There are different ways to make money on cryptocurrencies. Lets look at the main: investment and trading.
Investment - buying an asset for a long time (from 1 year) to make a profit. The investor does not pay attention to price fluctuations within the investment interval.
Trading - buying an asset for a short period to make a profit from the exchange rate change.
As you can see, the methods differ in the frequency of trading. Investors rarely conduct transactions and hold the coin until the long-term goal is achieved. Traders make a large number of transactions to profit from each exchange rate fluctuation.
The investor risks less because they invest in coins with long-term potential and use the principle of diversification. Trader risks more, but in return may earn a larger profit (or lose the entire deposit).
There are two types of analysis: fundamental and technical. The investor uses fundamental analysis to determine the true value of the asset. Trader uses technical analysis - forecasting of future price based on historical data using various tools.
What kind of earnings on cryptocurrencies to choose everyone decides for themselves. Trading allows you to earn quickly, but requires more diligence, and the risk of losing your deposit increases. The investor plans to earn in the future, the higher the investment term, the lower the risk of losing the deposit. Experienced market participants recommend using both strategies, buying reliable and promising coins (variant of «pension portfolio») on the part of the deposit, and making fast transactions on the other part, on time to fix and withdraw profits in the investment portfolio, and try to minimize losses.