London, UK, 4 Sep 2021, ZEXPRWIRE – As the evolution into digital currencies continues, each of these currencies brings something unique to the table. Some are more stable than others. While some have a very dedicated, loyal following (dogecoin was made as a joke and has managed to stay alive for years), others have had their price manipulated by nothing other than hype.
Since all these currencies are relatively new, the market is constantly changing. FinancialCentre broker, Joe Delaney, says to make matters worse, a lot of interest in coins recently come from people who don’t have a clue what cryptocurrency actually is (people have been making money just by buying random coins on exchanges).
In order to navigate your way through this new and volatile market, you’ll need to ask yourself several questions before you start buying. What do you hope to achieve by playing in this market? How much time are you willing to invest? Which currency is going to yield the best return on investment?
Mining Vs Buying Coins
If you want to make money, your main options will be mining or buying coins (also called trading). You can try both, but unless you’ve got a huge bankroll and you know what you are doing it will be very hard for you to turn mining into a profitable business. It takes thousands of dollars’ worth of equipment to mine coins at the moment and only a select few can do this without spending lots of money on electricity bills or What’s the worst that can happen? What if you lose your money?
Before I go into too much detail, I just want to throw a disclaimer: cryptocurrency trading is extremely risky. Anyone who tells you otherwise is either a fool or a scammer. You should never invest in anything unless you are willing to take a loss. Even then, you should only invest an amount that you can afford to lose.
There are a lot of question marks around cryptocurrency and the regulations that may apply (or not) to it. It’s similar to the Internet in 1994, where dot com companies were popping up just because “the Internet is cool”. A lot of these died in their infancy or have been bought by corporations who were keen to invest in that market (just like Microsoft did with Hotmail).
If you don’t have any experience trading and investing, it’s going to be difficult for you to make a profit. Buying coins is the same as buying stocks at an IPO (initial public offering), except they cost roughly 20 times less than the ones on the stock market. If you are going to choose this option, make sure that you invest in a coin that has a very low supply and volume (if you don’t know what these terms mean, do some research first).
Even if you are prepared for the risks and willing to learn how to trade, there’s no guarantee that you’ll make a profit. The information about the market that you are getting is going to be as good as the trading strategy you use and your understanding of how markets work.
Some other coins and assets that you could invest in:
– Bitcoin – One of the most famous and secure cryptocurrencies, Bitcoin has a market cap of $886,171,226,237 and a node count of 8,518.
– Ethereum – A smart contract platform that also features decentralized applications (DAPPS) and tokens (ERC-20). It’s currently the second-largest coin by market cap at $377,997,500,432.32.
– Litecoin – This currency is almost identical to Bitcoin but with an increased block time and faster transaction speeds. It’s worth noting that this one also has a dedicated following and ranks as the fifth-largest cryptocurrency in terms of the market cap of $11.33B and node count (5,334).
– NXT – This platform has been around since 2013 and offers one of the most energy-efficient PoS coins available. While it doesn’t have as many features as Ethereum or Bitshares, this blockchain can be used to create your own tokens/assets on top of its network.
– Bitshares – Like NXT, Bitshares allows you to create your own coins/assets on top of its platform. Bitshares offers a lot of advanced features, such as price-stable crypto assets (Smartcoins), recurring payments, and several options for decentralized trading.
There are plenty more examples out there, but these 4 should give you an idea of how you can invest in this sector. Start by reading a few white papers and finding out whether there’s a strong following for any of these currencies. You should only ever invest money that you can afford to lose, and don’t let anyone convince you otherwise.
There are people out there who claim they have made thousands of dollars in just a few months by trading coins like Bitcoin, Ethereum, and Litecoin. If this sounds too good to be true, that’s because it is. If you don’t know what you’re doing, it’s very easy to lose money.
Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your own research before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.