## Earn Passive Crypto Income

Cryptocurrency has been in the spotlight as of late, thanks to its meteoric rise in popularity and value over the past several years. 

However, it’s important to remember that while crypto can provide you with some pretty impressive returns on your investment, there are still some pitfalls that you’ll want to be aware of before diving in headfirst. 

Whether you’re thinking about using your cryptocurrency to build up passive income or you’re simply looking for something more stable than stock investments, here are some ways to earn passive income with crypto this year and into the future: 

## Staking

There are many different types of staking. Some popular proof-of-stake systems include PIVX, NXT, and PoS/Bitquence. I have been invested in POS systems for a while now, and my income has steadily increased as I am able to stake more and more coins. 

Note that staking can take a very long time – my passive income is derived from NXT, and it took over a year before I was able to reap any real rewards. 

The key here is patience! If you don’t want to wait months or years for your returns, you may want to consider other options.

## Proof of Stake (POS)

Proof of stake is a method by which cryptocurrency investors generate passive income. Under proof of stake, investors must stake their currency for a certain period of time in order to make money off it. 

Your investment has a sort of punishment if you don’t stake it or if you try to move your funds out early. The more coins you have staked and locked up, as they say, the more you can earn passive income with crypto over time. 

And while proof of stake isn’t necessarily better than other methods of earning cryptocurrency passively—for example, through mining—it does have its advantages. 

For one thing, there are far fewer barriers to entry with proof of stake than with mining: all that’s required is some cryptocurrency (and not much at that) and an internet connection. 

In addition, proof of stake doesn’t require any special equipment. If you have a crypto wallet, you can start earning passive income right away.		

## Validating Transactions

If you’re wondering how to earn passive income with cryptocurrency, another way you can do it is by validating transactions on the blockchain. Staking is a type of transaction validation that’s supported by many blockchains, and it rewards users with a small amount of cryptocurrency for verifying network transactions. 

But only certain blockchains support staking, so you must do your research before investing time and energy into something that may not be worthwhile. 

For example, Ethereum currently supports staking for its cryptocurrency Ether, but newer projects like NEO don’t yet have a working implementation. 

There are other ways to earn passive cryptocurrency income as well—you just need to learn which cryptocurrencies are best suited for each method. Sticking with a Proof-of-Work (PoW) currency allows you to mine or purchase those coins using a crypto exchange (if it’s available). 

You can then hold onto those coins in hopes of seeing their value increase over time, though these types of cryptocurrencies generally take longer than others to appreciate in value.

## Earning Rewards

One of cryptocurrency’s great strengths is its ability to reward owners for being hodlers—that is, holding onto their coins. Several coins offer staking and master node rewards, which means that hodlers can earn a profit just by holding their currency of choice. 

Staking and master nodes are often associated with high levels of risk, but recent developments have decreased those risks for many coins. 

For example, PIVX has developed an innovative proof-of-stake algorithm called zPoS that allows users to stake from low-power devices such as smartphones or laptops. This makes it easier than ever before to earn cryptocurrency passive income. 

It also helps ensure that even if you’re not able to contribute much processing power, you can still earn rewards on your holdings. 

Other projects like Groestlcoin and ZenCash offer master node systems where users who own 1,000 coins receive an annual reward of around 10% annually. These types of systems make earning cryptocurrency as a passive income more accessible than ever before.

## Crypto Savings Accounts and Crypto Lending

There are two major passive-income crypto projects: savings accounts (also called staking, master nodes, and proof of stake) and lending platforms. 

Many experts believe that both types of tokens will continue to appreciate throughout 2022; it’s hard to predict which one will perform best. As for deciding between them, here are some quick thoughts: 

1. Savings accounts earn more interest than other methods of earning passive income with cryptocurrency but require users to hold their money for longer periods—in some cases, as long as a year or more.  

2. With crypto lending platforms, investors typically earn between 6% and 20% interest on their money each month by simply investing funds into loans issued by other people or businesses. The downside is that borrowers can default on these loans, so there’s an element of risk involved. For example, you might invest $100 into a loan issued by someone who promises to pay back $110 in 60 days—but what happens if they don’t? You lose your initial investment plus any additional gains.

That said, most crypto lending platforms offer automatic payments so that borrowers repay their debts automatically once they receive new capital from another investor. And while many platforms charge high fees, some charge low ones or even no fees at all. 

So even though crypto lending isn’t guaranteed to be profitable, it can still be worth checking out—especially since there are no minimum investments required. 

If you do decide to give it a shot, make sure you understand exactly how much interest you’ll be paid before committing any funds.

## Liquidity Pools and Yield Farming

One of the most powerful methods for earning passive income in cryptocurrency is staking. This method uses liquidity pools, i.e., groups of coin holders who combine their funds and stake them with a staking pool operator (SPO). 

The SPO keeps track of all users’ holdings and distributes payouts every few days. Yield farmers, as they’re known, earn income by providing capital to join SPOs and by participating in payouts whenever they reach certain thresholds. 

When you combine two tokens into a pool, liquidity tokens are created, which can be farmed to obtain more rewards. The platform's utility token is frequently used to payout rewards.

Certain crypto accounts, particularly new ones, may offer payouts of above 100% APY. That rate may seem appealing, but it comes with a number of risks. The best way to minimize these risks is to invest in selected cryptos that are doing well. 

In essence, yield farming involves using one token to generate another—with little effort on your part. If you have extra tokens sitting around, consider joining an SPO. This could be a good way to increase your passive income stream without much work. 

And best of all, many SPOs even allow you to participate if you don’t own a lot of crypto. For example, here are some good options: 

* Avesta 
* Constellation 
* GoBlock
* IntenseCoin
* StakeUnited
* MintcoinCommunityFund 

As always, do your research before choosing an SPO! There are lots out there that seem trustworthy but turn out not to be so great after all. Some of these platforms also offer services like staking via master nodes. 

Masternodes require a significant investment upfront—usually 100,000 coins or more—but they’re worth considering if you want to maximize your passive income potential while minimizing your time commitment. 

Here are some good masternode options:

1. Dash 
2. EOS
3. NavCoin
4. Particl 

Again, research is key; make sure any master node platform offers enough incentives for its investors. For example, Particl pays 45% of its block rewards to stakers and 10% to masternode owners. 

## Conclusion

The best passive income cryptocurrency is Bitcoin (BTC), followed by NEO and ARK. These networks all have unique strengths but share a common theme—in order to earn passive income on these networks, one must simply hold tokens. 

With BTC and ARK, there’s a secondary benefit—as more nodes pop up on their respective networks, throughput increases, and transaction fees decrease. This is true with any network that uses Delegated Proof-of-Stake (DPoS) or Delegated Byzantine Fault Tolerance (dBFT).

For example, if you stake your tokens on TRON, you can expect an increase in transactions per second as more people stake their coins. This translates into higher network utility and thus better price appreciation over time. 

While it’s too early to tell which token will be most successful from a passive income perspective, it seems clear that only holding is required. 

And while staking may be best suited for investors who want guaranteed returns, it does require some technical knowledge and understanding of how blockchains work. 

If you don’t know what DPoS/dBFT is yet, we recommend learning about it first before attempting to earn crypto passive income through staking.

Ways to Earn Passive Crypto Income in 2022

Earning passive income on the side is one of the most compelling benefits of crypto. These methods can leave you earning in the background.

## About Bitcoin?

Despite Bitcoin's tumultuous price changes, the cryptocurrency has been gaining popularity and attention in recent years, especially as more businesses start accepting it as payment. 

