PROVEN SMART WAYS TO INVEST IN CRYPTOCURRENCY AND MAKE MORE MONEY IN 2022

Cryptocurrency is making a lot of people rich. But only those who know much about cryptocurrency investment are making the dollars.

However, this is not the case. It is not as simple as it once was, but perseverance and an analytical approach will pay off handsomely. The crypto market has now devolved into a ferocious Wild West for anybody looking to enter a volatile sector.

Investing is inherently hazardous. Cryptocurrency, according to experts, is one of the riskier investing options available. Digital currency, on the other hand, is the trendiest asset.

The worldwide cryptocurrency market valuation is currently $2.66 trillion, and it is likely to continue to climb steadily. If you're considering investing in digital currencies, the following advice will assist you in making informed decisions.

LET'S LOOK AT SOME SAFE WAYS OF INVESTING IN CRYPTOCURRENCY

1.  RESEARCH EXCHANGES

Before investing in cryptocurrency these days it is advisable that you take your time to research exchanges. Before you invest a dime, learn about cryptocurrency exchanges. 

These sites facilitate the purchase and sale of cryptocurrency. According to Bitcoin.com, there are over 500 exchanges to select from. Before you start, do your homework, study reviews, and consult with an experienced investor. 

Various telegram communities are available to offer guidance and share personal experiences. One of them is Crypto Gaming Bulls.

What are exchanges? exchanges are platforms on which you can buy and sell cryptocurrency. With these platforms you can be able to trade a cryptocurrency for another.

2. KNOW HOW TO STORE YOUR DIGITAL CURRENCY (CRYPTOCURRENCY)

When you buy crypto coins, you'll need somewhere to keep them. You can store your bitcoin in a digital "wallet" or on an exchange (one of the cryptocurrency wallets described in the blog). 

While there are many different types of wallets, each has its own set of benefits, technological needs, and security concerns. 

When it comes to trading, you should first investigate your hosting possibilities before making a decision.

What is a cryptocurrency wallet? Crpto wallet is where you can safely store your cryptocurrency coin. It is a an app that allows crpto users to store and retrieve their asset. 

Like I said there are different types of crypto wallets their advantages and disadvantages.

3. BUILD A POTFOLIO OF DIFFERENT ASSETS (CRYPTO COINS)

It is far better that you don't put all your all in one basket. you can diversify them. Diversification is a key component of any successful investment plan, and investing in cryptocurrencies is no exception. 

For example, you should not put all of your money into the Bitcoin network simply because you are familiar with the term. There are dozens of cryptocurrency coins, and it's preferable to spread your money over several cryptocurrency coins.

There are many new coins that are coming into the system and they are making more wonders than others. You can research about them and invest in these cryptocurrencies as well. Some of these cryptocurrency coins increase drastically within a short period of time. And when they make an increase you can then convert them to Bitcoin or Ethereum or better still you convert them to stable coins.

• SPREAD YOUR MONEY IN MANY CRYPTOCURRENCY COINS THAN JUST IN ONE

What is a stable coin? A stable coin is a type of cryptocurrency that are designed to offer stability in its price and is backed by a reserved asset. these coins attempt to achieve little or no volatility as they are pegged to a price-stable  assets like USD or Gold 

4. BE READY FOR VOLATILITY

Be aware that the cryptocurrency market is usually volatile, so expect some ups and downs. The price will change dramatically. Cryptocurrencies may not be the ideal option if your portfolio or mental health is out of your control.

Cryptocurrency is popular right now, but keep in mind that it is still in its early stages. Investing in anything new might be challenging, so plan beforehand.

 If you're thinking about joining, start by conducting research and developing a cautious investment strategy.

What is volatility in cryptocurrency? Volatility is the up and down movement of price in the cryptocurrency market. This happens to individual crypto coins, it be a factor of demand and supply or news or any other.

Now let's look at some 7 strategies for making money from cryptocurrency

5 PROVEN WAYS OF MAKING MONEY FROM CRYPTOCURRENCY

1. BUY AND HOLD A CLASSIC STRATEGY.

Buy and hold is also a classic way of investing in cryptocurrency. In this way you purchase the coin based on the analysis and background research you have

Cryptocurrency is a better way to make money for those who are willing to take chances. It entails acquiring crypto assets of your choice on a crypto exchange and then buying more when prices fall - a strategy known as "buying the dip. "

The cryptocurrency  might be sold for a considerable profit after months or years, relative to the acquisition price.

Bitcoin, Ethereum, and Litecoin are well-known cryptocurrencies that rise and fall on a daily basis, but if we look at the chart, we can see that they have maintained an upward trend throughout the year. Because of the buzz, new currencies like Chia are more likely to launch at a greater price. It loses value over time and takes a long time to recover. 

They may vanish if there are insufficient purchasers in the market or if the benefit of the service provided is insufficient.

