How does virtual currency make money? What are the elements of speculation in virtual currency?
Virtual currency is one of the most popular investment products in the early years. Because of the strong upward trend at that time, many investors rushed into the market to buy it. However, with the decline of the trend and the sharp decline of its price, many people suddenly broke their positions, so the status of virtual currency in the financial system is still a little embarrassed. So, how does virtual currency make money? What elements should we pay attention to when speculating in virtual currency? Next, let's have a look.
How does virtual currency make money?
The key points of the profit method of virtual currency are as follows:
【1】 Escrow the virtual currency to the platform and charge a certain amount of interest. But it is mainly aimed at popular Bitcoin.
【2】 Buy low and sell high in the market to earn the difference.
【3】 Add a mining army, start mining, and then sell the coins to earn money.
【4】 Open a virtual currency trading platform and deduct the service fee. These are basically the profit models of popular virtual currencies such as Bitcoin, Ruitai Coin and Lite Coin. There are risks in virtual currency investment. Virtual currency has no limit on the rise and fall of stocks, so it is necessary to be cautious when investing in virtual currency. At present, Ruitai Coin, Weimeng Coin and Ethereum have performed well in the market.
Virtual currency is a growing and innovative industry, where there are opportunities as well as risks. Even though Bitcoin has been developing at a fast rate so far, no one can guarantee that it will continue to grow. Any related Bitcoin time and resource investment should be practical. There are many ways to make money with virtual currency, such as mining, speculation or operating new businesses. All these methods are highly competitive, and there is no profit guarantee. Each person shall make an appropriate assessment of the costs and risks involved in any such project.
What are the elements of speculation in virtual currency?
Bitcoin and Ethereum are blockchain hard currency. If novice chives don't know which digital currency to buy, BTC and ETH are recommended.
Investment 4 elements:
1. Money speculation is different from stock speculation. Don't enter the market with the idea of stock speculation. The virtual currency that declines by about 50% every day is playing every day, and it is also common to turn it dozens or hundreds of times. As the saying goes: One day in the currency market, one year in the world.
2. There is no so-called technical analysis of the currency market. Short term fluctuations are unpredictable and unpredictable. The only low-risk arbitrage is hedging and bit lending, which are the only two proven methods in the currency market.
3. The most reliable investment method is stock investment. The most ideal investment operation is fixed investment. The most appropriate investment proportion is 5/2/2/1 or 4/3/2/1. 50% (40%) of mainstream currency, 20% (30%) of potential currency, 20% (20%) of ICO, and 10% (10%) of cash.
4. The investment capital ratio should not exceed 30% of the total assets. It is best for key investment funds. Do not borrow, do not TX, do not increase leverage, do not futures, do not think about getting rich overnight, and do not play games that you cannot afford.
If you are still trading frequently, and you are worried about the price and sleep, then most of you are not investing, but gambling. This is not a good way, nor will it have ideal results.
Speaking of this, I believe that we have a certain understanding of how to make money with virtual currency and what elements to pay attention to when speculating in virtual currency. In general, Xiaobian also reminds investors that any investment is accompanied by a certain risk, so is speculation in virtual currency. We must do a good job of risk analysis before investing, and do not blindly follow the crowd.