Can You Make Money Investing in Cryptocurrency?
There are thousands of people who are making money with cryptocurrency. Some of them bet on the right coin, some invest their money on platforms with bonus programs. As the blockchain technology is gaining more and more momentum by the second, people are coming with more and more ways to make money investing in cryptocurrency. However, can you make money investing in cryptocurrency? Stay with us and read on.
Before you dive into investing cryptocurrency, you need to understand what it is in the first place. You could read more about cryptocurrency on What Is Cryptocurrency for Dummies | How Cryptocurrency Works?
Disclaimer: This article should not be taken and viewed as investment advice, but only information and opinions. This article is for information and illustrative purposes only.
Can You Make Money Investing in Cryptocurrency?
The very first thing you need to know about cryptocurrency is that the volatility grossly exceeds that of any other investment class. It is in some parts unregulated. There is the risk that cryptocurrencies get outlawed, that exchanges get hacked or that you lose your cryptocurrency key. Cryptocurrencies are a high-risk investment.
Despite the above-mentioned risks and volatility, there are good reasons why you should invest in cryptocurrencies.
Cryptocurrency is fundamentally a new decentralized operating system for the global economy. The entire point of a decentralized blockchain is to provide a hard-promise and an immutable ledger with open, non-discriminatory participation.
The decentralization of cryptocurrencies democratizes traditional powers and empowers the masses. No more shall you depend on financial institutions for transferring money that comes with an exorbitant fee. There are many coins – most notably Bitcoin – that allows users to transfer money to anyone at any location with a fraction of the fees.
There is a significant upside to investing in cryptocurrency. That is, the cryptocurrency market is still young, and the most optimistic of investors are projecting future prices that would make buying any of the major cryptocurrencies a good bet.
The quick answer to the question – can you make money investing in cryptocurrency is yes, you can. However, it comes with a big risk. Hence, it is essential to set a budget and a timetable. How much money do you want to put into the market and over what span of time? The first number can be arbitrary – no more than you are comfortable losing. Don’t max out credit cards for crypto investing cash.
How to Make Money Investing in Cryptocurrency?
Buying and Holding
Your first option is to just buy coins. When it comes to investing in cryptocurrency, there are several investment strategies that people are taking. The first being, Buying and Holding, which is basically just buying bitcoin and holding onto it until the market price goes up to a place where you feel it is time to sell and your bitcoin for more than you purchased it for. Make sure that you never bet more than you are willing to lose.
Crypto markets require a lot of technical knowledge in order to make a quality assessment, but the good thing is that there are tons of information available online and because blockchains are transparent by nature, you can find everything you need, and talking to creators of the cryptocurrencies is easy, except for Bitcoin, which has anonymous creator/creators.
Bitcoin and other cryptocurrencies, in general, follow the subjective economic theory, so the price levels are the result of the beliefs of the holders, rather than real intrinsic value. Of course, there are many properties of Bitcoin that make Bitcoin valuable and the innovation spectacular, but one can live without holding a Bitcoin.
Now, let’s look at the growth of some coins in 2017 alone.
- Bitcoin (BTC) – went from $ 959.00 USD to $ 13,676 USD
- Dash (DASH) – went from $ 11.16 USD to 1,047 USD
- Ethereum (ETH) – went from $ 8.38 USD to $ 764 USD
- Monero – went from $ 13.56 USD to $ 350 USD
- Litecoin (LTC) – went from $ 4.34 USD to $229 USD
There are different exchanges that will allow you to buy or trade coins to keep in your wallet. If you are totally new to the world of crypto, you may want to start off with getting yourself a small fraction of bitcoin. One of the most popular exchanges is Coinbase. Coinbase offers a super clean user interface and is one of the best ways to get started if you have no prior experience in cryptocurrencies.
After getting yourself the first bitcoin, you will be able to buy other high-quality altcoins (alternative coins) such as Genesis Vision, ChainLink, and BAT that are available in other reputable cryptocurrency exchanges such Binance, Bitfinex and Ploloniex.
The potential reward on these smaller coins is often significantly higher than that of a largely established coin like Bitcoin, so it is recommended that you buy altcoins, rather than large blue-chip coins, in a small portfolio.
What Are Some Potential Cryptocurrencies That Are Worth Investing?
VeChain (VET / VEN) is a blockchain-enabled platform which is designed to facilitate the supply chain management processes. In other words, VeChain is an Enterprise-focused IoT and dApp platform for products and information.
An existing partnership for VEN continued to grow even further during the Consensus 2018. On the event, the CEO of VeChain Foundation and CEO of DNV GL gave out a live statement about the latest development. DNV GL (over $19 billion revenue and over 12k employees) based in Norway, has decided to fully support VeChain with investing in the foundation.
When VeChain THOR officially launched, its team announced that it would be teaming up with the global car company BMW. This new collaboration could potentially catapult the coin to brand new highs. VeChain THOR announced a collaboration with Oxford University. The world-renowned university will aid in the technical development of the VeChain THOR platform. This isn’t the first time a University has linked up with a blockchain project.
The outlook of TRON (TRX) is definitely looking bright for the years to come. If one asks if TRX a good investment, it should be one of your investment portfolios.
TRON is designed to ‘heal the internet’ globally by creating a free content entertainment system. It is designed to make the payment, storage, development and credit sharing easy for entertainment enthusiasts. TRON’s open, decentralized platform and distributed storage technology will allow creators of digital content to cut out middlemen such as the Apple store and Google play store. Content producers will thus be able to obtain funds directly from consumers.
The TRON team is undoubtedly one of the hardest working teams. Its efforts are personified by the energy of its founder and CEO Sun. Strategic and aggressive marketing is quickly becoming the hallmark of Sun’s leadership. Among the top cryptocurrencies, he ranks well above most in terms of being one of the most active on social media. His twitter handle is more active than even that of the TRON Foundation.
At the time of writing, Sun is currently in talks to be added to the institutional exchanges, Coinbase/GDAX and Circle. While nothing is confirmed, the hype surrounding the Main Net launch and Tron’s move to a proprietary network suggests that anything is possible.
ICON is a really promising generation 3 coin coming out of Korea. It is primarily focused on blockchain interoperability – connecting different blockchains and allowing them to transfer information/data – but it also serves as a smart contracts platform much like Ethereum/NEO.
In 2018, ICON will expand its partnership with various blockchain networks. It will also expand the DEX reserve pool to include assets in the majority of the most common cryptocurrencies.
ICON is working with influential blockchain partners ranging from cryptocurrency focused venture capitalists, global accelerators, crypto-focused law firms, and blockchain media platforms. Below you can find the partners: