There is a category of strategies that has not been mentioned in other answers yet, namely arbitrage. it’s more of a distinct segment strategy but it are often extremely profitable and you’ll make money irrespective of if cryptos increase or decrease in value.

It basically means buying a crypto in one exchange and selling at another, at the identical time, except for different prices. you’ll then physically deliver the crypto at the exchange where you sold the crypto. Alternatively, you’ll wait until the value is high at the exchange where it absolutely was low before (relative to the other), so take the alternative trades.

How can one invest in cryptocurrency

Some exchanges allow short positions (negative holdings, basically), while others don’t. When an exchange doesn’t allow short positions, you wish to possess some crypto so as to be able to sell. you’ll be able to hedge this long position at another exchange where you’ll be able to go short, or hodl and hope that the value generally keeps increasing.

There are people that write programs to try to to this sort of trading automatically, but you’ll try it manually likewise. Especially at smaller exchanges and for fewer traded coins the manual route may fit. For bitcoin and also the major exchanges, bots (computer programs) are very active and can probably be better at this than you.

There is a stimulating opportunity at once within the Korean exchanges. the worth has been consistently 10 to 40% higher within the past few weeks than on major other exchanges. If you’re Korean you’ll buy crypto at those exchanges and sell them in Korea.

Of course you’d should send your won back by bank transfer if you’re living outside of Korea and want the cash there. there’s a limit to the current as Korea does have capital controls. this is often probably why the chance still exists. i do know a bloke who matches investors to Koreans and takes a commission. He makes a lot of cash but only as long because the opportunity lasts.