How to Make Money Investing in Cryptocurrency
Although a number of cryptocurrencies have generated returns of over 10,000% in the prior year alone, the process of making money isn’t as easy as it sounds.
On the contrary, you need to have a firm grasp of how this industry works and what risks to consider before parting with any money.
In this guide, we explain the basics of how to make money with cryptocurrency in 2022 in a risk-averse manner.
Here’s a quick run-through of how to make money investing in cryptocurrency in today’s market.
COPYRIGHT_WI: Published on https://washingtonindependent.com/w/how-to-make-money-investing-in-cryptocurrency/ by Luke Evans on 2022-02-10T12:57:26.384Z
- Tip 1: Choose the Right Cryptocurrency - You need to ensure that you choose the best cryptocurrency investment for your financial goals and risk tolerance. If you’re looking for some inspiration - check out the newly launched Lucky Block token.
- Tip 2: Decide on an Investment Strategy - As a newbie, perhaps the best investment strategy to take is to buy a cryptocurrency and hold onto your tokens for several years.
- Tip 3: Do Your Research - And most importantly, never invest in a cryptocurrency without having first done your own independent research.
Finding the best cryptocurrency to buy can be challenging when you consider that there are thousands of digital tokens to choose from.
On the one hand, you might consider established large-cap projects like Bitcoin or Ethereum. As such, if you’re wondering where to buy Bitcoin in 2022 there are heaps of top-rated crypto exchanges offering low fees and the best crypto wallets.
However, these cryptocurrencies have already gone through their initial growth stages, which means that the upside potential is going to be a lot more limited in comparison to up-and-coming tokens.
That is to say, if you’re looking to make money from trading crypto but wish to target much higher gains, then it could be worth investing in a newly launched project.
For instance, Lucky Block - which is bringing blockchain technology and immutable smart contracts to the global lottery industry, was launched on its first exchange in late January 2022. Since then, the digital token has already generated returns of over 1,000% for early investors.
However, and perhaps most importantly, there is still plenty of upside potential left with Lucky Block - as the project is still in its infancy. Additionally, the Lucky Block Telegram group has gained over 24.5k members since its launch.
Buy Lucky Block on PancakeSwap Cryptocurrency markets are highly volatile and your investments are at risk.
It is of the utmost importance when learning how to make money with cryptocurrency in 2022 that you have a suitable strategy in place.
If you’re a newbie, consider the following strategies when investing in cryptocurrency for the first time.
When you buy and sell cryptocurrencies via a swing trading strategy , you are looking to make money from shorter-term pricing fluctuations. You will be placing regular trades throughout the week with the hope of making smaller, but consistent profits.
However, as a beginner, swing trading cryptocurrency is no easy feat. Instead, it’s best to take a long-term buy-and-hold strategy. This entails buying a digital currency and keeping hold of your tokens for at least one year to ride out short-term pricing swings.
In addition to being highly suitable for beginners, a long-term buy-and-hold strategy will also give you the opportunity to earn interest on your cryptocurrencies. This is achieved through a process known as ’staking’ - where you agree to lock up your tokens for a certain period of time.
This is something offered by the previously discussed Lucky Block - which rewards long-term holders with an attractive APY. Furthermore, as Lucky Block has a taxation policy in place for token sellers, a percentage of this is distributed to holders as an incentive to hold.
Another strategy to consider when learning the ropes of how to make money investing in cryptocurrency is to dollar-cost average your purchases.
For example, instead of investing $5,000 into Lucky Block through a single trade, it could be more effective to allocate $500 every week. This means that over the course of the following 10 weeks, you will average out your token cost price and thus - reduce the impact of volatility.
It goes without saying that you must do your own research when learning how to make money from crypto trading.
After all, while plenty of cryptocurrencies have generated huge returns in recent years - just as many have failed to live up to investor expectations. The first thing to do when researching the credentials of a cryptocurrency is to look at the project’s whitepaper. This is not too dissimilar to a conventional business plan, insofar that it will outline the objectives and goals of the project in question.
Next, you can then assess the credentials of the team behind the project. This can be somewhat tricky in the cryptocurrency space, as many projects were created by anonymous developers.
This is why it’s best to stick with legitimate cryptocurrencies like Lucky Block - which are managed by a transparent team of individuals. In other words, you wouldn’t buy shares in an anonymous company - so you deploy the same concept when investing in cryptocurrency.
The only way to make money investing in cryptocurrency is to go ahead and purchase some digital assets.
Here’s what you need to do:
If you like the sound of Lucky Block and its decentralized global lottery protocol, you can invest in this cryptocurrency via PancakeSwap.
You need BNB to buy Lucky Block via PancakeSwap. You also need access to a cryptocurrency wallet that can connect to the Binance Smart Chain.
For this criterion, Trust Wallet covers all bases. As such, download and install the Trust Wallet app and transfer BNB over.
In the top-right corner of the Trust Wallet app, you will see a button that contains a duo of lines and circles. Click it, scroll down, and press ‘Add Custom Token’.
Then, paste the Lucky Block contract address - which you can get from the project’s official website or Telegram group.
Now that you have BNB in your wallet, you can connect to the Pancakeswap exchange to buy Lucky Block.
After clicking on ‘DApps’, which you will find at the bottom of the app, look for Pancakeswap. Then, click the respective button to load up the exchange.
To buy Lucky Block via PancakeSwap, you will once again need to paste in the project’s contract address.
Once you see that Lucky Block has been added, enter the number of BNB tokens that you wish to exchange.
Finally, change the slippage tolerance to 13% and confirm the exchange. You will now see the Lucky Block tokens visible in your Trust Wallet interface.
Cryptocurrency markets are highly volatile and your investments are at risk.
If you are looking to make money investing in cryptocurrency - but you want to buy an established digital token with a large market capitalization, you will likely find that eToro is the best brokerage site for the job.
First, open an eToro account. This requires you to provide some basic personal information, contact details, and a preferred username.
You will also need to upload a copy of your passport or driver’s license.
Before you can make money investing in cryptocurrency via eToro, you need to make a deposit.
This top-rated broker supports bank transfers (ACH, domestic wire, SWIFT, etc.), debit/credit cards, and e-wallets (Paypal, Neteller, etc.).
The minimum deposit is just $10 if you’re based in the US or the UK, and $50 elsewhere.
Simply enter the cryptocurrency you wish to invest in and click on the ‘Trade’ button when it loads.
Finally, in the ‘Amount’ box, you can enter the size of your cryptocurrency investment in US dollars. Click on ‘Open Trade’ to finalize your purchase.
Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection. Your capital is at risk. Additionally, 68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
If you’re looking to get started right now - but you’re unsure of which cryptocurrency to buy, be sure to check out Lucky Block. This newly launched project specializes in blockchain-based lottery games for the global market.
Since its first exchange listing in early 2022, early Lucky Block investors have witnessed gains of over 1,000%.
Cryptocurrency markets are highly volatile and your investments are at risk.