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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:

how to make money cryptocurrency trading 2023

  • 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.

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You can also make money by opting to lend crypto the same way, banks pay interest on some savings accounts. For offering loans you earn interest from your loans every month or week- depending on the agreement you enter. One variation is a crypto-based savings account, where your crypto keys are lent out to other people who can use the crypto for a certain period of time and in return, the borrower pays you interest on the crypto that you lent them.

Crypto Market Mining

Crypto mining entails the core process that keeps the cryptocurrency’s network up and running by helping to solve complex mathematical problems. It is a process where specialized computers, also known as nodes or mining rigs, validate transactions on the blockchain for a specific crypto coin and, in turn, receive a mining reward for their computational efforts. Cryptocurrency mining can be conducted by an individual or organization provided that they have the necessary hardware and software resources to cover the computing power needed.

Cryptocurrency Dividends

This is a profit-sharing scheme offered by cryptocurrency companies. By holding a crypto network’s native cryptocurrency, you help keep the system secure and as a reward, you get a share of the profit of the work.

 Become a Crypto Broker

A cryptocurrency broker is similar to a traditional broker but in this case, a crypto broker acts as an intermediary between the cryptocurrency markets and investors and facilitates the buying and selling of cryptocurrencies. In some cases, a crypto broker may offer derivatives products to traders, where traders can enter contracts to speculate on the price of cryptocurrencies.