With the last decade, the concept of cryptocurrency has matured from a phenomenon for computer nerds to a widely recognized industry on the global scene.
During this period of sporadic growth, many have gotten rich by investing and trading cryptocurrencies. In the same manner, many individuals got burnt (ask anyone who bought Bitcoin or any of the alternative cryptocurrencies (altcoins) at the peak of the 2017 bull market).
Some of the most popular altcoins are over 90% down from their all-time high, with Bitcoin being the only top cryptocurrency to recover near 50% of its peak price of near $20,000. Bitcoin was trading above $8200 at the time of writing this report.
However, it is vital to note that the degree of risk involved in making returns on cryptocurrencies is not enough reason for anyone to shy away from plying their trade in these new kinds of assets.
The fact that roughly $1.4 billion worth of Bitcoin is traded daily on the spot and futures market shows that many people have made the right choice, which is to figure out how to grab their share of the market rather than write it off.
From this point in the article, we will explore some of the best ways to earn healthy returns from the cryptocurrency industry. Although trading is prominently highlighted because of its status as a prevalent use case for crypto, there are several other ways for anyone to earn their share from the crypto revolution.
Best Ways to Earn Healthy Returns From The Cryptocurrency Industry
- Trading Crypto Assets
Trading, also known as day trading, represents one of the best options for anyone looking to earn short-term profits from investing in cryptocurrencies. The basic idea as with most financial instruments is to buy coins at a low price and sell at a high.
To achieve the desired result, the trader needs knowledge as well as access to a wide variety of tools, such as those offered by a crypto brokerage service like STS Royal. STS Royal allows clients to enjoy a ready-made trading plan and signals from analysts right on the platform, as well as the opportunity to trade crypto with leverage up to 1:5.
There is also the chance to work with a professional trader, meaning that even without knowledge of crypto, anyone can earn healthy returns by using the STS Royal crypto brokerage service.
For day traders, a few seconds and the right information makes the difference between profits and losses, even though the risk margin is significantly lower from seasoned traders.
- Long-Term Investing
While day traders can making sizeable returns (or losses) under the space of few hours, the goal with long-term investing is to buy cryptocurrencies, and hold them for as long as it takes for their price to appreciate significantly.
For instance, if you bought Bitcoin at the start of the last decade, statistics show that you would have gained over 9,000,000% profits at the end of December 2019. For those who bought into Bitcoin at its all-time high, however, they’ve yet to come close to a break-even despite holding the cryptocurrency for over two years.
Putting those numbers into perspective suggests that individuals who chose to use this model must either get their timing right or only dollar cost average into Bitcoin with the hope of breaking even once price skyrockets.
- Buying Crypto Funds
This method slightly differs from the one we just discussed since it involves allowing a third-party to keep custody of your cryptocurrency and pay you returns when there’s a price increase.
Crypto fund managers function in the same manner as brokers like STS Royal, if you choose to invest using this method. Commissions are charged overtime despite the portfolio’s performance during the period under consideration.
Meanwhile, Bitcoin exchange-traded funds (ETFs) are expected to be the next big break for the crypto space and could happen in the next few years.
- Investing in Crypto Startups
Aside from buying Bitcoin, you can also purchase shares in cryptocurrency and blockchain-related startups with quite a few of them (Coinbase, Ripple, Binance) already hitting the $1 billion valuations within the last decade.
While buying a particular cryptocurrency doesn’t represent your ownership of the company, an early-stage investment could pay off handsomely as these companies begin to enter mainstream consciousness and potentially go public in the next few years.
There is also a fast-growing niche of the cryptocurrency space, which allows the ownership of tokens representing your ownership in a company. These ‘security-like’ tokens differ from cryptocurrencies in general, and according to many industry experts, represent one of the best use cases for blockchain technology.
- Building Your Own Crypto-Related Company
If you have a firm conviction that cryptocurrencies will survive into the future and become widely adopted, then you can acquire some skin in the game by investing time and resources into building a crypto-related startup.
Several niches exist, ranging from providing crypto-payment processing services, setting up a media publication, organizing crypto-related events, content distribution, and even launching your blockchain-project to fill in a need in the industry.
No matter the step you choose to take, remember to take some time to evaluate and validate the idea with the community, and also to release a product or service that is regulatory compliant.
We’ve discussed some best ways to earn healthy returns from the cryptocurrency industry including day trading with brokers such as STS Royal, buying into crypto funds, as well as investing or building a crypto startup.
The downline? The type of profit that one desires (short or long-term) and the available capital will likely determine the investment option that they choose, with the different vehicles all leading to one destination: reaping rewards from the crypto revolution.