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Explained: How To Make Money From Cryptos And Profit From Cryptocurrency Market Rises

Last Updated October 29th 2020

Throughout the last decade, Cryptocurrency market is the best performing assets by far. Bitcoin experienced 9,000,000% growth and was rated as the best investment of the decade - Here's what you need to know.

Although they are still in the early stages of development, cryptocurrencies have begun to be considered as alternatives for investment and monetary use. Whether for the fact that they eliminate barriers during their transfer or for the opportunity to profit, people are considering them as an asset worth investing in. 

Paypal's decision to offer crypto services by enabling users to sell and buy cryptocurrencies has increased the authority of cryptocurrencies and shown that they can no longer be taken for granted. 

But what is cryptocurrency investing? How to invest in cryptocurrencies? Is it risky, or should you invest now? You will find the answers to these questions and not only, below.

At Trading Education, we took a look at the way the crypto market is developing and here's what we found out.

What Is Cryptocurrency Investing?

Cryptocurrencies are digital assets or digital money. Investing in cryptocurrencies means buying one of the cryptocurrencies such as Bitcoin, or Ethereum for example, using fiat currency like U.S. Dollar or EURO. 

The moment you buy a cryptocurrency, you are a cryptocurrency holder. You can invest in one cryptocurrency or more depending on your choice, and you can hold your cryptocurrencies for as long as you want.

How Do I Invest In Cryptocurrencies?

There are various ways to invest in cryptocurrencies, but the most popular one is through a cryptocurrency exchange. Brokerages such as eToro offer cryptocurrency investment opportunities. 

Some of the most popular cryptocurrency exchanges where you can start your investment are Binance, Coinbase, Kraken, KuCoin, Bittrex, eToro etc. 

How do I Choose Which Cryptocurrency To Buy?

There is no strict rule on how to choose the cryptocurrency you want to buy. Some people prefer to invest in one coin, while others invest in more.

There is a tendency to invest more in Bitcoin or other reputable cryptocurrencies. But, in many cases, it is precisely the new cryptocurrencies that have tremendous growth with a high return on investment. As per Coinmarketcap, there are currently 7509 cryptocurrencies. The main factors to look for when buying a coin are market capitalisation, liquidity and trading volume.

Ready to dive into crypto market?

Is Investing In The Cryptocurrency Market Risky?

There is always a risk when investing in any asset. Bitcoin was launched in 2009, so this makes us realise that cryptocurrencies are new, and many people still do not clearly understand what they are. 

By nature, cryptocurrencies are volatile, so there are many opportunities to profit. If we briefly analyse the history of Bitcoin price, we come to the conclusion that investors have made more profit than they have lost money during these 11 years of Bitcoin existence. 

bitcoin price chart

Source: coinmarketcap.com

When Bitcoin was launched in 2009, it had no value whatsoever. Bitcoin first reached the value of $0.0009 in July 2010. Since then, the price of Bitcoin experienced sharp rises and falls, until when it reached its all-time high of $20,089 per Bitcoin on December 18th 2017. 

However, this price did not last long, because no further than in November 2018 it fell below $3500. Since then, the price of Bitcoin has again experienced ups and downs and is now hovering just over $13,000.

In December 2019 Bloomberg concluded that over the decade Bitcoin had experienced 9,000,000% growth, thus leaving all competitors in the dust. This fact is an indicator that HODLers, i.e. those who invested in the early days of Bitcoin and had the patience to hold their investments during the price changes, now enjoy tremendous profits. Moreover, in 2019 also CNN rated Bitcoin as the best investment of the decade.

How Long Should I Invest For In The Crypto Market?

As mentioned before, in this case, too, there is no specific rule on how long you can keep your investment in cryptocurrencies. It depends on your intuition, experience and patience. 

However, it is worth noting that the above numbers show that those who have had patience by holding investments for years have earned the best.

Read more: 

What Top 10 Cryptocurrencies To Invest In 2021?

Most Important Cryptocurrencies Other Than Bitcoin

How To Profit From The Cryptocurrency Market

There are different ways you can profit from the cryptocurrency market, and the most common methods are long term investing or otherwise known as HODLing, day trading, CFD trading, staking and mining.

Read more:

How to Day Trade Cryptocurrency

Cryptocurrency Trading Exchange Or Cryptocurrency CFD?

Best Markets To Trade In 2021: All You Need To Know!

How To Profit From Crypto Volatility?

Cryptocurrencies are volatile by nature, meaning that their price often changes within certain time periods. Therefore, they are also profitable because you will always have the opportunity to buy your favourite cryptocurrency when its price is low, and sell it when its price rises.

Ready to dive into crypto market?

