Cryptocurrency market is the very dangerous environment and you need a strategy to succeed. If you don’t know, how to play this game, you will be probably swept away. In this article, I will show you 4 Ways to make money on cryptocurrency market, that we use. If you have a right and proven strategy, you can make huge returns.
These strategies are based on main principles of value investing from stock market. Value investing is the most proven way, how to make big money on the stock market. For example, the most famous value investor is Warren Buffet. We believe, that sharing our view on cryptocurrency markets will help you to succeed on cryptocurrency market.
So, here are 4 Ways to make money on cryptocurrency market
Focus on technology
Technology will always rule the world and I will tell you why. If we look at history, we will see, that new technology always changed the whole game. The ancient Rome start built roads for army and traders. As a result, Rome control world over hundred years. When the USA dropped the nuclear bomb on Hiroshima, they have set a new standard of military power. So, technology will always rule the world.
When we transfer this thought into the blockchain technology, it is same as previous examples. In few years, blockchain technology can be a new standard for payments systems, law or insurance. Blockchain technology can be a new competitive advantage for companies. The possibilities of use blockchain technology are unlimited.
If you want to be a successful cryptocurrency trader, you have to start to focus on technical aspects. Why technology? From our point of view technology focus is equivalent to value investing in the stock market. So, value investing in cryptocurrencies means, that you searching coins, which have a better or unique technology than others. If the coin has strong technology advantages than others, cryptocurrency market sooner or later will appreciate it. Basically, for this reason, we created Crypviz, where everyone can find basic technology description of each coin.
Hold longterm
Imagine, that you did investment into cryptocurrency coin. The coin has strong technology vision and a good team. So, everything looks good but what happens that you will begin to experience the first up jumps of a price? I will tell you what – Your Greed thoughts will begin to call for control. You will start thinking about things like If I sell my position on the top and wait for price dump, I will make more money. This is exactly the moment when your greed taking control of your investment judgment.
Long-term holding is the key principles of value investing. If you are able to hold your positions for years like Warren Buffet, you can make certainly more money then any others traders. Realizing this idea in cryptocurrency trading is very difficult, especially for new traders, who have no experience with investing. Simply you just hold your positions until the value (technology) of the coin is shown in full power. If nothing changes value (technology) of a coin, you have no reason to sell. Only very radical changes in technology or politics may lead to selling your positions.
Invest in small projects with ambitious technology
In the beginning, It is necessary to determine, what you are expecting from your investment. If you want safer cryptocurrency investment with a solid return, It will be good to choose from some big coins. Why? If you are investing in the major coins, there is greater stability (smaller percent movements) then in small coins.
If you want to make huge returns, you have to take some risk. The more you risk, the more you earn or lose. But If you apply the value investing on small coins, you can achieve really interesting returns. So, what exactly does it mean apply value investing on small coins? So, it is very simple. You just searching projects, which have been at the beginning of their development and they have ambitious plans for the future. Ambitious plans, for example means the development of a new technology or a new use of technology in a new industry. If you hit any such project with longterm holding, you probably will experience a huge return on your investment.
Initial Coin offering or ICO – The Russian roulette on Cryptocurrency market
The ICO mania starts a golden fever for easy money. Yeah, it works but only in the beginning, when the ICOs was unknown. Actually, it is very hard to make money on some ICO, because everyone want make money now in the shortest possible time. In my opinion, I recommend investing money only to the ICOs, where you see the value. Next important thing is, that you have to be ready to hold the position for a long time. If someone investing to the ICOs for fast and easy money, sooner or later they will lose money.
The conclusion
So, now you know 4 Ways to make money on cryptocurrency market. It’s only up to, how you to handle with information. If you expected the easy tutorial, how to make money on cryptocurrency market you’re probably disappointed. But I believe that these key principles of value investing will help you make solid money on cryptocurrency market.
Crypviz was primarily designed to apply Value Investing on cryptocurrency market. Thru our coins profiles, you can explore basic technology advantages and disadvantages of each coin, which should help you find right coins with value. If you want to know more about value investing, I recommend reading a book The Intelligent Investor by Benjamin Graham (investing mentor of Warren Buffet).