Just Try: How to Make a Business in Cryptocurrency for a Beginner
Now’s the perfect time to get in on the cryptocurrency trends. 2020 is not still over, and after a brief plummet because of the COVID-19 pandemic, cryptocurrencies are on the rise again. But this doesn’t mean that making money off Bitcoin or Ethereum would be super easy. Yes, a lot of people indeed became overnight millionaires in 2017 when Bitcoin spiked from $1,000 in January to almost $20,000 in December. But these kinds of lucky numbers should only be the starting point for your investment strategies. To make consistent profits in 2020, it’s important to gain experience, do lots of homework, and develop skills.
And where should a beginner get started? This article is here to answer that. We’ll bring you some of the best ways to make business at home in cryptocurrencies this year. Sounds good? Let’s dive in.
Make Business By Simply Keeping Your Assets
Let’s start our list of how to make business in the online crypto world with the easiest solution. Skip the trading. Simply buy different currencies and hold them in your crypto wallet. Then when the price starts going up, you can sell the digital assets and make a profit. This approach can work only if you’ve done enough research to confidently believe that the market share of your chosen currencies will increase in time.
And what are the best cryptocurrencies to buy? If you’re a beginner, you should pick the safest options. But here’s the thing: the safest tokens are not the cheapest ones. A token that doesn’t cost much can disappear from the market by tomorrow. So you should look for the most popular currencies instead. BTC, XRP, and LTC may cost a little extra, but at least they’ll be around long enough to start making you a profit. In 2020 many investors earn pretty nice sums from the Bitcoins they bought in 2011. Especially if they managed to resist to sell Bitcoin when it rose over $7900 in 2017.
Although it’s easy to make your own business from buying and simply holding Bitcoin, it’s not exactly the fastest way to get rich. Let’s look at some options to make your business grow where you can take a more active role.
Trading Crypto Contracts For Difference (CFDs)
The crypto market’s high volatility promises trading opportunities in the form of CFDs. But what is a CFD? In essence, it’s a financial tool that allows you to leverage trading on any of your chosen currencies. It’s a sort of short-term trading that enables you to speculate on the price fluctuations of various cryptocurrencies without owning them. The cool thing is that it doesn’t matter if the price on your chosen currencies goes up or down. As long as the market moves, you’ll make money.
And you don’t even have to make a huge deposit. You can start with a small margin deposit for only 0.1 lot bitcoin. What’s more, there’s no need to open up a crypto wallet right away. That’s great news for beginners who are looking to make business quickly. Learning to use a wallet would take too much additional time.
You can start by choosing a reputable exchange platform. Some of the most reliable exchanges to consider are Coinbase, Bittrex, and Binance. Pick an exchange that enables you to keep your funds offline and comes with a user-friendly interface. Then all you need to do is to get either some Bitcoin or Ethereum and start trading other available currencies.
If you’re looking to make business with fiat money, make sure to check which currencies the different trading platforms are accepting. Also, make a note on transaction fees.
Getting Started With Day Trading
If you’re looking to make business easier and in a faster way, then you can look into day trading. It’s another short-term trading strategy where you keep the assets only for a short period. You need to make the sale before the day ends and hopefully make a profit. As we’ve mentioned earlier, the crypto market has high volatility. Even complete beginners should be able to make a nice profit from all the ups and downs.
And what kind of opportunities should you look for? It’s simple: the low-priced ones. Then you can sell these at a higher price and make a profit. In the long run, these little gains should make a considerable income. The most important thing is to have perseverance and keep at it. Obviously, you won’t win every trade, but in time your skills will get better, and you’ll be able to make your trading business more sustainable.
The best part is that a lot of platforms allow you to practice trading with a demo account. That’s right. You can get a free trading experience before opening up a real account.
Things to Consider Before Getting Into Trading
Preparation is the key to success in everything. Let’s take a look at the key things you should know about trading before getting into it.
The first things you need to understand are the order types. Learn all you can about the difference between a market order and a limit order. A market order is basically a transaction that’s meant to be completed quickly at the latest price. And with limit orders, you can either buy or sell after setting a minimum or maximum price that you accept to finish the transaction.
Next up, you should do everything possible to secure all of your accounts. If someone should be able to access your wallet and change the password, you lose all your crypto money, and unfortunately, it’s not possible to recover most of the situations. So start off by choosing a strong password for your wallet. Use plenty of special characters and both upper and lowercase letters.
And remember: don’t use one password for more than a month. Make a habit of changing the password as often as possible. Then, for extra safety, copy all your seed onto an encrypted offline device.