For some, the idea of cryptocurrency is still a bit confusing – what exactly does it mean to mine for Bitcoins? Is there really such a thing as an altcoin? Why does everyone talk about mining? 

This guide will help you understand the ins and outs of Bitcoin so that you can make the best possible decisions regarding your involvement with this form of currency.

## What Is Bitcoin?

Bitcoin is a digital currency that was created in 2009. Bitcoin’s major innovation was a decentralised transaction ledger called blockchain, which is used to verify transactions via open-source software shared across networks. 

As of April 2022, there are $19 million Bitcoins in circulation. Since November 2017, the CBOE and CME Group have been trading Bitcoin futures contracts for institutional investors. If you want to invest, check the current Bitcoin price here. 

## Understanding Bitcoin

Bitcoin is a decentralised digital currency that allows users to make peer-to-peer transactions virtually. 

The process for purchasing Bitcoin varies depending on what country you live in, but once you’ve purchased Bitcoin it can be stored safely in one of many secure Bitcoin wallets. 

Whether you want to purchase Bitcoin, or use it as an investment, these are some great tools for new and experienced crypto enthusiasts. 

And since Bitcoin isn’t backed by any government or institution, its value depends entirely on how much people trust it. That can make it volatile, but also appealing as an investment vehicle for those who want to support a new currency.

## P2P Technology

The blockchain technology behind Bitcoin is called peer-to-peer, or P2P technology. P2P simply means a transaction is direct between two parties without an intermediary. 

For example, in a traditional credit card payment network there are many steps involved when you swipe your card: you give your credit card information to a merchant; that merchant sends a request to their bank for authorization, and finally that bank verifies with your bank whether or not you have enough funds to complete the purchase. 

With Bitcoin, however, each party has access to all of the information in each transaction—there’s no need for third-party verification. This ensures the security and privacy of transactions on both sides. 

## Bitcoin Mining

Cryptocurrency is relatively new, and most people don’t fully understand how it works. For example, if you have a computer that has plenty of processing power, you can mine Bitcoin yourself. 

Simply put, mining involves using a computer to generate cryptocurrency by verifying other transactions that happen on Blockchain—the digital ledger system that stores information about all of your Bitcoin transactions. 

It takes a lot of time and energy to do so, but if you manage to get some Bitcoin in return, it could be worth it. However, as more Bitcoins get mined, miners are forced to become more and more efficient. This is called the mining difficulty. 

It’s supposed to be getting harder with time and we’re currently at a point where Bitcoins are being mined faster than they can be added to circulation by increasing mining difficulty. 

The last Bitcoin halving took place in 2020 when it went from 12.5 Bitcoins every 10 minutes to 6.25 Bitcoins every 10 minutes. In the Bitcoin halving that took place in 2012, it went from 50 Bitcoins every 10 minutes to 25 Bitcoins every 10 minutes.

The rules of Bitcoin mining vary in each country. For example, Bitcoin mining has been declared legal by a German court and regulated by German tax authorities as part of an official private money program.

## Bitcoin History

Bitcoin has grown in popularity over recent years becoming a global means of payment, accepted by both individuals and large corporations. Unlike traditional currencies such as dollars, Bitcoins are not issued by a central authority like a bank or government. 

Instead, they are created through cryptography; computers solve complex mathematical problems and are issued 6.25 Bitcoins roughly every 10 minutes. Bitcoin transactions are verified by network nodes and recorded in a public distributed ledger called a blockchain. 

Bitcoins can be exchanged for other currencies, products and services. In February 2015, over 100,000 merchants and vendors accepted Bitcoin as payment. 

Research produced by Cambridge University in 2017 showed that there were 2.9 to 5.8 million unique users using a cryptocurrency wallet, most of them using Bitcoin. 

However, Bitcoin has been criticised for its use in illegal transactions, its high electricity consumption, price volatility, thefts from exchanges, and also for being an investment bubble. To learn more, read ‘Is Bitcoin a bubble?’. 

## Who Is Satoshi Nakamoto?

An anonymous programmer who called himself Satoshi Nakamoto was the person who created Bitcoin in 2009. The true identity of Satoshi Nakamoto has been a topic of speculation since he disappeared from social media, which leaves Bitcoin’s dirty secret still unknown. 

Most say it’s either a pseudonym for someone working to solve one of history’s great challenges or simply an imaginary person.

## Bitcoin's Special Considerations

Because Bitcoin has so many nuances that differentiate it from typical money, you need to take extra steps to protect your Bitcoins. Before getting started with Bitcoin, make sure you have a secure place where you can store your private key—which is kind of like your password for sending and receiving Bitcoins. 

You should never share your private key or passwords with anyone. Also, keep in mind that Bitcoin transactions are irreversible. If you send Bitcoins to someone by accident (or on purpose), there’s no way to get them back unless they accept them as payment too. 

Another thing to consider is that Bitcoin wallets aren’t always free. There are some Bitcoin wallets out there that charge a transaction fee for every transaction made through their service. 

This might not seem like much at first, but if you send hundreds of transactions per month, it could really add up! And lastly, remember that Bitcoin is still a relatively new technology.

Although Bitcoin isn’t going anywhere anytime soon, you may want to do more research before deciding whether or not Bitcoin is right for you. 

There are many resources available online, including forums and blogs dedicated solely to Bitcoin users discussing everything from trading tips to market predictions. Take advantage of these resources before investing any time or money into using Bitcoins. 

### Bitcoin as a Form of Payment

To spend your Bitcoins, you need access to an online exchange like Coinbase or LocalBitcoins (which can charge up to 3% in fees). Exchanges have transaction volume limits, so they may not let you withdraw all of your Bitcoin at once. 

With that said, exchanges are probably safer than keeping your Bitcoin on a cloud-based wallet. The safest way to keep your Bitcoin safe is by using cold storage methods such as hardware wallets and paper wallets. 

These methods don’t involve an internet connection and keep hackers from stealing your Bitcoins. If you do decide to use an online service, make sure it has two-factor authentication enabled. 

If someone gets hold of your password, they won’t be able to get into your account without also having access to your phone. Make sure you read reviews before signing up with any company. 

You should always treat Bitcoin just like cash—don’t store large amounts of money on services that aren’t specifically designed for storing cryptocurrency!

### Bitcoin Employment Opportunities

Some companies will pay employees in Bitcoin as part of their salary package; others will offer Bitcoin bonuses for good performance. 

Bitcoin is not just a cryptocurrency, it has boosted the economy by offering various employment opportunities—and they’re not just limited to tech roles. Here are the top 10 Bitcoin-related jobs you can get:
 
- Data Scientist 

- Machine Learning Engineer

- Financial Analyst 

- Content Writer 

- Web Developer

- Security Architect 

- Research Analyst 

- Journalist 

- Business Development Representative

- Marketing Manager 

### Investing in Bitcoin

The best part about cryptocurrency is that anyone can create their own Bitcoin. Bitcoin is open-source, meaning any developer around the world can take its code and use it for their cryptocurrency. 

While there are reasons to believe Bitcoin may become a stable, global currency, its creator Satoshi Nakamoto disappeared from public life in 2011—which leaves some people wondering what will happen if Bitcoin (or any of its spinoffs) fails. 

The good news is that Bitcoins aren’t going anywhere; they’re more popular than ever. But if you invest in Bitcoin or one of its spinoffs, you should always use prediction tools and follow market trends to make the most out of your investment. 

### Bitcoin Investment Risk

The question, ‘is Bitcoin safe to invest in?’ has probably crossed the mind of every investor. It is important to do your research before investing in any asset, especially one as volatile as cryptocurrency. 

