Cryptocurrency: Where to Start
Recently, cryptocurrency has become a popular investment tool, and few people have yet heard of Bitcoin, Ethereum, and other altcoins. If you are a novice trader and are interested in how to make money on cryptocurrency, then most likely you are faced with the first difficulties. In our article, we briefly tell you how to take the first step and start making money on crypto assets.
4 steps to make money on cryptocurrency today
Ready to use cryptocurrency? Let’s see the necessary steps, based on the fact that you have a basic understanding of what cryptocurrency is and how it works. For beginners — this is an addictive reading!
Step 1: Keep an Eye on Terminology
So, you decided to join the ever-growing community of the cryptocurrency world. Before we tell you how to make money on digital assets, we will remind you of risks. If you compare cryptocurrency with traditional tools, cryptocurrency can bring incredible profits.
At the same time, you should not forget that you can suffer losses and even lose the entire amount of investment. Now that we warned you, proceed directly to how to make money, because of the abundance of information on this topic and the newcomer can just be confused. The first thing a newcomer needs is to understand the terminology. Try to understand the cryptocurrency terminology in more detail, its production, structures, processes, and transactions. Clear definitions will give a full understanding of the phenomenon.
Step 2: Keep Safety in Mind
The importance of the safety of your data on the Internet should come first. If you are dealing with cryptocurrency, then you should remember the main rule — long and complex passwords for different sites! Do not click on suspicious links and do not leave personal information on sites that you do not trust. You should pay particular attention to the private key, which is generated when creating a cryptocurrency wallet. Your private key is a cipher with which you can always access your crypto assets. If someone gets access to the wallet, then you will lose the coins you invested in.
Step 3: Choose Your Investment Method
To start investing and making money on cryptocurrency, you need to choose a method. There are several ways to generate income from cryptocurrency, such as mining, trading, or investing on crypto crowdfunding platforms. If you have chosen trading, then you need to register on a crypto exchange, where trading takes place. First, you need to choose an exchange — for this, it is worth checking its reliability.
Investigate if the exchange has been exposed to hacker attacks and how conscientiously it operates. If you have already made a choice, you will need to register on it. The registration procedure is simple, similar to registration on regular sites, and takes only 10 minutes. We will not talk about mining, because this topic is very extensive and it will be difficult for us to tell how it works in several sentences. Let’s just say — to mine a cryptocurrency you need special equipment, mathematics, and IT knowledge. If mining is too difficult for you, then the best option would be to invest in a startup on a crypto crowdfunding platform. For example, we’ll take the Fuji platform. This is a full-fledged marketplace with its own infrastructure, where everyone can place a startup idea, and an investor can invest in this idea. You ask how you can make money and what you should do with it? The answer is very simple. The platform has an internal FJT token that both a startup and an investor can buy. Then everything is very simple, you buy a coin at a pre-sale at a favorable and reduced price and then keep the coin. You wait until the coin rate will rise significantly and sell the coin on the exchange where you registered before. If you are interested in this method, you can find more information on the Fuji Telegram channel.
Step 4: Choose the Cryptocurrency
Choosing a crypto asset for trading. It is unlikely that you will make significant money on cryptocurrencies such as Bitcoin and Ethereum. Most of the assets are owned by large companies. But getting income from little-known or those cryptocurrencies that are just appearing on the market, such as Fuji token, is quite likely. Lastly, remember that cryptocurrencies are extremely volatile assets. Invest only the money you can live without and with which you are ready to part forever. Investing all your savings in cryptocurrency at once is a bad idea because the likelihood of losing all investments is the same as getting significant passive income.