DeutschDigital Currencies should Serve Payment Transactions
When Bitcoin was created, the original idea behind it was that the new digital currency should become an alternative to central bank money, especially in the area of payment transactions independent of banks. To this day, there are a few local shops and online shops where you can actually pay with a digital currency. However, over 90 percent of the activities related to a cryptocurrency are characterized by the fact that the cryptocoins are used for speculation. But can you also earn a regular income with it?
Speculate on Rising and Falling Prices of a Cryptocurrency
Most speculative traders use digital currencies to profit from future price increases. This is relatively easy, as more than ten so-called cryptocoin exchanges provide direct trading with digital currencies, such as:
You even have the option of speculating on falling prices for the corresponding cryptocurrencies in the form of so-called crypto-CFDs. Although numerous market participants have been able to achieve high profits, especially this year, price slumps can of course always occur with cryptocurrencies, which has happened several times in the past. Therefore, the question arises whether digital currencies are also suitable as a regular income?
Profits from Cryptocurrencies as a Regular Income?
Of course, trading in cryptocurrencies falls into the area of speculation with a very high risk. This basically contradicts the possibility that trading in cryptocurrencies can serve to generate a regular income. This is also contradicted by the fact that there are usually no regular returns with cryptocurrencies, as can be the case, for example, with interest-bearing investments and shares (dividends). Nevertheless, it cannot be completely ruled out that it may actually be possible to generate a regular income through the profits earned with the skillful trading of cryptocurrencies. This will certainly be confirmed in particular by those cryptocurrency holders who were active in 2017 and were able to achieve profits of several hundred percent in some cases.
However, the question tends to be answered in the negative as to whether a regular income can actually be earned with a cryptocurrency. Although high profits are possible in a short time, there is simply still a lack of regularity. However, this could possibly change in the future if there are more financial products on the market that are based on a cryptocurrency. This could be, for example, index funds that contain several cryptocurrencies and with which you can also save regularly. Should this be the case, however, there may be better instruments available to actually generate a regular income with cryptocurrencies and the profits resulting from trading.
One possibility: A Bitcoin savings plan
The Best Options for Buying and Trading Bitcoin via Crypto Exchanges or CFD Brokers
CFDs are complex instruments and, due to leverage, carry the high risk of losing money quickly. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Provider
Result
Bitvavo, one of the leading exchanges from Europe (Netherlands) with a large selection of cryptocurrencies. PayPal deposit possible. Extra: 10 Euro bonus when registering via CoinPro.ch
Regulated provider from Austria - specializing in trading Bitcoin, Ethereum, stocks and many other assets.
OKX is one of the largest crypto exchanges in the world and combines numerous functions such as a wallet, staking, futures, margin, and spot trading in a single platform.
With several hundred thousand customers worldwide, Binance is one of the top 10 largest and most well-known exchanges. The use of the exchange is free of charge, with fees only applying to the purchase and exchange of cryptocurrencies.