Here are the top risks to keep in mind if you own or wish to purchase Bitcoin. By monitoring these, you could even become one of the few Bitcoin billionaires in the world. 

### Regulatory Risk of Bitcoin

Regulation of Bitcoin, if any, varies widely from country to country. While certain jurisdictions have banned its use and trade, others have been more accepting. 

In the US for example, Wyoming and Texas have issued crypto-friendly laws to encourage its use. New York, on the other hand, has strictly regulated cryptocurrencies since 2017. 

Thus, it depends on which state you are residing or operating in that determines the regulatory risk you may face when investing. 

### Security Risk of Bitcoin

Although Bitcoin has become more and more popular, there are some security concerns you should be aware of before using it. First, always choose a reputable site to buy your Bitcoins. 

And as tempting as it may be, never invest more than you can afford to lose in cryptocurrencies. Also, it’s important to note that while Bitcoin transactions do not have a third party (such as PayPal or Visa), they are still not 100% anonymous.

### Insurance Risk of Bitcoin

There is no protection against the loss or depreciation of your Bitcoin, similar to stock investments. Insurance firms are hesitant to insure investments since they come with a high level of risk.

This means that if you face losses or your Bitcoin wallet gets hacked, you will not be legally insured against the loss. 

### Fraud Risk of Bitcoin

While any new technology can be misused, there are special concerns with Bitcoin because of its anonymous nature, which makes it difficult to track transactions and makes it impossible to recover lost or stolen funds. 

As more people start using Bitcoin, we may see an increase in fraud cases involving Bitcoin. This can occur when a scammer sends Bitcoins to an intended victim but fraudulently switches around some numbers and gets paid by someone else for Bitcoins.

### Market Risk of Bitcoin

Bitcoin is different from any commodity we know and has a peculiar market risk. Crypto assets, like other commodities, are vulnerable to market volatility. 

The hazards associated with Bitcoin trading are divided into two categories: systematic risks and unsystematic risks. Because the crypto markets are inherently risky, a systematic risk exists in all cryptocurrencies.

On the other hand, a change in the company's fundamentals could be an example of unsystematic risk, which is exclusive to a single crypto asset.

## Conclusion about Bitcoin Secrets

Bitcoin is an evolution in money. It’s a bubble, but like many new technologies and asset classes, it will change and evolve for decades to come. 

While some criticise Bitcoin because of huge fluctuations in its price, experts predict that it has a bright future given the Bitcoin evolution so far. 

One day people may look back at how much Bitcoin changed how we think about money and understand that it helped create a global change in the financial market.

Bitcoin's Great Secrets

The cryptocurrency market has come a long way from where it was ten years ago. Today, people who know the inner tactics and secrets of cryptocurrency can bring good profits to the market.

 Bitcoin's Great Secrets 

## What Are NFTs and How Can I Use Them?

The excitement around NFT is growing rapidly. It’s a booming sector connected with the decentralized finance and crypto industries. People invest real money in virtual pictures to collect, resell and earn more than their initial investment. But why is it happening, and what are the prospects for the development of the sector? 

In this article, we will analyze the transcendental success of NFTs and explain their basic principles. Let's explore the concept of NFT in more detail and learn how to make money with NFT.

## What Are NFTs?
	
NFT stands for Non-Fungible Token, simply put, it’s a unique token that cannot be divided into parts. With the help of NFT technology, we can create a digital representation of any object. Among the things that can be turned into NFT are paintings, photos, videos, music, or GIFs. This means that almost any unique content up to real estate can be made virtual. 

But why has an object that cannot be divided or replaced by another suddenly become popular and useful? Let’s consider a real-life example. Imagine you have a cat called Sally. Sally is a unique cat; no other cat can be Sally. You don’t want Sally to be replaced by anything since she’s yours, the only one. The same works with NFTs: people enjoy their assets as they are not fungible, have no analogs, and are easily verifiable.

One of the main advantages of NFTs as digital assets is that they have unrepeated features that make them one of a kind, a unique token address, and a certain owner. Thus, if you buy, for example, a picture with an ape from the BAYC collection, then you own it. Since its uniqueness and rarity increases its value, it could be resold after a while at a much higher price if the collection is successful on the market.  

## NFT Token

NFT tokens were created as an opportunity for creators of digital content to confirm copyrights, earn money by selling assets to collectors, create unique objects for games, and satisfy art lovers. Today, the main direction is the monetization of NFT popularity. We witness that new collections and crypto communities are created daily. Developers try to find state-of-the-art solutions to increase the usefulness of tokens.	

### Difference Between NFT and Crypto

You've probably already heard about cryptocurrencies and tokens of various types. Typically, they are divisible and interchangeable, used as a means to pay or make instant transfers around the world. Popular cryptocurrencies such as Bitcoin, Ether, USDT, and others are fungible. 

Cryptocurrencies work like traditional money: if you have $2,000, it doesn't matter which bills you use to pay for dinner at a restaurant. Bills and coins are interchangeable. Also, you can buy 10 Ether, 0.5 Ether, and 0.02 Ether. Cryptocurrencies have the property of divisibility.

NFT tokens are a completely different kind of digital asset.	It really matters which digital image you possess. For example, an asset that is incompatible with a video game cannot be used as a resource or skin. NFTs with some outstanding characteristics and a high level of rarity (SR/SSR) will have more value in the marketplace than high-frequency (Normal) NFTs with more common features.

If you are an artist or a content creator, basic NFT characteristics will be useful for you. A third-party user cannot copy and resell your NFT, as the copy will not be verified by the blockchain, will not be considered the original, and will have no value. Thus, your digital asset is protected.

### How Does NFT Work?

NFTs are stored and verified using blockchain technology. Just like cryptocurrencies, NFT tokens that you own can be stored in your crypto wallet or account on the platform. The vast majority of NFT tokens are created on the Ethereum blockchain using the ERC721 standard (a set of standard interfaces for the release of NFT in the network); however, there are other possibilities, such as ERC1155 or ERC20 standards or other blockchains like Tron. Such a creation mechanism adds unique identifiers to each NFT, which allows you to track all transactions related to the token.

The most crucial component in transactions using NFT is the opportunity to declare your indisputable right of ownership. As a result of the NFT purchase, you receive a token that contains data about the transaction, the seller, the buyer, and the amount of money that was spent on the asset. If a token is resold multiple times on the same platform, you can also track the price alterations. 

### What Is the Use of NFTs?

NFT tokens are valued among gamers, collectors, and art enthusiasts. First of all, NFTs are used to create and confirm the copyright of digital art. Even in real life, with the help of NFT, you can confirm the ownership of real estate or a valuable item.

Modern NFT tokens are introduced into games to provide users with possession of unique or useful in-game tools. NFT tokens are also an excellent investment tool. NFT can be bought at the time of release (mint) of the collection and resold on the secondary market. 

## What Gives an NFT Value?

The value is determined not by the item or artwork itself but by the ability to prove ownership of a particular asset. The total transparency and publication of data on all transactions with no exceptions causes the value of an NFT to increase. 

The main differences between different collections are based on several criteria: 

* The blockchain on which they were created;
* The NFT platform on which the collection was released;
* The number of tokens issued;
* Respect for the authors of the collection;
* The success of previous NFT collections from an author;
* Token utility. 
If we are talking about the NFT collection and the difference between the price of tokens, then the token's rarity plays the main role. The rarer the NFT of a certain type, the more expensive it is. 

