How Much Money Can You Make in Cryptocurrency?
As an investor, your number one priority is making the highest return in the shortest space of time. If you want to make money in cryptocurrency, then you need to decide on your preferred digital assets and the mode of investing that best fits your specific level of experience, time commitment, technical capabilities, and risk tolerance.
Investing in Cryptocurrency: Some Basic Decisions
Digital Currency: There are hundreds of digital currencies to pick from and your choice will have a huge impact on your bottom line. It’s a good idea for a beginner trader, interested in making money by cryptocurrency investing, to start with well-established high-value coins, such as Bitcoin, Ethereum and Litecoin, as opposed to emerging altcoins that just as easily take off or crash and burn.
Crypto Exchange: There are a wide range of exchanges, where you can buy and sell cryptocurrency and you will need to find the most reliable, secure choice with the widest selection of cryptocurrencies, the lowest fees, the highest liquidity and availability as well as the most payment options.
Digital Wallet: Where you store your crypto capital is as important as the way you earn it. You can go for the convenience and immediacy of a web-based wallet, which is vulnerable to being hacked, or choose the added security of an offline, cold wallet, which though safer, makes your funds less instantly accessible.
How to Earn Cryptocurrency
There are numerous ways of investing in cryptocurrency and the amount you make will depend on the investment method you choose. Here are a few of the most popular means of profiting from digital assets along with their primary benefits and drawbacks.
How to Profit from Bitcoin and Cryptocurrency Mining
When mining, you are earning crypto in return for creating it, adding blocks to the blockchain ledger, and verifying the transaction record. So, you don’t have to put money down first in order to earn a profit. This form of investment requires technical knowledge and software that can solve extremely complex computational math problems, as well as a vast electricity supply. It is also not always very financially rewarding.
How to Make Money Trading Cryptocurrency
One of the simplest ways to generate a profit from digital assets is with the direct purchase or sale of a cryptocurrency. You just buy the coin on an exchange and sell it for fiat or a different cryptocurrency.
If you are looking for a fast profit you can become a day trader, making money from rapid, short-term shifts in the highly volatile crypto markets, buying low and selling high, within the same trading day. This can be exceptionally profitable but is also extremely risky. To take this route, you need a degree of market knowledge and time in front of the screen, researching up-to-the-minute market trends, performing technical analysis and executing trades.
How to Earn from HODLING Your Digital Assets
For those who are a little more risk averse, and a lot more patient, there is always HODLing, a form of investing that involves holding onto your coins for the long term on the assumption that they will rise in appreciate over time.
How Much Money Can You Make Trading Cryptocurrency?
Many people mistakenly think of investing in cryptocurrency as easy money, but this couldn’t be further from the truth. Making money in cryptocurrency takes research, time and skill and your success will depend on your commitment and your investment choices.
So, how much money can you make in cryptocurrency? Well, as with any other form of investing you will experience losses as well as successes, and reversals of fortune can occur at lightning-speed on the volatile crypto markets. The amount you earn will obviously depend on the amount you invest, the coins you invest in and the strategy you use. Timing is also clearly critical. Think of the Bitcoin millionaires who got in on the ground floor, buying while the price was still affordable, just before it soared.
Your location may also be relevant. Depending on your jurisdiction, you may wish to verify if your money made from cryptocurrency is taxable. As more countries catch up with developments with regards to this rapidly emerging asset class, more regulation is being introduced as governments seek to assert control and gain a slice of the financial pie.
The Best Way to Make Money with Cryptocurrency
One of the lowest-risk, highest-return methods of making money from cryptocurrency is through crypto arbitrage. This is a form of investing that involves minimal exposure, making it a popular choice with financial institutions, investment firms, major corporations, hedge funds and retail investors. It generates profits by taking advantage of temporary price inefficiencies. These are short intervals in which a coin will be available on multiple exchanges simultaneously, at different prices at the same time.
Here at ArbiSmart, our EU licensed, fully automated crypto arbitrage platform is connected to 35 different exchanges, which it scans 24/7 looking for price differences on hundreds of coins. Within seconds, it buys the coin on the exchange where the price is lowest, and then sells it on the exchange where the price is highest, to make a profit, before the market can adjust to resolve the temporary inefficiency.
Whether the market is in a bull or bear trend you can continue to generate steady profits from price inefficiencies as regularly as ever, making this form of investing a great hedge against the possibility of a crypto market crash.
With ArbiSmart, you just sign up, deposit funds and the platform does the rest. Returns start at 10.8% a year and reach as high as 45% a year depending on the size of your deposit. You will also make compound interest on your earnings as well as capital gains on the rising value of RBIS, the ArbiSmart native token, which has already more than quadrupled in value since it was introduced just two years ago. The coin is about to be listed in Q4 2021. Also, a range of new RBIS utilities are about to be introduced like the ArbiSmart, interest-bearing wallet, indicating an surge in price by year’s end..
Learn more about crypto arbitrage or check out the ArbiSmart blog to explore a range of other topics related to the world of digital assets.