Back to the learning 

We will look at the 2 main ways people make money in the crypto space:

Trading and investing.

Traders use exchanges to buy and sell crypto currency utilising different strategies, among those strategies are : Day traders , position traders, Scalping and arbitrage. 

Day trading is when a person buys and sells on the same day. Traditional markets have an open and close time, however crypto is open 24/7, which contributes to activity on the market.

Position trading trades are made over weeks or months, all depending on the position the trader decides to buy or sell at. For example, they will set the orders at a specific price, and will only buy or sell when the price reaches their target. Sometimes this can take days, weeks or even months. 

Scalping is all about speed, where traders make very short trades in a very low time frame for very quick and consistent profits. This requires a lot of work and can be difficult, therefore scalping is usually not recommended for beginners.

Arbitrage is when a trader buys and sells in different markets, where they will make profits based on the price difference of different currencies. For example the price BTC against USD is different to the price of BTC against ETH or other currencies. This is also a more difficulty strategy, and can require a lot of research before actioning this type of strategy. 

Investing: the main type of investing in crypto is referred to as HODL (hold on for dear life) or holding. This is when the investor buys a currency, keeps it in their hot or cold wallet and just leaves it there for some time. Generally HODLers like to wait a while before selling to try maximize their profits over time. This is often the easiest and safer option in the Crypto space, as all it requires is for the investor to buy and keep the asset until the price goes up. 

Once again crypto is awesome and is one of the only places where the gains and profits can be astronomical. However, this also means the reverse is true. This is why it is always important to do research on the project that you plan to invest in, and to manage your risk accordingly. We don't recommend selling your car to buy a meme coin or the like, rather use money you can count as lost, and begin practicing with buying and selling. There are so many ways to make it in crypto. The best thing to do is manage your emotions and remain calm during the volatile days. 

Here at CryptoCube we are here to help, reach out anytime with questions or newsletter requests. We have plenty of exciting projects coming up for our users and looking forward to this amazing journey with you ! 

Happy investing 

CryptoCube