## How to Sell NFTs Art

It’s possible to trade NFT tokens through crypto marketplaces, specialized websites, and auctions. Some of them even have a narrow specialization. The most famous NFT platforms include OpenSea, Axie Marketplace, Larva Labs, and Rarible. Let’s explore how to sell NFT art.

### Select Your Marketplace, Mint the NFT, and Link Crypto Wallet

How do NFT creators make money? The first step to releasing your token or collection is to choose an NFT marketplace. It may depend on the platform whether the launch will be successful and which audience will be covered by the advertising campaign. 

As a rule, for the release of NFTs, platforms charge a commission in cryptocurrency. A fee is usually charged for the creation of the token. You can choose a platform that suits your goals based on the criteria of low commissions or popularity and reliability.

Minting is a specific term that refers to the release of the NFT collection for sale. It is used by both the authors and the audience, who can purchase the NFT during the mint. Such releases can be paid, free for all, or free for a group of privileged users. They serve as an advertising tool, and, most often, it is profitable to redeem NFTs on mint.

A crypto wallet is a special program that makes it possible to receive, send and store cryptocurrency or digital assets. The most important thing is to link your crypto wallet, where the NFT is stored. Also, money from the sale will be sent there.

### List NFT for Sale

It only takes a few clicks to list a token:

* Select an NFT asset
* Specify the address of the token 
* Specify the price (it can be fixed or auctioned)
* Specify the listing (on sale) period if the marketplace has such requirements
* Click "List for sale."	 
It is necessary to monitor whether your token remains on sale, the money came after the purchase, and the auction is functioning correctly. Often the authors of the NFT receive an additional reward for each resale of their NFT token.

## Can I Trade NFTs?
		
How do you make money from NFT? Apart from popularity and usefulness, the value of NFTs lies in their short-term and long-term resale value. Here comes an answer: the more success the collection has, the more potential NFT earnings a trader may have. We need to pay attention to market trends, blue chips (the most expensive NFT collectibles), and communities around projects. The main thing is not to enter the market too late, since after passing the peak of popularity or increasing the offer of NFT, the floor price may decline.

### What’s the Easiest Way to Profit from NFTs?

Creating your own NFT and collections is labor-intensive. This requires an initial investment for the mint. Its value depends on the platform and the number of tokens issued. You may need a development team to create a worthwhile, expensive, and successful collection. The easiest way to profit from NFTs is resale. You need to buy promising tokens and sell them at a higher price. If the collection has an active turnover, then purchases and sales will be profitable.

## What Is the Future of NFTs?

It seems that interest in the topic of NFT will only increase. Platforms regularly announce various innovations and attract investors; there are many new projects and collections and huge active crypto communities. Artists and musicians are beginning to show more and more interest in the new niche. Perhaps we will see even more opportunities for the use of NFT in the future. We must not forget that trends change quite quickly, so you need to keep an eye on innovations and tendencies. 

## Conclusion About NFT Earnings
	
Initially created to preserve copyright and confirm ownership of an asset, NFTs exploded onto the world stage, allowing the resale of digital art for millions of dollars and creating private non-fungible tokens or collections. The easiest way to profit from NFTs is to resell them on NFT platforms and marketplaces like OpenSea or Axie. 

The core NFT mechanism allows tracking transactions related to an NFT token, and such transparency increases the value of the whole concept. Many experts are arguing about the future of NFT, but so far, it is impossible to deny their ascent and the emergence of new use cases. We see prospects for their further development, as well as opportunities to benefit from them.


What Are NFTs and How Can I Use Them to Earn Money?

The excitement around NFT is growing rapidly. People invest real money in virtual pictures to collect, resell and earn more than their initial investment. 

What Are NFTs and How Can I Use Them to Earn Money

## Cryptocurrency Prediction for 2023/2025

In 2021, the crypto industry was worth 1,782 billion US dollars. By 2027, it is expected to reach a massive 32420 billion US dollars, roughly a 58% increase. 
As such, many investors are wondering what the price of cryptocurrencies will be in the future, particularly in the next few years. 
While it’s impossible to know exactly what will happen, we can look at what history tells us and make predictions based on current trends and market conditions. 
This guide will take you through some historical cryptocurrency price data and give you insights into what you can expect in the coming years.

## What Influences the Price of Crypto?

There are a number of factors that affect the price of any cryptocurrency. As an investor, it is important to take these into account in order to make smart investments and know when to sell. Here are some of the most important factors to monitor if you own crypto: 

### 1. Scarcity

Currently, cryptocurrencies aren’t built for mainstream adoption and suffer from scalability issues. As more people use cryptocurrency, these problems become more apparent. 
If cryptocurrency isn’t able to scale effectively enough to handle large volumes of transactions, it won’t be able to compete with traditional payment methods such as credit cards or PayPal. This, in turn, can cause prices to drop. 
For example, there are only 21 million Bitcoin that will ever be mined, so if you want to invest in Bitcoin, a limited supply poses both advantages and disadvantages. 
On the one hand, those who invest now can enjoy high returns once Bitcoin production stops because of limited availability. On the other hand, experts predict a lot of black market activity, hacking, and similar issues as people try to acquire cryptocurrency. 
These factors combined will affect the price and stability of the cryptocurrency. 

### 2. Mainstream Adoption

The majority of investors enter and exit cryptocurrency markets based on market sentiment. A perfect example of this is how the price of a cryptocurrency (or the entire market) changes when Elon Musk Tweets about it. 
Since you cannot predict what will trigger positive or negative sentiment in a given day, week, month, or year—it’s important to realize that your cryptocurrency price predictions can be wrong. 
It’s a good idea to forecast future prices based on how readily industries or countries plan to adopt crypto. 
For example, the government of El Salvador plans to create an entire crypto city where transactions will only be made using crypto. This mainstream adoption can drive up the prices of the coins being used. 
If you don’t have information at hand about the coin(s) you plan to invest in, then maybe it’s better to buy a smaller amount of a specific crypto asset — or, perhaps, hold off on committing capital to it altogether. 

### 3. Regulation

Many governments around the world have expressed concern over how cryptocurrencies can be used by criminals, terrorists, and other bad actors to conduct illegal activities without being tracked by law enforcement. 
It’s possible that regulation could limit growth for some cryptocurrencies (e.g., Monero), but others (e.g., Ethereum) may not face serious hurdles due to their transparency and government-friendly nature.
Thus, it is best to invest in crypto that is built on a safe network and unlikely to require regulation. 

### 4. Mining Cycles

Bitcoin mining has two economic characteristics that influence its price fluctuations: 

1. There’s a delay between when energy is spent and when it’s repaid since payments come from newly minted coins that aren’t mined until later

2. In order to create coins, miners must consume an ever-increasing amount of energy, leading to periodic cycles — mining demand booms as difficulty increases, then fall off as miners move on to greener pastures

These boom-bust cycles are known as mining cycles and are a major influence on cryptocurrency prices. 
The more money people invest in mining hardware, the higher Bitcoin’s network difficulty rises—and with it, every other cryptocurrency with a proof-of-work consensus algorithm (e.g., Ethereum). 
In short, if you want to know what drives crypto prices up or down, follow mining activity closely.

## Crypto Price Analysis for the Past Several Years

The good news is that we’ve seen a lot of growth in cryptocurrency over the past decade. However, we’ve also seen significant pullbacks. 
In 2022, Bitcoin started the year nearly twice as valuable as it had been in January 2021, capping a year in which cryptocurrency sparked widespread attention and curiosity. 
However, by the end of January 2022, Bitcoin had practically lost all of the previous year's gains, falling below $33,000. 
Before you can successfully create a crypto price prediction for 2025, you need to take several factors into consideration (such as those listed above). 
From there, you should build your own crypto price prediction algorithm or use the best crypto prediction sites that take in all of these market forces and combine them with real-world data.

