For earn money with cryptocurrencies safely and without prior knowledge, It will be important that you do not miss any detail of what we will show you next.
You will know precisely what are the risks of investing in cryptocurrencies and how much money is necessary to live on the investment in cryptos. Analyze each tip to avoid making mistakes and become an expert in crypto asset trading.
we will also teach you how to make money buying ICOS, mining, trading and holding cryptocurrencies. If you want know the best platforms to place your money in cryptos, read our list of recommendations. let’s get started
Risks of investing in cryptocurrencies
Before investing in cryptocurrencies you must take into account these risks to which you submit:
- There is no regulation in the EU. It is one of the main problems of crowdfunding, when a company requests financing through accione it needs to meet a long list of requirements. Once the public offer is effective, everyone knows the contracts and knows where to claim. Cryptocurrencies do not have a specific issuer and do not belong to the legislation of any country, which makes them decentralized.
- Price formation. Prices are formed by the market. Therefore, supply and demand are finding the equilibrium point that determines the value, which makes it volatile because no one can ensure a certain behavior and an exact price in the future.
- Liquidity level. Keep in mind that several of the cryptocurrencies were created to solve a financing problem for projects. When they are launched on the market they may have a great degree of acceptance or not, which makes liquidity a risk of the project itself. If the supplies or circulation supply are low, the risk will be higher.
- Payment method. At this point the privacy of the investor comes into play. To receive the return on crypto, you need to use a virtual wallet or bank account, which can be risky if an error is made in the cryptocurrency withdrawal process.
- Crypto scam. What the project promises is an important aspect when looking at which crypto to invest in. If the white paper is not very clear, it is not known precisely what the raised funds will be used for and how the problems will be solved, the risk of the investment will increase significantly.
- There is no defined investor. The token is not the same as a cryptocurrency, the former has a specific issuer, as is the case with the Euro, the British Pound, the Dollar and more. While cryptocurrencies do not have it, which makes the risk greater.
How much to invest to live from the investment in cryptos?
It is important know how much to invest to live from the investment in cryptos to plan the strategy.
Look below at some important criteria that you must take into account so as not to make mistakes and lose everything:
- Know basic concepts of the market: To know how much to invest and live from this type of activity, it is first necessary to know how the digital financial system works, this will help you understand what mining, blockchain, holding, staking and many other trading terms are.
- Know that the money you invest can be lost: Once you know how the cryptocurrency market works, you must understand its high degree of volatility, which can make you earn a lot of money or lose it all.
- Not all cryptos are innovative: Innovation is a necessary aspect to understand the future of cryptocurrency. Remember that bitcoin was created in 2009 together with blockchain software, being something so new that to this day these two terms are considered synonymous. If a crypto is not innovative, it is likely that it will not be accepted and tends to fail, so you will not be able to make a living from trading this cryptocurrency.
Once you have assimilated the previous points, You are in a position to put together a strategy to start making money with cryptocurrencies. What you must achieve is to diversify the risk, this means that you must choose investments that are safe and have a stable price and combine them with cryptos, tokens and ICOS that promise a good return in the short term, but keep in mind that this has a higher risk.
When you manage to assemble your basket of crypto investments, You just have to follow the behavior of each asset to be aware of the instability of each one and not lose money. It is definitive, to start in the world of blockchain, you can try with a wallet from 50 to 1000 €.
Learn how to make money with cryptocurrencies
exist with cryptocurrenciesso we will show you the most frequent ones below so that you can choose the ones that best suit your way of investing.
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Buying ICOs
ICO is the acronym translated from Initial Coin Offering, with which third-party financing is sought with the issuance of a cryptocurrency or the creation of a cryptocurrency through the blockchain method. Often, this financial technology is used to start a large-scale project in exchange for the delivery of a new crypto.
Bancor, Tezos, Polkadot and Ethereum are some examples in which you can invest in ICOS. Its success was based on the advantages of this type of financing, so if you want to earn money safely, you better know the benefits of ICOS to be safe when you invest.
