How Do You Make Money?

Take a second to analyse your portfolio. How do you look at your holdings?

• Do you group by their market cap? (ie. micro, small, mid, and large-cap)
• Do you group by category? (ie. platform, utility, currency, security, or DEX)
• Do you group by investment term? (ie. short, medium, and long-term)

Say you organise your portfolio by investment term. This might be how you break down your portfolio:

• Long-Term: these are your HODL coins, the solid projects that you believe in and continue to hold regardless of price action. You ignore short-term fluctuations in price, but over longer time frames these projects double, quadruple, go 10x in value.
• Mid-Term: these are newer and less established projects that you see good potential growth in. They are not as rock solid as your long-term holdings but have decent prospects to perhaps one day become a long-term hold. It is more important to time your entry with these holdings to avoid buying when overpriced. In a bull market, these smaller alts will bring you better returns than your traditional large-cap cryptocurrencies.
• Short-Term Trades: this is your fun money which you use to day/swing/momentum trade (whichever suits your fancy!). You don’t necessarily do deep fundamentals analysis on these projects as you are trading more on technicals analysis. This should only be a small portion of your portfolio.

But there is another money making strategy that is often overlooked by investors that fits into any organization of a portfolio.

Passive Income

Passive Income is income received on a regular basis requiring minimal to no effort to maintain

Doesn’t that sound fantastic?

Rental payments from an investment property or dividend payouts from holding large blue-chip stocks are traditional forms of passive income. But did you know you can earn passive income from crypto as well?

Day Trading Crypto

Day trading in crypto coins is an investment strategy where the business model is based on trading cryptocurrency as a short-term trading strategy. Here crypto assets and trading tokens are bought and sold on the same day. A successful trader will rely on tools and resources to keep track of market trends such as investor optimism, stocks, bonds, and other commodities and currencies. If you do not want to be a full-time trader you might opt for swing trading where you can make investments for a few days or weeks at a time.