People interested in accessing the world of cryptocurrencies through the acquisition of cryptocurrencies such as Bitcoin, are clear that the goal is to increase their investment and this is possible by taking into account some considerations and paths to follow.
However, many people simply abandon their purpose and, not understanding how this market works, lose money.
Given the inherent volatility of cryptoassets, most of them involve a high degree of risk, while others require domain knowledge or experience.
An important point to take into account is that, even though the average daily volume of cryptocurrency trading is only 1% of the foreign exchange market, there is the possibility of short-term trading through dedicated crypto buying platforms such as Binance, Coinbase, and Robinhood.
Various experts agree that there are three mechanisms for making money with cryptocurrencies:
First, without owning any cryptocurrency, one can invest or trade on the cryptocurrency exchange market.
Likewise, one can also use the acquired cryptocurrencies to bet and lend them to the system, as well as to other users.
And finally, one can participate in the blockchain system by mining or receiving coin rewards for work done in the system.
Knowing the above three points, some strategies emerge to employ in the search for greater income through cryptocurrencies.
Investing is the long-term strategy of buying and holding cryptoassets for some time, as this generates greater value.
Otherwise they are extremely volatile in the short term.
Trading with analytical skills
To be a successful trader, you need analytical skills and proper techniques that allow you to interpret trends and know when the market will have a rise or fall at the door in order to sell or buy depending on the target.
Stakes and loans
People who own coins, but do not spend them, staking is a way to validate cryptocurrency transactions.
A Proof of Stake network uses cryptocurrencies to validate transactions and supporters receive rewards, similar to the interest a bank pays on a credit balance.
The Proof of Stake algorithm chooses transaction validators based on the number of coins they have pledged to stake.
Cryptocurrency mining is another way to make money, but it requires technical expertise and a significant initial and ongoing investment.
social experiment by Livio Acerbo #greengroundit #bitcoin – original source here