Making money with cryptocurrencies has become an attractive activity for many, but it also carries significant risks. Here are some common ways to make profits using cryptocurrencies, what is needed to achieve that goal and the amount of risk presented by each of these practices:
1. Trading:
- One of the most common ways is through trading, buying cryptocurrencies at a low price and selling them at a higher price. There are different trading strategies, such as day trading, swing trading or long-term trading (holding). This internship is for people willing to dedicate a good part of their time since they must work in areas such as : Education and knowledge in cryptocurrencies, discipline and patience, risk management, analytical skills, risk management, emotional control, practice, adaptability.
Risk: 70% Rewards: High
2. Long-term investments :
- It involves buying cryptocurrencies and holding them for an extended period in the hope that their value will increase significantly over time.
Risk: 50% Rewards: High
3. Staking of stable coins:
- Like fixed term deposits in banks, many cryptocurrencies offer rewards for keeping them locked in a wallet for a certain period, which helps to secure the network. Staking currencies such as USDT, USDC offers guaranteed daily earnings.
Risk: 1% Rewards: Low
4. Mining:
- Process of validating transactions and securing a blockchain network in exchange for rewards in the form of new coins. However, mining usually requires significant investments in hardware and energy consumption.
Risk: 1% Rewards: Low
It is important to emphasize that although there is potential for profit, the cryptocurrency market is extremely volatile and it is essential to conduct thorough research and have a solid knowledge of the market before investing. Also, one should never invest more than one is willing to lose.
(The percentage of risk can be decreased as more knowledge is obtained, and the randomness in the decisions made is reduced.)