Bitcoin as currency made a lot of money by just Holding and without any trading for the early birds. During that period (2009 to 2016) margin trading of bitcoin and other major cryptocurrencies was not available or widespread. I prefer currency trading though since I know better about globally respected currencies such as USD, EUR, JPY (Trillion dollar daily transactions) when compared to BTC, ETH, or XRP with a much lower daily transactions volume and demand. By properly investing some Bitcoin I used to hold into currency trading, I was able to grow my investments 6 fold in the year 2019 so far.
The most common and most wordy strategy to gain profit from Bitcoin is to buy some Bitcoins, hold them for a while, wait for rise, and then - sell it. Yes, it is simple, but it requires a huge amount of knowledge to invest at the right time, and to withdraw at the right moment. The are plenty of places on the Internet where you can find guides, like how to create your own cryptocurrency wallet, where to find exchanges, etc, etc. For example, currently,. It’s one of the biggest exchanges, a very simple, and intuitive platform. According to the info released by one of the company owners - they are preparing a surprise for their verified users, by giving them some of their new-made coin tokens, so they can sell them, or hold them if they want t
Now that even institutions also have entered Bitcoin in recent times, and bitcoin and other major cryptocurrencies are traded heavily on the margin on various exchanges, the price of crypto has stabilized a lot.
You can speculate on certain altcoins or tokens such as BNB, Dent, IOTA, BTC, and so on. But there is more uncertainty in investments based on mere speculating. Basically, money can earn you more money by trading it wisely and not just holding it.
The best part is that my investments into Currency Trading capital are all held in USD and now I don’t have to worry about the value of that fluctuating too much. (BTC value can be $10K today, 8K tomorrow, USD won’t bother me like that).
When compared to currency trading, trading in cryptocurrencies is riskier, especially on margin. This is because the price of cryptocurrencies can suddenly make moves of over 15% a day and less than 2% on most days. We never know how much margin to apply ideally (to minimize risks and maximize profits to the optimum level) and what is going to happen next (a sudden pump or dump).
During the past year, I have been investing all the cryptocurrency I used to hold into currency trading since I find currency prices more stable and consistently profitable. Super huge profit potential may not be there when compared to crypto investments or trading, but the loss potential or chances of huge drawdowns are also comparatively low.
The are numerous ways to earn money by investing it into cryptocurrencies market. It’s not just Bitcoin, the whole crypto market is becoming a huge part of our financial system, and whether you like it or not, it will grow exponentially. But let’s focus on Bitcoin itself first.
Related - What measure should take before investing in Bitcoin?
Many Initial Coin Offerings are based on blockchain technology, and even though people aren’t getting as much money from them as they used to - it’s still a way to create a nice income, the key is to find the right project, you want to invest in. Be careful, there are plenty of people that want to cheat on you.
Investing in cryptocurrencies is more, and more profitable thanks to a growing number of research facilities and studies on blockchain technology.
There are also some platforms that offer you an affiliate program, which in my opinion is a fantastic way to earn funds - because you don’t have to invest your own money and gamble. It requires some time, but after a while, you will be able to generate a nice profit.
It is never too late to invest in a long-term asset, and given the changes in financial technology and the shift towards blockchain, cryptocurrencies are here to stay. However, if you compare current returns to the massive spikes in 2017, you may be disappointed. (In 2017, Bitcoin was up about 1400%.
While the growth over 2017 was not sustainable, it does not mean you cannot profit from cryptocurrencies. (Just as the S&P was up 18% in 2017, and down about 7% in 2018, in a longer view it has performed well). In fact, crypto remains one of the most profitable asset classes even now, as long as investment strategies are managed properly.
It’s also a question of how you prefer to invest. The range of options is wide; anything from buying and holding one asset passively (such as Bitcoin), to investing in actively-managed funds that attempt to profit off of volatility with strategies like arbitrage and others. (Disclaimer: I run an actively-managed fund that does just that, bitbull funds. We attempt to make positive returns even in a bear market like the current one, and returned +29% since inception in November 2018, versus Bitcoin at -41%*, a 70% difference. Note that Bitcoin is a single crypto asset, whereas the fund invests in many).
Important to investing is to do due diligence and choose solid cryptocurrencies (or, as we say in the industry, crypto assets), which have use cases and future development potential. For instance, Ethereum, with its new updates coming this year, may poise to live out most other less useful crypto assets.
Ultimately, with proper research and active management cryptocurrencies can reap decent profits, and even if you’re not in for daily trading, going long on some cryptos is a viable move.
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