Making money with crypto: how does it work?

Like almost the whole world, I find everything around crypto really interesting. There was just a small problem: I really didn't understand anything about it. It also quickly became clear that my strategy (buying coins related to animals like Dogecoin) wasn't exactly foolproof. Far from it, in fact. So I just dove into the wonderful world of bitcoin and now I can give you a short introduction on how, what, and where.

Cryptocurrencies are now truly indispensable; however, they have actually existed for much longer than you might think. The first real cryptocurrency, bitcoin, was designed in 2009. So it makes sense that this is also the most well-known coin; many people even refer to ‘bitcoin’ as an overarching term. This is not correct: bitcoin is a form of crypto, just like ethereum, Dogecoin, or ripple. There can also be differences: there is also a stablecoin. For example, the coin libra designed by Facebook falls under this category. The value of a stablecoin is linked to another value, such as a normal currency. The goal of these stablecoins is to make them more stable (and thus reduce the risk of losing money).

The question that many people have is: can you really make money with crypto? The short answer is: yes, you can definitely make money with crypto, but you need to know what you're doing and it's of course logical that where there is potential to earn, you can also lose. And then things can go quickly with crypto. The value of, for example, the bitcoin price can rise and/or fall enormously within a day, making it quite risky. This is probably, besides the ethereum price, the most well-known crypto coin. An increase or decrease in a coin revolves around supply and demand: if many people want to buy that coin, the price rises. This can lead to a pump & dump where the price rises quickly; many people buy the coin all at once, but also sell it again as soon as the price has risen significantly. This causes the demand to drop and thus the price as well.

But how do you make money with crypto? It is important to buy your crypto through a reliable platform; I personally use LiteBit, an app that is very user-friendly and makes buying and/or selling crypto very easy. With an app like LiteBit, you create a wallet where you can see your coins. The more well-known and larger cryptos are available for purchase here, which makes it a bit safer. Buying new coins is not possible, but these are often the more dangerous coins, the so-called pump & dumps that you don't want to get burned by.

Because yes, you can definitely make money with crypto. Investing in bitcoins always carries a risk, and the best crypto advice may sound cliché, but it is really true: only invest money that you can actually afford to lose. Additionally, use a reliable app (very important), like in my case LiteBit. Investing in a reliable/stabler coin like bitcoin or ethereum can also reduce your risk.

And don't forget that investing in crypto is not a way to ‘quickly make money’. Of course, some people have really succeeded in that, but it's not a given. So focus more on long-term results if you want to invest. Quick runners are dead runners, especially with crypto.