5 Easy Strategies for Beginners to Earn Cryptocurrency on PrimeXBT

Buying and HODLing

This method may seem simple on the surface… and that’s because it is. Having said that, it is probably the safest way to trade crypto, especially if you are relatively new to this world.

For example, major cryptocurrencies like Bitcoin, Ethereum, and Litecoin have been in high value for about 18 months now. Since the bubble burst in early 2018, many hot coins have been selling for cheap. And while it’s unlikely we’ll be seeing the crazy prices of the past two years again any time soon, established crypto projects like the one above are more or less guaranteed to appreciate over time. In most cases – if you have bought near the bottom – your investment has doubled by now.

Day trading cryptocurrency

Now, if you are more of a seasoned trader and have a bit of a hand at Japanese candlestick charting, this could be the ticket for you. Many platforms and exchanges support crypto day trading, but PrimeXBT is probably one of the best.

In principle, this strategy couldn’t be simpler – you buy as low as possible and sell as soon as the price reaches your target for the day. However, in practice, it can prove to be very difficult to predict the direction of movement of this highly volatile market. Despite its high-risk nature, day trading can indeed be very lucrative for the technical expert. With daily fluctuations between 20-50% which are quite common in the cryptocurrency sector, the potential for tremendous returns is undeniable.

Medium-term trading

This method is probably the most effective way to generate consistent profits over the past year or so. Since the bubble burst in early 2018, most coins have traded sideways in fairly limited ranges (except for a long lull earlier this year). If you can follow a strategy of buying when you see a currency is relatively undervalued and then selling it over about a month, you can earn decent regular profits over a reasonable timeframe.

The key is not to be too greedy: you need to set a target of 10-15% and then sell as soon as this level is reached. It doesn’t sound like much for a market known for its volatility, but when you can safely do it about 4 times in just six months, you can easily manage annual returns on the order of 100%.

Cryptocurrency arbitrage

Whatever your personal opinion of a truly free market, the fact of the matter is that the cryptocurrency market represents one of the few examples today. And it is this freedom from government regulation or control that allows for massive volatility and huge price variations on various exchanges.

But what if there was an almost risk-free way you could manipulate this system to your advantage? This is called arbitrage and, once you know how to do it, there are some easier ways to make money from crypto.

All you have to do is find one exchange where the price of a particular coin is relatively low and then look for another that sells the same coin at a sizeable premium. Quite often, you’ll be able to find a spread of anywhere between 5-40%. Finally, when you are satisfied with your spread, simply buy coins from the cheaper exchanges and then sell them at the more expensive ones. It’s really simple. Of course, any commissions due will eat into your profits a bit, but you should still generate a decent return on investment.

Trading Trends Considerations for Crypto

With the advent of blockchain technology and hundreds of cryptocurrencies, we are seeing a lot of newcomers in the trading space. Also, traders who have worked in the traditional market have come to the crypto market. What we have is a new industry full of high energy and a mix of experienced professionals and inexperienced traders.

Fortunately, expert traders are active in the crypto trading environment now. They do things like:

  • Create trading strategies that integrate traditional methods with digital assets.
  • Create educational videos to help newcomers get up to speed.
  • Explain trading topics on social media and forums.

Testing New Skills With PrimeXBT Trading Platform

With newfound skills and techniques, traders can test them using PrimeXBT’s built-in technical analysis tools from TradingView. In addition, PrimeXBT Contests allow traders of all skill levels to compete and try new trading strategies risk-free using virtual funds. Even better, there are opportunities to win prizes for those who can showcase what they’ve learned from the PrimeXBT Trading Academy.

Once confidence is built, it’s time to bring it to market in real-time by accessing one of the more than 50 different trading instruments PrimeXBT has to offer. PrimeXBT offers margin trading of cryptocurrencies, forex, commodities, stock indices, and more.

All true stars can also take their learned skills a step further and become strategy managers using the Covesting copy trading module on PrimeXBT. At that time, the profitability will be ranked in the global leaderboard system to attract followers. Followers make money when strategy managers succeed, and in turn, strategy managers get a share of their followers. This is the kind of steady income stream that dreams of being a destination for.

Holding crypto for dividends

You’ve almost certainly heard of stock dividends before, but did you know that certain cryptocurrencies will provide you with passive income just by holding them? Yes, there are (e.g. NEO, BTMX, and KuCoin) and, what’s more, they don’t even require you to stake your coins to get a share of the dividend action.

Wrapping up

As you can see, there are many different ways to make money from cryptocurrencies. Some are riskier than others, although these usually come with the highest rewards. The secret is to decide for yourself what kind of return you are looking for and how much risk you can safely bear. Once you’ve done that, all that’s left is to implement the strategy of your choice and be one step closer to financial independence!