Before picking which cryptocurrency to utilize as a long-term investment, it is critical to study the whitepaper for that coin. It will offer you a good notion of where it came from and what role it performs, as well as enough information to allow it to stand the test of time.

2. AIRDROP

Airdrops are the riskiest method of obtaining free bitcoin. For most investors, it's more than they believe it's worth. When developers wish to support new coins, they use airdrops. In a nutshell, they provide a free currency to encourage adoption.

When the airdrop project is in process, you may monitor it on the internet. Users on the company's website, social media, and other crypto news channels frequently endorse them.

Any new crypto project must be approached with caution. Hackers frequently utilize fake airdrops and ICOs (Initial Coin Offerings). 

In actuality, many air bubble coins aren't really valuable investment vehicles. Experts advise beginners to stay with the more well-known cryptocurrencies, such as Bitcoin and Ethereum. Switch to airdrops if you follow these guidelines.

All coins received via airdrops are taxed as well. According to the IRS, you must declare based on the fair market value of the distributed ledger on the date of registration (in most cases when receiving airdrops from digital wallets).

However, you can make a lot from airdrops if you are really serious about it. You can join various communities on social media where they share new airdrops. 

When you join and receive your free tokens you can monitor them and when it is launched and listed for trading you can convert them to a stable coin which you later sell and make some money.

3. MINING

Mining is one of the oldest ways to make money with cryptocurrencies and is a crucial aspect of the Proof of Work (PoW) consensus process. 

The process of verifying transactions and securing a PoW network is known as this. Miners are rewarded with fresh coins in the form of block rewards for doing these tasks. Mining was doable on a desktop computer in the early days of Bitcoin, but now specialized mining hardware is necessary .

Starting a master node is also profitable in terms of network maintenance. A master node is a wallet that keeps a copy of the whole network on its hard drive.

These two strategies need a significant initial and continuous expenditure, as well as technical skills.

4. LENDING OR BORROWING

Start crypto lending to supplement your cryptocurrency assets. Borrowers and lenders both participate in cryptocurrency lending, and agreements are made between them. Nexo, SALT Lending, BlockFi, Oasis, and Celsius are among the crypto exchanges that provide crypto lending.

Cryptocurrency loans are contracts in which borrowers pledge their cryptocurrency holdings as collateral, lenders accept the conditions and give cash or other cryptocurrencies in exchange for the cryptocurrency, and borrowers agree to pay interest to the lenders.

Individuals, not institutions like banks, are often the borrower and borrowers in a bitcoin loan deal. In the end, cryptocurrencies are at the core of loans that employ cryptocurrencies as collateral or as the principal source of borrowed value.

As a result, lenders can borrow crypto assets or holdings in exchange for interest payments in the form of more crypto assets. Of course, there are hazards involved, and locating platforms that link potential borrowers and lenders may be time-consuming. 

However, if you're searching for a method to put your cryptocurrencies to work and generate some additional cash, lending it is one option worth considering.

5. TRADING

Investing is a long-term strategy focused on buy-and-hold, whereas trading is a short-term approach based on short-term opportunities.

The cryptocurrency market is very volatile. In basic terms, asset prices can grow or decrease drastically in a short period of time.

To be a good trader, you need the right technical and analytical skills. You'll need to look at the market chart of the listed assets' performance. As a result, you can accurately estimate price rises and falls.

You can purchase or sell crypto depending on whether you think the asset's price will climb or decline. This means that you may benefit whether the price rises or falls.

HOW TO ENHANCE YOUR TRADING STRATEGY

There are a number of techniques to reduce the risks associated with cryptocurrency trading. Here are a few of the most effective techniques to improve your trading approach.

Diversify your transaction - By combining different currencies, you may reduce the daily risk connected with a single coin.

Minimize trading costs — To decrease trading costs, use a reputable exchange with minimal fees.

Keep an eye on the trading time - Make a trading timetable that works for you.

Keep up with the latest cryptocurrency news — To remain ahead of the market, keep up with the latest crypto news and articles.

Take advantage of technical analysis - Make use of technical indicators. This will assist you in justifying your deals.

Apply stop-loss orders – Every transaction should have a stop-loss order. Begin with a 2:1 profit-to-loss ratio.

Staking

Because running a PoW blockchain consumes so much energy, several blockchains have invented a supposedly superior validation technique called Proof of Stake (PoS). 

The PoS method encourages users to block (stake) their tokens to validate encryption instead than employing energy and technology to solve complicated cryptographic challenges.

Blocking digital assets that function as validators in a decentralized cryptographic network to maintain network integrity, security, and continuity is referred to as staking. Stakeholders protect their assets so that they can be used as nodes and validator blocks. 

As an incentive to assist protect the network, stakeholders get compensated in the newly formed coin .

Now let's look at the smart way to also make money with little or no technical knowledge

SMART WAY OF MAKING MONEY FROM CRYPTOCURRENCY 2022

Now I will like to show you some super smart ways of investing in cryptocurrency in 2022 and making a substantial income. in this guide I will be taking you through some step by step guides on how to buy some newly listed coins and make more money from them.

