How to profit from crypto?

in LeoFinance2 months ago (edited)

Authored by: @hetty-rowan

Believers!

It is a simple fact that we are all convinced here of the future of the cryptocurrency. If it wasn't, you wouldn't be reading this article right now. But when we talk about the fact that we are all convinced of the future of cryptocurrency, then of course we also want to get the most out of it ourselves. And how do you do that now?


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Not just one way

There are a number of ways. To begin with, you need to do your research on the cryptocurrency you are interested in. Find out what the basis of the project is. Find out what kind of team is behind it, review the team's vision and read the whitepaper carefully. What goals has the team set for this cryptocurrency, and how do they intend to achieve these goals? Is there a particular problem that is solved by this project? And how transparent is the project? Is there a clear differentiator from other cryptocurrencies? And if there is no differentiator, how have similar cryptos fared in the past and how are they doing now? If you see that a comparable crypto has dropped to $ 0.001 after its ICO, for example, and has been hanging on it for 2 years with a margin of 5% up or down, then it makes little sense to put your money into it. However?

Early Adopters

If you are convinced of the possibilities, believe that this project really has a future… and you see room for the current course to grow. Then it's a way to invest in that early and by doing nothing more than having patience and holding your tokens to watch your wealth grow. That is one way. And often in a way that can yield a lot. It's being patient, keeping faith… or simply forgetting you've ever made a SMALL expense. Just look at the people who bought Bitcoin for the legendary amount of just $1 per Bitcoin in 2011. Anyone who has had confidence and patience all these years… will certainly clap his hands now and the world cannot be broken anymore. And oh, how I wish… Well, I wasn't there. I had the chance to buy Bitcoin for 10 euros each, and laughed at the provider very hard when… Yes seriously! If only I had looked into my crystal ball, then I would have clapped my hands and put all the savings I still had in Bitcoin at the time. Anyway, that has not happened either, and in these days I am already happy when I can only buy a fraction of 1 Bitcoin at a time. Is it too late? No we are not too late! I am now firmly convinced that cryptocurrency is the future. But… there is more than just Bitcoin! And therefore it is important to keep an eye on new projects. To investigate what they do, what they stand for, what their goals are, who the team is, what the vision is, what problem they solve, etc. A long list to look at. But it can be so rewarding to do this. And yes it takes time. But believe me, I like to spend that time! Because you know what it is, in my case… I don't have much to invest, just don't say anything… so when I buy a coin, I certainly don't want to lose on it!

HODL strong

So here we have a strategy for taking advantage of the cryptocurrency. Earn on a rising price of the crypto by buying it low. Hold on and watch your ability grow with the price.

Confidence

It may be clear that to apply this tactic, there must be a lot of confidence in the cryptocurrency in question. And the earlier you get in, the higher your profit can be!

Take advantage of the volatility

But this is just one of the strategies you can use to take advantage of the cryptocurrency. It has been said before, and we all like to use the term ourselves. Cryptocurrency is volatile! Take advantage of this!

Trading

Precisely because the price of cryptocurrency is not stable, you can achieve very high profits through trading. But depending on the way you do that, you can also suffer big losses. So be careful. But if you are careful your assets can grow nicely!

I only used the SPOT markets so far

Now I first have to tell you that I am absolutely not a trader. In fact, until now I've only flirted with small amounts on Binance in the “spot markets”. And even with my small amounts, by paying close attention and applying a very simple principle, I have never lost anything. But those small amounts can grow to the point I needed at the time to then cash it out. Unfortunately I had to cash it out every time, but I assume you don't have to. And then with the volatility of cryptocurrency it is nice to earn if you know what you are doing!

Very simple from my point of view ...

  • Buy LOW
  • Sell ​​HIGH

Ride the waves

And so you keep an eye on the volatility and market movement in order to be on time every time and to be able to make a small profit per 'flip'. Even with small amounts this is an option. To give you an example. I sent a small amount of Hive to Binance yesterday evening. And after a few little flips, I made almost $1 in profit today.


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hey, I already said it was a small amount

Profit is profit, right?

I was able to make this profit, not because I now understand the principle of big traders so well. But because I use my own simple principle. Go with the market movement and buy LOWER than I SELL.

I'm just a beginner

Yes I know, it is really beginner trading. And I would like to read the trading experts' opinions on what I can change in my simple technique. I would like to know how “Margin” trading works. But I haven't got around to figuring that out yet, because for the small amounts that I was able to take up so far, it is actually not that much worthwhile. It is certainly in the plans to find out, so keep an eye on this blog. It could just be that a blog appears about the “Secrets of trading”. Until then, nothing more or less from me than the simple tip:

  • Buy LOW
  • Sell ​​HIGH

And this within the movements that the market is making at that moment. Which is very easy to see on most exchanges.