If you’re a newcomer, then it’s a good idea to just pick the major coins with a high liquidity level and stay away from margin trading. Also, remember that you have to pay taxes on your trading operations, so make sure you study all the tax implications before getting started. If you take a look at the official IRS’ guidance on paying taxes on crypto transactions, then it states that crypto is categorized as property. This means that it’s taxed the same way as stocks.
Choosing the Best Cryptocurrency Wallet
Digital currencies are stored in a crypto wallet. And you basically have two options to choose from: a hardware wallet or a software wallet. If you plan on getting started with active trading, then a software wallet is a must. You’ll get access to it by signing up for an account in exchange.
But if you don’t need to access your currencies often, then opting for a hardware wallet is a safer option. It’s almost like keeping your tokens on an external hard drive making it impossible for hackers or other cybercriminals to steal them.
Build a Mining Farm
Setting up a mining farm is not easy, but a successful mining operation can be a very profitable way to make a business from home. Now hang on, aren’t the miners too loud to be kept at home? Yes, miners are indeed pretty loud. However, if you start with only one or two miners, you can easily block the sound with noise-canceling boxes. And look: after installing the basic software and setting up your crypto wallets, you can direct the mining processes even from your home computer.
Once you get successful with this little operation, then you can look for a warehouse to keep a larger number of miners. The good thing with warehouses outside the city’s limits is that the electricity costs will be lower.
It must be said, however, that it used to be much easier to earn coins with mining. In 2020, it’s gotten a bit more complicated. Professional miners with huge warehouses full of miners make business development plans harder for the little players.
But before you decide to attach yourself to a bitcoin mining pool, let’s take a look at how to make a business plan for a smaller mining farm. If you get it right, you’ve got a good chance to compete against the giant farms.
1. Create an executive summary
Here you should summarize the cryptocurrencies you intend to mine and the market conditions. Write out the profit level you’re hoping to reach and put together a timeline for your goal.
2. Research the Market
The next step in making your business plan is to research the market. A strong business plan should be based on an analysis of the latest market trends and conditions.
Here are some key aspects to keep in mind:
- What kind of hardware are you going to use for mining? CPU, GPU, or ASIC? Make a business budget and decide on which miner you can afford.
- Be aware of the different amounts of power used by different miners.
- Make sure the miner you’re gonna purchase can mine the cryptocurrencies you’re interested in.
- Does the miner let off a lot of heat? You may have to get some additional cooling equipment.
Start Developing Blockchain for Games
Games with their numerous microtransactions are the perfect testing platforms for blockchain technologies. And it’s easy to understand why blockchain developers are interested in taking their innovations to the gaming industry. In a popular online game like Fortnite, gamers are generating over $250 million per month for its creators.
So how can you get in on this? The answer is simple: become a blockchain developer. Obviously, this takes time and a lot of effort. The first thing to do would be to get some good blockchain tutorials and start learning to code.
And after you’ve gathered some experience and know-how to develop a smart contract, you can start your own crypto business. If you make your business model around developing blockchain solutions to replace the clumsy card-based payments, there should be no shortage of interested clients. Almost every game would prefer to have its own payment mechanisms instead of an external bank processing the transactions. Plus, being able to award players with their own crypto prizes is a great way for new games to make themselves more attractive to new players. You can create entirely new currencies for each game.
Set Up a Blog for Crypto
Right now is the best time to start a blog with content around cryptocurrencies. The thing is that while the crypto industry has grown substantially over the past years, the blogs have not kept up with the pace. If you make a business website that’s centered around Bitcoin or Ethereum, it may turn into a lucrative money-making opportunity.
Once you have enough readers, you can start monetizing the blog with affiliate links. Whenever someone makes a purchase of an item through a link in your article, you earn a nice commission.
And what kind of articles should you be writing on your website? Honestly, it’s quite simple. The contents that people are mostly searching for are instructions and tips on crypto trading. And to give you an advantage over competitors, you can start creating videos as well. These could revolve simply around, bringing the viewers the latest bitcoin news.
The best part with affiliate marketing is that once you have the content ready, you can just sit back, relax, and earn passive income.
Use the tips from this article and make your business great again by making some money with cryptocurrencies. Set up a trading business, a mining farm, or start developing blockchain solutions for games. And 2020 is the best time to do this. After the pandemic, the digital currencies have only been on the rise, and with some effort, you too can reap the benefits of this surge. So get started today, and let’s make 2020 great again all together.
Are you ready to start investing in cryptocurrencies? What seems to be the most profitable digital currency in 2020 for you? Let us know in the comments below.