Making money without going broke in cryptocurrency

Making money without going broke in cryptocurrency

$3.44 tipped


Between 2009 and 2015 making money with cryptocurrency was incredibly easy. Very few crypto projects had failed at that point and it seemed no matter where you put your money, you were sure to see an increase of returns.

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But times have changed over the last three and a half years. 

However it's still very easy to make money in this industry if you follow basic rules and basic guidelines, but it doesn't happen overnight.

First you have to know exactly what to avoid. This is the single most important thing. If you don't know what to avoid you are going to lose, and if you don't lose it simply means you are one of the lucky ones.

Ponzi Scams and HYIP

The largest scams running are ponzi scams and HYIP scams. These things are everywhere and they disguise themselves in various ways. They try to paint a picture where cryptocurrency is not just another form of money to keep people trusting the scam.

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At the end of the day, cryptocurrency is just money and if you understand that it will make avoiding these scams a lot easier. 

To keep it simple, anything that promises you a return on an investment is a scam. Let me repeat that in case you didn't get it the first time "ANYTHING THAT PROMISES A RETURN ON INVESTMENT IS A SCAM"

There are no exceptions in this statement. It doesn't matter if you are dealing in dollars or cryptocurrencies. It doesn't matter how the scam is put in front of you. These scams are everywhere. 

They disguise themselves as cloud mining. They disguise themselves as new token projects. They disguise themselves in all sorts of ways. 

Let me give you a little tip here. A legit mining company, cannot guarantee a specific set of returns. They don't know what those returns will be. They don't know what kind of increase there will be in mining. 

Imagine you join a mining company that guarantees you will have a return of 50% of your investment each month. What happens if there is a sudden increase in mining pools? What happens if a coin that has 100 mining pools suddenly has 1000 mining pools? Is i still possible for you to earn the same 50% they promised? Of course not! 

What's worse is that you have NO WAY of knowing if they are ACTUALLY mining anything. It could be they are not mining and instead taking the money from new users to pay old users and eventually when the pool of new users dries up, with it so does the money and the last ones in are the ones that are hurt most. 

These scams have been going since long before cryptocurrency. Just avoid them.

Pyramid Scams, MLM Scams and Network Marketing Scams

Pyramid scams are not as popular in cryptocurrency as ponzi scams but they still exist and they are still all over the place. Most often these scams appear in the industry of marketing and advertising. 

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Let me give you another little tip - advertising is not a legitimate product. In fact, it's not a product at all, its a service.

Joining a website, buying ad packs, referring others who buy ad packs and earning crypto is not a legitimate way of making money. These are scams. There is just no way around it. 

Avoid these just as much as the ponzi scams and HYIP scams.

Pump and Dumps

Pump and dump coins and tokens are considerably harder to avoid but still not impossible. It's often times hard to tell what is and what is not a pump and dump scam.

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I have a couple simple rules that can help, but even with these rules - it's not always easy to tell what a pump and dump scam is.

First of all, if there is a token presale, avoid the project entirely. A presale is when tokens are sold before the public at large is able to buy. Usually this is when an idea or project is pitched to companies and millionaires.

When people buy into these presales they have two things in mind and only two things - profits and exits. The second these tokens hit an exchange, you can be assured the value of the token is going to drop fast and hard as these people are going to get out as quickly as they can. They don't sit around speculating about where the project could go in the future.

Another thing to avoid are ideas. Just don't invest in ideas. Ideas are worthless and a dime a dozen. If there is no MVP don't buy into a project. An MVP is a minimum viable product. 

If there is no product and no development taking place and it’s just an idea, it’s not worth your time. Wait until there is a product that works. Along these same lines, code alone does not make a product. Many scam projects just fork code to make it look like they are working on something. 

Finally avoid clones that don’t have any new ideas. Don’t join a project that just forked bitcoin (or some other cryptocurrency) and started their own blockchain claiming they can do it better. 

If there is some new underlying technology, that is one thing. But just cloning a project with no real reason is a recipe for disaster. 

Exceptions to the Rules

Every now and again there are exceptions to the rules. Most notable are the exceptions to the rule of avoiding forked coins.

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Coins fork for all sorts of reasons and sometimes the reasons are valid. One such example would be when a project is controlled by one single person or single group of people and a fork is done to recreate the project only having it controlled by a community.

The most notable community based fork I can think of was BitMonero being taken over by the community and becoming Monero.

Another legitimate example would be when a number of people involved with the waves project were not happy with changes and forked into the turtle network, which was to be completely controlled by the community.

Making money

Making money in cryptocurrency is about finding low value coins and tokens that have a huge chance of increasing in value. The easiest way to begin is with community based projects that are valued under $0.05. 

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You want to ensure the project is listed on at least a couple exchanges, usually not the major exchanges like Binance as if they are listed on the major exchanges they are already well known and there tends to be a reason the value is low.

You want to research the MVP and its progress. Ensure the project is actively developed and has been worked on within the last month. The project doesn't have to be beautiful. It doesn't have to be perfectly functioning. It merely has to be functioning. That's why it is a MVP. Its point is to be a minimum viable  product - not a completely working product with tons of users. 

After you have found a good project you buy a few hundred of the token. Buying 200 tokens of a project that is selling at $0.05 is only $10. One can easily spend $10 on fast food - so even if there is a loss its not huge loss to your person. 

If you are really strapped for cash, only find projects that are worth a penny or less. This way 200 coins/tokens only ends up costing you $2. Do this a few times a month.

There are literally tens of thousands of cryptocurrency projects. 

Most of the projects you invest in are unlikely to increase a great deal in value. They may even lose you money. But if you pick a couple projects a month, it only takes one or two of these projects to increase for you to have made good money. 

If you spent $2 on a token that cost you $0.01 per token, that's 200 tokens. If that project goes up to $0.10 now you have $20. If it goes up to $1 now you have $200. Its not a ton of money but its enough and as you grow your portfolio these tokens add up.

As you earn more, you can find projects that are worth more yet still starting out. Increase the value of the projects you are buying into from under $0.05 to $0.10, then to under $0.25, then to under $0.50, then to under $1.00 until you have a large portfolio. 

Making big money in cryptocurrency is not about buying expensive coins and tokens. It's not about buying into the top projects. It's about buying into the projects that have the best chance of increasing in value.

Its unlikely for a coin like bitcoin to jump up 500% or more overnight at this point. That would be a jump from $10000.00 to $50000.00 overnight. It's possibly, but still much less likely than newer projects that are still very undervalued.

It's much more likely that a coin that is worth $0.01 jumps up 500% overnight to be worth $0.05. So keep your eye out for these projects, do your research about their MVP and avoid the scams.

Projects

The following projects are projects that I highly recommend checking out as I believe they are still vastly undervalued yet still affordable.

BURST - current value $0.003861
Turtle Network - current value $0.01141
Next - current value $0.294624

If you know of other low value projects that have an MVP, leave a comment. This is your chance to shill your favorite project.



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