Contents of this article:
How to earn on crypto? We will answer a common question from beginners, and talk about several ways to make money on cryptocurrency, as well as mistakes that novice investors often make due to inexperience.
Active earnings on crypto: trading
Trading is the opening of speculative positions to sell or buy coins. The trader earns on the growth of the cryptocurrency rate by investing through the exchange. You can trade and earn not only on the stock exchange, but also through brokers. It is almost impossible to make money on cryptocurrency trading from scratch. This activity requires knowledge and understanding of the basics at least.
You need to get the following skills if you want to make money in crypto trading:
- to analyze of cryptocurrency, volumes and trades of a virtual asset;
- to use of charts and quotes;
- to conclusion of transactions for purchase and sale;
- to track price dynamics and trading history.
There are different trading strategies, but they all are based on analytics. A trader buys an asset in order to make money on cryptocurrency, when its price is the most profitable for buying, that is, low. Then you need to wait for the moment and sell the crypt when its value grows. A trader can also earn on a falling market, that is, take a position for a fall at a premium price and fix when the price falls to lower values. It is necessary to conduct an analysis again to assess whether it is worth waiting for a larger increase, or whether it is necessary to sell the asset now to reinvest funds.
Passive earnings on crypto: landing, skating, crypto funds
You can earn on cryptocurrencies in 2022 not only by trading. You can choose passive income by investing in virtual assets. Staking is analogous to a bank deposit, for example. Staking ensures the health and safety of the blockchain and the holders receive interest on the contribution. The staking service is available on popular cryptocurrency exchanges, such as Binance. In simple words, it works like this: the user sends money, and after some time he receives it with interest.
Another way to earn money on cryptocurrency passively is landing. The owner of the crypt transfers his asset to the exchange at a percentage temporarily. The exchange needs it to increase liquidity.
Funds are blocked in the so-called smart contract; it can be perpetual and have a low interest rate, or fixed one with high interest.Those, who choose passive income on the crypt, can invest in crypto funds. Crypto funds are pegged to a specific sector like conventional exchange-traded funds – in this case, digital assets. They buy liquid coins with subsequent sale, and then investors receive dividends. It is worth choosing large crypto funds with a good reputation for investments, they pursue a risk management policy, providing for risks, negotiating them with investors in advance.
What do beginners burn out on
The first mistake that a beginner makes is his unwillingness to learn. Investing and earning on cryptocurrency are associated with high risks, and even experienced traders often make mistakes and lose money. You need to take the issue seriously, studying the field in detail to understand how to make money on cryptocurrency. Start studying cryptocurrency from the very beginning, figure out what virtual assets are, how they appear, how the market works if you don’t want to lose your starting capital without earning anything.
Common mistakes of new users:
- Big investments. You need to start investing from the minimum amounts, increasing them as you study the market and understand how it works.
- Investment of all free money. Invest as much as you can afford to lose without lowering your standard of living.
- Looping on one coin. You should start investing in various promising coins to make money on crypto from scratch. Diversify your portfolio and increase your chances for success.
The Crypto Crew team knows how to make money on crypto from scratch. We teach beginners how to trade and other ways to make money on cryptocurrency, and also created our own closed community, where novice investors and traders gather. Our team will tell you everything about the crypto market today, you will learn how to invest money wisely, even how to earn crypto without investments.