Before I go on, let me seize this opportunity to welcome all newbies to the forum. I know whoever told you or where ever you heard about the profits cryptocurrency has to offers must have been centered on the capital gains that result from hodling a particular coin.
Breakdown of capital gain: buy a coin at a low price, hodl for particular period of time and sell it at a higher price. the difference between your buy and sell price is your gross profit which is your capital gain.
Example: buy coinA at $0.1 hold for some period of time, sell when it raises to $1 = 900% gain. Cool right
? But there's a big disadvantage, this is more of a gamble why? you buy that fav coin of your only hoping for a rise in price what if it doesn't happen, what if you bought at ATH thinking it was a good buy price and coin just keep on dipping. The advice Hodl will start spreading round, don't get deceived most times if it isn't bitcoin it's not worth it.
Earning through Cashflow: can i earn even in the bear market? yes you can do that by investing (buying) coins that pays you dividends for holding their coins in the form of masternode or proof of staking. Let me break it down with an example. You buy a coinA @ $0.1 stake the coin and receive dividends earning you Cashflow even when the market is down and here is the best part, you also earn capital gain at the end of the day.
The choice is left in your hands you can either invest for capital gain only or invest for both Cashflow and capital gain. Investing in this form is at its minimum so it's more profitable.
Feel free to drop your views.
Yes, you described everything very colorfully and simply, but forgot some nuances without which novices will run to buy coins and trade and remain with nothing. First of all, there are a lot of pitfalls in trading, bonal unknowingly, you can invest in the wrong asset and it can depreciate and you lose all the money. In the second coin for which dividends pay, there are not so many of them and in order to receive a normal amount from dividends one needs a very large initial capital.