There are many money making ways in the crypto world: holding, mining, trading, staking, ICO hopping and most likely many more if you are creative. They all have their merits and disadvantages. Most of them I have done and or still be doing.
But in the end my portfolio has a bit BTC and ETH and the rest are only dividend tokens. I enjoy a passive income with my coins, don’t have the day trading stress anymore, just get laugh kicks when someone filled my absurd low buy order and I could sell the same day with 50 till 150% profit…. You can pull me off the floor every time it happens.
Holding Crypto (forever)
Dreaming at high future values, or plain Fear off Missing Out (FOMO) you decided to buy crypto. If it is Bitcoin or some other you bought it and decided to hold for some years and see where it goes. You are holding your coins (HODL in the crypto world for some reason with this typo error).
Holding seems very easy. Just buy some coins and hold. If you are able to forget about it for 5 years, it’s the most easy way to make money. If you bought 100 bitcoin in May 2014 you would have paid $10,000. That 100 BTC would have made you a millionaire it would be worth at the moment of writing $1,108,670. Just if you would have held for 3 and a half year.
Sounds an easy lazy way to watch your investment grow to unlimited levels. But do you see the problems with long term holding. When do you sell. I’m wondering if you would not be tempted to sell when it reached $500 (in May 2016) or at the moment it went through the $1000 at January 3th 2017… Or panicked when it dropped below 800 9 days later.
I started with Digibyte, I bought it with the intention to hold for at least 5 years. Within a month I started to look at the charts at least 1 time an hour. Got worried when it drops got happy when it rises. After a half year I saw my investment spike 100 times within half a year. Sold some way to early in this spike and bought a mining rig from this profit. Did not sell it at its peak and saw my profit crumble… what profit, its only profit when you cash out. After falling and more falling (and noticing how you could make a profit exploiting daily movement), I sold all! Within a half year of my holding for 5 year plan I have learned so much more I simply could not hold any longer. It was to hard to hold!!!
Another problem you have to make an exit strategy. If you bought that 100 Bitcoin in my example, set some sell points. I did it with my Digibyte.. When it reaches that level I will sell this amount. If you only hold and you have notice you are a millionaire… will it be enough, do you get greedy and thinking.. well maybe it can go to 100,000 value (and it will!) and I have a billion. When will you sell? Your billion is of no use when you are near of completely dead.
If you can’t decide what coin to hold. Take a look at Combicoin &Crypto20. Those are funds balanced between the top 30 and 20 coins.
Crypto Mining and Staking
You still can make a profit out of mining. But you have to make heavy investments A 120 MHZ Ethereum rig cost about $2000 and it will get you half an ether a month. And that half an ether will drop more and more as the difficulty to solve the codes will increase and you will receive less payment for your efforts. In the end I made a profit out of it because I could sell my rigs for near cost price after mining some months.
I also believe mining will be a thing of the past and has no real future. It consumes to much energy. At this moment the same amount of current is needed to validate crypto transactions as they use in Ireland. It is not sustainable. We will see more proof of stake in the future requiring less power and also way cheaper to invest in hardware. No need for high end video cards. But you still need your pc running and have your wallet open. But way les power especially if you do it on a raspberry construction (Pi3 B at 100% * 4 CPUs daily power usage is 86 Watt instead of the 1000+ Watt power supply you need for a rig
ICO Hopping
ICO (Initial Coin Offering or in normal world terms crowdfunding) hopping was very lucrative half 2017. Almost every project that started an ICO was raising millions in no time at all and when the ICO ended and the coin was tradable at the markets, 2x till x100 just happened. A lot of ICO’s also gave away discounts when you entered early. ICO hopping basically is joining an ICO sell as soon as it hits the markets, take profit and start process again with the next ICO.
I never was into ICO hopping and the one time I did…. ICO price was about $2,40 a token… in the end I sold it for 0.80 and it dropped ever since. The only ICO I joint afterwards was SIFT. But only after a good month in their Telegram channel. I started to trust this project and bought SIFT.
