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How To Start Your Cryptocurrency Trading in 2020 ( 10 Best Ways for Beginners )
2019-11-19 10:41 (GMT+8) visibility 2361 thumb_up 2

make money with cryptocurrency trading


If you are interested in cryptocurrency trading, you must ever think can I make money with cryptocurrency? How to make money with cryptocurrency? What is the best way to invest in cryptocurrency? Today, let’s deep into these questions. 


Even if cryptocurrency investment has been an irreversible trend, it’s still not easy to make money. Though some people have earned some money by good luck before 2 years, nowadays most of the winners will take profits by their deep analysis, great skills, and rich experience.


In this article, I will show you what stops a beginner to make money with cryptocurrency, and 10 safe ways you can consider in your plan.


                             Discover Bitcoin Trading Possibilities With Market Volatility    


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Can A Beginner Make Money investing In cryptocurrency?


Investing in cryptocurrency can make a huge profit. However, it's also highly risky. You can win and lose a large amount of money quickly.  This means crypto trading is exciting, and it can be very difficult to keep peace in mind under heavy pressure.

 

If you find it hard to make money with cryptocurrency. You might think that “ should I invest in cryptocurrency?”. 

 

By the end of this article, you will know what you can do to make money with crypto.


What Stops Beginners From Making An Income?


What's stopping beginners from making a consistent income from trading cryptocurrency? 


Make money with cryptocurrency will take a lot of time and consistent effort.


Well, unlike the professional investors, most beginner traders learning to trade aren't a full-time trader to immerse themselves in the markets


That means they don’t have enough time to get themselves to the level where they can trade like a pro. 


You have no clear trading strategy.


Ask yourself a question: "What is my trading strategy?". If you answered: “Strategy? Well, I simply bought and waited in hope, so was that considered a strategy? ”. Now we need to talk.


If you do not have a clear trading strategy, whether it is based on technical indicators or basic data on crypto assets, or based on technology (algorithmic trading), then certainly there is very There are many potential problems that you may encounter.


However, first, you need to better understand yourself and your trading style. Digital assets are one of the most volatile assets these days, but at the same time, basic blockchain technology creates an opportunity to become richer in the future.


You blindly hope to recover


The blind hope of a rebound or Bullrun is something every trader has experienced at least once. That's why you will see repeated reminders in investment documents that, "What happened in the past is not an indicator of future price movements."


Indeed, there is a difference between technical analysis and staring at the screen and chanting "Bitcoin will reach 21,000" until that happens.


You are averaging your position during the downtrend


Another problem you might find in the bear market is the average of the downtrend, or in other words to engulf you in the market. Some altcoins are considered promising, or real prospects, but stop and ask yourself why you keep hanging around this coin and can't get out.


Buying when the market is falling is a good way to buy low, but you also need to sell as soon as it feels right, or maybe you will have to see the currency's decline even deeper before it shows. any profit.


You probably know that some people can buy A for 100, the price falls to 80 and still doesn't cut losses as previously thought, and then to 60 people who hope that the market will return, spend money, buy in to hope you're in an "average" position and reduce losses. Then it goes down again and you become panicked.


You completely forgot about risk management


Without questioning why an altcoin (or even Bitcoin) is so volatile will lead us to the next reason for answering the question "why are you losing money in the bear market?". If you do not pay attention to risk management, you are putting yourself on a loss.


Ask yourself your current average risk level by assets and exchanges? Will I have a chance to recover if one of the coins is delisted or the exchange is hacked? If you do not have clear answers to these questions - you may be walking in the minefield.


You do not learn from your own mistakes


The last reason is probably the most important. Almost everyone has stared a few times at the screen and begged for an increase in investment. Or some people continue to buy a sinking crypto asset that is unlikely to recover. But they have learned a few things. If you're making a mistake from this bear market, pay attention to them. It is the cost of education, although the loss is not fun, if you do not take advantage of that opportunity and learn from mistakes, especially due to excessive hope or limited knowledge, the more you will lose. more hope.

10 Ways You Can Do To Make Money with Cryptocurrency


There are many ways to earn money in the cryptocurrency industry, but not all is effective and safe. I will explore some proven ways for investing in cryptocurrency.  Here are the top 10 ways.