Some advantages of ICOS are:
- It is done through blockchain technology: This means that your operation will be registered without anyone being able to modify or delete it.
- They are interchangeable: It is at this point where money is made, since you can buy a cryptocurrency in ICO at a lower price, stake it and then hold it at a higher price.
- The price is set by the market: Which is an important advantage because the supply and demand of the crypto determines the balance point to get the right price.
- They are easy to manage: You can buy and sell ICOS in a matter of seconds without the need for intermediaries or specialized brokers, as happens in the financial instruments of the stock market and shares.
- There are no geographical limits: This will help you to carry out transactions with anyone, regardless of their country or existing tax restrictions.
- To launch an ICO there are no demanding requirements: Thanks to this advantage, it is possible for anyone with a good idea to be able to obtain financing through this technology, without having to comply with the demanding requirements requested by the stock exchanges. Nor is it necessary to receive audits to comply with the project, which makes new entrepreneurs opt for this option.
- Any investor has access to the whitepaper: The white paper is the place where the objectives of the project are explained, the team that will work and the wallet in which the tokens will be deposited.
cryptocurrency trading
Cryptocurrency trading is the trading market in which cryptocurrencies can be bought and sold. The goal is to buy crypto assets at a low price and then resell them at a higher amount to make a profit. It is one of the most common actions that are carried out with cryptocurrencies, but for that you must have a great knowledge about how the trading market works and the behavior of the crypto in which you want to intervene.
Another way you have to trade is through contracts for difference or CFDs, with which you are going to get a return calculated between the comparison of the price of an underlying asset when you enter and exit that leverage product. For this you must pay for a margin or initial deposit to have knowledge of the underlying market, this will lead you not to own the cryptocurrency, but to obtain a position that is used to calculate profits or losses.
hold cryptos
Holding cryptocurrencies means holding them for a long time in the wallet to speculate on a rise in price, which allows you to earn money without having to make daily records on the blockchain.
This type of action in the crypto market It is ideal for those people who do not want to be aware of the movements or the price of their investment or who do not want to spend a lot of time on this type of operation. The important thing to make money is to sell cryptocurrencies when the price is higher than the purchase price.
mining
consists of adding records of the operations carried out on the blockchain network, in exchange for a percentage of a cryptocurrency. To carry out this practice it is necessary to have special software installed and to be as fast as possible to solve the mathematical calculations that free the record.
The faster you complete your work, you will be available to receive the next order. Keep in mind that, to earn money as a miner, you will need to use a computer with hardware with very powerful features, especially processors and motherboards designed specifically for this task.
With NFT Games
Los is a combination of video games with cryptocurrenciesbeing NFT stands for Non-Fungible Token, lor which means that they cannot be exchanged for another asset because there is no other asset that has the same value. Smart contracts are used where metadata is dumped to guarantee the validity of these and the true possession of a user.
Among the most popular NFT games you will find are Axie Infinity, Thetan Arena, CryptoKitties and Sorare. To buy NFT you can choose different options. The first is to choose an NFT Marketplace, the second option is to purchase the NFTs from their own owners and the last alternative is to enter auction sites to get good prices. If you want to sell them you can enter those auctions or keep the price set by the NFT owner.
NFT or Play to Earn games are video games where you can earn money by buying and selling unique characters and items in NFTs. It is not necessary to participate in the video games, although as you accumulate the tokens, you will have a better chance of winning the game and improving your characters, which will help you increase the balance of your wallet. The difference that you will obtain with these movements will be charged in cryptocurrencies on which the token is based.
cryptocurrency staking
When you have cryptocurrencies in your possession and you stake, what you are doing is adding blocks to the blockchain in exchange for receiving cryptos as a reward. For this, it is necessary to keep a certain amount of cryptos in the wallet for a while to maintain the security and credibility of the block network.
Thanks to the blocking or freezing that is done on that amount of coins, the owner of the crypto earns money passively without the need to use expensive computer equipment and consume electricity. The election process can be executed randomly by means of the algorithm, which gives it greater transparency.
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