There are a lot of ways to invest into cryptocurrency. But investing can be really risk full.
Never invest more money than you could miss. Investing into cryptocurrency could mean that you loose all of your money.
Futures
Futures trading refers to a method of speculating on the price of cryptocurrencies, without actually owning them. Like stock futures, cryptocurrency futures enable traders to bet on a digital currency’s future price. Needless to say, Bitcoin futures are currently the most popular type of crypto futures contracts.
A futures contract is nothing else than an agreement between two parties to either buy or sell an asset on a predetermined date, at a predetermined price. The contract tracks an underlying asset. It is basically a form of bet on the future price movement.
For example, if you think that Bitcoin will increase in price you would open a long position on the cryptocurrency by buying a Bitcoin futures contract. Otherwise, if you believe Bitcoin’s price will go bullish, you would go short. At the contract’s expiry date, the two parties involved in the trade settle, and the contract closes.
High leverage (x100) makes this a really risky strategy to make money.
You can do this on Binance and Coinbase. Or even on Kucoin.
Daytrading
Day trading is one of the most commonly used trading strategies. It involves entering and exiting positions on the same trading day. The goal of day traders is to use trading strategies to try and profit off of price changes in a financial instrument.
Day traders aim to profit off of market volatility. As such, volume and liquidity are crucial for day trading. After all, day traders need good liquidity to execute quick trades. This is especially true when it comes to exiting a position. This is why day traders will typically trade highly liquid market pairs.
It’s an easy way to earn money, but also to loose it all.
You can do this on Binance and Coinbase. Or even on Kucoin.
Indexfunds and HODL
Indexfund
If all you’re doing is buying Bitcoin, then this means that you only succeed if Bitcoin succeeds. You’re not betting on the crypto market in general, you’re just betting on one of the currencies in the market.
So I personally think Bitcoin is valuable as a measure of value, but it’s not very effective in terms of a cryptocurrency. There has been many better versions created which process faster, are more affordable to transfer, and are safer.
So while Bitcoin is doing well ATM and I do have money in Bitcoin but not everything, I tend to invest in an index for the reasons outlined above.
I believe there’s a future in crypto, but I don’t know if that future is all Bitcoin so I own some Crypto20 which is an index fund made up of the top 20 cryptocurrencies.
So I feel like I’m going to get lower returns in the short-run but hopefully better returns in the long run.
DCA
Instead of investing in large chunks, you instead invest as much as you can consistently each week. That means, even if there is a big drop, since you’ve bought when the price has been both high, and low, the drop doesn’t matter. What the drop really means is you’re about to buy even more of the asset at a huge discount since you’re now buying when the price is super low.
So rather than putting huge amounts at once and trying to win today, change your mindset to the long term. If you actually believe that crypto is here to stay, then why are you trying to win tomorrow? Just keep buying consistently for the next year, 5 years, 10 years, and there’s a bigger potential for huge gains.
You can do this on Binance and Coinbase. Or even on Kucoin.
Staking
This is another method of earning money from cryptocurrencies; it offers a double earning potential through price appreciation and dividend payout from selected coins for staking (or proof-of-stake) their digital assets.
Staking involves holding coins in a live wallet, thus allowing you to earn additional coins for securing that particular crypto network.
Some examples of coins that can be staked include NAV Coin, PIVX, Neblio, Decred, BNB, DOT, ADA, DODO and many more.
You can do this on Binance and Coinbase. Or even on Kucoin.
Binance staking
Locked staking
On Binance you can stake a lot of tokens. Some give a profit of 30% (locked staking for 30 days)
Locked staking means that you can’t use your coins for a fixed time period. From 30 days to 90 days. They offer insane profits for locking and staking your tokens.
Flexible staking
Flexible staking gives less profit, but you can take your funds out at any time. From 0.10% to 10% for staking your tokens. It’s much safer, because now you can sell your coins when they start dropping.
BNB Vault
I enjoy this way to stake. You stake BNB in the vault and you also participate in the launchpool earning some new coins. Profits aren’t that high, but it’s something.
Stablecoin saving
The last way to earn some extra money is saving with stablecoins.
Fixed savings offer a way to ‘stake’ USDT, BUSD and USDC for 6–7 % . That is a lot more than your bank offers.
Happy earning!