1. Long Term Investing


This is the easiest way to make money with cryptocurrency. Many people decide not to trade cryptocurrencies, but instead buy a certain number of coins and then put them in their wallets until the price rise so that they can make profits.


The premise of long term investing is that you have researched and believe the cryptocurrencies you invest will get more market share after some time.


Although there are many different digital coins, we recommend that you pick the safe and highly liquid currencies, such as BTC, LTC, and XRP. These coins have been popular on the market. If you invest in a new crypto coin, it may be cheap, but the coin is likely to disappear after the trial of the market.


Currently, many people earn a big profit from Bitcoin, because they bought Bitcoin in the year of 2011 or 2012, and they hold these digital coins for several years even if the price of bitcoin had raised to 8,000 USD.


Pros:

easy to start

Beginner-friendly


Cons:

Take a long time



2. Trade crypto CFDs


Any product with price fluctuations can be traded in the form of a Contract For Difference. CFD actually is just a financial tool. With CFD, you can do leverage and margin trading on bitcoin.


You can be a buyer or a seller. You only earn the difference between the ups and downs. It's popular to use CFDs to hedge physical portfolios for investors, especially in volatile markets.


This makes this a very profitable way to make money, you don't buy or own a real cryptocurrency, but you just hold a contract and keep it in circulation. With cryptocurrency CFD, you are able to trade 0.1 bitcoin with a small deposit as an initial margin.


Pros:

Low cost to start

Increase profits through the use of leverage

The ability to open long/short positions without restriction

Easy trading from anywhere with computers and mobile


Cons:

The main risk associated with CFD trading involves leverage.

Not suitable for holding a position in long-term


 Try Free CFD Account To Trade Bitcoin

 -Discover Trading Possibilities With Market Volatility                       

3. Day Trading


If you are interested in making money with cryptocurrency in a faster way, then you can try day trading, which is a trading strategy where investors buy and sell orders for multiple times in one day.


The high volatility of Bitcoin and other cryptocurrencies makes the crypto market like a roller coaster, which is ideal for day trading, as during the day you will have enough ups and downs to get a good profit.


Ideally, you'll look for a low-priced opportunity to buy in and then sell it at a higher price. Though this may be a small income, in the long run, this can bring considerable profits to investors.


Day trading is a skill just like anything else. If you take more time to understand how it works, then it may be a full-time adventure.


Of course, no one will win in every trading, but the goal of day trading is simply to win more times.


So day trading requires investors more knowledge and skills. You can try to practice with a demo account, such as the trading platform Mitrade, providing a 50000 USD practice account. Once you have much trading experience, you can decide to trade in real account.


Pros: 

Relatively low cost 


Cons:

Need more skills 

Much time and energy

Higher taxes than Buy & Hold



4. Mining


Mining your cryptocurrencies may be more difficult than the other ways, but it may be more profitable when you mine successfully.


Although the mining process can be done from a computer, you still need basic software, specific hardware, a crypto wallet, and much of electricity. For most people, mining is a highly specialized industry that is not suitable for individual investors.


Most Bitcoin mining is done in a large warehouse where there is cheap electricity.


Sometimes, the hardware is also expensive. For example, during the bull market in 2017, the price of GPU raised steeply, while as the market collapses, you can buy good mining equipment with less cost.


In the early years, the bitcoin miners were able to earn coins relatively quickly. But by 2019, cryptocurrency mining is more complicated. Many professional miners have built huge arrays to mine, making it harder for smaller miners. Of course, you can join a bitcoin mining pool to be more effective, but that comes with a fee.


There are some crypto miners instead to mine other currencies, and then exchange it with Bitcoin on some cryptocurrency exchange. This is another way to get more bitcoin.


I also find out some crypto miner app in the crypto industry, claiming to help you mine crypto coins. It’s more like a hobby mining. Don’t rely on the app to make great money for you.


Pros:

Earning potentials is higher 


Cons:

High cost to start

relatively difficult



5. Arbitrage


Some investors also use the way of arbitrage to make money with cryptocurrencies.


This means when you buy a digital coin in cryptocurrency exchange and then sell it on another cryptocurrency exchange at a higher price. If you can do this soon, this may be an easy way to make money. 


But honestly,  crypto arbitrage is rare that probably won't make you get rich quickly.


