You might have heard people mention that they’re trading crypto currency, or that they hold some Ethereum, Bitcoin or Solana. So what’s the deal? Are people really making good money with crypto currency?
Well, at the moment, we’re in the early stages of a ‘bull run’. This is the term when prices start to go upwards, often in a dizzying fashion.
What this means is that more and more casual retail investors, meaning Joe Public, are jumping on the crypto wagon. So are people making money with crypto right now?
Actually, yes. And a lot of it too.
This years crazy gains
Some of the most popular crypto projects have gained huge percentages since the beginning of the year. And some have even shown stratospheric returns in just a few months.
Meme token Shiba Inu ($SHIB) has even gone up 700,000% since January 2021. Yup, if you’d put $100 in SHIB last new year, you’d have $7,000,000. You did read that right.
Although that is a ridiculous gain, even for crypto, many of the more ‘down to earth’ projects have also performed phenomenally well. Ethereum, Solana, Cardano and Bitcoin have all gone up by over 100% since earlier in the year, and people are now realising that there is money to be made with crypto currency.
Is it too late?
Many people believe it’s too late to get into crypto. That they’ve missed their chance and that the market is now totally out of their reach.
But, that couldn’t be further from the truth. In fact, the market is only just warming up and institutional investors, such as big banks, are about to come on board in 2022. This means that the REALLY big money is coming in which means we’re going to see what many expect to be an extended bull run.
Put simply, there is no time like the present. And with crypto, now is as good a time as any.
Also, people often assume that because the price of 1 Bitcoin is so high, currently $65,000, that this means they can’t buy crypto. There are tons of projects, literally thousands of them. Some of them are fractions of a penny, others hundreds or thousands.
Even with £10, you can buy some Bitcoin, Ethereum or whatever coin you want to invest in.
It’s volatile though, right?
One of the objections of crypto is that it is way too volatile. Prices go up, then they come crashing down. And yes, they do.
There are patterns, waves and trends that tell you when these movements are going to happen. There is also a huge network of crypto twitter influencers who call the market moves and are worth following.
And once you’ve learned how certain projects move, you can be more confident with investing.
The other thing with the volatility is that there are more opportunities to make money. Plenty of casual investors are trying their hand at trading the market. There are also lots of tools you can use to play the market for you…
Volatility means more money to be made.
I wouldn’t have a clue where to start
It can seem a bit daunting putting your money into a crypto project when you don’t know what it even really is.
Thankfully, there are a lot of apps and software to get you started making money with crypto.
The most popular exchanges (trading platforms) are Binance, Coinbase, Crypto.com, Kraken, Kucoin and FTX. However all of these can be quite complex trading instruments which can scare off casual investors.
An easy way to buy crypto is with the digital bank Revolut. Their bank account also has access to a crypto vault and even stocks and shares, so you can put your spare change into XRP, ADA or BTC to accumulate.
But Revolut isn’t the best retail crypto investment tool.
We think eToro is a good option, allowing you to easily buy and hold a large selection of crypto coins. You can sign up for eToro here.
Another crypto investing platform that keeps it simple is CoinSmart. This has the most popular crypto currencies, the major caps. Many recommend starting with these major coins so that you have a better understanding of the market and it’s movements.
You can sign up for CoinSmart here.
Which crypto coins are best for making money?
At the moment, as we’re in a bull market, it’s pretty much easy to pick any coin and see some returns. However it might not be as instant and explosive as you might expect, and prices do go down as well as up.
So, the best way to invest in crypto is to treat it like a long term investment. Don’t expect to take any profits for at least a year, unless you are prepared to monitor the market and learn how to trade. This can be a complex option though, so holding for the long term is best.
With that said, some of the best crypto currencies to invest in for the long term are:
- Bitcoin: Currently $65,000, expected to hit $120,000+ before end of 2021
- Ethereum: Currently $4,700, expected to hit $15,000-20,000 before end of 2021
- Cardano: Currently $2, expected to hit $5 by 2022
- Solana: Currently $250, expected to hit $1000 in 2022
- Dogecoin: Currently $0.25, expected to hit $1 during 2022
- Polkadot: Currently $50, expected to hit $200+ during 2022
And this is just the tip of the iceberg.
We do recommend you read up on crypto currency investing and the potential gains and pitfalls. There is also a whole world of Twitter based crypto influencers which are worth following.
Can I lose it all?
This article is not financial advice, and it is highly recommended that you go down a YouTube rabbit hole yourself before investing. We also like Raoul Pal and his Real Vision Crypto channel. There really is some excellent info in there.
Now, can you lose it all?
We don’t believe that crypto is going to zero. In fact, we think crypto is here to stay and that if you invest wisely now that you could make a lot of money in the coming years.
But, like any investment, there are risks. It’s the same when you buy a house, gamble on a horse or buy a family heirloom. Do your research first and you’re less likely to be out of pocket.