You know it’s really easy to talk about making money in cryptocurrency when the market is up. Just like the present situation in tech stocks. Past bitcoin history reveals the bubble always pops and the price of bitcoin crashes back to earth and the alt coins follow.
So here we are with the price of bitcoin at 11,543.89 on August 29, 2020. Are we heading to 20,000.00 and then higher? Is this time different? Bitcoin fever is rampant.
Bitcoin has been described as digital gold. A place to store money.
Yet Warren Buffett the greatest investor of all time describes cryptocurrency as, “having no value and can’t produce anything.” Hard to argue against the greatest.
Presently the market cap of Bitcoin is around 213 billion dollars. So it seems we can make some short and long term money. Bitcoin was was born about 11 years ago.
Can you make money trading cryptocurrency? Of course. The question is how much money do you have to gamble with? Do you believe in cryptocurrency? I’d rather bet big money on Amazon or Nvidia for the long term.
But lets diversify a little and bet on blockchain technology that is here to stay. Walmart is using it. IBM is betting on it. Farmers are tracking the food they grow with blockchain. The jewelry industry is tracking diamonds with it. So we could take the safe bet and invest in big companies using and creating blockchain technology.
Blockchain technology is not Bitcoin. Blockchain is a digital distributed ledger.
But lets make money on cryptocurrency. Buy low and sell high.
Open a coinbase pro account. Fund the account with money from your bank. Learn how to trade just like the stock market. Such as market and limit orders. Pick a cryptocurrency coin that you think is going to go up in value and click the buy button. When the price goes up click the sell button and your on your way to crypto riches. So easy?
But it’s a funny thing gambling. Because most of the time you will buy high and sell low. Don’t invest/gamble what you can’t afford to lose.
My advice on learning to make money in cryptocurrency is start with 100 dollars and plan on losing it. Now remember your cryptocurrency is not guaranteed by the exchange for safe keeping. You will need to move your cryptocurrency off the exchange for safe keeping into a hard wallet. But if you are just day trading you will need to keep the money on the exchange so you can get sell it quick. Moving your cryptocurrency between hard wallets and exchanges takes lots of time.
So first steps are to learn to trade and move cryptocurrency around to different exchanges. Invest in a hard wallet for long term storage and learn to use it. Find some coins your want to buy. Start a small portfolio.
Let’s speculate that cryptocurrency is here to stay. This is my present strategy. Besides putting some money into bitcoin for long term speculation. I’m looking for the next 3rd and 4th generation cryptocurrency blockchain technology. The future of cryptocurrency! Bitcoin is slow. Cryptocurrency needs to be faster than Visa, Mastercard, Western Union and Paypal to win the game. Plus cheaper in transaction fees.
Long term bets I’m researching:
Cardano (still in development, but you can make money staking it)
Tezos (working and can stake it)
Tron (working in gaming and can stake it)
BTT (Justin Sun says big things are coming)
Dash (Dash is strong in Columbia)
BAT (Brave browser and working model)
Staking is when your freeze your cryptocurrency and earn interest or rewards. Like a certificate of deposit with more risk.
Cryptocurrency is volatile and you can lose your money in seconds. You can also make money quick.
Just like the stock market I think it’s important to diversify.
Pros: Market never closes, exchanges becoming more secure
Cons: Market never closes, cryptocurrency not protected from hacking on exchanges.
Have fun trading cryptocurrency and researching the technology. Meetup with groups. Support projects like the Brave browser which is trying to make the internet better and pass along some ad revenue.
That’s my short take on cryptocurrency. Is it gambling or investing? Are you long term or short term?