How to Make Bitcoin Monthly Returns
Ever wondered how to make Bitcoin monthly returns? Well, the secrets aren’t hidden under the sun, as you can also get to discover the average gains one can get from them and the tricks to understand green and red months to maximize your crypto investments.
When it comes to Bitcoin Monthly Returns, these are simply the reimbursement that comes out of buying and holding, trading, or staking the coin over a period of time.
Now, similar to other forms of assets, the price of Bitcoin moves up and down, thereby opening opportunities and risks for investors who aim to achieve consistent returns every month.
Even though Bitcoin is known to be one of the most volatile virtual assets, it has indeed provided significant returns to investors throughout the years.
How Many Average Returns on Bitcoin Are There?
Returns from Bitcoin have been very volatile on both a yearly and monthly basis. What follows is what investors will typically consider returns:
1. Yearly Returns
Speaking historically, Bitcoin has had great returns on a year-to-year basis. It has more than doubled in some year, bringing into its fold high returns for early investors. However, it has also suffered downslides.
2. Monthly Returns
Monthly returns can be less predictable. Unlike traditional assets, Bitcoin can swing in huge price swings within days.
This generally means that one month the returns are high, while the next they may not be. Some investors estimate that average monthly returns in profitable months may lie in the range of 5–15%, though this is not guaranteed.
3. Understanding “Average” Returns
Since Bitcoin is a highly speculative virtual currency, there is no “standard” return rate, so, many look at historical data and trends as a means of estimating the possible returns.
It is also worth researching the market conditions each month to avoid any unrealistic expectations that one may have.
When are the Green and Red Months in Bitcoin?
Green and red months simply mean the months in which Bitcoin undergoes positive or negative returns, respectively. Knowing the difference between such months will extra arm the investor in laying out a strategy.
1. The Green Months
A green month is when Bitcoin records positive growth. During these months, investors receive higher returns and may even buy more Bitcoins on the expectation of that trend flowing continuously.
There have indeed been times, though different every year, where most of the green months happen, for the most part, during the late fall and early winter seasons of the year.
2. The Red Months
The term red month means a period when Bitcoin’s value goes down. In a red month, the price of Bitcoin has retreated and thus could affect short-term investors who would need a return on a month-to-month basis.
To other investors, these could be considered buying opportunities, particularly if they think that Bitcoin is going to bounce back.
While this may be true, some would say that Bitcoin has a seasonal pattern, with more green months towards the end of the year; these are overall trends and not set in stone. It is important to follow market analysis to understand current trends.
Are there Ways of Achieving Bitcoin Monthly Returns?
Of course. So far regarding Bitcoin returns and prevailing market trends, it is about time one takes a look at pragmatic ways one could ensure returns on a monthly basis:
1. Long-Term Holding (“HODLing”)
This strategy is ideal for those who don’t mind volatility and believe in Bitcoin’s long-term growth.
While this doesn’t promise consistent monthly returns, it does capitalize on Bitcoin’s potential to grow over time, leading to an overall positive return when averaged out over months or years.
2. Trading – Day Trading and Swing Trading
This is done by buying and selling Bitcoin in the same day to capitalize on short-term movements in prices. Day traders seek small returns, achieved quickly, that add up over time.
There’s also Swing Trading, which involves holding Bitcoin over a few days or weeks. It is an opportunity to be taken advantage of regarding medium-term trends. Swing traders try to buy low and sell high within a short period of time using timeframes such as a week or even a month.
3. Staking and Yield Farming
While it is impossible to stake Bitcoin itself, some platforms grant users a possibility to earn interest on their Bitcoin by lending it. Yield farming also involves supplying liquidity to a DeFi ecosystem in return for returns, though this can be fairly complex and even risky.
4. Automated Trading Bots
Some investors use trading bots to automate their trades. Bots operate based on preset algorithms in order to try and buy low and sell high at exactly the right time. Setting up a trading bot effectively, though, requires an excellent understanding of the Bitcoin market movements.
5. Dividend-Paying Assets with Bitcoin
A few platforms provide dividend assets that can be bought with Bitcoin. Monthly returns, or at least regular interval returns, can be indirectly realized in the form of dividends. These asset types generally require major investments and come with risks themselves.
Some of them allow lending your Bitcoin to other users for interest, as these can give month-to-month returns, but you need to make sure you’re working with a reputable platform and understand the risks with this sort of lending, as from time to time defaults do occur with personal lenders.
How to Track Monthly Bitcoin Returns
Once you have identified a strategy, monitoring the return becomes very important for you to stay on top of investments. Following are ways you can track your performance on a month-to-month basis:
1. Tracking of Portfolio
Several applications are available that can help in tracking the value of Bitcoin holdings and an overview of an individual portfolio. These tools become important in the process to view a snap of your monthly performance.
2. Alerts and Notifications
Set notifications for big price swings and at points when Bitcoin reaches a certain level you have targeted. This helps make far more appropriate decisions on time.
3. Tracking Market News
To make correct buying or selling decisions, one must always stay updated about news related to Bitcoin and market analysis.
The announcement of regulatory policies, economic data reports, and technological advances are seen to cause a stir in the prices of Bitcoin.
Lastly, monitor your returns regularly, say on a monthly basis, to see how the strategy has been working out over time.
Wrapping Up
Monthly returns from Bitcoin are possible but need to be cautiously charted out with some market understanding and risk tolerance.
Due to the highly volatile nature of Bitcoin, some months may see very profitable returns, while other months may show losses. Investors, after being aware of return types, market trends, and strategies, can have more realistic expectations and a better-planned approach towards Bitcoin.
With patience, diligence, and an eye on the market, you’re sure to wade through ups and downs in Bitcoin and find an area of profitable opportunities for gaining consistently month over month.
