The Coronavirus pandemic has revolutionized business, affecting all of us. Using phrases quarantine and remote employment have become a practice in our daily lives. According to experts, this trend will continue for at least another 10-12 months. Many business owners who were unable to reorient themselves to remote work suffered losses. So, making money through various online platforms in 2021 is more relevant than ever. This is what we decided to tell you about.
What if people are forced to stay at home, they are running out of money for daily expenses, and quarantine time has not yet been completed? Don’t get discouraged! We will tell you about several ways to get rich on BTC without leaving your home! Let’s see how you can invest in 2021.
Profitable Investments in a Crisis – Is it Possible?
Investing isn’t just about cryptocurrency. People can buy gold, which rises in price and goes down in value. A lot of traders do this, but are they making a lot of money? Gold price dynamics will be stable in the long run and any of them won’t be able to earn much. A bit more perspective for people who buy stocks in the stock market.
Any financial commitment has its fundamental value due to the belief of investors that the company will one day pay out profits. But even for such a case, the volume of portfolio investments can amount to tens of thousands of dollars. You are unlikely to make a fortune by buying 1 stock. So, many novice traders prefer cryptocurrency investments. Of course, this is a risky business, but you won’t find another way to get rich in just a few months.
Cryptocurrencies & Investment Prospects
According to Glassdoor, based on a survey of 1,579 professional traders as of March 25, 2021, the average US trader’s portfolio investment is $97,161 per year. Many of these investments are related to the development of the cryptocurrency market. Of course, it’s a good argument to start earning in this way. By comparison, the average IT developer makes about $70,000 a year. Many people, despite the increased interest in cryptocurrencies from business owners, are still reluctant to invest in such projects. Why is it so? This is because business owners do not have the right information about risks. They don’t understand how to generate a return on investment. So, our experts decided to figure it out.
A Bit About Investment Methods
In 2021, the BTC rate remains at a very high level, which, of course, makes many people wonder about more earning opportunities. Bitcoin is undoubtedly the most popular cryptocurrency, but it does not mean that if people want to make money, they will do it with BTC exchange. Each trader has dozens of actual options. Here are the simplest ways to profitably invest your savings:
- Buying and selling cryptocurrency at a higher rate. The financial market is huge and dynamic, and perhaps if you decide to buy an unpopular cryptocurrency today, the cost of which is low, you will have a chance to make a profit at a low cost in a few months. Such an investment is definitely a risky trade. However, it would be fair to say that you can expect much more with Bitcoin than with other funds.
- Arbitration, i.e. buying cryptocurrency on one exchange and selling it at a profit on another. In this case, you will have to create several accounts and e-wallets. It won’t be tedious as you can opt for instant API authorization.
- Providing social loans using cryptocurrencies. This function is not available for every crypto exchange. The trader is offered to issue social credits only in cases when the online platform has been operating for more than a year and meticulously verifies each user. Sending a scan of the ID is mandatory for such projects.
What is Effective Trading?
More than 10 years have passed since presenting Bitcoin, which remains the most demanded one to date. In 2021, the BTC’s rate exceeded $60,000. Experts are confident of an increase in the rate of BTC in the long term and this is good news. Instead of long-term investing in diversified portfolios that can be sold at retirement or to meet other financial needs, traders are often involved in speculative trading based on market trends and technical analysis (TA). Most of them prefer to make money on cryptocurrency exchanges or in other ways.
If you monitor the dynamics of the BTC rate on ICOholder, you can hardly deny that such trading has generated huge profits for many startups. Some people just successfully decided to buy this cryptocurrency at a time of low bitcoin rate. Immediately after the price began to rise, it was possible to sell and make money on the difference. But how big is such a profit in today’s reality? This is the main challenge for many analysts.
Tools and Skills Needed for Cryptocurrency Trading
In the United States, the legalization of cryptocurrency is expected to further impact trade and machine learning. Prospects for full or partial financial independence of any trader are undeniable. Such a business will inevitably pay off in the long run. However, it all depends on your commitment to your work. Before venturing into real money trading, it’s important to first master the basic skills and knowledge. You should pay particular attention to the following:
- Deep understanding of trading jargon, fundamental and technical analysis. Choose a specific trading strategy and practice it with a free account. Demo platform developers use real market data that is included in charts and analytics. This is done in order to check the simulated trades more efficiently.
- Most analysts advise beginners to achieve a profitability ratio on a demo account, with which at least 70% of monthly trades are profitable.
- Calculate the costs associated with cryptocurrency options. Although with most trading apps you have almost zero commission on trades, you still need to have some initial capital. To make a profit, beginners should at first place a purchase transaction. Apart from the withdrawal fees, you will have to spend at least $100 to get started. This is the same as for stock trading. For example, with a $1,000 budget, if the price is $2 per stock, you need to wait for the 20 cents increase to get a net profit of $100.
Please note: Patience is the foundation of all trading. If you don’t get results within a month, this does not mean that you are poor at trading. Beginners should constantly improve their strategy.
Summary
Today many people are looking for more earning opportunities. Cryptocurrency trading is not the easiest one. You will have to experiment with many strategies before you can make sense of this business. After you learn the terminology and figure out the technical analysis tools, you will have to spend at least 4 hours a day practicing on a simulation account. But this is the only way to test your skills, discipline and patience.
Author:
Audrey Davis creates qualitative and informative articles. She combines analytical mind and creativity to make sure that her audience will receive maximum of information with interesting content. She believes that research, adaptability and stay current are the ways to become a great writer.