If you have decided that now is the time to add crypto to your portfolio, you are certainly not the only one. Cryptocurrency transactions hit an all-time record in 2021, and there is every indication that 2022 will top this.
With this stratospheric rise in buying crypto, there has also been a proliferation of noise and conflicting advice from all corners.
If you are considering flipping crypto for a profit in 2022, it is important to cut through this noise and understand the basics of selling crypto. Read on to find out exactly what you need to know.
One of the most reliable ways to gain crypto and then sell it for a profit is through mining. This is when you use automated processes and dedicated software to “mine” coins on the network.
It might seem simple, but mining crypto requires a huge amount of resources and expertise, with entire warehouses full of computers now dedicated to the task.
As part of your investing strategies, you could opt to join a mining pool for a fee, where you pay for some of the costs of mining and receive a portion of the coins in return. Be warned that this is not the best approach for beginners.
2. Long-Term Investing
Investing in crypto in the long term is one of the more popular strategies. This is when you choose a coin or several coins to buy in the hopes of selling them for substantial profit months or years down the line.
The best cryptocurrencies for this task are usually the big-name items such as bitcoin and Ethereum. These coins have a strong value base and a history of long-term price appreciation.
Always use a trustworthy and secure exchange and crypto wallet for long-term holdings.
3. Flipping Crypto as a Day Trader
You can also choose to buy and sell crypto in quick, short-term trades as a day trader. This involves capitalizing on the volatility of coins to make quick profits from a large number of small transactions.
You can buy and sell crypto quickly at a profit, or you can take a “short” position and profit from the depreciation of a coin. Some of the best coins for this task are emerging, lower-value coins with a lot of volatility.
For example, you can see from the Sushi Coin price that it is much more volatile than more traditional assets. While this might not be a good choice for a long-term investor, it is the dream asset of choice for a day trader.
4. Crypto Day Trading Tips
Note that successful day trading requires a lot of energy and attention. You must be ready to place buy and sell orders at a moment’s notice since the whole point is to reap maximum profits from short market movements. Only opt for day trading if you have the time to commit to it.
The Tech Trends That Will Shape Your Wealth in 2022
Flipping crypto successfully requires an understanding of the tech trends that are changing the nature of wealth.
For these valuable insights, you have come to the right place. Our dedicated Tech section features expert analysis on crypto, NFTs, DeFi, and all of the tech trends that will shape your wealth in 2022 and beyond. Check it out today.