ICO hopping can be very dangerous. Not only can the project fail and your investment will be worthless. Or even worse it could be a scam, or you find out the company you invested in just stopped for whatever reason (see the image). Better let the pro’s do the picking. TaaS and Astronaut Capital are just doing that… picking the better ICO’s
Gambling in Crypto Casinos
Betting in a crypto casino, like any form of gambling, involves risk, and there’s no guaranteed way to make money. Crypto casinos typically offer a variety of games, including slots, table games, and live dealer games, where you can place bets using cryptocurrencies such as Bitcoin, Ethereum, or other digital assets.
Here are some considerations:
- Risk and Chance:
- Gambling always involves an element of risk, and the outcomes are often based on chance. There’s no foolproof strategy to ensure consistent wins.
- House Edge:
- Crypto casinos, like traditional casinos, have a built-in advantage known as the house edge. This means that over time, the casino is likely to make a profit. Understanding the house edge is crucial for anyone considering betting in a casino.
- Game Selection:
- Different games have different house edges. For example, some table games may have lower house edges than certain slot machines. Understanding the odds and rules of the games you play is essential.
- Bankroll Management:
- It’s crucial to set a budget for gambling and stick to it. Never gamble more than you can afford to lose. Proper bankroll management helps control losses and prolongs your gaming experience.
- Strategy:
- While some casino games, such as poker or blackjack, involve an element of skill and strategy, others are purely luck-based. If you’re playing skill-based games, learning and applying effective strategies can improve your chances.
- Promotions and Bonuses:
- Many crypto casinos offer promotions and bonuses. While these can provide extra value, it’s essential to read and understand the terms and conditions, including any wagering requirements, before accepting bonuses.
- Research and Education:
- Before engaging in crypto casino betting, take the time to research the games you’re interested in, understand the rules, and be aware of the potential risks. Continuous learning can contribute to a more informed and enjoyable gaming experience.
- Regulation and Legitimacy:
- Ensure that the crypto casino you choose is reputable, licensed, and operates legitimately. Scams exist in the crypto gambling space, so exercise caution and conduct due diligence.
Remember that the primary purpose of casinos, whether traditional or crypto-based, is entertainment. While it’s possible to win money, there are inherent risks, and losses are more common than consistent profits. If you decide to participate, do so responsibly and with a clear understanding of the associated risks.
Crypto Day Trading
Day trading can be very exiting but also exhausting. Crypto can raise way over 20% a day or drop with the same amount. This very volatile movements is also an option to make tons of money. If you many to buy at the beginning of each rise and sell before it drops again and repeat the process over and over you can gain a hell lot more than just holding. You can also do the reverse, if you are holding some coin. Sell it as it drops and buy it back when the dip reaches it lowest point.
The more you do it the better skills you develop in finding tokens with a lots of up and down movements during a day and how to read charts and other stuff. The big downside for me was day trading became trading all day. Even at night, woke up every 2 or 4 hours checking orders in the end. The whole day only numbers and charts here in my mind.
Get it for free
You can even get crypto for free. Absolutely for free! No catch attached. It wont make you rich, but you can get free crypto by participating in airdrops. You provide an email and crypto address (or sometime you have to be facebook friends or follow a twitter account and such) and get some coins send to that address. Bitcoin was airdropped in 2010, you could 5 BTC for free. Off course you could not buy a pizza with at that moment but some airdropped tokens will gain some value. I made at least 4 Ethers with eBTC and my Ethereum Blue is worth $200 at the moment. More about free coins see the menu. Searching for airdrops can take a decent amount of time and most will get you less than the transaction fees, but heee…. Free money!
Dividend tokens
But now I hold (near) only dividend tokens I have experienced a huge weight falling of my shoulders. My mind came to rest again. Dividend tokens have the same benefits as holding. I find it just easier to hold because when holding I get payment every period. So I don’t worry when token price drops or rises. Holding for long time is so much easier. I only consider selling now when I think I have to rebalance my portfolio and or want to expand to another token (with better prospect than the one I’m considering selling at that point).
Depending on what token you invest in, but let the pro’s do the day trading (SIFT, Spectre-D ) and ICO hopping (TaaS, Astro ) and even mining for you (envion.org)