Pros:

Instant profit

Low requirements for entry


Cons:

Good opportunities are rare

High risk of losing profits due to the high volatility in the cryptocurrency markets



6. Cryptocurrency faucet


If you are finding an effective way to get profit from small amounts of cryptocurrencies, then Crypto faucet may be the best choice.


Crypto faucet is like a dripping faucet, actually is a website, releasing small amounts of cryptocurrencies such as Bitcoin every few minutes. Of course, you need to do some tasks according to the website requirements.


The crypto faucet website will make money with advertising and traffic. While you’re waiting on the page, there will be advertisement placements.


Pros:

Easy to use

Easy to earn coins


Cons:

Quite the small amount of coins

Need to spend much time



7. ICO 


ICO means Initial coin offerings which are similar to crowdfunding. ICO allows entrepreneurs to raise funds by creating and selling their virtual currency without risk capital.


It is the potential to make a huge return on your investment, but it also brings huge volatility and risks.


ICO has a lot of pitfalls. You have to be careful about choosing the right ICO. If the ICO coin is not very valuable, you will run the risk of losing money.


Therefore, you’d better invest only when you think the project is good enough, and only invest in what losses you can afford.


Pros:

Opportunity to invest in perspective enterprises at an early stage

Low entry threshold

No commission, no taxes


Cons:

Many scams

Hacker attacks

High volatility

Massive potential for returns



8. Crypto gaming


This is also a fairly common way to earn Bitcoin, playing games to receive BTC, it is similar to joining the Bitcoin taps above. There will be new titles released and they need to have more people download and play games to make the game more popular, these games will award BTC prizes to users when downloading and playing. Your job is simply to have a phone and download these games, then sit and play. After completing the game, you will receive a certain amount of BTC.


Pros:

Easy to earn Bitcoin


Cons:

Have to spend much time



9. Be a blockchain developer


Blockchain development is not much different from regular web development. Many developers have developed their own distributed application (DAPP) on some platforms, such as Ethureum and NEO. Then, you can earn money by displaying ads, purchases, subscriptions, etc. within the app.


However, creating and maintaining a common blockchain is not easy. First of all, the code is public and visible to everyone. Anyone can view the code and check for errors and vulnerabilities. This allows any programmer to invade.


Pros:

High salary

Safe way to gain coins


Cons:

You must know about developing



10. By advertising crypto with affiliate marketing


If you own a website or blog for crypto, this may be a good way to earn income.


The cryptocurrency industry, especially Bitcoin, is growing, but the content around Bitcoin on the Internet is still "scarce". You can take this opportunity to create a website specializing in posting news, tips, instructions for Bitcoin trading, surely the opportunity to make money will be very high.


In addition to Bitcoin, you can search and create content around other virtual currencies that users are looking for. As long as the content is unique, compelling, attracts a lot of traffic, the more money goes into your account.


Pros:

Easy to gain money


Cons:

You must follow the trend of Cryptos to post on your website

You must have a website.

Conclusion


So, how to make money with cryptocurrency? Well, now you have your own answer. The above article has provided the 10 best ways to invest in cryptocurrency from my side. 


Mitrade hopes you can quickly reach your desired bitcoin level in the most appropriate forms. Good luck!


              

Mitrade is an innovative and simplified CFDs trading platform, providing users a quick and convenient way of investing in almost 100 markets, such as Forex, Indices, cryptocurrencies, Commodities alongside innovative trading tools.                  

               

We offer seamless trading via both iOS, Android mobile apps along with web platform. You are free to trade anywhere, anytime, any platform.                

   


Note: 

Mitrade is not a financial advisor and all services are provided on an execution only basis. Trading is not suitable for everyone. You should consider whether you can afford to take a high risk of losing money. Check the PDS before you start to trade any of cryptocurrency.


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The content presented above, whether from a third party or not, is considered as general advice only. The information provided here does not consider one or more of the objectives, financial situation, and needs of audiences. In addition to the disclaimer below, Mitrade does not represent that the information provided here is accurate, current or complete, and therefore should not be relied upon as such. This information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Mitrade is not a financial advisor and all services are provided on an execution only basis. We advise any readers of this content to seek their own advice. 

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I am a Forex/ cryptocurrency trader with a Master's degree in Financial markets. My expertise covers a wide range of topics, including trading strategies, specific analysis, investment advice, and general finance topics.
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