## Cryptocurrency Market Cap Prediction 2023-2025

After years of cryptocurrency price fluctuations, it can be difficult to get a sense of where some of these coins are going. 
But there is one prediction you can bank on: the market cap for cryptocurrencies will explode over the next five years, according to a new report from Juniper Research. 
The research company predicted that by 2022, more than $1 trillion worth of value across all cryptocurrencies will be exchanged every year. Today, we see a market value of $2.04 trillion. 
However, it is also important to note that while most researchers are optimistic about the market cap predictions for crypto in the coming years, the market is also very volatile. In 2022, the market cap reached $3 trillion before dropping to $2.04 trillion. 
For more in-depth information, see the market cap predictions for some of the top trending cryptos based on predictive analysis techniques and forecasting tools: 


### 1. Bitcoin

The market cap of bitcoin was $237 billion in 2017 and $1156 billion in 2021. Its price is predicted to reach $126000 in 2025. The cumulative number of Bitcoins created will be 21 million by 2025. 
Bitcoin is a deflationary currency, meaning that mined coins are finite. The finite supply of Bitcoins will lead to their increased value over time. Hence, it makes sense to invest while they are still cheap. 
A good way to know if you should buy or sell a cryptocurrency is to see if its price has gone up or down over a period of one month. In addition, cryptocurrencies like Bitcoin have been used for making payments across borders without incurring high fees from banks or other intermediaries.

### 2. Ether

As Ethereum becomes increasingly popular, its value continued to soar through 2020 and beyond. Following this trend, some experts predict that Ether could reach as high as $12,000 by 2025! 
This is great news for investors who are looking to cash in on an exponential growth rate. The best part is you don’t have to be an expert analyst or mathematician—you can use a simple crypto price prediction calculator to get an idea of what your investment might be worth by then.

### 3. BNB

Binance Coin is currently the 14th cryptocurrency by market cap. BNB has been on a bull run, recently surpassing BTC’s market cap on January 3rd 2022 to take 13th place. 
The Binance token is an ERC-20 token based on the Ethereum blockchain with a current supply of 200 million and a circulating supply of 100 million. The total supply of BNB tokens will be 200 million. 
It is used as a trading pair in exchange for discounts on fees at 0.1% per trade. Moreover, it can also be used to pay for listing fees or any other services provided by BNB, such as their upcoming DEX (decentralized exchange).

### 4. Cardano

Cardano is building its very own blockchain, which will be scalable and maintainable. At present, Cardano isn’t focused on being a cryptocurrency; instead, it’s working to solve issues with existing blockchain platforms. 
However, because there are over 1,300 cryptocurrencies in existence (and more popping up all of the time), it is predicted that by 2025, Cardano’s ADA token could be worth somewhere between $2.69-$3.56. 


### 5. XRP

Based on our algorithm that combines fundamental analysis with other factors like community engagement, development, and more, we predict XRP will reach a market cap of $12.2 billion in 2025. 
We arrive at that number by applying our cryptocurrency prediction algorithm to market data, such as the current supply and demand of XRP, along with its future technological developments.


### 6. Polkadot

Polkadot (POLC) is not just another cryptocurrency. It’s a blockchain ecosystem that combines multi-currency payments, staking, messaging, asset creation, and sharing. 
Built as the world’s first interoperable blockchain platform, Polkadot promises to be able to handle transactions between multiple cryptocurrencies without requiring users to exchange them into fiat currency first. 
The platform also includes an identity management system that will enable users to share data with other platforms while keeping their information secure from prying eyes. Polkadot offers promising returns, as experts predict the price to reach $80 per coin in 2025. 


### 7. Litecoin

The Litecoin market cap is expected to reach $7.85 billion by February 1st, 2025. This prediction comes from an algorithm that predicts future values with a 70% accuracy rate using historical data and trends. 
If we look at short-term changes, the Litecoin market cap projection is up 6.06% over the last week, indicating a positive trend in its price.

### 8. Solana

As of May 2022, Solana’s market cap stood at $29.99 million (USD). In just a few years, Solana could realistically claim a place in that top five or ten cryptocurrencies due to its exponential growth. 
With predictions like these — and with a real product that is proving its value — it is not farfetched to say that we will see an astronomical rise in price over the coming years. 

## What Investors Need To Know About Crypto Price Predictions

Here are some interesting facts and tips that will help you predict accurate crypto price changes: 

1. Cryptocurrencies aren’t backed by a government or a central bank. The decentralized nature of crypto makes it harder to predict price changes. 
2. When you invest in cryptocurrency, monitor its value over time, not day-to-day changes.
3. Most cryptocurrencies are subject to volatility. They experience big price drops every few weeks and then recover; thus, experts recommend investing only 5% of your portfolio in a coin. 
4. If you have questions about investing in cryptocurrency, talk to an investment professional who has experience with these kinds of assets. 
5. There are lots of scams out there that try to trick people into investing their money in fake cryptocurrencies. Make sure you know how much money you’re putting at risk before you buy any cryptocurrency.
6. If it sounds too good to be true, it probably is!


Cryptocurrency Prediction for 2023/2025

Cryptocurrency price forecast for 2022-2040. Find out the price of cryptocurrency today, price analysis and our cryptocurrency forecast.

Cryptocurrency Price Prediction 2022, 2025, 2030

## Crypto Trading 2022

The crypto market is currently worth $2.04 trillion, a figure that has emerged in just a decade. This explains the worldwide interest in adopting crypto as a mainstream payment method for financial transactions.
If you’re looking to invest, learning cryptocurrency trading strategies is extremely important in order to maximize profits.
Below are some basic tools and tips that will be helpful to learning crypto trading for beginners, whether they’re investing in just one cryptocurrency or in multiple digital assets at once. 
Even though some of these strategies are more complex than others, they can all be valuable additions to your cryptocurrency trading knowledge base as you begin to invest or trade in cryptocurrencies on various exchanges.

## What is Crypto Trading?

Taking a financial position on the price direction of individual cryptocurrencies against the dollar (in crypto/dollar pairings) or against another cryptocurrency (in crypto to crypto pairs) is known as cryptocurrency trading. 
Trading cryptocurrencies can feel like a daunting task for beginners. However, like with other markets, it’s not that difficult if you learn how to do it first. In fact, cryptocurrency trading is more simple than you might think. 
If you want to learn more about crypto day trading for beginners and how to get started with it, there are numerous online crypto trading courses available that help you invest in virtual currencies.

## How to Start Crypto Trading for Beginners

If you have no idea where to get started, follow these simple steps to begin trading: 

### Sign up for a cryptocurrency exchange

Signing up for a cryptocurrency exchange is the first step as a beginner-level crypto trader. These exchanges are designed to provide you with a crypto trading platform from which you can buy and sell cryptocurrencies easily and quickly. 
In most cases, users can buy or sell different types of coins (and sometimes fiat currencies like USD) with other users on these exchanges through paired trading. 
This means that if you want to sell Bitcoin for U.S. dollars, then you will need to find someone who is willing to buy Bitcoin using U.S. dollars from you. 
In addition to this, you’ll want to find an exchange that offers low trading fees, high liquidity, minimal verification requirements, and many payment options. Some common options include credit card payments (with Coinbase) or bank transfers (with Kraken).

