The global cryptocurrency market cap is currently $1.1 Trillion. The market cap of Bitcoin (BTC) is at $511 Billion, representing a Bitcoin dominance of 46.44%. Meanwhile, Stablecoins' market cap is at $124 Billion and has an 11.3% share of the total crypto market cap. Between 2018 and 2020, cryptocurrency users grew by 190% globally. There are currently an estimated 420 million crypto users worldwide as of 2023.
What these figures mean in simple terms is that the crypto market is active and thriving despite the ups and downs it has faced and continues to face. So, how do you take advantage and make money with Cryptocurrency in 2023? This article shares five ways to do that.
5 Ways to Make Money With Cryptocurrency in 2023
- Buy and Hold
- Airdrops and Giveaways
Trading involves buying and selling cryptocurrencies to take advantage of price changes. Most traders aim to buy low and sell high, making a profit from the price difference. This method requires learning market analysis, charts, and trading strategies.
2. Buy and Hold
This strategy involves buying selected cryptocurrencies and holding onto them for an extended period, expecting their value to increase over time. By patiently holding onto your investments, you can potentially benefit from long-term price increases.
Staking involves participating in a proof-of-stake blockchain network by holding and locking your cryptocurrencies in a wallet. In return, you earn rewards for helping to secure the network and validate transactions. Staking can be a way to generate passive income from your cryptocurrency holdings.
Cryptocurrency-based gaming platforms allow users to earn Crypto within games, which can later be sold or traded for other cryptocurrencies. By playing and succeeding in these games, you can potentially make money by accumulating and selling these in-game assets.
5. Airdrops and Giveaways
Airdrops and giveaways are promotions where new or existing cryptocurrency projects distribute free tokens to holders or participants.
By participating in these events, you can potentially receive free tokens, which may have value in the future if the project becomes profitable.
A Step-by-Step Guide to Getting Started With Cryptocurrency
1. Educate Yourself on Cryptocurrency
Before entering the crypto market as a trader, knowing precisely what and where your money is going is essential. Cryptocurrency has been around for over a decade; thus, a ton of information, including online courses, blogs, and whitepapers, is available for potential investors like you.
Find out everything you need to know about the crypto-blockchain market ecosystem. Read up on what common crypto terms mean and the different types of trading available.
Watch YouTube videos about blockchain, NFT, web3 and Cryptocurrency. Listen to crypto podcasts and follow thought leaders in the crypto industry on social media.
Whatever your preferred method of consuming information, ensure that you apply critical thinking to the knowledge being shared. Remember, this is an investment, and the goal is to profit.
2. Choose a Reliable Crypto Exchange and set up your wallet
Selecting a reputable and secure cryptocurrency exchange is non-negotiable. Research different exchanges and read their reviews online. Look at the team behind the exchange.
Furthermore, as a cryptocurrency exchange, we have established solid infrastructure and strategies to safeguard our customers against hacks and other security breaches. Read more about how we secure your assets here.
Once you set up an account on a crypto exchange, you can create different wallets for different cryptocurrencies. On Obiex, you get access to over 20 cryptocurrency wallets.
Create an account for free here.
3. Start Small and Diversify
Diversification means investing in different crypto assets. For example, Stanley and Thelma each have $1500 to invest in their crypto portfolios. Thelma invests $100 across 15 different cryptos, while Stanley invests all the $1500 in one Crypto. Stanley will have heavy losses if the market crashes or falls, while Thelma will likely lose less.
Splitting your portfolio into low-risk, moderate-risk, and high-risk assets is advisable. If you have more high-risk investments, there's potential for huge gains and equally huge losses. Conversely, more low-risk assets will bring minimal losses but low returns. Regardless of your risk appetite, your portfolio should be as balanced as possible.
4. Take Risk Management Seriously
Risk management is one concept both beginners and seasoned traders must always prioritise. As a new trader, you must understand the best way to manage risk. You must also set up a strategy that helps you minimise loss.
For instance, your risk management strategy can involve establishing strict rules on when to hold and when to sell. You could decide to sell only when a coin or token has risen 20% or hold as long as the coin doesn't fall below 15%.
5. Learn from Your Experiences
Expect a learning curve in crypto trading. Analyse your trades, identify mistakes, and learn from them. Continuously improving your strategies and skills will lead to better results in the long run.
Disclaimer: This article was written by the writer to provide guidance and understanding of cryptocurrency trading. It is not an exhaustive article and should not be taken as financial advice. Obiex will not be held liable for your investment decisions.