The main task of the exchange player is to determine the most profitable strategy. Earnings options on the stock exchange today are not limited to trading games and investing and it is possible that, having understood a little, a person will find a more suitable option for himself. However, if not, it is also necessary to speculate and invest wisely. We will talk about the main ways of how to make money on the cryptocurrency exchange.
How to make money on the stock exchange cryptocurrency: trading
“Buy cheaper and sell more expensive,” – this expression should determine the behavior of the trader on the exchange. Newbies often forget about this in a panic, acting in exactly the opposite way.
How to make money on the stock exchange cryptocurrency: investing
Long-term investments involve investing money for a period of one year. Their supporters are people predicting market growth or cryptocurrency. Rates are made on currencies in which investors are confident.
Here, the investor does not care what happens to the currency in the distant future, he may assume that this is a HYIP or a pyramid that will collapse in a year. However, he is confident that in the coming weeks or months the currency will grow and buys it regardless of what it thinks about its essence.
This is the same as trading only on several exchanges at the same time. The rates on them may differ and you can make a profit by buying cryptocurrency on the exchange, where it is cheaper and then selling on the exchange where it is more expensive.
Margin trading allows you to speculate with a much more serious amount of funds than a trader has in his account. He takes a loan at a certain percentage from another person who is ready to give this loan and speculates with these funds in addition to his own.
Further actions do not differ from the actions of the trader. The player keeps the profit for himself at the end of the loan period and returns the loan with interest to the lender or left with nothing in the case of a series of unsuccessful transactions.
Margin trading on the other hand is the provision of credit to traders. Most loans take 1-3 days, but it is possible to lend for a month or more.
A larger percentage, as already mentioned, can be obtained by lending unpopular currencies, but it may be more difficult to find a trader in need of them.
You need to understand the tools, spend time studying the theory and features of cryptocurrencies in order to make good money on crypto exchange. You can earn income without relevant knowledge, but it will be much lower.
A good option for a newbie is long-term investment, but it will remain profitable until cryptocurrency grows. Sooner or later the situation will stabilize and the investor will again be faced with the need to sort out cryptocurrencies.