When it comes to making money with cryptocurrency there are a few things you need to do to ensure that you don’t simply gamble. In this article we’ll look at the steps you can take to ensure your success.
It all comes down to treating it like a real business and not simply gambling and there are certain types of websites that you must avoid.
Ultimately you need to know that there is no way to simple guarantee your profits with some company or opportunity. There are many opportunities out there such as cryptocurrency mining pools but they are scams.
The legitimate mining operations are not guaranteeing your returns and if you come across these kind of claims you need to stay well clear. Always be sure to check out popular scam busting blogs like www.NoBsImReviews.com that give real first hand reviews and expose scams in cryptocurrency niche.
Start With Buying Bitcoin
The best way to make money with cryptocurrency is to actually initially invest in Bitcoin and you can do this through a number of websites. There are actually may ways to buy Bitcoin and you can even do it privately however there are obvious risks associated with this.
It’s probably best to use a legitimate website like CoinBase. There are fees involved but we feel that it’s worth paying a small fee in order to have the security of using this kind of service, especially if you are buying large amounts of BitCoin because if you were to do it privately you could easily get scammed and lose that money.
Transfer Bitcoin Into An Exchange
Once you have your Bitcoin you can actually transfer this anywhere you want. If you are buying Bitcoin to hold and you want security it’s probably a good idea to invest in hardware like Trezor which allows you to securely store your Bitcoin offline.
Obviously there are risks associated with both. If you store your Bitcoin offline it’s a good idea to invest in somewhere that you can securely store it like a fireproof safe that is secure in your home. Or a safety deposit box.
Ultimately you need to have a serious think about how you will do this if you have large quantities of Bitcoin because if you leave it in an exchange or in CoinBase there is always the small risk that you could get hacked.
Enable 2-Factor Authentication
A quick tip we can give you is to make sure you enable 2-factor authentication on your accounts like CoinBase and also for exchanges too. What this means is that when you log into your account you need more than just an email address and a password, you actually need to use say Google authenticator.
It will generate a unique code that you need to input which will expire after a number of seconds. This means that your account is far more secure.
Using An Exchange
If you decide that you want to trade alt coins instead of just holding Bitcoin you will need to transfer your money into an exchange. One of the most popular exchanges out there is the Bittrex exchange.
It’s very easy to transfer your Bitcoin and very secure too however you must be extremely careful that you do this step correctly.
Inside your exchange account you will have a unique Bitcoin address and to actually transfer your Bitcoin across you need to input this unique address which will be a long code of numbers and digits into the transfer section on your CoinBase account.
Top Tip – It’s a good idea to transfer a small amount as an initial test just to make sure you have entered the details correctly and then you can go ahead and transfer the rest.
Trading Alt Coins
So why would you want to actually move your money into an exchange like Bittrex? Quite simply so you can trade alt coins.
Alt coins are alternative currencies to Bitcoin. They are valued against Bitcoin and can be extremely profitable if you trade them correctly. Obviously there is always the risk that you can love money too which is why you need to learn the skills to be able to invest properly.
There are 100’s of alt coins that you can trade but it’s a good idea to use Coin Market Cap to actually find the top coins because trading the top coins will be a better way of making money because they are more reliable due to having a lot higher volume (basically a lot more people trade them).
This website is really useful as it shows the top movers in percentage and gives you a lot of data that you can work off.
The final point in this article is that you need to learn how to trade successfully and that is not something that is going to happen overnight. You can’t simply gamble on cryptocurrency as you could lose everything you have.
In our experience trading for a while now strategies vary and you really need to decide what strategy suits you best.
Do you want to day trade?
Do you want to hold for long periods?
Do you want to swing trade (1 day to a few weeks hold)
It all depends on your personal style and how you actually want to trade cryptocurrencies and we cannot answer these questions for you.
Our personal style is to hold for anywhere from 1 day to a couple of weeks. Doing this you are able to capture bigger moves in the market like 20%, 30% and higher. Sometimes even 100% or more.
A good strategy is to look for coins that have carved out a good base price that is low but they have once been much higher. This generally tells you that the coin is potentially undervalued and will go higher again.
YouTube is a great place to find other cryptocurrency traders who do free training videos. Obviously there are some people who don’t know what they are doing but you can make a judgement by looking at peoples subscriber counts and seeing if their videos have good up votes.
Thanks for stopping by to read this article, this is the first of many on the subject of making money with cryptocurrency.