Unless you’ve been living under a rock, void of human contact and the internet, you have probably heard about cryptocurrency (crypto) or its most popular form, Bitcoin. A virtual paperless currency, crypto took the world by storm and has become one of the hottest and most sought after investing options in the past few years. The immense global interest has seen the cryptocurrency becoming one of the most expenstive items to trade.
As is familiar with any form of investment, cryptocurrency comes with its fair share of very high returns on investment intertwined with just as high risks. Early investors in the Bitcoin have seen some of the enormous rises in their bank accounts, but not without suffering in recent times even though things are looking like they are back on track.
It takes a lot of trial and error to figure out how the market works and how to make it work for you. It takes time and much patience to go from being a penny slinger to a trade king. However, nothing is without the risk involved.
There are tips to keep in mind when trading with crypto, even if you’re an experienced captain of the rough waters of trade. There is always room to learn and improve your trade game and some of these helpful ways include:
1) Having a diverse portfolio
Bitcoin may be the most popular Bitcoin, but it isn’t the only one out there. Alternative coins are referred to as Altcoins. As a rule of thumb, when you are investing even in crypto, you want to start high up to get a hold of the safer options.
There is a debate on whether blue-chip crypto starts at a $30 million or over $2billion market cap. However, the core of the matter is investing and buying higher options that provide more stable safety nets. So, look into coins like Ethereum and Stellar if investing in the $2b range.
On the lower end of the spectrum, Iota, Tron, and Monero are popular currencies to invest in.
2) The right time to buy is
Now! There is no universal guarantee that can guide you on when and where you should invest your money for the most significant possible returns in the world of cryptocurrency.
Once you’ve bought your stake in a cryptocurrency, be patient and hold it. Most cryptocurrencies pay dividends just by being held, like NEO. By timing it right and buying early will save you from spending high when the price eventually rises.
3) Operating a master node
A full node operates by overseeing and validating blocks and transactions. These full nodes act as a buyer, seller and middleman for the network. They accept, approve and relay transactions from one full node to another. A master node is a full node that operates as a virtual wallet and maintains a record of transactions in real-time.
Why would you want to operate such a complicated technical thing? Well, cryptocurrencies need someone to maintain a record of their activities on their blockchains. This is where a master node operator comes into play. The job is outsourced to an operator for a fee, and the operator does the complicated task.
4) Becoming a day trader
It is a little-known secret that the most effective way to make money on your crypto investments is to get involved in day trading. But it isn’t as simple as illustrated in Hollywood movies about Wall Street.
Most people think that day trading is limited to just holding till the highest possible value and then selling. However, it requires a lot of analytical skills and learning to read the trends of the market. It may be the most consuming form of earning through crypto and involves much patience. If you want to have more say in the crypto game, learning this skill is invaluable. You can start by investing in cryptocurrency classes. The pay off most certainly is justified.
Whether it be paper bills or cryptocurrency, you need a place to store it all. Crypto is unique in a way that it can be saved both online (hot) and offline (cold) wallets. A hot wallet is more an attractive option due to its ease of access for investors. However, as is typical, hot wallets are very susceptible to being hacked. Whereas cold wallets, if done right, can protect your investments more securely. It’s advisable to keep a more substantial sum and the longer-term investments in the offline portfolio while maintaining a daily expense amount in the online wallet.
6) Mining your coins
The last instalment in the ladder to the top of the crypto mountain involves a little bit of digging. It is possible to mine your cryptocurrency but long gone are the days that you could hook up your home computer and the work would be done. No sir, in today’s miner world, rigs are being set up to mine, and it can be complicated if you do not have proper equipment.
There first investment and the most important is a powerful graphics card. Think about getting a RTX 3090, or something with similar performance. Once you’ve sorted that out, you need to make sure that your computer build can sustain the load of mining. It will be evident from your next month’s electricity bill as you will start to consume and use a lot more electricity to mine. Some coins are faster to mine than others, such as Monero or Litecoin. However, the problem with these currencies is that there are few buyers, and you need to find out exchanges to be able to sell them for a decent amount.
Finally, it’s possible to mine your coins. However, you can’t just hook up any old desktop to mine coins. Today, miners are working with dedicated monster computer rigs.
It doesn’t “really” matter what sort of method you deploy to earn through cryptocurrencies. It all comes down to being attentive and observing the market trends. If the value of a coin dips, you might find it to your benefit to wait to rise again to sell—or maybe this loss is a loss.