It's hard to win on cryptocurrencies using only exchanges, but without special financial tools and tips that can make your money work, so in this article we will verify how to increase this profit.
After creating wallets and registering on the trading platforms, the most interesting part begins: choosing an investment strategy. You invest your money and profit depends on how accurately you assess the situation in the financial market. A reliable start is the use of proven exchanges. However, what other tips are there to help you earn more?
There are many strategies for obtaining encryption and even more platforms and tools to simplify this process, saving time and resources of other users. Below are the most interesting strategies in terms of income and solutions that automate these strategies.
Use bots to increase profits on exchanges
Personal participation in trading 24 hours a day is simply physically impossible, therefore a trading robot that can track good entries and transact itself comes to the rescue.
A trading robot consists of a series of indicators and algorithms that allow the detection of the latest trends and can be a good option to increase the merchant's portfolio by automatically exchanging on behalf of users.
If the user has never used a commercial bot before, it is better to start with the simplest bots that have a minimum of customizable parameters, but remember that such a wizard will not generate great benefits. More complex bots for cryptocurrency exchange will bring good income, but for this, traders need to gain some experience to set it up properly.
A typical trading bot, which is also known as arbitration bot, it works only on a specific site and covers several services at the same time. Arbitration is a commercial option. You will earn from the difference in exchange rates on different exchanges. The fact is that the exchange rate of digital currencies can differ on different sites, and this is a great way to earn money. You should monitor the situation on the selected exchanges and sell the currency where the rate is highest, and buy where the rate is lowest.
The main thing is to act promptly. It's worth a little delay, and you won't have time to make money off the difference. That is why bots are generally used for arbitration. In general, trading can be a good passive income to earn up to $ 300 per month.
Classic exchange trading
For absolutely beneficial trading for everyone in cryptocurrency exchanges, It is worth dividing the bank into 4-8 different directions. It can be Bitcoin, Litecoin, holders or fiat pairs. Also, it is best to order no more than 2-3% of the amount allocated for each position. In the event of an unexpected dump or depreciation, it will allow a trader to recover even in the case of an initial purchase at the highest values.
To maximize the profitability of trading on the exchange and make good bets, in the opinion of most cryptocurrency traders, the trader needs at least $ 1,000.
However, the minimum bid for a transaction on popular exchanges starts at $ 20-50. Overall, it's more profitable to play for a raise as the cryptocurrency market is growing again.
At the top: futures trading
Futures contracts allow investors to gain on the movements of the Bitcoin exchange rate, without being the holder directly. Another advantage of this strategy is that investors can earn bitcoin in countries where cryptocurrencies are prohibited (since merchants do not buy and sell bitcoin itself, but a contract).
Bitcoin futures and options trading has peaked. In May, futures trading and other cryptocurrency contracts increased 32% compared to April this year. In monetary terms, this volume amounted to $ 602 billion. In addition, trading volume increased 36% even at the Chicago Board of Trade ( I). This is the first traditional exchange to engage in bitcoin futures and options trading.
The first futures-supported cryptocurrency exchanges began to appear in the mid-2010s. In particular, in 2016, the famous exchange Deribit appeared in the Netherlands. The next step in shaping the crypto derivatives market was the appearance in 2017 of bitcoin futures on Chicago's CBOE and CME exchanges. These futures were liquidation only, but completely legal. Settlement futures do not give the investor the right to buy BTC directly, but they do allow the trader to play with price fluctuations and insure against unexpected jumps.
To date, the majority of the cryptocurrency derivatives market rests with the usual cryptocurrency exchanges, among which the leaders are Huobi, OKEx and Binance. Along with the growing interest of institutional investors in cryptocurrencies, many alternative platforms They begin to offer more interesting conditions for users. For example, the European cryptocurrency exchange Cryptology offers merchants a number of unique features, including free deposits, including by credit card and referral program for futures trading with up to 50% bonus.
Digital assets will rise in price as they spread, many experts are sure. For example, the research department of one of Kraken's oldest cryptocurrency exchanges predicted that the cost of bitcoin will rise to $ 350,000 in 25 years, as the younger generation will invest in it. An analyst at the Amsterdam Stock Exchange, Michael van de Poppe, predicted that BTC would grow to $ 150,000 by 2025-2026.
In one way or another, right now the market is really unstable and it's not worth investing money that you are not willing to lose unless it is a long-term investment that thousands of people are constantly making.