First and foremost, cryptocurrencies use cryptography instead of banks or any other third party administrator, so using them is possible through a wallet. The most basic function of a currency is to serve as a store of value and what cryptocurrencies have been doing so far is pretty remarkable. They can be converted into almost any currency, with the notable exception of the Romanian leu. How do investors make money with cryptocurrencies such as Bitcoin and Ethereum in Romania?
Do your research
First off, learn everything about the currency you want to invest in—research forums such as Reddit, Ethereum and bitcointalk. Read up on various trading tutorials and watch videos (some with valuable information and some filled with nonsense). Educate yourself before investing any real capital into the currency; otherwise, you risk losing it all. Trading with cryptocurrency is one of the easiest ways to make money with digital currencies. With the right skills and knowledge, you could be making hundreds or even thousands of dollars per day. However, there are risks involved in this form of income generation.
You can also consider mining cryptocurrency. Although it requires a lot more initial capital to get started, you are less at risk when compared to day trading – unless your hardware breaks down or becomes obsolete (which does happen). You could end up losing all the money you invested into mining hardware if that happens; don’t invest more than you have! If you want to start crypto mining, though, read up on what equipment would suit best for your needs (in Romania)—will you be paying for your electricity by the kilowatt-hour or through a monthly contract?
If you want to get involved with the mining side of things, several pools are available for this. Some of these mining pools in Romania include MinerGate, Nanopool and Ethermine. These have different settings which you need to understand before getting started. You can also pool your resources with other people so that you share whatever income your computer generates while working on a problem.
Trade on an exchange
The best way to make money with Bitcoin and Ethereum in Romania is probably trading. You can easily do this by using any popular Bitcoin exchanges such as Coinbase, GDAX, Circle and Kraken. It requires no actual knowledge of cryptocurrency but rather knowing how to exchange and move your money around.
Make sure you get familiar with all aspects that may affect you while trading: fees, the bid-ask spread (how much difference there is between buying and selling), liquidity (the amount of cryptocurrency available at a specific price) etc. If you already have cryptocurrencies in your possession, it would be wise not to keep them on the exchange (you never know when there will be a security breach or the exchange goes bust).
Use trading bots
Most of the time, you will be able to spot a great trade for yourself. However, if you don’t have the time or desire to trade 24 hours a day, 7 days a week, some indicators may be really beneficial when used correctly! Some of these bots will execute trades for you automatically, and there are even some that can help you make more educated decisions, such as tradingview or cryptotrader.
Although it is possible to make large profits from day trading with bots, sometimes they underperform or stop working entirely due to unexpected bugs. Although some offer monthly subscriptions, bots can also be expensive to buy initially (upfront).
Cryptocurrencies have seized the world by storm, and many individuals are making a great deal of money from them. If you don’t want to lose your money due to poor trading or investing decisions, you must comprehend what you are getting into. Learn more about the crypto exchange Romania before investing your money, and use a reputable online broker from Saxo Bank.