Add dividends

Another way to benefit more from the cryptocurrency is to look for a cryptocurrency that AND has the potential to grow in value, but a token that, in addition to the potential to increase in value, also pays dividends. And there are several in circulation… one of those tokens is of course LBI. LBI has certainty of an increase in value, but will also pay dividends in LEO. So that's a double win situation for you. Your LBI grows in value, but your LEO grows too. And that is again based on the principle of HODL.

To be continued!

There are certainly more ways. And they will certainly be discussed soon. For today, I just wanted to stick to these very simple ways that have relatively little risk. If you know a good way, let us know in the comments. I haven't really dived into the DeFi yet. That is also on the program. So again, keep an eye on this blog. To be continued!

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Thanks for the great article. I myself ain't a trader and nor I'm too much into to making 1$ profit but it do seems like achievement and milestone getting up there. It is really important to know the goals and team behind the coin. All of my portfolio is in HIVE but I have diversified it well in HIVE. Now I will start looking for other cryptos in next few weeks, and these tips will surely help me. Thanks again. :)

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I'm not considering myself a trader, by no means ... but I do like to flirt sometimes with this SPOT markets to see if I can make a tiny profit. And as long as that works I will keep doing it this way. Diversifying is a good thing to do. And as always is with crypto. Do your own research. That is one of the most important things I think. Really understand what you're going in with, understand the goals and 'value' of the projects you're investing in. Even if it's only time that you're investing!

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I made almost $1 in profit today.

Not bad 😌😌

In volatile crypto market conditions, I also take advantage of arbitrage in local exchanges with low volume to take some profit. However, it requires time and energy to do so ^^

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Yup many things require time, energy and effort to make some profit. But this time, energy en effort is made easier than 8 hours working for a boss 😁

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I can conclude in simple ways to get profit in crypto in this article:

  1. Trading
  2. Investing
  3. Staking
    Many more...

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All those 3 ways are good ways, if you invest in the right coins. And yes, there are more ways. I will look at those ways later. Thank you for your reply!

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Yes, all of the above! There are so many ways to profit, just don't get greedy :) I mean in general, not you.

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Oh, but now you mention something ... just don't get greedy. It's in the human nature to get greedy I think. And maybe it is even necessary, for the bigger profits ... you also have to dare to take a little risk. Only thing is, you really need to have the knowledge to be able to see how far you can take it. Before you lose everything ...

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I wouldn't say daring and taking risk means greedy. I think it should be a healthy balance between these three and greed should never be first. Some say go big or go home but that does not always work :)

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Then many people have to go home, and that would not work well for the "mass adoption" from cryptocurrency in general. So no, "Go big or go home", does not always apply. Personally I think it's completely dependent on the personal situation. And the most beautiful thing from cryptocurrency for me is that I can earn money with this WITHOUT investing fiat money into this. And yes, it could grow a lot faster with investing fiat. But when you're already short on fiat, it's not a good idea to invest that. So it's great that I can still earn myself cryptocurrency. Just because I can't go big, makes me even more determined to grow big!

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I don't agree with the saying either as how many only have a little to invest, so if it were to wait till you can go big, we would never invest in anything, right?
No worries, I've never invested fiat here and as you can see, it's possible to grow. However, I'm going to invest fiat in other cryptocurrencies as that's the only way.

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He's right, sometimes that makes us blind and we make a lot of mistakes

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And exactly those mistakes we should try to avoid. There is a lot possible with cryptocurrency, but always be careful.

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Yes, buy low, sell high - but not many people grasp that! Watch BTC over the next month...

True. It's not that hard when you look at it this simple, but the problem is to see where the price is going. And try not to FOMO when the price goes up a lot and your order is not filled yet.

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Trade a step ahead!

Glad I already sold my btc at 40k right now

Nice profit, to give you much more btc now

Not yet though - next gamble - wait for drop, then wait for dead cat bounce, then eventually buy back in after rock bottom, so wait and see for now

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@jk6276 Gracias por la recomendación, aprecio su gesto, ahora trataré de instruirme para dar un buen uso de ellos, espero que este sea el comienzo de muy buenas cosas.

@jk6276 Thanks for the recommendation, I appreciate your gesture, now I will try to instruct me to give good use of them, I hope this is the beginning of very good things.

Thank you for your comment

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There is always profit to be found in any market. People just need to find a way to capitalize on what they know and find. Thanks for the article. I personally find staking LEO and tokens like LBI to be a good investment because I see the potential rewards for doing so.

