#1 question on everyone’s mind is how to make money with cryptocurrency. We always want the latest and greatest tip or trick to quickly make a buck while everyone is sleeping. And excitement only grows when you see crypto-millionaires bragging about riches in social media.
First of all, you must understand that you can make money and lose money with crypto. No one wants to hear the latter, but it’s just the name of the game. It’s trading. Someone always makes money from a trade, and someone loses. The key is to win more often than you lose. Pretty simple huh? 🙂
So let’s get to the business.
I’ll cover the main methods you can make money with cryptocurrency. Choose which one you think will work best for you.
Manual Trading of Cryptocurrency
The most popular method of generating earnings is doing manual trades.
First, you signup for one of the popular cryptocurrency exchanges, where you can buy and sell alt-coins (alternative coins, meaning non bitcoin). Let’s say you want to buy Ripple, but not sure, which exchanges allow you to buy and sell it. Simply go to:
Click on “Ripple” and then “Markets” tab as seen below:
You’ll be presented with a list of 131 exchanges that trade this altcoin along with volume for each exchange. Just signup to any one of them and start trading!
The most basic in-a-nutshell way of trading crypto involves watching a coin live. Most exchanges have integrated charts for each coin, or you can go to: tradingview.com and look at the charts there as it’s much simpler (and free).
Let’s say you see a coin going down in value. You wait. Then you notice a jump. That’s when you buy. After that, you hope that the coin will continue to go up in value. As soon as you spot the drop, you sell. The difference between bought price of a coin and sold is your profit. If you invest $100, you may take out $4 or $10. If you invest $1000, profits obviously go up.
Clearly, this is just most basic description. You should invest in learning the secrets of trades. Watch videos, read articles, listen to podcasts. If you invest your time into it, you’ll get much better and be able to predict the coin values in the future. That’s essentially how you make money.
Buying & Holding the Coin
If you only bought $1,000 worth of bitcoin in 2010, you’d have $133.3 million dollars right now.
Yeah, I know…
Some ‘experts’ say that Bitcoin can go as high as $100,000 or even a million in USD value. Honestly, no one knows for sure and you should take their advice with a large grain of salt.
But when we’re talking about this so called strategy, it’s not just for Bitcoin. You can buy any alt-coin and hold it, hoping its value will jump up in time. Etherium costs $450 USD right now, Bitcoin Cash – $901, Monero – $186, Dash – $370. At some point, all these coins were worth only pennies. Imagine investing only $100 into one of them? You’d be rich.
So what you can do now, is look at any new coins coming into market, they’re called ICO’s. You can research technology, see the people behind them and decide whether to invest or not.
It’s really as simple as it gets. You find a coin, you buy it and hope within a couple years time, it will skyrocket in value and make you rich.
Using Cryptobots
It’s an automated trading tool that automatically buys and sells coins for you. Now I know what you’re thinking. EASY MONEY RIGHT??!!
Wrong!
Just as easily you can make money, you can also lose money as i said before. You have to understand what you’re doing. I have to give credit to Brent Dunn whom I’ve been following for a while. Smart affiliate and now he’s teaching crypto trading with Profit Trailer.
You can learn many things on how to setup the bot, what settings to use and so on.
There are many other types of trading bots, but what I like about Profit Trailer is that it’s a one time fee. No monthly fees. You pay 0.03 BTC (which is about $260 at this time) and you get 2 licences. The bot if free, you only pay for a licence. So essentially, if you buy a VPS, you can run one bot on your PC, another on VPS, testing different strategies.
Right now they operate on 3 exchanges only: Binance (most popular one), Bittrex and Poloniex.
I’d suggest to signup for Binance right away, they still allow new signups. Bittrex has limited signups to invite only or Corporate members.
How does a Crypto-Bot Work?
Some bots use multiple strategies at a time. Profit Trailer uses only 1 at a time. It’s pretty basic bot, but does a great job trading if you get the settings right.
It’s too much to go into, you can read about different buying and selling strategies on their wiki page mentioned above. But basically, each coin goes up and down in value. This value is tracked by the Bollinger Band®. It’s sort of a rough line that averages the price change of a coin over a period of time. Actually, there’s 2 lines, one called High BB (High Bollinger Band), another Low BB. You can set the bot to buy when the coin drops below certain % of Low BB value. Then when the coin rises, the bot sells it at predefined % increase.
At this moment, when the market is Bearish (they call it when it tanks), some folks average 0.3% to 0.7% returns on average with the bot. Meaning, if you invest $1000 USD, except to gain $3 to $7 per day.
When market’s Bullish (going up), some users were doing 2% to 4% returns daily. That’s $20 to $40 from the same investment.
As you can see, it really depends on the market, but also on the settings you use.
If you’re interested in testing this bot out, you can go ahead and invest in it. Start with smaller amount, play around until you get reasonable returns. Aim for 1% daily even in down market.
No matter which method of making money with cryptocurrencies you choose, make sure you understand what you’re doing. There is no easy money. If there was, everyone would be rich. And that’s just not happening.
Learn as much as you can so you can make better decision about your investments. If it’s manual trading, use Free scripts/charts provided by other users on TradingView. It definitely helps to understand and predict the coins better. In case you’re using trading bots, be sure to learn each buying and selling strategy. When markets goes up or down, you’ll be able to adjust your settings accordingly. But only if you get a good grasp on how the settings work.
I believe that cryptocurrency is here to stay. More and more people are going to be using crypto’s. Either investing, as online wallets or for selling & buying products and services online/offline. This may be a perfect time for you to jump in and take advantage of a growing trend that’s still in its infancy.