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How to start earning on cryptocurrency from scratch for a beginner? Everyone who is just starting to learn about crypto asks this question. It is easy to buy cryptocurrency. You just need to create an account on Binance or another popular exchange, select the desired cryptocurrency and buy it with a debit or credit card. You need to learn the basics and immerse yourself in the topic to start earning.
What is blockchain?
We suggest you understand the meaning of blockchain before you find out how a beginner can start earning on cryptocurrency.
Blockchain is a series of blocks, where each one contains digital data. It looks like bitcoin: information about a series of transactions of this cryptocurrency performed at a certain time is stored inside the block. All blocks of the chain make up the bitcoin blockchain and confirm transactions carried out since its inception.Blockchain is a network of computers, which can be located in different countries. All these computers have transactions ever recorded on a particular blockchain. This chain is decentralized and therefore reliable.
It will easily survive various cataclysms, from power outages to major political events.
Why is it important to learn this technology in order to start earning on cryptocurrency for a beginner? Because your virtual asset, bitcoin or any other coin, exists thanks to blockchain technology.
How to start using cryptocurrency for a beginner: ways to earn money
You can easily buy the desired cryptocurrency by registering on a popular exchange or online exchanger. How can a beginner start earning on it? There are several options for earning income from your crypto:
- Trading. You can buy and sell cryptocurrencies earning on exchange rate differences. There are a huge number of exchanges for trading.
- Investment. You can invest in the top coins, having chosen them, and store them until their rate rises to a level that satisfies you, and then successfully sell them.
- Earnings on percentages. Exchanges offer alternative variants to trading in the form of staking or crypto lending. Staking is comparable to a deposit, the exchange blocks a certain amount of crypto to maintain activity, and you periodically receive money.
- Cryptolending is leasing of cryptocurrencies at interest, it is rented by exchanges and special crypto lending services.
You need to decide how exactly you want to earn money to answer how to start earning on cryptocurrency for a beginner.
How to start cryptocurrency trading for a beginner: investments and types of trading
When thinking about how to start investing in cryptocurrency for a beginner, most people want to get a simple recipe for making easy money. They should understand that the volatility of the digital currency is very high, and you can lose more here than in other markets. You need to study the variety of cryptocurrencies and choose a promising currency before starting investments.
The main rule is to invest as much as you are not afraid to lose if your investment strategy fails.
Types of trading are divided depending on the duration of the transaction. For example, scalping is a trade made in a few minutes. Scalpers open many small trades, paying attention to the smallest price fluctuations caused by various factors. This strategy will help to gain experience, to understand the psychology of traders for a beginner.
Swing trading is another type, suitable for beginners. Positions on the stock exchange can be held from several days to several months. Beginners should start trading cryptocurrency with proven coins, the most popular and demanded.
This trading option does not force the beginner to make quick decisions, which means that it will not be stressful.
Knowledge and advice of experts will help beginners to understand how to start trading on the cryptocurrency exchange. Investing and trading needs to be studied like most fields of activity. It is important to be able to analyze the market on their own in order to minimize risks for a trader. It’s easy to learn especially, if you work in a team. In a month you will master the basics and close your first successful transactions by joining the Crypto Crew community.
Author: admin_cryptocrew
