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How to earn on cryptocurrency

Published: 12 июля 2023
3 min

How to earn on cryptocurrency How to earn on cryptocurrency

Today, let's discuss one of the hot topics - earning money with cryptocurrency. With the instability of the ruble exchange rate and the growing interest in digital assets, the idea of earning income through transactions with cryptocurrency is becoming popular.

It should not be forgotten that Russians have been cut off from Western investment markets, so there are not many options left to effectively invest money. The Russian stock market has shown returns that barely cover the devaluation of the ruble. Therefore, let's consider several effective ways to use cryptocurrency as an investment tool.

1. Long-term investing

One of the easy and affordable ways to make money from cryptocurrency is to invest in stable and popular cryptocurrencies such as Bitcoin, Tether and others.

How to earn on cryptocurrency How to earn on cryptocurrency
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BTC is subject to some volatility but has shown 400% growth over 5 years, while USDT is stable and equates to a $1 value.  For a variety of investment tools, top altcoins such as Solana or Ethereum are suitable. For ease of understanding digital finance is worth adopting:

  • USDT analog of corporate bonds for conservative investors;
  • BTC analog to the NASDAQ index for moderate investors;
  • Altcoins analog to the Russel 2000 index (small capitalization companies) for aggressive investments;
  • Mem-coins analog of startup companies, IPOs and other young projects for speculation and trading.

How to earn on cryptocurrency How to earn on cryptocurrency
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2. Trading based on cycle analysis

Cryptocurrencies have a cyclical nature characterized by periods of growth and decline. By analyzing price change charts, you can assume what phase the cryptocurrency is in at the moment. Observing previous cycles and identifying the minimum points allows you to make informed investment decisions. For example, when Bitcoin's price falls to a minimum point, you can form a position, expecting subsequent growth, which can bring significant profits. At the moment Bitcoin has recovered 50% of its maximum value, and many altcoins are trading at 10-25% of their peaks. Investors still have good stories available for profitable investing.

How to earn on cryptocurrency How to earn on cryptocurrency

3- Trading based on short-term trends

 

A riskier but profitable way to make money in cryptocurrency is trading based on short-term trends. By analyzing price movements over small time frames, you can determine the range in which the price is fluctuating. For example, at this stage Bitcoin tends to move between $30,000 and $31,000 for a month now.

Selling when the maximum point is reached and buying when the minimum point is reached can be profitable. However, with this approach, you need to be careful and avoid using margin trading to avoid risking all your capital.

How to earn on cryptocurrency How to earn on cryptocurrency

4. Cryptocurrency Mining

Another way to make money from cryptocurrency is mining.

Mining is the process of mining blocks in the blockchain. However, it requires purchasing special equipment, setting up wallets, choosing a cryptocurrency to mine, and continuously following the process. At the moment, according to the Kryptex.com service, the payback of mining on different equipment takes from 2000 to 4000 days. It is important to consider that mining requires access to inexpensive electricity and the ability to purchase powerful equipment.

How to earn on cryptocurrency How to earn on cryptocurrency
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Conclusion

Cryptocurrency offers many opportunities to make money. Investing in sustainable cryptocurrencies, analyzing cycles and trends, and mining - each of these approaches has its own benefits and risks. When choosing a way to make money from cryptocurrency, it is important to consider your financial capabilities, risk level and take an informed approach to making investment decisions. We wish you success in mastering the world of cryptocurrency and pleasant earnings!

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