How To Make Money Trading Cryptocurrency

by | Last updated Mar 6, 2024 | Live Work Play Travel, Work Online + remote & nomad Life

I presume you are reading this because you have heard about cryptocurrency and how people are making loads of money trading it? And doing it from their phone or laptop while travelling the world and working online as a digital nomad. Right? Well you have come to the right place.

As a newbie to trading cryptocurrency myself, in this post I will explain what I have learnt about how to buy and sell cryptocurrency so far. And show you how to trade cryptocurrency and make a profit, like I am (well mostly). So let’s dabble!

Disclaimer: Please note I am not a professional or qualified trader. I provide this post for informational purposes only to explain how you could make money from crypto based on my own experience. My research has shown crypto is high-risk. Trading cryptocurrency is just one of the ways I make money online. You know what they say – diversify! The little money I have made helps me to continue travelling and living abroad. Be prepared you could lose all of your capital.

 

What is Cryptocurrency?

 

Let’s start with the basics – what exactly is cryptocurrency? Cryptocurrency (or ‘crypto’) is defined as digital or virtual currency created using cryptographic techniques that enable you to buy, sell or trade them securely. What?

Basically, a cryptocurrency is a type of currency that uses digital files as money. Crypto is actually the umbrella name for lots of different cryptos. Under the umbrella you may encounter cryptocurrencies such as Bitcoin (the first cryptocurrency), Ethereum, Liteon and  Cardano, to name a few of the couple of hundred, and growing, cryptocurrencies that exist.

 

How to make money with Cryptocurrency?

 

My research has shown me there are 8 ways or strategies to make money on crypto. They include:

  1. Investing in Presales & Top New Coins Early – This is when you follow cryptocurrency and learn when new coins are being introduced. And you can get a favourable purchase price and decide what you will do with them.
  2. Staking Rewards – This is when you hold your crypto by depositing into the crypto operations to help keep the crypto stable. You receive rewards for doing so.
  3. Play-to-Earn Games – This is when you play games and play for things which can you trade or sell for cryptocurrency.
  4. Yield Farming & Lending – This is when you deposit and lend crypto coins to where you purchased them and in return receive interest (in coins) for them.
  5. Day Trading – This is when you actively buy and sell crypto to take advantage of the price on the day.
  6. Long-Term Investing & Holding – This is when you buy crypto and hold it long term waiting for the price to go up to sell at a good price.
  7. Airdrops, Giveaways, Faucets – This is pretty new but you receive crypto tokens for completing tasks rather than being paid in cash.
  8. Mining – This is the process of connecting specialist hardware to your desktop device that connects you to the blockchain network and it verifies transactions which you make crypto for.

If any of these options attract you, I suggest if you want to know more about these to do your research on them thoroughly before investing. I thought I would give trading cryptocurrency a go because I already have shares and understand the processes. And this is what this post is about.

 

How to make money trading Cryptocurrency?

 

Crypto is similar to buying and selling shares on the stock market. You buy a share of a cryptocurrency, preferably at a low price, over time hope the price increases and sell it at a profit. If this sounds like something you would want to do, read on. To start making money trading cryptocurrency, follow these 4 steps.

 

Step 1: Choose a platform to buy and sell Cryptocurrency

 

To buy and sell cryptocurrency you will need a trading account. The best way to set up an account is through a trading wallet or App on either your computer screen or phone. Apps allow you to buy and sell the cryptocurrency and also keep a record of your purchases and sales, so you can follow the progress of the value of your investment. Apps to consider include crypto.com, coinspot.com, coinbase.com and binance.com – however, there are others for different countries. They all basically do the same – it is your choice which you choose.

 

Step 2: Set up a Cryptocurrency Trading Account

 

Once you have chosen your platform, set up your account. Follow the instructions of your platform. Ensure you safeguard your passwords.

 

Step 3: Deposit Funds

 

When your account is set up, deposit funds into the account. Yes, real money is used here. Transfer real money from your bank account to your cryptocurrency trading account.

 

Step 4: Start buying and selling Cryptocurrency

 

Cryptocurrency Trading Can Be Done On A Phone, Laptop or Computer. Monitor your buys and sells In Simple Graphs.

You can trade cryptocurrency on your phone, laptop or computer – get the essential tech gear

 

How to choose your first Cryptocurrency to buy?

 

Look at the different cryptocurrencies on offer. They include Bitcoin, Ethereum and Cardano to name a few. Check out their websites and the information they offer. Have a look at the graphs of previous periods – week, month – to see their performance. You will see if there has been growth or a drop in price.

The price of cryptocurrency is dependant on the number of investors. The price will go up if a lot of people are buying it and go down if a lot of people are selling it. Like stocks that go up and down, you can buy cryptocurrency when the price is low. Sit on it and hope the price goes up. Unlike stocks which offer dividends, cryptocurrency does not. What you see is what you have. So the only way to make money from Britcoin or any other cryptocurrency is to hope it will go up in price.

 

When should you sell your Cryptocurrency?

 

Buying and selling cryptocurrency is a gamble and no-one can predict what might happen. On saying that, to make money with your cryptocurrency, you can buy when the currency is low, sit on it and when it (hopefully) increases, sell. 

 

How much do you need to start buying and selling Cryptocurrency?

 

You can start buying and selling cryptocurrency with any amount. I would recommend $1,000 to start, but $500 as an absolute minimum.

TIP: If you are new to making money on cryptocurrency, I suggest you only invest what you can afford to lose. Even though people are making money buying and selling cryptocurrency, many lose money, so be prepared.

 

My Cryptocurrency Journey

 

As I mentioned, I already dabble with shares on the stock market so thought I would dabble with cryptocurrency. I started with purchasing $1000 worth of Bitcoin – Bitcoin was the name I knew. Once purchased, I sat on it and checked its progress daily (probably closer to weekly). I was lucky it went up in price and so I cashed out the profit and left the $1000 in the account. When it went up again I cashed out the profit and left the $1000 in the account. Yeah – I not a big gambler or risk taker. So far, this strategy of how to make money on crypto has been fruitful for me.

 

Final Words

 

Trading cryptocurrency is just one way people are making money online as they travel the world or work remotely online from home. It would be better to have an understanding of the cryptocurrency markets before you jump in, so do your first!r. Maybe start your cryptocurrency trading as a side-gig to test the waters. No matter what you decide, if you are an aspiring digital nomad it could be a great way to help you work and travel around the world. If you are interested in other digital nomad jobs, read this post. If you are having success from trading cryptocurrency I would love to hear in the comments following.

 

Cryptocurrency Is Becoming A Job People Can Do From Their Phone Or Computer While They Live Work Play Travel the World.

Thanks for sharing!

Just so you know: some of the links in this post might be affiliate links, which earn me a small commission at no extra cost to you. No pressure to use my links, but I REALLY appreciate when you do! Also, as an Amazon Associate I earn from qualifying purchases. 


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Sharyn McCullum Sailing Through The Panama Canal With Storm Chasing Boat.

Sharyn McCullum – Travel Writer / Blogger, Remote On-line Worker, sometime Digital Nomad and Travel, Live and Work Abroad Expert. Is a chocoholic, coffee connoisseur and lover of ’80s music. Been travelling all her life thanks to her dad who worked for an airline. Lived in London 4 years on a working holiday. Has holidayed in Hawaii over 15 times and currently calls Melbourne, Australia home. Is inspiring others to get the live work play travel lifestyle with this blog. Read more about Sharyn here.

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