What if you bought 3 Bitcoins in 2010 and sell them today? You may have come across this question many times. However, it is posed mainly by those who do not have a deeper understanding of the crypto world. Owning cryptocurrencies and ensuring that they are profitable are two different things.
Most people who enter the crypto field have high hopes of making a killing. However, not everyone achieves this as crypto is not a make-quick-money scheme. On the other hand, those who understand the dynamics of the crypto world make good returns. So what can you do to ensure that you maintain crypto profits? The following are practical tips to make it happen.
Deal with reputable platforms
You can buy cryptocurrencies from anonymous crypto exchange, get paid in crypto for work done, or even mine digital coins. Ensure that you always deal with reputable platforms irrespective of the approach you use to acquire cryptocurrencies.
For instance, checking online reviews can help you determine some of the best crypto exchanges. The ideal platform should be easy to use, have responsive customer support, have advanced security features, and accept various payment processors.
You may have heard of cases of crypto exchanges being hacked, and you thus need assurance that you are dealing with a safe platform. If you are not trading, avoid keeping your coins in the exchange and transfer them to your cold wallet.
HODL
The term was a typo on a BTC forum in the early days but was later adopted into the crypto world. HODLing is when people buy cryptocurrencies and hold them hoping that they will increase in value and then sell at a profit.
A classic example is someone who bought BTC in 2011 and sells today. However, you must ensure that you analyze the concept behind the digital coin you want to HODL and make a profit. Events such as Bitcoin halving or introducing new protocols that increase transaction speed and lower fees are some of the things that can make BTC rise in value. You should also observe the market trends before you take this route.
Trade
You can take advantage of crypto’s high volatile nature and make a profit. However, it would be best to have a deep understanding of the market and practice to make money through trading. The following are the different trading approaches for Bitcoin:
Day trading
It involves quick and short trades that come with small and fast profits. As a day trader, you will not hold open positions overnight. It thus means that you analyze the market for small money-making opportunities and capitalizing.
Swing trading
This refers to a process where you buy low and wait long enough to see your assets increase in value and then sell. A swing trader comes in between day trading and Hodling. Thus, you can keep your coins for weeks or even months and sell them when the time is right.
Arbitrage trading
This approach allows you to buy crypto from one exchange and sell at another one at a higher price. Tons of platforms can provide you with real-time data to capitalize on this approach.
Gamble with crypto
The rise of Bitcoin casinos is something that we cannot ignore in the modern world. The fact that cryptocurrencies allow people to deposit and withdraw money without exposing their personal details is one of the biggest attractions of this funding method. Crypto allows people to make large deposits, as Pinnacle Bet shows, where gamblers can deposit up to €50,000.
Thus, you can separate your gambling funds from the other funds when you opt to use crypto on betting sites. You might even get lucky as some sites will give you welcome and reload bonuses whenever you use crypto. However, you still have to analyze different teams and strategies before you engage in online gambling.
Lend your coins
The decentralized nature of most cryptocurrencies makes it easy to send and receive money easily. There are no third parties such as banks and the government that censor how you transact. Lending your cryptos at certain interest (4-15%) helps you earn money while HODLing. You can loan the coins for a month, three months, or even one year. At the expiry of the lending period, you get your coins back plus interest,
Binary trading
Binary trading is not a new trading approach. As a trader, you will buy an option and an expiration time. You can either be ‘out of the money’ or ‘in the money.’ In simple terms, you bet on where the price will go. For instance, if Ethereum is worth $2300 at 1 PM, you can bet whether the price will be higher or lower than that at 6 PM.
Above are some of the approaches to ensure that you maintain cryptocurrency profit. You can select one approach or combine several depending on your knowledge and skills.