### Fund your account

As a beginner, your first priority is probably figuring out how to get your hands on cryptocurrency. The easiest way to do that is by signing up for online exchange and then funding your account with fiat currency, usually via a bank transfer or debit card. 
Once you’ve done that, you can start trading. Most exchanges will also require you to set up two-factor authentication (2FA) in order to access your account more securely. 

### Pick crypto to invest in

There are over 1,400 cryptocurrencies on CoinMarketCap, so you’ll want to narrow it down. If you’re looking for something with a bit of history and a proven track record, Bitcoin is your best bet. 
However, if you think you can handle more risk, investing in an altcoin, like Ethereum, that shows growth potential, might be better for you. Both options come with their own pros and cons. 
Another viable option is investing in multiple coins in order to diversify your portfolio. Whatever you choose, make sure to do plenty of research before diving in headfirst.

### Start trading

Each platform has a unique UI, but you can start trading by using the Buy/Sell page on your platform’s website or app. Be sure to check out the platform’s added features, for example, automated crypto trading. 
Automated trading allows bots to trade on your behalf and provide the best results on your investments with the information that they are fed. 

### Store your cryptocurrency

In order to trade cryptocurrency, you’ll need a digital wallet in which to store it. Some platforms offer a built-in wallet, while others will send you a code to set up your own. 
Hardware wallets like Ledger and Trezor are meant for long-term storage (i.e. years) of cryptocurrencies. They are less prone to hacking and viruses so you can protect your investment. 
If you plan on regularly trading crypto, it’s worth it to keep some of your coins in an exchange so that you can jump into trades at any time.

## Basics of Trading Crypto for Beginners

If you’re just getting started in cryptocurrency trading, there are a few things you should know: 

1. Cryptocurrency trading is not as complicated as you may think; it’s a lot like day trading stocks, except with more factors to take into account.

2. Do your research: in addition to doing some reading on digital currencies and their value—or lack thereof—you should also familiarize yourself with the best crypto-trading platforms and their quirks.

3. Keep an eye out for scams: cryptocurrency trading is still relatively new, so there are plenty of people looking to make a quick buck by preying on inexperienced traders. Be wary of any investment opportunities that seem too good to be true or require little effort on your part.

4. Don't follow your emotions as they will damage your trading. Greed can turn your profit into a loss, and panic selling of your investments can leave you without gains. Here when [crypto trading bots ](https://tradesanta.com/en?utm_source=exolix&utm_medium=link&utm_campaign=june) come into play — since they do not have emotions, you will be able to react right away to any market changes 24/7.

## Structure of a Crypto Trade

Before you start trading cryptocurrency, you need to understand how trades are executed and structured. To execute a trade on Coinbase, first, click Sell or Buy at the top-right of any page. 
This will take you to a page where you can enter at your desired price. At the bottom-left of that same page is an entry box labeled Amount. Enter in either a dollar amount or BTC amount (depending on currency). Next, click Submit Order when done.

## Reading the Markets

To start off your journey of trading cryptocurrencies, it’s important to have a firm grasp on how cryptocurrency markets operate. 
Crypto markets are still very much in their infancy, and they don’t respond in exactly the same way that traditional securities do—meaning what worked yesterday may not work today. 
Cryptocurrency markets are decentralized, meaning they are neither issued nor backed by a central body like the government. Instead, they're distributed across a computer network. 
Cryptocurrencies, on the other hand, can be purchased and sold on exchanges and held in wallets. Moreover, unlike traditional currencies, crypto only exists as a shared digital record of ownership maintained on a blockchain. 
A user sends cryptocurrency units to another user using their digital wallet. The transaction isn't deemed complete until it's validated and added to the blockchain via a process known as mining. New cryptocurrency tokens are frequently created in this manner.

## Technical Analysis

Technical analysis is a method of trading that uses financial market data, primarily price and volume, to predict future prices. At its most basic level, it can be thought of as trend analysis combined with fundamental analysis.
There are many different kinds of technical analysis; one popular method is called candlestick charting, which was developed by Japanese rice traders more than 400 years ago. 
Candlesticks take into account both price and volume, giving you an idea of how much demand there is for an asset at a given time. 
Candlesticks also make it easy to spot patterns in prices over time, including support and resistance levels—the areas where buyers tend to step in when prices fall below them, or sellers step in when they rise above them.
Moreover, there are fewer chances that you’ll lose money if you stick to top-tier coins (Bitcoin, Ethereum, Ripple, Litecoin). Smaller currencies may have potential, or they may not be worth your time and effort. 
Thus, make sure you understand the following concepts before investing in a digital currency: 

### Market structure and cycles

Traders who use technical analysis believe that everything in the markets moves in trends and cycles (also called price action), so it’s important to understand these cycles and their relationship to asset prices in order to have any hope of making consistently profitable trades. 
Using the data of the crypto market from the past decade, it can be said that the cycle of a coin is thought to run roughly for four years on average. 
However, there is no definitive time frame. While market cycles can last for years, the cycle of a single cryptocurrency can last anywhere from a few days to a few weeks.

### Chasing the whale

If you’re looking to buy large amounts of cryptocurrency, you might consider contacting exchanges or other trading platforms and seeing if they offer bulk discounts. If not, another strategy is to aim for what’s known as a whale. 
Whales are investors with deep pockets who can drop hundreds of thousands (or even millions) at a time on an investment – which allows them to influence prices. As such, many traders chase whales in hopes that their investments will pay off big. 
While chasing whales may be risky, it could also yield big rewards. As they say: the higher the risk, the higher the reward. 

### Psychological cycles

The basics of cryptocurrency trading are pretty simple. These are highly volatile assets and not a great place to put money you need on a short-term basis. 
Crypto moves up and down very quickly, so you need to be prepared for sudden changes, even if you’ve analyzed past price trends. You can expect to see your investment drop 50% in value in one day and rise 70% the next.
Fortunately, experts have come up with technical analysis tools that can help you predict market trends based on psychological factors. 
For example, the Relative Strength Index (RSI) indicator may indicate when an asset is overbought due to a strong positive market sentiment (e.g., excessive greed).
Another indicator that can be used to detect different psychological stages of a market cycle is the MACD. In other words, the relationship between its lines may reveal when market momentum is shifting (e.g., buying force is getting weaker).

## Basic Tools

Crypto investors use the following tools to predict changes in price and thus, buy or sell accordingly: 

### Support and resistance

When trading on a daily chart, use technical analysis to find support and resistance levels, which are points where traders tend to catch their breath before moving in one direction or another. Once you know where these levels are on a chart, you can use them as entry and exit points. 

### Trendlines

Trendlines are a visual representation of a crypto market’s price over time. If a trendline is upward-sloping, it implies that prices have been rising; if downward-sloping, they’ve been falling. 
One of the easiest ways to draw a trendline is by using an online graphing calculator like TradingView. To add a trendline to your chart, just select your timeframe (use 5-minute for beginners), click on Chart at the top, and then select Trendline. Move your cursor to draw a line based on two points that indicate an upward or downward trend. 
To get a more detailed explanation of how to use trendlines to predict cryptocurrency movement, check out Cryptowatch Academy. Trendlines are simple tools and generally easy to spot on most charts; however, as with any investment tool, they should be used with discretion.

### Round numbers

The first and most basic tool in day trading crypto for beginners is simply learning to recognize round numbers in relation to currency price. These include: $100, $200, $300, $400, $500 and all multiples of these such as $900, or even more unique rounds like $1,338. 
Once you start seeing patterns in terms of where prices like to bottom out around these numbers at certain times of the day or during certain parts of an economic cycle, you’ll be able to recognize opportunities quickly and efficiently.

