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How Do I Make Money Exchanging Cryptocurrencies?

Exchanging Cryptocurrencies

The popularity of cryptocurrencies is due to a number of advantages. Digital coins are more or less stable, do not depend on the banking system, so they are not afraid of inflation. Decentralization provides complete anonymity for users. If it is still possible to track a transaction, it is not possible to find out the owner of a digital wallet. 

The main feature of the cryptocurrency market is volatility. If you plan to earn from reselling the coins, you will work on the principle of currency exchanger. The only difference of the cryptocurrency market is that there are a lot of exchangers in the network, and you can choose any service you want to cooperate with. Such platforms are characterized by security, transparency, and reliability. 

Cryptocurrency exchange: a working scheme

The essence of earnings is to buy cheaper and sell more expensive. Profit consists on the difference in the floating rates. This type of income requires investments, especially at the initial stage. It is recommended to study several reviews of cryptocurrencies, understand the market trend, and learn how to analyze the growth and decline graph of the rate. Without this, it will be difficult to understand which quotes will increase. 

The scheme of earning is as follows:

  • You need to look for exchange services and cryptocurrency exchanges involved in buying and selling digital coins. You need to follow the fluctuations of the rates on the sites. 
  • Register on several platforms. Users with accounts get more opportunities than unregistered users. 
  • Analyze the rates and choose a coin to work with. The difference in value per coin on different platforms can range from a few dollars to a few tens. 
  • Transfer money from one exchange to another. Execute the transaction, get your profit. Continue to analyze the market. 
  • Keep in mind withdrawal fees when making transactions. If the difference in rates is too small, you may end up losing money.  
  • Profit depends on a number of factors, but first of all, it is important to choose a partner with whom you will cooperate. The Changelly service offers USDC to ATOM at an attractive exchange rate and guarantees the security of all your transactions. Financial transactions are fast, on average it takes a few minutes to exchange and transfer funds. 

Alternative ways of earning on cryptocurrency

What other ways of making money from digital currency are available:

Trading – Is one of the most popular and effective options for making money in the digital currency market. In this case, the main goal of the trader is to buy cheaper, sell more expensive, which brings profit. However, the problem is that it is almost impossible to predict fluctuations in the exchange rate. That is why trading can be considered a high-risk way of earning. One must be able to analyze the market and understand how to manage the risks. One must not act in the heat of the moment. 

Referral systems. Many cryptocurrency services offer affiliate programs for their clients. To start earning, all you need to do is to attract new users to the exchange service. For registering users, you get additional bonuses, a percentage of their transactions. You are, in fact, cooperating with the platform and have money for your invited users. 

Investing – An alternative variant of trading. In this case, we are talking about long-term transactions. This option is suitable for both beginners and professionals, as it does not require any special skills or abilities. If compared to the same trading, the prospects, in this case, are much less. You need to invest with caution. The cryptocurrency market cannot be called stable, which is why even after making a detailed analysis, an investor will not always manage to make a profit. 

Mining – Those who at least once in their life were going to buy a cryptocurrency know what mining is. Mining digital assets require powerful equipment. For example, bitcoin mining is not suitable for a beginner, although mining VTCs can be profitable for large companies. It makes sense to mine assets if some of them do not have to be given up to pay transaction costs. Mining cannot be considered as a super-successful way to earn money. 

Cloud mining – Mining currency requires a serious investment. As an alternative to traditional mining, you can resort to cloud mining. In this case, you can make your first profit by investing a minimum of money. The essence of cloud mining is to connect to a server that mines the cryptocurrency. The owners of farms with video cards or powerful processors actually rent their equipment. There are quite a lot of such companies in Russia. Income and return on investment depend on the terms of cooperation with the system. 

Stacking – In this case, we are talking about obtaining income on the basis of the PoS strategy. Stacking is an analogue of mining. Digital currency is stored on the electronic account and brings the owner of a purse a passive income. Compared to other ways of earning, stacking is one of the highest.

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Lokesh Naik is an avid blogger and internet freak who is behind this blog. A tech enthusiast and fan of smartphones who keeps track of every little happening in the smartphone world. When not writing, he loves watching cricket.

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