RE: The Easiest Way to Make Money on Crypto? Here it is. Part 3.
This will get people more frustrated than make them money. The differences in price between exchanges is minuscule and the fees associated with first buying and selling the currency and then sending that crypto between currencies can outweigh any price difference. Furthermore, you have to be quick for this to even work out.
Take for example one of my favourite coins at the moment Stellar Lumens. On the two highest volume exchanges of this coin( Poloneix and Bittrex) there is a $0.0002 difference between the coins. This doesn't even cover the buy and sell fees you'd incur.
The EASIEST way to make money is just to invest in cryptocurrencies at this point. They're all going up over time. No need to get greedy and cause yourself harm just to make .01% through arbitrage.
👍 🎲 You could try randomly allocating and diversifying against different crypto. Or you could strategically asset allocate based on your own criteria and conviction of risk and future growth. I've written an article about it here - "Build Your Own Crypto Currency Decision Matrix" -
https://steemit.com/cryptocurrency/@edendekker/build-your-own-crypto-currency-decision-matrix
That makes loads of sense and as of yet this has been the way for me. Like many have stated "if I'd have just started with btc all the way when boarding I'd be much better off now." I still think learning and recognizing this as an opportunity adds to ones tool box for that Oh, look at that moment but yes I agree that one is better off to buy and hold for the future.
I think experience is always the best teacher. I only came into this scene 4 months ago but when you're investing your own hard earned money you learn quickly. I always keep an eye on the total market cap of cryptocurrencies. Expect it to reach $250bill by the end of the year and maybe (if we're lucky) 1 trillion end of 2018. If this happens then no matter what coins you're holding you'll see profit. The next step is to know which coins will see most of that rise. The first place to look would be Bitcoin, but don't underestimate smaller Altcoins too. Just ride the wave and enjoy the excitement :)