Traditional financial assets make up the majority of an investor’s portfolio, but they are looking at methods to diversify their holdings using cryptocurrencies such as Bitcoin and alternative coins.
Despite the fact that the cryptocurrency market has been falling since the beginning of the year, there are certain crypto assets that have a history of being among the best performers.
Bitcoin’s performance since its creation has been far superior to that of the general stock market, for example.
Bitcoin and other cryptocurrencies, on the other hand, are speculative assets that come with their own set of specific risks that investors need to take into mind.
When it all comes down to it, just like with any other kind of investment, you need to have a plan to fall back on when thinking about digital assets, just as you do when thinking about stocks and bonds.
While you are managing your cryptocurrency investments, it is important to keep these essential investment methods in mind.
The cryptocurrency markets provide a wide variety of opportunities for financial gain. Not only does this entail purchasing digital currencies and HODLing them in the traditional sense, but it also includes earning digital currency through staking, interest accounts, airdrops, play-to-earn games, and a variety of other methods.
In this article we will cover 5 smart strategies you as a beginner trader can implement to profit from your crypto investments in 2022.
Day Trading Crypto Pairs
Taking part in day trading actively is one of the most rewarding methods to generate money with cryptocurrencies like bitcoin and Ethereum.
You will, however, need to have at least a fundamental grasp of how to assess pricing in order to decide if the token in question is likely to increase or decrease in value.
This is because there is a little catch: you will be required to have this expertise. If you are capable of doing so, you will be able to profit trading cryptocurrency throughout the day.
When you engage in cryptocurrency day trading, the primary objective is to profit from price fluctuations that occur over very short time periods.
In addition, experienced traders in this market will almost seldom, if ever, keep a position open for more than a day. And as a result, the goal is to open several positions during the day and make gains that are less substantial overall but more frequent.
To participate in day trading of digital currencies, you will need to locate a licensed cryptocurrency exchange that satisfies two primary criteria: support for a large number of marketplaces and cheap transaction costs.
When it comes to the first scenario, if you are day trading cryptocurrency on an exchange that has large costs, you will have a hard time making the procedure profitable. After all, the fees you pay will eat away at whatever profits you make on your trading.
For example, Coinbase assesses a cost of 1.49% every slide; hence, this fee needs to be compensated for before you can consider the deal successfully completed with a gain.
EToro, on the other hand, has a far higher level of competition. Additionally, eToro provides you with access to dozens of the most prominent digital currencies, ensuring that you will never be without a chance to engage in day trading.
HODLing for the Long Term
This strategy, which we included in our list of ways to make money with cryptocurrencies, is often considered to be the most suitable alternative for novices.
This is due to the fact that the phrase “HODLing,” which is a pun on the word “Hold,” is shorthand for the practice of purchasing a cryptocurrency and keeping its tokens for the foreseeable future.
This is exactly the same as investing money in stocks and holding on to the shares for a number of years.
And by doing so, you won’t need to worry about short-term price changes – this is especially true when investing in dependable and well-established cryptocurrencies like Bitcoin and Ethereum.
To give you an example, the price of one token of Ethereum in May of 2021 was $4,300. After only one month, the price of Ethereum had already fallen to lows of $2,100.
If you had given in to your fear and sold your ETH tokens, you would have suffered a loss of around fifty percent of the value of those tokens.
On the other hand, if you had been holding onto your Ethereum, by November of that year the price of a token of Ethereum had risen to about $4,900. This is but one illustration out of thousands.
The most important takeaway from this is the fact that the most profitable approach to invest in cryptocurrencies is by using a strategy that is held for an extended period of time.
Once more, locating an appropriate exchange is necessary in order to hold on to your money in the most advantageous manner possible. EToro is another option that meets these requirements; the minimum first investment is only ten dollars, and the platform offers some of the lowest costs in the business.
In addition, the necessary regulatory organizations in the United States have given their stamp of approval to our exchange; as a result, you will be able to safely and securely HODL for the long term.
Investing Early In ICO
Investing as early as you can in the most profitable alternative cryptocurrencies is the greatest approach to earn money with cryptocurrency overall.
After all, if you had invested in Bitcoin back in 2009, when it was initially introduced as a digital currency, you would have paid a price that was equivalent to a very small fraction of one penny.
When its token was first made available to the public in 2015, the price of Ethereum was only $0.75 per token.