### Moving averages

A moving average is a simple trend-following strategy that smooths out short-term price volatility. 
It does so by averaging (or adding together) past trading prices and plotting those values on top of one another in an attempt to capture trends, rather than trying to pick tops or bottoms in any given market.

### Chart patterns

The idea here is that price movement tends to repeat itself, meaning that history repeats over and over again. This isn’t true all of the time, but many investors have found it extremely helpful in being able to trade effectively.

## Fundamental Analysis

Are you confused about how to trade in cryptocurrency? How do we determine market capitalization and if it's a good or bad time to buy into an altcoin? What are some of the most common crypto trading strategies for beginners? In order to answer these questions, let's first explore the fundamental analysis of the crypto industry: 

### Developers

Cryptocurrency developers are computer programmers who are proficient in coding languages such as Ruby on Rails, Node.js, PHA, Java, Python, C#, etc., which are often used in APIs to connect various mobile apps and web services to the cryptocurrency blockchain.

### Community

A community is essential for the survival of crypto. This is because a coin is only successful if people adopt it for mainstream transactions. Without the community, cryptocurrency may as well be void. 

### Technical specifications

Each cryptocurrency has its own specifications. For example, XRP’S infrastructure allows it to improve the payment process. Its neutral, internet-based protocol allows for communication between banks and payment systems. 
Moreover, banks can use XRP as a general ledger to settle and clear transactions. Similarly, Ethereum runs on its own blockchain with a different infrastructure in place. 

### Innovation

According to the capital markets organization, the crypto market is part of the global economy's march toward automation, digitization, efficiency, and productivity. It has now reached a critical juncture.
"At its most fundamental level, we believe blockchain technology and the crypto economy could be the most significant breakthrough of our lifetime," say McKenna & Ryan. 

### Liquidity (and whales)

In essence, liquidity is how much volume a coin or token has and its ability to be bought or sold at any given time. Generally speaking, liquid coins are usually paired with high market capitalization. 
Some common exchanges that are considered liquid for cryptocurrencies include BitFinex, Binance, Kraken, GDAX (owned by Coinbase), Gemini, and Poloniex, to name a few. 
Because there are more whales but much smaller volumes and liquidity across these exchanges, cryptocurrencies are particularly vulnerable. These whales are locked in a figurative swimming pool without enough liquidity, destined to send massive waves through the market as soon as they move. 

### Branding and marketing

There are various "coins" fighting for dominance in the cryptocurrency realm, and many are gaining popularity quickly. But who will emerge victorious? 
Because the success of these newcomers to the world of finance will hinge on widespread consumer uptake and effectively explaining a complex and abstract concept to the people, the answer may well come down to branding.

## Infrastructure

In order to start trading cryptocurrency, you’ll need an account with a cryptocurrency exchange. Unfortunately, not all exchanges are created equal, so research is important before choosing one. You’ll also need some funds to trade with. 
There are two main ways to acquire cryptocurrencies: buying them on an exchange or accepting them for goods and services. Whichever method you choose, make sure that your crypto trading software for beginners can handle multiple currencies. 
The last thing you want is to accidentally send Bitcoin when you meant to send Ethereum (or vice versa). And don’t forget about taxes! Depending on how much trading you do, it may be wise to pay quarterly taxes on crypto trading. 
Otherwise, depending on where you live and the crypto laws enforced, you may have to pay heavy fines and penalties. 

## Conclusion

To start crypto futures trading for beginners, it’s important to get a strong understanding of crypto trading terms and crypto day trading rules. It’s also important to pick up some technical knowledge on where and how to trade cryptocurrency. 
And if you’re looking for beginner-friendly ways to begin investing in cryptocurrencies or want an overview of how blockchain works, use this guide to get started and trade successfully!


Crypto Trading for Beginners

If you want to learn how to make money with cryptocurrencies, check out our guide to cryptocurrencies for beginners. This is everything you need to know about how to trade Bitcoin and other popular cryptocurrencies.

If you want to learn how to make money with cryptocurrencies, check out our guide to cryptocurrencies for beginners.
This is everything you need to know about how to trade Bitcoin and other popular cryptocurrencies.

## The Basics of Investing in cryptocurrency 

As the price of Bitcoin and other cryptocurrencies has risen, more people have been investing in cryptocurrency without knowing how it works or where to start.

In this guide, we’ll help you learn how to invest in cryptocurrency, manage risk, explain the best crypto to invest in, and legal issues you may face. 

## What Is Cryptocurrency?

![What Is Cryptocurrency?](https://blog.exolix.com/uploads/Article_3_1_min_c3bb59c5f8.jpg)

Simply put, cryptocurrency is digital money. It allows people to send currency from one person or location to another via an encrypted computer network. In some ways, it operates similarly to an exchange like eBay—but with digital currencies instead of physical goods.

Essentially then, investing in cryptocurrency is just like trading in foreign currencies or stocks—but with less regulation.

Cryptocurrency is decentralized, meaning it is not controlled by any authority. This is one of the major reasons why it is being adopted so widely.

## How to Safely Invest in Cryptocurrency

To ensure the safety of your cryptocurrency when buying it, it is important to choose an exchange that is operating legally and takes steps to ensure that transactions are encrypted and secure.

Additionally, as soon as you get your hands on cryptocurrency, transfer it to a paper wallet. Paper wallets are an easy way to store your coins offline—the keys aren’t stored digitally anywhere and can’t be hacked remotely.

All you need is a clean computer (which hasn’t been previously connected online) with a printer and some bitcoins. Once you create a paper wallet, print out your public and private keys on separate pieces of paper.

The public key will be used to deposit funds into your account; keep that one safe! The private key should never leave its secure location. If someone gets their hands on that piece of paper, they could steal your money from any account linked to that address.

## Decide Where to Buy It

You can buy cryptocurrencies with fiat money on exchanges, such as Coinbase or GDAX. Look for cryptocurrency exchange with the following features:

● 	Simple and easy to navigate

● 	Low exchange fees

● 	Good UI/UX

● 	Has a mobile app

● 	Keeps your data secure (e.g., two-factor authentication, automated logouts, etc.)

● 	Offers a wide variety of payment methods

● 	Shows current market trends

● 	Has additional features (e.g., automatic withdrawals, buy and sell orders, etc.) 

● 	Registered with state authorities and operating legally

If you’re looking for other options, check out LocalBitcoins (for P2P transactions) or Bitstamp (one of the first crypto exchanges). It’s important to ensure that the exchange you choose is available in your area, as many states have regulated the use of crypto.

## Choose How You'll Pay

The number of cryptocurrencies out there is growing, which means more options when it’s time to pay. The key is knowing what payment methods are available, where you can use them and how they impact your investment.

Choose an exchange that supports secure and widely used payment methods in your country, including (but not limited to):

● 	Visa/Mastercard

● 	PayPal

● 	Apple Pay

● 	Google Pay

● 	Paysafe card

● 	Instadebit

In most exchanges, you’ll need verified payment methods to first purchase USDT and then buy cryptocurrency coins.

## Add Value to Your Account

Adding value to your account allows you to make smart investment decisions. First, you must learn how each cryptocurrency works and what problems it’s designed to solve.

The better informed you are, the more likely you are to invest wisely and remain safe from potential scams. Second, consider diversifying your holdings: once you buy a currency, don’t put all of your eggs in one basket.

