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, I will explain what I have learnt about how to buy and sell cryptocurrency, and show you how you can hopefully turn a profit, like I am (well mostly). So let’s dabble!
What 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 do you make money from Crypto?
Crypto is similar to buying and selling shares on the stock market. You buy a share of a cryptocurrency, hopefully 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, you will need to follow these 4 easy 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
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. 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.
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 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. If you are new, I suggest you invest what you can afford to lose. Even though people are making money buying and selling cryptocurrency, many lose money, so be prepared to lose money just as much as you are prepared to make it.
Trading cryptocurrency is just one way people are making money online as they travel the world or work online from home. It might be better if you have an understanding of the cryptocurrency markets, so research before you jump in. 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.