The two enterprises described earlier each have reached a point where they are now worth thousands of dollars and have consequently produced large profits.
Tamadoge (TAMA), a meme currency that guarantees holders genuine value and usefulness by way of NFT ownership and a fun play-to-earn game, is one of the new alternative cryptocurrencies that is garnering a lot of interest. Tamadoge is a meme coin.
There will soon be a massive giveaway that is expected to be one of the best and biggest crypto airdrops of 2022. The TAMA beta presale has already sold out its early allocation and continues to draw enormous interest on social media. In addition, the TAMA beta presale has already sold out its early allocation.
Another recent illustration of this can be seen in the project known as Battle Infinity, which is one that has been gaining attention from both the traditional media outlets and the social media channels.
This cryptocurrency gaming platform provides a one-of-a-kind combination of play-to-earn (P2E) game mechanics and NFT integration, all of which takes place inside an exciting digital universe.
Battle Infinity is one of the most highly anticipated play-to-earn games that will be released this year. The game gives players the opportunity to earn prizes by engaging in strategic gaming.
These awards are represented by the native BEP-20 token of Battle Infinity, which is indicated by the symbol $IBAT. Afterwards, users have the ability to convert these $IBAT tokens into other currencies by utilizing the ‘Battle Swap’ feature that is built into the ecosystem.
The NFT element of Battle Infinity’s fantasy sports mode, which organizes all of the in-game players into teams, is among the most alluring methods for players to earn prizes.
Players not only have the opportunity to win $IBAT for ranking high in the league, but they also have the potential to gain from value rises in their players that are driven by real-world performances.
A degree of legitimacy that is rather unusual with new projects has been added to the project as a result of it being audited by SolidProof.io and having its KYC status validated by CoinSniper.
People who are interested in learning more about Battle Infinity may do so by joining the project’s official Telegram channel. The presale was quite popular and sold out very fast. However, it will soon be available on exchanges like as PancakeSwap.
Receive Crypto Rewards from Play-to-Earn Crypto Games
If you’re wondering how to make money with cryptocurrencies, you might be shocked to hear that you can do it by participating in various online gaming activities.
There is no room for doubt about the fact that the industry for play-to-earn cryptocurrency games is currently worth billions of dollars.
There is a wide variety of content and sorts of titles available in this market; despite this, Decentraland is likely to be one of the most enjoyable crypto games that you may try playing.
Simply said, Decentraland is a Metaverse that lets users from all over the world to establish a digital avatar, engage in online conversation with other users, and, most importantly, purchase parcels of real-world real estate.
After you have bought a piece of land and constructed your own real estate development, the entirety of this endeavor will be reflected in the form of a one-of-a-kind NFT.
After that, you will be able to sell your NFT real estate on the open market. Some parcels of land in the Decentraland Metaverse have reportedly been purchased for several millions of dollars, which may seem unbelievable to those unfamiliar with the idea.
This indicates that making an early investment provides you with the opportunity to purchase an NFT at the most favorable pricing.
Grab Airdrop Opportunities
Airdrops function in a manner comparable to that of faucets in that they enable users to get free cryptocurrency tokens without the requirement of making a financial deposit or expending any cash.
The primary idea behind this is that certain freshly formed projects will transfer their native tokens straight into the wallets of individuals as a method of introducing the cryptocurrency into circulation. This will be done in order to speed up the process.
This is in contrast to the traditional method of conducting a presale and then launching the tokens immediately into an exchange for cryptocurrencies. As a consequence of this, the project will not get any new funding when they carry out an airdrop.
In spite of the fact that this may appear to be too good to be true, there are countless examples of airdrops that have now progressed into programs that include multiple billions of dollars.
Bitcoin Cash is a great illustration of this concept. When this new kind of virtual currency was introduced in 2017, its BCH tokens were sent as a free gift to the addresses of all wallets that already had Bitcoin.
This was done on a premise of 1:1, which means that for each Bitcoin you possessed, you would have gotten 1 BCH in return.
Another illustration would be the well-known cryptocurrency Stellar, which, since the project’s inception in 2014, has distributed free tokens worth millions of dollars’ worth of Lumens.
When receiving an airdropped token, on the other hand, you really must proceed with extreme caution. This is due to the fact that con artists will frequently produce and distribute a worthless token to arbitrary wallet addresses in order to carry out their pump and dump schemes.
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