Profiting From Cryptocurrency – Is It Still Possible?

NFT Non fungible token.Cryptocurrency art concept.
Whoever tells you that cryptocurrencies are at their peak and those who could make any money have already exited are simply making up stories.
There have been peaks and valleys along the way, but that is the way of all assets.  You might think that the buy-in is too high to even start.  Yet again, there are options available if you can’t afford even a single Bitcoin priced at over £34,400 as of this writing.
Let’s get into how one can still make money in cryptocurrency because the field has expanded far beyond simply buying crypto and storing it in a wallet.

How to Profit From Cryptocurrency – Two Ways

For the sake of simplicity, let’s break your options down into two categories: the long game and the short game.  These options will focus on the ideal hold time for your investments in cryptocurrency.
The choice is yours, but the shorter your hold time, the more knowledge and skills you need to invest in your profit journey.
As with all investments (and this goes for every section in this article), never invest more in a risky asset than you can afford to lose.

The Short Game

As the name of this part suggests, these are the ways to profit from short-term investments in cryptocurrencies.

Betting Sites

Several betting sites also take cryptocurrency as the funding method for accounts.  If you’re a sports fan or just like online casinos, you can certainly use crypto tokens to indirectly profit with your cryptos. There are several offers and many sites boast attractive sign up bonuses like the latest betfred promo codes. This company was recently rated one of the top betting sites for those wishing to place bets with their crypto tokens.  

Day Trading

If you dare, you can try to implement strategies to day trade cryptocurrencies on platforms that allow such things.
There will be high fees associated with this.  While it may not seem too bad to pay 0.1% on each transaction, those costs add up.
It depends on the size of your account and the number of times you intend to trade, but it could be possible to make some profits in the short term.
A word of warning, though – slippage is very possible for these markets, so be careful how you place your trades and make sure you’re protected on each trade.

The Long Game

Long game choices are going to be for those with faith in the idea that cryptos are here to stay and they will be for a long time.  Some of these might seem old fashioned, but the require the least time investment, though the actual monetary investment up front might be more significant.

Buy and Hold Cryptocurrency

We know – this one is fairly obvious.  However, if you believe that cryptocurrencies, specifically any of the top five, are here to stay, then this is the easiest option.  The values of those currencies with a defined purpose, like Bitcoin or Ethereum, could continue to rise.
While many are reaching peaks again and some might warn against further collapses in the short term, you can wait and try to time the market or buy in with the intention of holding for years.

Buy and Hold Crypto Stocks and ETFs

Cryptocurrency tokens (i.e., Bitcoin, Ethereum, Litecoin, etc) aren’t the only games in the cryptocurrency universe.
As more people adopted cryptocurrencies and started trading them, several companies rose to the occasion and provided much-needed exchanges for the purpose of increasing liquidity.  
This helps ensure more accurate pricing and helps those trying to buy tokens match up with those trying to sell tokens far quicker.
There are names out there such as Coinbase, Robinhood, and even an ETF on the London Exchange called the “Invesco Elwood Global Blockchain UCITS ETF” which allow investors to buy liquid assets that support the cryptocurrency world but don’t require you to purchase tokens.

Mine Cryptocurrencies

This one could potentially have the highest upfront cost of any option in this article, but don’t forget about the fact that you can actually go mine for crypto tokens.
When you mine for crypto tokens, what you’re actually doing is using very powerful computers to calculate complex mathematical equations which confirms a new block in the blockchain.
When the new block is confirmed, miners are rewarded with a full Bitcoin or Ethereum, whichever system is being mined.
In the first days, the blockchain was fairly simple because there weren’t many transactions on the blockchain.
Now, however, there are millions of tokens on the blockchain.  As more tokens are mined, the process to mine new ones becomes successively longer.  
Bottom line: you need massive computing power these days to even mine for your own income.  This computing power can be very expensive. 

Re-Invest Your Crypto Tokens

With the spread of decentralized currencies – another way to think of cryptocurrencies – came the idea of decentralized finance.  
Since banks are usually the ones keeping ledgers of all the money flowing around the world, we haven’t stopped to think about the fact that we’re paying them to handle all of the money.
With cryptocurrencies, all of the ledgers are built into the blockchain.  This cuts out the middleman and makes finance as a whole far cheaper.
There are some exchanges that offer those with any cryptocurrencies at all to deposit them to be re-circulated back into the system.  When token owners deposit their tokens, they earn interest – sometimes quite a bit of interest – for however long the tokens are deposited.
This could be a bit like buying bonds – your rate is consistent, and you can keep a relatively constant cash flow on your investment.

Why Bother? – The Case For Cryptocurrency

There are plenty of detractors out there saying that cryptocurrencies aren’t currencies, and that they must crash because they aren’t backed by anything other than faith.
Others still say that, if you were going to make any money at all in cryptocurrency, you would have had to be one of the lucky few who bought hundreds of Bitcoins at £0.0001 or an equally absurd low figure for any other tokens.
What these naysayers forget to consider is that cryptocurrencies are still here.  After several years of volatile movements, governments trying to figure out what they are and how to tax them, and even a pandemic when all appetite for risk was supposed to have vanished, we are still seeing sentiments for cryptocurrencies soften.
Even large banking institutions have begun adding significant positions in various cryptocurrencies.  This alone would be enough to convey support since banks are always on the lookout for profitable opportunities.
While central banks tried for years to ignore cryptocurrencies, they have been forced to adopt digital currency as the next evolution of money.  Some have even begun to introduce their own cryptocurrency such as “Britcoin,” the supposed British project for a national cryptocurrency.

Final Thoughts: Profiting From Cryptocurrency

While there are those who would tell you that cryptocurrency is a fad, some of the largest financial institutions in the world would beg to differ.  The foundations of cryptocurrency, namely the blockchain, were always talked about with some respect since that technology was and is truly revolutionary.
There are still several ways to profit from cryptocurrencies, both in the long term and in the short term.  You much choose based on your risk appetite and then make sure you understand the tokens you’re investing in.  People are still making money with cryptocurrencies, and the future looks bright for those still wishing to do so.
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