Being an early adopter of technology like a cryptocurrency has proved crucial if one desires to earn a big profit. Once bitcoin took off and its value increased thousands of times, the investors who were early to the party one day woke up as millionaires. The biggest bitcoin bull run happened in 2017 – the price rose to $20K.
The story is the same when it comes to the miners of crypto – those who decided they want to participate from early on managed to make a lot of money. Back in the day, there were fewer difficulties and the return was bigger. With more people joining, mining became tougher. We all know that now cryptocurrency is very popular and there is no way to go back and become an early adopter. However, there are still ways to earn a profit.
How to make money with cryptocurrency in 2020
If you would like to make money using cryptocurrency you should educate yourself on the way the market operates. You will need discipline and a little luck too and you will be trading successfully in no time. Learn about the different trading techniques – technical analysis and market sentiment analysis, and use them to monitor the movements of the market. The bigger the volatility, the higher the risk and possible return. You shouldn’t forget that trading is essentially gambling and timing is crucial. The market experienced again a small bull run recently which helped the new investors make a decent profit.
Trading requires discipline and rules. You have to set them and be strict on when you will be purchasing and selling. In this way, you will minimize the risk of making bad decisions driven by emotion. Although there might not be such a big increase in prices as in 2017, there is still some room for newcomers.
The original crypto and the more established other ones are still in play. There was a period with many ICOs which by now have failed and disappeared and some of them which had scammers behind them, have been charged.
It is no longer an easy task to mine Bitcoin. You have to take into consideration the huge cost of electricity which is involved in the process. This amount varies, depending on where you are located. Your best option is joining other miners and combining your resources. You will be sharing the hashing power and splitting the final reward.
You could also invest in firms which are setting up mining rigs for the most profitable cryptocurrencies in the places with the cheapest electricity.
Although mining used to be far easier in the beginning, you can still take advantage of the technology and make some money. Being creative and adapting quickly are two of the most important things in order to make a profit in 2020.