## Select a Cryptocurrency

New cryptocurrencies are emerging all over, and it can be hard to know which one will last. If you’re looking for new crypto to invest in, these key factors can help you make a decision:

● 	Market Cap (The total value of a currency)

● 	White Paper (A document issued by developers that explain the technology and purpose of the project)

● 	Use Cases (Major factors that drive investment)

● 	Total coins (to be mined and in current supply)

## Keeping Crypto Safe

![Keeping Crypto Safe](https://blog.exolix.com/uploads/Keeping_Crypto_Safe_9b622697d5.png)

Once you’ve bought cryptocurrency, it’s important to keep it safe. Here are several ways you can ensure the safety of your holdings:

● 	Cold Wallets: cold wallets, also known as hardware wallets, are not connected to the internet and hence are not vulnerable to cyberattacks. Keeping your private keys in a cold wallet is the safest choice because these wallets are encrypted.

● 	Secure Internet Connections: use only a known internet connection and avoid public Wi-Fi networks when trading or conducting crypto transactions. Use a VPN even when connecting to your home network for added security. Your IP address and location are changed using a VPN, which keeps your internet behavior secure and confidential from potential threats.

● 	Multiple Wallets: you can diversify your crypto investments by using numerous wallets because there are no restrictions on wallet creation. Use one wallet for daily transactions and another for everything else. This will safeguard your cryptocurrency assets and reduce the risk of a security compromise.

● 	Secure Device: to protect against newly identified vulnerabilities, make sure your device (laptop, phone, etc.) is up to date with the newest anti-virus software. To prevent hackers from exploiting any flaws by building programs to target the vulnerability, use a robust antivirus and firewall to increase your device's security.

● 	Password Protection: unfortunately, many people are prone to hacking because they use easy-to-guess passwords or similar passwords across various accounts.
Make sure you have a strong, complicated, and difficult to guess password that you change regularly. If you have many wallets, use different passwords for each. For added protection, use two-factor authentication (2FA) or multi-factor authentication (MFA).

● 	Avoiding Scams: do not open suspicious emails, pop-ups, or advertisements on the internet. These could hack into your device and steal sensitive information. It’s best to keep a firewall always enabled so that your device will automatically block or warn you about malicious content. Moreover, using a reputable crypto exchange will also lower the likelihood of scams.

## Advantages to Investing in Cryptocurrency

Crypto is gaining increasing popularity for many reasons. If you’re still hesitant about investing, check out these benefits that it has to offer:

- Diversification: diversifying your portfolio allows you to spread your risk, which could help you sleep better at night if one asset’s performance goes sour. 

In 2017, many thought Bitcoin was on track to reach $50,000 or more, and some predicted it would go even higher. While that didn’t happen, there are indications that investors who spread their money across multiple cryptocurrencies have fared well so far.
- Return Potential: in general, cryptocurrencies are considered a great investment for their high rates of return. Ethereum has returned over 8,000% since its initial coin offering (ICO). With an average expected ROI of 1,153%, it’s no wonder people are clamoring to get into crypto. 

When compared with traditional investment vehicles such as blue-chip stocks or government bonds, cryptocurrencies have historically delivered much better returns. But they also come with higher risk than safe investments like CDs and money market accounts.

- Additional Utility: some cryptocurrencies, like XRP and Dash, can provide additional utility for their holders. Because of their unique structure, these cryptocurrencies’ tokens have real-world use cases outside of being a method of payment. 

One could even argue that cryptocurrency is less speculative than most early-stage startups, given that cryptocurrencies’ use cases are not only novel but have an established record of success.

## How to Choose a Cryptocurrency to Invest in

![How to Choose a Cryptocurrency to Invest in](https://blog.exolix.com/uploads/How_to_Choose_a_Cryptocurrency_to_Invest_in_ba62e2083a.png)

We see a new cryptocurrency in circulation every other day. This can make it confusing for beginners to choose which one to invest in. While newer coins are cheaper and have the potential to grow, it’s safer for newbies to invest in trusted coins that pose less risk. These include: 

### Bitcoin

Bitcoin is one of the biggest cryptocurrencies out there, and it boasts a market cap of over $758 billion. It is a decentralized digital currency that keeps track of transactions in a distributed ledger known as a blockchain.

Bitcoin miners use high-powered computers to solve difficult riddles to confirm blocks of transactions. These blocks are added to the blockchain record if they are successful, and the miners are paid with a number of bitcoins.

As Bitcoin is being adopted in many industries, you can use it to buy things online or even make purchases at certain stores.

### Ethereum

Ethereum is not just a cryptocurrency but an entire blockchain-based platform. Its network is secure because it is decentralized, a major reason why it is so valuable today (its market cap ranks second, just after Bitcoin).

Ethereum has a stable infrastructure of applications that are built on top of it, which makes it one of the safest crypto to invest in on a long-term basis. The best part about investing in Ethereum is that you can also use it as a payment method when shopping online or booking flights.

Moreover, with so many companies adopting ETH as their preferred payment system, there are high chances of your investment growing exponentially over time.

As compared to Bitcoin, which is priced at approximately $40000 for 1 BTC, the price of 
ETH ranges from $2,500-$3,500 depending on market fluctuations.

## Managing Cryptocurrency Risk

This section will help you calculate how much to invest in cryptocurrency and how to invest in cryptocurrency with only a little money. A lot of beginners invest because they see the market growing at a fast pace and don’t want to miss out when they see others trading.

However, it is important to remember that the crypto market is extremely susceptible to volatility. Thus, here are some important rules you should follow to minimize risk and improve the chance of profits:

- Calculate the trade's size: always follow the six-percent and two-percent rules. According to the latter, you should open a position with a maximum of 2% of your total investment. Some experts advise investing no more than 1% of the amount.

You will never lose your full deposit if you use this strategy. The six percent rule states that if you keep losing money in crypto trading and can't seem to stop, you should quit trading if you lose more than 6% of your initial investment.

In this instance, it is recommended that you take a 1.5–2-week sabbatical from trading so that you can mentally heal and avoid making rash decisions.

- Calculate the transaction's profitability: the profit/loss ratio is the most important factor to consider. It should ideally be 3 to 1 or at least 2 to 1. Keep in mind that not every trade will be profitable. Even the most experienced traders lose money. Losing is unavoidable in trading; you must simply accept it.

In addition to these, as we have emphasized above, make sure to always diversify your portfolio as the number 1 rule to minimize risk. These strategies will teach you how to know when to invest in cryptocurrency.

![Managing Cryptocurrency Risk](https://blog.exolix.com/uploads/Article_3_4_min_2f42412d07.jpg)

## Cryptocurrency Legal and Tax Issues

Since crypto is still new, it comes with a lot of legalities and taxation issues, including:

● 	Transacting parties' anonymity (you don’t know who you are dealing with)

● 	Lack of proper authority (in case you encounter an issue or fall victim to scams)

● 	Laws that aren't adequately specified

● 	Many users invest in crypto for tax evasion and money laundering

● 	Users are subjected to frequent phishing attempts

● 	Data loss, illegal trading, and purchasing systems

Currently, you are liable to pay tax when using mainstream cryptocurrencies such as Bitcoin and Ethereum. 

## Conclusion

The good news is that there are a lot of factors you can control when investing in cryptocurrency. Always remember to buy low and sell high.

While there’s no guarantee you won’t lose money, your strategy for how to invest in cryptocurrency can improve your odds of making smart investment decisions and making money, too.
 


The Basics of Investing in cryptocurrency

In this guide, we’ll help you learn how to invest in cryptocurrency, manage risk, explain the best crypto to invest in, and legal issues you may face. 

The Exolix cryptocurrency blog is dedicated to providing useful trading tips, guides. More guides, trading tips and latest crypto news.

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