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7 Ways to Make Money Every Day in Crypto
Traders Magazine Online News, July 25, 2018
Most retail investors adopt a HODL mentality, the strategy of holding a coin for long-term growth. Whilst this is a solid approach, there are other ways to make money in crypto which every investor should explore.
Think of it as diversifying your money-making mechanisms. [iMGCAP(1)]
Take the past few months as an example.
The average HODLer made huge gains in December on the back of Bitcoin hype and mass media attention. But as Bitcoin experienced a major correction in early January dragged the whole market down with it. HODLers sat through a 4 month bear market with their smaller alt-coin holdings slowly bleeding every day.
So how do we ‘make money’ in a bear market? How can we make money in a sideways market?
The key lies in diversify our money making strategies.
How Do You Make Money?
Take a second to analyse your portfolio. How do you look at your holdings?
- Do you group by their market cap? (ie. micro, small, mid, and large-cap)
- Do you group by category? (ie. platform, utility, currency, security, or DEX)
- Do you group by investment term? (ie. short, medium, and long-term)
Say you organise your portfolio by investment term. This might be how you break down your portfolio:
Long-Term: these are your HODL coins, the solid projects that you believe in and continue to hold regardless of price action. You ignore short-term fluctuations in price, but over longer time frames these projects double, quadruple, go 10x in value.
Mid-Term: these are newer and less established projects that you see good potential growth in. They are not as rock solid as your long-term holdings but have decent prospects to perhaps one day become a long-term hold. It is more important to time your entry with these holdings to avoid buying when overpriced. In a bull market, these smaller alts will bring you better returns than your traditional large-cap cryptocurrencies.
Short-Term Trades: this is your fun money which you use to day/swing/momentum trade (whichever suits your fancy!). You don’t necessarily do deep fundamentals analysis on these projects as you are trading more on technicals analysis. This should only be a small portion of your portfolio.
But there is another money making strategy that is often overlooked by investors that fits into any organization of a portfolio.
This is where we find the 7 ways to make money every day in crypto.
Never put your eggs all in one basket. If you really have to, at least make sure they’re all different colours.
Passive Income
Passive Income is income received on a regular basis requiring minimal to no effort to maintain
Doesn’t that sound fantastic?
Rental payments from an investment property or dividend payouts from holding large blue-chip stocks are traditional forms of passive income. But did you know you can earn passive income from crypto as well?
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