Pros And Cons of Different Crypto Trading Strategies

Long Term Investing (HODL) — Easiest Method

Long term investing is considered among the safest and easiest way to dip your feet in the crypto pool. Many people prefer buying and holding crypto rather than trading. They store these coins in crypto wallets, like Ledger, Trezor and Trust Wallet until there is a significant rise in price. Then they sell.

Trade Crypto CFDs — Best for Price Fluctuating Assets

CFD or Contract for Difference is a financial tool that allows products experiencing wide price fluctuations to be traded easily. You can try your hand at margin and leverage trading with CFDs.

  • Inexpensive to begin
  • Profits can be increased through extensive leveraging
  • Unrestricted long/short positions
  • Accessible trading

Day Trading — Quickest Approach

Day trading is for you if you are looking to make money with digital coins quickly. This is a trading strategy in which investors engage in the buy and sale of orders several times in a day. Another reason I like the “cryptoverse” is that it’s open 24/7 worldwide. Unlike the stock market which is open from 6am-1pm PST Monday — Friday. I executed my first successful trade while I was asleep due to people in some other region of the world assuming that this specific digital asset is worth more than I thought it was. The price jumped and my sell order triggered. I was hooked.

Mining — Highly Profitable

Mining may be difficult, but it is highly profitable when you can do it successfully. Mining requires making an initial investment in getting the right hardware, basic software, crypto wallet, computer with fast processor, and a lot of electricity.

Arbitrage-Rarely Used

Arbitrage is a seldom used approach for making money with crypto. However, there are still a few investors that buy cryptocurrencies on one exchange and sell it on another for a higher price. The price per a certain coin a lot of times is not exactly the same on all exchanges.

Cryptocurrency Faucet-Zero Investment

Crypto faucet may be the best way to make a small profit from few cryptocurrencies. This approach can be described as a dripping faucet or website that releases minute trickles of digital assets, such as BTC every few minutes.

ICO — Lucrative but Risky

Initial coin offerings are similar to crowdfunding where entrepreneurs raise funds by selling virtual digital assets. This protects them from the risk of investing their own capital.

Advertising Crypto with Affiliate Marketing- Content Creation

This is a fabulous way to make some money if you own a blog or a site for crypto. Content around digital assets including Bitcoin is scarce. This is when the crypto industry is growing in leaps and bounds.

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