How Do I Make Profit From Crypto Arbitrage

Different cryptocurrency exchanges offer slightly different prices for cryptocurrencies. Crypto arbitrage means that you can buy a cryptocurrency in one exchange and then transfer it and sell it in another exchange which has a higher price at that moment for the same cryptocurrency. 

However, it should be noted that this process must be done very quickly because cryptocurrencies are volatile, and prices change quickly. Usually, those who practice crypto arbitrage are assisted by various tools to be more accurate.

What Is The Future Of Cryptocurrency?

In their infancy cryptocurrencies were met with a great deal of scepticism. Although there are still sceptics about cryptocurrencies, their future now looks brighter than ever. With Paypal finally integrating cryptocurrencies into its platform, the price of Bitcoin started its way up and is currently hovering just over $13,000 marking its highest price since 2018. 

Except for Paypal who started its adventures in the world of crypto, the year 2020 was exceptional for cryptocurrencies considering that many other things have happened to their advantage. MicroStrategy, which is the largest business intelligence company in the world, bought $425 million in Bitcoin. Also, Square bought $50 million, and Stone Ridge bought $110 million in Bitcoin. 

Moreover, DBS Bank, which is Singapore's biggest bank followed also, launching its cryptocurrency exchange, named "DBS Digital Exchange," which will allow trading Bitcoin, Bitcoin Cash, Ethereum and Ripple.

All of these events had boosted the authority of cryptocurrencies and pundits predict that Bitcoin could soon break its 2017 record when it reached $20,000. However, it must be said that experts predict price increases, giving different figures, but nobody can exactly know how far the Bitcoin price goes.

Read more:

Bitcoin Price Prediction: How Much Will Bitcoin Be Worth In 2021 And Beyond?

Top 9 Bitcoin Investors

Ripple Price Predictions: How Much Will Ripple Be Worth In 2021 And Beyond?

Where Can I Learn More About Investing In The Cryptocurrency Market?

Here at Trading Education, we teach you how to invest in cryptocurrencies. In our courses, you can learn the most effective methods of investing in cryptocurrencies. 

Trading Education also provides technical analysis, trading tools, economic calendar, market data, market overview, advanced real-time chart, etc.

Also at Trading Education, you can find a series of articles related to the world of trading and various other very valuable features like "Find your broker", where you can find your brokerage that best suits the place where you live.

Why Should You Trade Cryptocurrencies With eToro?

eToro is the leading social trading platform worldwide. eToro is known for its "Copy Trading" feature where you can copy your favourite trader. Top 5 cryptocurrencies that can be traded on eToro are Bitcoin, Ethereum, Bitcoin Cash, Ripple and Dash, followed by many more.

eToro – Best Cryptocurrency Trading Platform 

etoro broker

eToro have proven themselves trustworthy within the industry over many years – we recommend you try them out.

75% of retail investor accounts lose money when trading CFDs with this provider.

You can start building your crypto portfolio on eToro, and you will be provided with real-time insights, so you can set you strategy with stop loss and take profit parameters. Another great thing about eToro is that it allows you to practise trading with $100,000 thanks to its virtual portfolio.

eToro is fully regulated, and you can start your cryptocurrency investment now with Paypal, or any credit card you possess. The platform is user friendly, and eToro is always working towards making cryptocurrency trading fun and attractive.

Another excellent advantage eToro has is that it possesses its wallet, where you can store your cryptocurrencies after you buy them. eToro wallet supports more than 120 cryptocurrencies.

Key Points

  • Cryptocurrencies are digital assets, and you can buy them using fiat currencies like the U.S. dollar or EURO.
  • Cryptocurrencies can be bought through cryptocurrency exchanges.
  • You can invest in any cryptocurrency, depending on your choice.
  • Bitcoin first reached the value of $0.0009 in July 2010, and over the decade it has experienced 9,000,000% growth.
  • Bitcoin is rated by CNN as the best investment of the decade.
  • HODLing, day trading, CFD trading, staking and mining are the most common methods to make money from cryptocurrencies
  • Paypal's announcement to offer crypto services has given cryptocurrencies a boost pushing the price upwards.
  • Microstrategy, Square and Stone Ridge made considerable investments in Bitcoin playing a pivotal role as well, giving cryptocurrencies more recognition.
  • DBS Bank also became part of this wave launching its crypto exchange "DBS Digital Exchange."
  • The future of cryptocurrency is bright, and experts predict that Bitcoin will soon break its own record of $20,000 set in December 2017, by reaching new price heights.

It’s never too late to invest in cryptocurrency market. With eToro, you can start buying and selling cryptos, or trading CFDs, of over 90 cryptocurrencies.

Investing in crypto market is worth considering.

Happy Investing!

Disclaimer: Cryptocurrencies are highly volatile. Your capital is at risk

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