How To Make Money With Crypto: Top Strategies
Let's be honest. Despite all the enormous variety of cryptocurrencies and the most diverse functions they perform, many people (especially those who do not want to plunge into the confusing world of decentralized finance and new iterations of the Internet) view them primarily as a source of potential income. Consequently, the question of how to make money with crypto and monetize these digital assets is one of the main topics of interest to coin holders. Let's try to find the answers to it together.
Is it possible to earn with cryptocurrency?
Since crypto is a relatively young asset, many people are wary of it. Some skeptics even go so far as to believe that crypto cannot be profitable by default, and cases, where cryptocurrency holders earn online using their coins, are exceptions to the rules.
Of course, it isn’t so. Cryptocurrencies are not a financial panacea that brings you profits 100 times out of 100. They are associated with risks, including losing your investments in an attempt to multiply them. However, this can be said about any asset, including time-tested ones. Meanwhile, cryptocurrencies have significant earning potential given several of their key features, including:
- - Volatility. The value of cryptocurrencies can change dramatically in the shortest amount of time. As a result, with a successful, well-thought-out strategy, crypto holders can receive increased returns compared to other assets. However, under such circumstances, the risks are also increased.
- - Variety. The number of cryptocurrencies in the world is counted in thousands. Different coins have different features and advantages, so those who want to try to make money from them have a wide field for financial maneuvers and a rich choice for combining portfolios.
- - Distinctiveness. Although not completely removed from conventional economic processes, cryptocurrencies are significantly less impacted by them than other assets. As a result, if approached competently, they may well bring profits even in financially challenging times.
Considering all the above, cryptos have quite a solid earning potential. However, to try to earn with cryptocurrency, you need to understand exactly how it can be done. There are several main ways to make money with crypto. Let's consider them in more detail.
Due to the volatility of cryptocurrencies, trading looks like one of the most obvious ways to earn online. Crypto trading is the purchase and sale of cryptocurrencies to profit from short-term price fluctuations. Traders must have a basic understanding of technical tools and charts used in spot trading to be able to predict whether a particular coin will rise or fall in price and take a long or short position, respectively.
When choosing a cryptocurrency to trade, one may want to prioritize high volatility over stability. Those currencies that show the highest short-term fluctuations can be optimal for aspiring crypto traders. However, in addition to this, you should always consider the indicators of technical instruments since volatile cryptos can be unpredictable and behave completely differently than you expect.
Although seemingly similar, crypto investing cannot be further away from trading. While trading is a short-term process, the success of which depends on whether the trader predicts the coin’s closest price movement correctly, investing is a way to earn with cryptocurrency by taking a standby position and waiting for the asset to increase in price to a considerable extent.
Knowing analytical tools is not enough to be a successful investor. One should also understand the big picture and properly weed out non-promising cryptocurrencies from those that are here to stay. Investors buy crypto coins with growth potential and hold them long enough for the price to rise considerably. While investing is not necessarily more profitable than trading, it involves less risks (however, they remain high – keep this in mind).
To earn with cryptocurrency, you don’t always have to add any extra effort to what you’re already doing. Sometimes, it is enough to simply carry out your usual trades and profit from them. For instance, customer-oriented crypto exchanges have extensive bonus and reward systems that clients can use to their advantage.
Thus, with XBO, you participate in an exclusive loyalty program, advancing through five levels. Moving to each new level earns you free crypto rewards and additional cashback, which are basically your effortless profits. Another way to make money on XBO is through a referral program that earns you crypto bonuses for every new user you introduce to the platform. Of all the ways to earn online with cryptocurrencies, profiting from crypto bonuses is the only one that can be described as risk-free.
It is quite possible to make money with cryptocurrencies. Depending on your goals, strategy, and preferences, you can do this through crypto trading or crypto investing. However, you must remember that, in both practices, the opportunities are balanced by the risks. Therefore, before resorting to them, think over a clear strategy and take risk management measures.
At the same time, you should remember that benefits can come as large profits from trading and investing and as pleasant bonuses. With our platform, you can get crypto rewards for loyalty and referrals. So, don't hesitate and start exchanging crypto with XBO to lay the foundation for your future bonuses now!
Disclaimer: Our content does not constitute financial advice. It is only intended for informational and educational purposes.