10 Ways To Hack Your Trading Earnings
So, you’re finally down with crypto fever. You are all set to help yourself to some cryptocurrencies. This ain’t a hobby and you want to make money from your investments. However, it’s fair to say that a vast majority of investors are not necessarily experts in the matter.
This will be obvious when reading cryptocurrency charts starts to feel like you’re watching paint dry. Here, we’ve put together some pointers to help you maximise your investments.
1. Buy It, Hold It
Buy low, sell high: that’s the mantra for every investment. If you buy a property as an investment, you are likely to hold on to it until its value appreciates before putting it on the market. It’s a similar concept here, but opinion is mixed on how much appreciation makes a good return on investment. At the end of the day, it comes down to your individual appetite for risk, so if you’re buying to hold, hang on to it until it reaches your desired value and reap the profits.
2. Enjoy Them Dividends
There are some cryptocurrencies that will have you earning dividends for just holding on to them for as long as possible. It’s a play-safe method known in crypto circles as staking, where you hold your cryptocurrencies in a compatible wallet for a sustained period and enjoy dividend pay outs. Sort of like earning dividends from stocks.
This is a relatively easy and quick way of milking profits from your cryptocurrency investment – buy a coin that’s cheaper on one exchange, sell it higher at another and happily laugh your way to the bank. This is commonly known as arbitrage
4. Diversify Your Coins
While Bitcoin is regarded as the “Big Daddy” of cryptocurrencies, Alternative coins (Altcoins) are also making serious headway. The likes of Ethereum, Litecoin and Ripple are holding their own and are definitely worth a punt as part of your crypto investment strategy.
5. Mine It Up
While investing in top-notch hardware and software to mine cryptocurrencies might feel a little heavy on your pockets, it’s a worthwhile expense to make money from your cryptos. It’s basically the process of creating transactions that are permanently recorded on the blockchain and getting rewarded with extra servings of cryptocurrencies.
6. Chart Crunching
This might be slightly beyond beginners but it’s worth understanding how trading charts work to spot an opportunity. The volatile nature of cryptocurrencies mean that value can potentially change drastically day-to-day. You have to be literally glued to the charts on a daily basis to spot buying and selling opportunities at the right moment.
7. Drop It Like Its Hot
No, we’re not suggesting Snoop Dogg-style investments but Airdrops. These are essentially small amounts of cryptos given away, often by cryptocurrency start-ups, to generate attention for their newest crypto venture. A bit like a new company offering promotions for its new product or service. Keep a look out for them and, beware of scam Airdrops.
8. Initial Coin Offerings
We’ve heard of initial public offerings in the corporate world and along similar lines come initial coin offerings (ICO) in the crypto sphere. Look for coins that are starting out or those that are undervalued and sitting in the lower region of the rankings to invest or trade with. You could find real potential for gains in those which are less in demand.
9. Loan It & Earn It
Move over banks! The cryptos are slowly taking over the lending space. Basically, you can loan out your Bitcoins to people and earn some interest on it. But be wary of dodgy platforms and people, or your loans will become someone else’s vacation expense in no time.
10. Hold All the Aces
Occasionally, you might be tempted to gamble your way to a quick win. Well, you can go over to Bitcoin casinos and roll the dice. There are a few online casinos popping up with games that transact with Bitcoin. On a good day, you could laugh your way to the bank, but one bad day could leave you runnin’ on empty for a long time. This option appearing last in this list explains its appeal.
Disclaimer: This article is for general knowledge purposes only and not financial advice. All investments and trades carry risks. You are advised to conduct your own research or consult experts before making any investment or trade.