In 2017, cryptocurrencies delivered incredible gains that saw the price of Bitcoin surging more than 1400%, Ethereum surged more than 23,000%, while hundreds of other coins delivered impressive 5-digit price gains. In 2018 however, the crypto market suffered a downturn that saw the market cap of the entire cryptocurrency market being eroded by almost 70%.
Interestingly, cryptocurrencies have shown incredible resilience after surviving the heartbreaking losses recorded in 2018. Now, many traders and investors are confident that cryptocurrencies are on the verge of returning to bullish ways as 2019 gets underway.
If you want to earn some money on the side through the cryptocurrency markets in 2019, here are four simple ways to access the market.
- Trading cryptocurrencies
Trading cryptocurrencies – buying crypto when the prices are low and selling when the prices are high is probably the simplest and most popular way to explore the possibility of making money with cryptocurrencies. You need to choose a cryptocurrency exchange and create an account before you can begin trading. You can limit your trade to the top five cryptocurrencies, top 10 cryptocurrencies, coins trading under $0.10 or whatever market segmentation rule that makes you comfortable.
More importantly, you’ll need to spend some time to understand how the cryptocurrency market works. Cryptocurrency trading is fundamentally different from stock trading because crypto is much more volatile than stocks and events in the market are mostly fueled by speculation.
- Holding cryptocurrencies for medium to long terms
You can avoid the headache and stress that comes with navigating the complex volatile nature of day trading cryptocurrencies by applying Warren Buffet’s buy and hold strategy to cryptocurrencies. Cryptocurrencies are still in the early adopter phase and there are decent odds that their value will increase when they break out into mass-market adoption.
For one, many cryptocurrencies are structured with a capped supply, but their demand could be potentially unlimited if they gain mass market appeal. If you bought Bitcoin in January 2015, you probably bought it for around $220. of at January 2017, the price was more than $11,000.
The most important thing, however, is to be able to identify the cryptocurrencies that would survive the unclear regulatory conditions to eventually qualify for mass-market adoption.
- Flipping cryptocurrencies from a private sale to public sale
Flipping tokens are similar to holding crypto but it happens within a much shorter timeframe, typically under one year. The idea of flipping cryptocurrencies is to buy them during their private sale when they are typically undervalued and sold at a discount. The end game is to sell the tokens immediately (or shortly) after they are introduced to the public or listed on an exchange. You can flip both security tokens and utility tokens by buying to the private sales of Security Token Offerings (STOs) or Initial Coin Offerings (ICOs).
However, you’ll need to take the time to conduct due diligence before you invest in the private sale of any cryptocurrency project. It is important to take time to critically study the token economics and understand the peculiarities of its demand and supply. You’ll also need to conduct due diligence on the founding team to confirm their integrity, their experience, and their ability to deliver the product.
- Mining cryptocurrencies
Cryptocurrency mining is currently unpopular because the decline in the cryptocurrency market has eroded the price of practically all the coins in the market. Hence, the resources you’ll expend to mine a single unit of cryptocurrency is almost at par with what the cryptocurrency is worth based on current trading prices.
Nonetheless, cryptocurrencies will not always be in a bear market and mining could become profitable once again once cryptocurrencies return to bullish ways. Interestingly, the current weakness in the market provides an opportunity to purchase cryptocurrency mining hardware and paraphernalia at a discount. For instance, the ASUS B250 Mining Expert that used to cost from $400 to $600 in January 2018 now costs between $50 and $80 as the demand for mining rigs continue to fall.
However, before you buy any mining rig, you need to be sure about its current compatibility with the current formats and the odds of its future compatibility as the cryptocurrency industry continues to evolve.