Follow carefully and practice what I will be guiding you through.

THE STEP BY STEP GUIDE:

1. Get a Cryptocurrency Wallet: A cryptocurrency wallet is where you will be storing your asset since we will be buying a crypto coin we need a wallet to store it. You can download a wallet from the google play store onto your phone. 

Trustwallet, Metatmask, Safepal, and coinbase are some of the examples of wallets you can download. There you can download any of them. Personally, I use Trustwallet and Safepal.

When you are done downloading your wallet you are set to go.

 Let's get to the next step

2. Buy BNB or Ethereum coin into your wallet: Some of the tokens we will be dealing with are built on other cryptocurrency networks such as binance smart chain( Bsc) and Ethereum smart chain. And we need to have some of these coins in our wallet to be able to do the transaction.

You can buy any of these coins at binance.com or better still buy bitcoin and convert it to bnb or Ethereum. You don't need to buy many of these coins, you can buy a small amount $5 and above depending on your budget and the number of coins you will want to invest in.

Mostly during the transaction, some gas fees will be charged so you need to have a little bit more than what you will like to spend. 

3. Research newly listed tokens:  After getting some of BnB and Ethereum in your wallet, search for newly listed tokens on coingecko.com or coinmarketcap.com. Just type in your browser coingecko.com and visit it. It will look like this below

When visited navigate to recently Added and select it. It will display the recently added tokens or coins. The time it has been added and the percentage increment will be shown.

This is where we will be choosing our token to invest in . The concept behind this is that when these coins are listed newly the price of most of them increases drastically before falling.

Therefore we will be taking advantage of this opportunity, so therefore we will buy it as they are listed and wait for the price to increase by monitoring it kingly. 

Let's Have a look at this screenshot below

In the image above the price of the coin, the playground has increased by 98% in 1 hour and about 325% in 6hours. You can see that this can be a great opportunity of making cool money and those who bought that coin will be making a great income by that time. 

By that time you can choose to come out of the market by converting your profit to a stable coin.

4. Get the token's contract address: The next thing to do after researching the coin is to get the contract address of the coin. You can get the contract address of the coin at the platform you have seen it, either from coingecko or coinmarketcap.com and copy it.

To get the address just click on the coin you will like to buy and it will open more details about it. a screenshot below shows how it will look like

Just click on the contact address and it will be copied.

You can also check the network on which the token is built by copying the contract address and searching for it at tokensniffer,com. To do that visit tokensniffer.com and paste the address in the search box and information of the coin will be shown. look close to the address and you will see a written starting it.

When it starts with BSC it means it is built on the Binance smartchain, therefore, we need BNB to do the transaction or when it is ETH it means it is built on Ethereum smart chain and we need Ethereum for the transaction.

5. Connect your exchanger to your wallet: Now we will be buying the token that we research on the token's address we copied. But first, we must connect our wallet to the exchanger and this is how it will be done:

 Search the exchanger in your browser (pancakeswap) on the exchanger platform click on connect wallet to connect your wallet to it for the transaction.

When connected, your balances will appear in the exchanger depending on the blockchain on which the coin or token has been built. 

6. Search for the token in the exchanger: After connecting the wallet, you now have to search for the token with the contract address. To search for this click on the swap in the exchanger  and you will see something like this

Then enter the amount you want to buy in bnb in the bnb column then click on the cake to get the option to past the contract address you copied in coingecko. You will see something like this:

  

Paste the address in the search box to get the token. When you paste the address the coin will appear when it appears, select it. After selecting the coin, enter the amount you will like to buy in the price box.

After all, when you have enough balance that meets the amount you entered you will see a swap below the price box to swap. Click on it to complete the process.

When you are successfully done, it means that you have purchased that token.

7. Monitoring the price:  After successfully buying the token, it will reflect in your wallet and the price attached to it. So therefore you must be monitoring the price frequently or always to check the movement of the price. 

You can also monitor the price at coingecko or coinmarketcap to see the increment of the price. Sometimes it can take up to more than 3 or 4 hours. Some coins can make a drastic move in a short period of time. When it moves to up to an amount you are fine with then you can convert back to bnb and later sell it.

Don't be greedy to get more when you make some profit you can quickly convert it back to bnb before it drops back even below the amount you bought it

How To Convert Your Token To Secure Your Profit.

• Go to your wallet (Trustwallet) and click on dabs below the wallet.
•  Enter the name of the Exchanger (Pancakeswap) 
• Select the new token you bought at the first place
• Choose the amount you want to convert. If all just choose Maximum
• Below choose the coin you want to exchange it for. It should be the coin smart chain network in which the token is built. Eg BNB
• Click on swap to exchange.

I hope this article will guide you to make money from cryptocurrency. If you are not clear and you have a question to ask please feel free to drop it in the comment section and I will answer. Thank you