- to invest, to mine or to trade?
- following news
- being aware of predictions (here comes Cryptics to help)
Crypto Risks Ahoy
The cryptocurrencies market, still in its infancy, is still very far from being a fully-civilized instruments, lacking almost any institutions inherent to fiat markets, for that matter. The risks arising as a result of a lack of instruments and other regulatory laws or government intervention leave many investors in extremely troubled waters. Projects crash and burn with enviable regularity. TheDAO and DeOS are but two that have merrily terminated their projects, scamming away the money and leaving investors watching as the founders waltz away into the sunset rich and beyond the reach of any laws. Such cases lead investors to seek individual profits through investments, mining or basic trading.
To invest, to mine or to trade?
As scams and fraud are common, most investors are wary of projects. Though there are plenty of sound ideas and projects on the market worthy of investment, they often lack sufficient funding to present their ideas to investors in a proper light. Still, investment remains one of the most common forms of earning on the crypto market. A research conducted by one of the first risk-hedging organizations on the crypto market reveals that 92% of investors buy cryptocurrencies for fiat funds, 6% earn cryptocurrencies from mining, and 2% are people who get paid in cryptos. All those involved take risks by investing in Pre-ICOs, as well as during the first hour of any ICO as no one outlawed speculators, and the factor of large discounts on Pre-ICOs bloats the market with supply, which immediately drops in price as soon as demand for the project’s product or service becomes unnecessary or if supply simply outstrips demand. In the short-term, investment in projects carries immense risk as there is no control over the project’s spending and funds allocation, not to mention prospects for future development. Hence, the need for project scoring and analytical applications or projects arises in full when long-terms are taken into account.
Mining has always been the de-facto, firstborn method of making money on cryptos. Projects like Hashflare and Genesis mining have been sold out long ago, hence investors are left with the choice of establishing their own mining farms. An expensive and rather risky venture, as there is no insurance on such enterprises and the legal implications can be quite painful. Still, given the immense rise in cryptocurrency exchange rates, the risks may well be worth the effort as most popular cryptocurrency in the world exceeded the mark of $10,000 on trading on 28 November. The Bitcoin rate reached another historic high, amounting to $ 10,086. Meanwhile, on the South Korean exchange Bithumb, the Bitcoin exchange rate exceeded $11,000. Former manager of the hedge fund of the Fortress Investment Group, Michael Novogratz, said that by the end of 2018, the Bitcoin rate can surpass the $ 40,000 mark.
Trading certainly also remains a point of note, but requires just as much considerable inflow of cash to be profitable, not to mention startup capital. Compared with other forms of making money on the crypto market, trading certainly falls a bit short, but carries less risk, as there is no legal implication to speak of and lesser risk of total capital loss if the trading is done on more expensive cryptocurrencies like Bitcoin.
Following the news of the crypto-market is the only sure way of staying one step ahead of risks. That and the added assistance of good advisors, some experience and rather developed brain cells the investor should possess before setting on the path of crypto profit searching. Still, sometimes even human factors and intuition are insufficient to ensure investment success, hence the market is in desperate need of instruments that already exist on Fiat markets, and no amount of news following will be able to predict some factors that are unforeseeable.
However, there are projects on the market that seek to indemnify or mitigate the associated risks that investors take when deciding whether to mine, trade or invest in projects. Cryptics is one such project that seeks to offer the necessary instruments for alleviating the situation with uncertainty. The concept behind it is to support market participants by providing liquidity on exchanges and a safety cushion for retail investors by creating a platform that connects market players and develops algorithms to predict changes in the value of cryptocurrencies. Such instruments based on highly advanced scoring models involving machine learning and AI are incomparable with human intuition that even the luckiest and most prudent investors could ever be endowed with. The multitude of factors involved in predicting a cryptocurrency’s rise or fall are all taken into account by the algorithms that Cryptics employs. Investors should consult such projects as the expense is well worth the ensured profit and peace of mind.