You need to work out what strategy you plan to take in order to profit from cryptocurrency. There are generally two different styles, trading or investing.
The goal of investing is to gradually build wealth over an extended period of time through the buying and holding of a collection (portfolio) of investment instruments, such as shares, bonds or in this case, cryptocurrency. Investors make these purchases and then wait until they grow in value. As all markets fluctuate, investors will “ride out” the downtrends with the expectation that prices will rebound and eventually be recovered. You may also hear this called a ‘buy and hold’ strategy.
Trading, on the other hand, involves much more frequent buying and selling of Bitcoin or your preferred alt cryptocurrency. Profits are made by buying when prices are low and selling when prices are high, all within a relatively short period of time. In movies these are usually the ladies and men in suits who sit in front of their computers looking at graphs all day, buying and selling in order to turn a quick profit. You will find there is a healthy amount of day traders in the regular community that most would be unaware of.
Either strategy is viable, it is up to the individual’s preference and personality. At Easy Crypto we always promote conservative trading to Australians and New Zealanders alike. Trading is not only higher risk but it requires hours of daily dedication for monitoring changes in the crypto market and making transactions based on these changes.
A significant amount of crypt enthusiasts combine both strategies. For example, you could invest a percentage of money and then keep a small amount online to trade with for a bit of fun. Do whichever that suits you better, but have a plan before you enter. Please begin conservatively when you initially put your first deposit in.