services rendered:
These companies offer their compensation in terms of cryptos this, therefore, means that the value of your earnings can more than double in value within days if not hours.
The Risk Of Cryptocurrency Scams
As with any form of currency there are financial risks with crypto.
The values of even the most successful of cryptocurrencies like Bitcoin are volatile and crashes are not uncommon.
There have been stories of crypto trading addiction but the greatest risk involved for young people lies within the increasing number of crypto scams on the market.
The most regular scam is when someone creates a seemingly valid new cryptocurrency and encourages people to invest in it. Once theyve taken the money, the company will shut down and those initiating the scam will leave with the money. These are, essentially, a pyramid scheme. One example of this is the company Theodex, which reportedly scammed investors out of $2 billion.
Similar scams involve someone impersonating a celebrity or company online and encouraging people to invest in what seems to be the next big cryptocurrency, claiming that the value is due to rapidly increase. The more the value rises, the more people invest. However, those initiating the scam will withdraw their tokens at the peak, causing the currencys value to drop dramatically and those who invested to lose out.
Because cryptocurrencies are unregulated, there is little protection for victims of scams. The FCA is in the process of regulating how cryptocurrencies are advertised.
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Earn Crypto With Microtasks
The gig economy and sharing economy have created new and exciting ways to earn cash in the real world and these opportunities have been spilling over into crypto as well. One increasingly popular way of earning digital assets can involve completing a series of microtasks. This could include processing data, reviewing images, completing quizzes about different cryptocurrencies online, and downloading apps and games and leaving reviews. The possibilities are endless, the tasks are pretty easy to understand, and the crypto can add up over time.
Direct Your Actions Based On A Plan
In the words of American entrepreneur William J. ONeil, The secret is to hop off the elevator on one of the floors on the way up and not ride it back down again.
While ONeil meant it for the stock market, the same principle can be applied to taking crypto profits, too. But, whether your strategy is to take profits off the table, let your winnings continue rising in the hopes of an even better return in the future, etc., it is important that you have a plan in place to direct your actions.
Asking yourself some or all of the questions listed above would be a good place to start when considering taking your crypto profits.
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Daos Buy A Share In A Decentralized Autonomous Organization
In addition to the metaverse and NFTs, decentralized autonomous organizations are expected to play a significant role in the future of cryptocurrency and blockchain technology. In its most basic form, DAOs refer to projects that are collectively owned by the community. And, in order to become a part-owner of a DAO, you simply need to hold the respective token.
There are many DAOs operating in this space and each project is unique from the next. One such example is Uniswap. This project is home to a decentralized exchange that enables people to buy, sell, and trade digital currencies without the presence of a centralized third party. Uniswap has since launched its DAO cryptocurrency and thus the project is owned by token holders.
And, this means that any profits generated by the Uniswap exchange are subsequently distributed to those holding its DAO token on a proportionate basis. Moreover, those holding a DAO token have a say in how the respective project is run. This means that in order for a DAO project to make a decision about future development, it must first go to a vote.
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.
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Tuning Your System For Maximum Results
So far, other than putting a lot of hours on your GPU, we havent done anything that might destabilize your system or make it unsuitable for other applications. For a casual miner, thats probably enough. But there is certainly plenty of room for going further. AMD, for example, offers a driver suitable for mining but not graphics. And tweaking a GPUs power and voltage settings can also help improve performance and cooling, as can taking the risk of flashing a custom BIOS. There are plenty of sites to guide you through each of those, but I do advise keeping careful notes on what you change, and understand the possible consequences of each step.
Investing In Cryptocurrency: Some Basic Decisions
Digital Currency: There are hundreds of digital currencies to pick from and your choice will have a huge impact on your bottom line. Its a good idea for a beginner trader, interested in making money by cryptocurrency investing, to start with well-established high-value coins, such as Bitcoin, Ethereum and Litecoin, as opposed to emerging altcoins that just as easily take off or crash and burn.
Crypto Exchange: There are a wide range of exchanges, where you can buy and sell cryptocurrency and you will need to find the most reliable, secure choice with the widest selection of cryptocurrencies, the lowest fees, the highest liquidity and availability as well as the most payment options.
Digital Wallet: Where you store your crypto capital is as important as the way you earn it. You can go for the convenience and immediacy of a web-based wallet, which is vulnerable to being hacked, or choose the added security of an offline, cold wallet, which though safer, makes your funds less instantly accessible.
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