How to make a profit from crypto – infinitricks.com . Cryptocurrency or crypto lately is very excited in the internet world. How come? One of these digital assets in 2021 has experienced a very rapid price increase of up to hundreds of percent. How to profit from crypto? Let’s study together.
What are cryptocurrencies?
Cryptocurrency is digital or virtual currency that is secured using cryptography, which makes it nearly impossible to counterfeit.
Cryptocurrencies use a decentralized network based on blockchain technology or a distributed ledger that is enforced by a network of different computers.
Currently in Indonesia itself the government prohibits crypto as a legal means of payment, so for now it is more accurate to use crypto as a digital asset, not currency.
Why cryptocurrency can be a business choice?
I will give the price of the last 4 years the price of Bitcoin (Bitcoin itself is one of the cryptocurrencies that is the parent with the largest market volume today) from the number 1 Binance site:
1-1-18 : 13715 USD
1-1-19: 3701 USD
1- 1-20: 7195 USD
1-1-21: 28923 USD
As of this writing, the Bitcoin price is 40,000 USD. We look at the price list above, even though the price has crashed badly, but in the end the price has gone up even hundreds of percent.
Why is this possible? As technology develops, for some people who eventually continue to grow, crypto in his view will be an effective medium of exchange. How come? In crypto we can transfer to someone with blockchain technology in just minutes or even seconds around the world, and the shipping fee is very cheap.
How to profit from cryptocurrency?
There are several ways you can earn through cryptocurrency. Namely as follows:
Trading
Trading is monitoring the price movement up and down an asset. Cryptocurrencies themselves have very high price fluctuations. So if you can understand Fundamental analysis and Technical analysis, then you can take advantage of crypto price movements to make a profit.
The simple sentence of this trading is: you buy when the price is low, sell when the price is high.
Profit This trading you can target profit daily, weekly, or monthly depending on the level of your busyness. You can trade on various sites or applications on your smartphone, locally you can trade on Indodax, Tokocrypto, etc. For the global market, you can use Binance, Kukoin, Coinbase, etc.
Mining
Mining is the process of finding new coins by solving very complex computational puzzles. Mining itself is required to confirm all transactions on the blockchain network.
After we get rewards in the form of coins, for example we are mining ETH, then we can save ETH as an investment or we can sell it directly to the market.
Mining itself does require a very large capital because we need hardware such as ASIC, or VGA to run. And also the cost of electricity is quite expensive. But by looking at the high crypto prices, mining can be an option to make a profit.
Hold & Stake
Hold can be said with investment. So when you have bought crypto, then you want to make this crypto an investment asset that you believe will have a very high price.
It also makes sense if we look at the price that was not released at the beginning of $1 is now 40,000 USD. So what about stakes? What is that?
Of course you can also get more benefits with this hold. So on the blockchain, such as the ETH 2.0 and BSC networks that use the PoS (Proof of Stake) Method. Unlike Bitcoin, ETH 1.0, ETC uses the PoW (Proof of Work) Method.
So in the PoW method, transaction confirmation is carried out by the miners (the mining described in the above point). And the PoS method is performed by via Stake.
Staking itself is that you store your crypto Coins to help transactions on the network keep going. PoS was created for the reason of reducing carbon emissions resulting from excessive use of electricity.
In Staking, you can choose the time it is locked (your coins cannot be taken within a certain period of time) or flexible (you can withdraw your coins at any time). And you will get rewards of a percentage of your coins depending on where you stake.
You can Staking on Binance or Pools Stake (earn other token rewards) on pancakeswap. It all depends on individual choices.
So many posts on how to profit from crypto, gradually I will try to discuss in detail each of the points above, then analysis methods, trading techniques, etc.
Conclusion:
There are several ways that we can benefit from crypto or cryptocurrency. Can be through trading, mining, and staking. Please also see the Difference between Fundamental and Technical Analysis to find out the basic analysis to start investing and trading.
So many posts on how to profit from crypto, gradually I will try to discuss in detail each of the points above, then analysis methods, trading techniques, etc.
Hopefully useful, we will meet in the next post.
written by:
@akhisyabab