What to Look Out For?
Imagine having some Bitcoin that is worth more than $7000 with a chance of price surges occurring in a matter of days. Such is the world of Bitcoin and the altcoins in today’s world. Price appreciation, the sudden surge in price and a quick means to have value for money exist with cryptocurrency.
There are many factors that may affect the rate at which we make money from crypto trade. These factors tend to discourage the trading activities of crypto traders, and reduce the value of crypto assets. Ultimately, these factors limit the extent to which one can make profit from them.
Some of the factors are:
1. Negative Political Comments:
It is really evident that some governments across the globe see cryptocurrency as a threat to the national economy. Tony Yates, an Economics professor and former Bank of England Economist espoused this view in Financial Times. He concluded that Bitcoin lacked the capacity to adjust with the shift in money demand that is usually encountered in the money market and this is the reason why bankers hate cryptocurrency world.
When regulatory authorities cast aspersions on Bitcoin, or cryptocurrency in general, the market value of cryptocurrencies is imperiled. To some other governments, the decentralized monetary system of Bitcoin will run any cryptocurrency-dependent nation into economic crisis. This is because there wouldn’t be a centralized body to intelligently implement policies to steer changes in money demand.
In fact, some countries legally do not accept the use of cryptocurrency in their nations, while others tax crypto transactions. For example, the polish government taxes crypto transactions up to a whooping 32 percent. All these negativities toward cryptocurrency transactions usually discourage both existing and prospective crypto traders, and consequently affect the market value of the coins.
2. Fall in Market Price:
The last thing any investor wants to see is a fall in the market price or value of their investments. This is one sure challenge that the Bitcoin has experienced in recent time. However, you can avail yourself of crypto telegram signals so that you will know when to buy cheap coins and reap the gains.
3. The Purchase Price:
This is where some make a lot of profit while others experience much loss. The price you buy a crypto asset and the sales value will determine how much profit you can make from it. For example, there was a time Bitcoin were given out to people for free, and before anyone knew anything; it was the talk of town. Its value skyrocketed over time, and so did the profit of those who had it for free or bought it at a lower price.
In general, if you buy an asset at a low price, and keep it till its market value increases; then you stand the chance of profit-making But on the other hand, if you buy a coin at a high value and it depreciates constantly, then you may run at a loss. If you make an initial coin offering investment, you can reap the gains when the market price surges.
What You Need to Do?
There are many sure ways of making money from cryptocurrency assets. These include, but are not limited, to the following:
1. Buy and Hold Crypto:
Like many other long-term investments, you can buy crypto assets and keep them till their value appreciates. Forecasters have seen that cryptocurrency will enjoy much use in the future as against now. Therefore, this is the right time to buy crypto assets and save them. More than other investments, crypto offers a possibility of making limitless profits.
There are many crypto assets that are relatively cheap and affordable for now. It really is a great idea to buy some and save them till they come to limelight. Examine other coins like Bitcoin cash and Ethereum which also increased in market value so rapidly. Those who didn’t despise them are now singing the victory song. If you despise anything, don’t despise the possibility of making profits with cryptocurrency.
2. Buy and Sell Intelligently:
One key thing in crypto trading is intelligence. A person must be smart enough to buy things when they are low and sell them when their prices skyrocket. At a time, Bitcoin was about $109. Imagine if you purchased a thousand Bitcoin at that time and sold them at $20,000; by now, you would be basking in your millions. It is that easy to make money with cryptocurrency. You only need to understand when to buy and when to sell.
3. Target Viable ICOs:
Be on the lookout for other crypto assets too. There are many organizations who are now implementing the blockchain technology into their services. These organizations are offering their coins (called ICOs – initial coin offerings) to the general public at relatively low prices. What to do is to study these ICOs and select the viable ones. There is also the possibility of making high profits from them.
4. Take the Alternative Route:
Perhaps you want to purchase Bitcoin but you can’t afford it. Then try an alternative! Switch between Altcoins also called ‘Bitcoin alternatives’. The best cryptocurrency exchange available will give you options in altcoins to buy and sell.
Altcoins are the likes of Litecoin, Dogecoin, Ripple, Monero, etc. All these coins are cheaper than Bitcoin. Therefore, you can invest in them and convert them to the equivalent Bitcoin or fiat money as they appreciate.
5. Cryptocurrency and FOREX Trading:
This is not directly linked to cryptocurrency transactions; however, it is applicable too. There are many FOREX trading platforms that require you to predict the outcome of financial assets against each other within a time frame. For example, you may be required to predict if US Dollars will rise or fall against the Great Britain Pounds.
A correct prediction will earn you a reasonable amount of profit. Now, many of these trading platforms have incorporated the Bitcoin and Ethereum, as well as some other crypto assets, into their platform. So, by studying market trends and following news, you can now predict whether crypto assets will rise or fall against other financial assets. This is how you can apply the knowledge of cryptocurrency to make money on FOREX trading platforms too, though there is a difference between crypto trading and FOREX trading.
It is time to see things the right way and follow the paradigm shift of wealth creation through cryptocurrency. Making money through cryptocurrency can be a sure, steady and simple way to make huge profits. Today looks like the right time to start investing in cryptocurrency.
Claire John is a Crypto-enthusiast and a Tech Blogger. She writes for Coin Review, Bitcoin Warrior, Coin Weez etc. but this doesn’t stop her here. Her passion for writing drives her to utilize her diverse skill set to develop unique content and create efficiency to enhance her client’s experiences. You can find her on LinkedIn and Twitter.