Hyping up the cash
The advent of cryptocurrencies has brought about a slew of controversy, fraud, scams and investments that have not occurred since the Dotcoms of the 2000s. However, despite the multitude shortcomings on the cryptocurrencies market and the vast amount of fraud, there are still ample opportunities to make profit on the emerging market, which has seen its fair share of ups and downs since its conception and inception in 2008. Mainly, the essence of making sound investment on cryptocurrencies boils down to the basic concepts of all civilized markets, namely investing and
trading. Though the crypto economy, unique as it is, has also added the mining aspect to the money-making mix.
Investing in the crypto market is as simple as it may seem. With the innumerable projects on blockchain basis already available, the essence of a successful investment resides in making sound choices about projects to invest in. There are no insurances as of yet, though some projects like DeHedge do offer securitization of investments in cryptocurrencies. In essence, to be able to make money, it is necessary to select a viable project with potential use for the market, buy the project tokens and wait for the project to develop, which inevitably will ensure its token value gain. Some projects gain value rather quickly, others are stillborn. As the project gains momentum, the investor may sell the project’s tokens on the exchange and make a healthy profit. As tokens are commodities, they are freely traded on multiple exchange platforms.
Researching the market is known as fundamental analysis. By gaining the right information at the right time and understanding how it will interact with the market, it becomes easier to stay predict trends, essentially whether or not a cryptocurrency’s exchange rate will rise or fall. In addition to fundamental analysis, there is also technical analysis, which refers to studying charts and finding patters of an asset’s price behavior on the market. Token holders do not sell their assets at low prices. If an investor wishes to invest in a worthy project, it is best to do so for the long term, buying when prices are low. Sometimes it is better to focus on accumulating tokens rather than selling for low gain as the tokens of solid projects rise regularly.
Finally, there is the mining method, which is essentially making Bitcoins. The process is a very expensive one as it requires a solid technological base or “farm” – a complicated and power-intensive processing system of computers, which will take part in a network of peers and compete with other farms to solve a complicated mathematical equation to earn Bitcoins.
The methods of making money on cryptocurrencies do not differ greatly from traditional stock and commodities markets as all economies are based on assets with value, which either rises or falls and can be capitalized on.