How Do You Get Rich Off of a New Cryptocurrency?

Cryptocurrencies have been the most exciting financial topic of 2017 for many investors, and with good reason. Bitcoin jumped in price, reaching highs of more than $3,000 earlier this year. Ethereum and Ripple, the second- and third-largest digital currencies by market capitalization share, respectively, gained up to 30 or even 40 times their price points at the start of the year.

Mining operations are taking off, driving graphics cards supplies to nil and prices sky-high as well. So how can investors who are new to the cryptocurrency game make money off of this exciting new(ish) area of investment?

Playing the Exchanges

If you're interested in getting hold of some of the newest cryptocurrency tokens but don't want to devote the time and resources to building a mining rig, your next best option is to buy those tokens on an exchange. While this doesn't give you access to the newest currencies quite as quickly as it would if you were mining for them, this is nonetheless a way to earn some money off of the field.

Some investors have been exceptionally successful at turning profits by buying and selling on exchanges. (See also: An Ether Trader Made More Than $200 Million in One Month.) If you're going to do that, though, you'll need to pick your exchange(s) carefully. Be sure to do your research first: pick exchanges that are reputable and as secure as possible, and use a variety of means to track the prices of the currencies you follow.

Because cryptocurrency prices are incredibly volatile, being delayed by even seconds can mean the difference between a substantial profit on a transaction and a meager one. Vigilance, careful attention to trends, and a bit of luck are all helpful, too.

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