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LBI is a good investment token. I completely agree. And that's a safe way to choose. Same with staking although there you can lose a lot too if your coins are staked for a fixed term and the coin drops by 50% ... crypto has it's challenges and risks. But still I believe it's the future.

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My experience as a trader is very bad and for this reason, after a few attempts, I stopped doing it ... With each sale the price went up and with each purchase the price fell. Having said that I HODL but as you wrote well you are not enough to look at a chart but you have to study the projects and many are not willing to do it and lose money. Information makes man free ✌️

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I agree on "Information makes man free". But it's not always an easy job to find the right information. And often enough we have very little to decide on. I hope your trading experience will better again, once you want to try it again.

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Thanks to your prior (not financial) advise, I've set up an account with Nexo and I'm pretty happy with it. I never put all my eggs in a single basket, but I've moved some of my longterm HODL coins there so they can now gather interest for the coming years :-)

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Oh, nice job! I hope you enjoy the dividends.

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Well informative and useful article, thanks!

I'm just not much of a trader... and I don't like the idea of getting into something like that without knowing a lot about it. My preference is — and long has been — to buy in to something that looks promising and just hold it till there are gains. OR till conditions somehow change, and it's evident there will be no gains, so the funds are better applied elsewhere.

=^..^=

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That's not a bad strategy. And yeah, I agree, with trading you have to look into a lot to do it good and make huge profits. The way I do it myself will probably never give me really big profits, but ... every bit helps.

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as a newbie regarding trading whenever i have money to spare (almost never :P) i try to follow this Buy LOW/Sell ​​HIGH. Other than that i simply hodl :P

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As long as you make profit it's a good strategy right? Thank you for your engagement again ... I'm most of the time a HODLER too, until I have to cash it out. Lol

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One of the great attributes that these assets have is precisely that, that they have many ways of being used and in all of them you can get a good benefit from them, I am starting in this, and I really like reading this type of post because one is informed pretty and that's great

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Thank you for your reply. Yes it's always nice to find information about financial things. And I'm glad you liked this post.

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Hey. Just bought my first LBI token today and plan on buying more in the next couple of weeks. I have a question though...

When are the Leo dividends payed? Weekly?

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Once the dividends start they will be paid weekly yes. But that won't be for at least three months from now. For more information about that please read the previous posts on this LBI account.

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Making a small profit each day is nice.
When you get to the point where can trade with just the profit you earned, while your initial investment is safe in stable assets, you will have a very advantageous position on the market. :-)

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Im very strong headed on this but for a newbie the best thing to take profit from the cryptos are stuff that they are used to but tokenized. For example leofinance its an example, its just commom bloggin wtih rewards esentially! i also recommend a lot blockchain gaming, playing stuff like megacryptopolis which its like sim city or city ville but you will actually earn money haha.

as an investor the simplest and golden advice its to buy good bussiness at good price and wait, yeah just wait and they money will go to your pocket instantly.

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It is true, it is quite a challenge, cryptocurrencies nowadays stopped being a joke, at first it was something totally ephemeral, people did not take it seriously, some simply bought them out of curiosity and it was something that did not let them see further, I I have my own list of cryptocurrencies that I have followed over the years, and I am not complaining, I have managed to almost triple my investment that has served me to invest in other projects, and although the money has not been enough, it is enough to understand that this world is growing exponentially and it is not only necessary to understand it or buy cryptocurrencies, you have to study and more than anything to experiment, because it is what will probably lead us to obtain greater income and without a doubt some unlimited experience

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Funnily I’ve been trading forex before and stock options recently but I feel not comfortable actively trading crypto.
Buy and stake/hold for me and I removed the sell high headache :D

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$1 is relative to present earnings but I would assume if hold for years to come that crypto would be worth more. What I think people neglect to think about is that any small gain today will likely be exponentially more in value in future years. Good luck continuing your way in trading and investing in crypto. Thanks for the idea about trading crypto.

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I'm a big fan from sell low and hodl:)
Time will tell!

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Rehived :-)

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I'm following a guy on Twitter who is @ReySantoscrypto. You should check this account. I think is an expert in trading.

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Cool that you made profit, as profit is profit.

I avoid day trading for example as I did not study the mechanisms behind it and also to do it a lot of time is needed to get the insights and what happens on that day.

I do the shotgun method. I buy into 40-50 coins at once and wait to see what it is happening. Monthly review to see if they spike or dissolve and I might sell them. After 3 years the ones that are still at dust status will be converted into something reasonable. The ones that mooned are sold mostly for other opportunities.

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Nice article. Most of my investment eight now is on Hive and Hive related tokens. It is indeed good to diversity but have to be careful enough to not get lost out there. After all a known devil is better than an unknown angel. 😀

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Great tips, @lbi-token.

Very nice post.

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