You might be familiar with the term ‘Ether-Folk’, those people who believe that Ether (the token used in the Ethereum platform) will replace all traditional currencies. While it is true that Ether is the currency of the Internet, it’s not the only one. In fact, there’s a whole host of other cryptocurrencies that you could make money from.
Now, you might be wondering how to make money from writing for cryptocurrency funds. It’s not as easy as you’d think. Although there are a few ways to make easy cash, you’re mostly looking at day trading or investing in the hope of a high payout. If you want to make a decent amount of money, you’re going to have to write for many different funds. To give you some idea of how lucrative this can be, let’s take a quick look at the numbers.
Statista: The Data
We’ll start with some solid numbers. Between January and October 2018, the volume of Bitcoin and Ethereum traded per day was around $16.8 billion and $150 million respectively. With the recent increase in the value of Ether, this trend looks set to continue. In fact, the average cost of a Bitcoin is currently around $7,200. If you were to look at a typical day’s worth of trades, you’d easily be placing bets on the curve. Not bad for a few hours’ work. If this sounds like a profitable idea, you might want to consider the following alternatives.
Taking a Walk on the Wild Side
If you want to make serious money off cryptocurrency, it is essential that you consider taking a serious approach to day trading. If you want to make a quick buck, playing with cryptocurrencies on a light weight scale is one thing. Day trading is quite another. There is a huge difference between the two concepts and, to be frank, it’s not for the faint-hearted.
If you’re looking for a way to make money quickly, you can do so by taking a long position on Bitcoin, Ethereum, or any other cryptocurrency you choose. Buying low and selling high is the simplest and the most effective way to make a quick buck. There is a huge amount of volatility in the market so you will inevitably lose a chunk of change if you go down this path. For example, in 2007, the value of a Bitcoin was under $5. It is now, in early 2019, valued at around $20,800. This means that, in less than six years, you could have seen more than a 400% increase in prices. It’s easy to see why so many people have taken the walk toward riches, although it’s a dangerous path to tread. The key to making money is not in taking long or short positions on cryptocurrencies but in simply taking a position. When you participate in the day trading of Bitcoin and other major cryptocurrency, you are effectively participating in high-speed gambling. It’s all fun and games until someone loses a large sum of money. This is not the approach you want to take if you want to make a decent living.
Although it’s tempting to view the rapidly changing prices in cryptocurrencies as an opportunity to make quick cash, you’re playing with fire. Volatile markets are great for short-term speculators and day traders but they’re not suitable for long-term investments. The only way to make really good money is from investing in quality, long-term growth stocks or ETFs (exchange-traded funds) that track the movement of cryptocurrency prices. Let’s take a quick look at the basic principles of stock market investing.
Growth Stocks – A Short Introduction
If you’re looking for an easy way to make a quick buck, you might want to consider taking a look at the stock market. The stock market is the largest, most liquid market in the world and it’s been around for almost as long as Bitcoin itself. As well as providing an easy way to make quick cash, the stock market is a fantastic place for long-term investments. The trick to making good money from the stock market is to find a good growth stock and hold onto it for the long term. You’ll make a decent return on your investment, provided you buy low and sell high. When investors talk about the stock market, they’re usually referring to companies that offer goods or services to the public. These are known as
- Broadly-Meaningful-Categories (BMC)
- Consumer-Staples
- Industrials
- Health-Care
- Technology
- Telecommunications
Stocks can be bought and sold on stock markets around the world, meaning that you don’t need to be based in the US to take advantage of its powerful markets. In a nutshell, buying stocks that are rising in value is a great way to make money. It’s easy enough to track the overall performance of the market using share price indices, like the S&P 500 or the Dow 30. The higher the index number the better. When you see a good investment opportunity, you should jump on it.
Stocks can be purchased via brokers or directly from companies. If you’re new to the game, it’s always a good idea to use a reputable broker who can walk you through the entire process of placing a trade. A good broker will take the uncertainty out of the equation and allow you to focus on making money. When you use a broker, you’ll also open up the option of taking longer-term positions. If you want to play it safe, you could also consider using a paper trading account which doesn’t require you to expose your real name or account number. If you don’t have either of those two things, then at least use a pseudonym. There is a myriad of information online that can help you get started. Doing your own research is how you’ll learn the most. Be sure to keep a close eye on your portfolio and rebalance it more than once per year. Otherwise, you’ll end up with poor performance.
Alternative Investment – A Whole Different Animal
While the stock market is great for long-term investments, it doesn’t always provide the best opportunities for short-term speculation. If you’re looking for a way to make quick cash, you might want to consider looking into alternative investments. These are investments that don’t necessarily have a direct relationship with the equity markets. For example, you could purchase a call option on a Treasury bill. This would allow you to profit from the rising value of the US dollar. Inflation has become a huge issue since the start of the 2010s. The purchasing power of the dollar has been significantly eroded by rising prices of just about everything. While it’s great for short-term speculators, long-term investors should probably steer clear of this market.
Another great opportunity to make money is from playing the market on a long-term basis. This is where you buy low and sell high, simply making profits off the difference in prices. There is a great deal of volatility in the cryptocurrency markets, so you will inevitably lose a chunk of change if you go down this road. Short-term speculators and day traders should look to this market for quick profits, playing the trends and fads as they arise. For example, it was only a few years ago that everyone was in love with Ripple (XRP). Short-lived cryptocurrencies will always be prone to huge price movements so be careful when taking this approach. One thing to bear in mind is there are a lot of scammers out there who’ll try to trick you into buying fake crypto-asset platforms. It’s easy enough to spot a con artist, simply look out for the big exit scams. These are where someone promises you huge profits but, in reality, they’re after your money and will try to dupe you out of as much as you’re willing to lose. There’s no shame in walking away from such a scam, simply protect yourself and your money from scammers and con artists. It’s not worth the risk.
The Best Way to Profit from Crypto
If you’re looking to profit from cryptocurrency, the best approach is to simply take a long-term view. It is extremely risky to put your eggs in one basket and be relying on just one source of income. The safest and most profitable way to make money from cryptocurrencies is to participate in the day trading of Bitcoin and other major cryptocurrencies using tools like MetaTrader 4, simply looking for a good buy and hold strategy. When you focus on buying low and selling high, not only can you make a significant profit, but you can also limit the amount of risk you encounter. In times of stress or insecurity, it’s easy enough to liquidate your holdings, ensuring that you maintain some level of safety. For the best chance of profiting from cryptocurrencies, use a platform that is built on a rock-solid foundation and offers you the best experience. These factors will enhance your chance of making money significantly.