How to profit from Cryptocurrencies?

The rapid development in cryptocurrencies is remarkable. Bitcoin, Ripple and Ethereum have long since become much more than digital means of payment for a few initiated people. Private investors and speculative investors have the digital currencies in focus. The Bitcoin hype, after the immense increase in value of the currency is far from over. New digital currencies keep appearing on the market, and Facebook is also on board with its own currency called Libra.

In the dichotomy of risk appetite and need for security, investors are spoiled for choice, because there are many promising opportunities to use their money profitably. It is all too understandable that new developments are initially followed passively by cautious individuals for a certain period of time.

Investment trends

Investment trendsVery few people dare to enter the market right at the beginning of the boom. Forex trading, for example, offers extremely high profit opportunities and yet many investors initially shy away from investments in the foreign exchange market. The only important thing is to be well informed, to enter gently and to keep an eye on the risks. Then it can be worthwhile to follow the trend of Forex trading. There is never an absolute guarantee for success. Therefore, one should initially operate within a manageable framework and enjoy the playful element. There is a lot of logic behind it.

It is similar with sports betting: If you know your stuff and place your bets prudently, you definitely have a good chance of winning. If you want to bet on sports with BTC, you have to chose are reliable bookmaker. Compare them before you open an account there [1].

Even in the gambling industry, the online casinos that are popular today were initially viewed rather critically and you should still look closely and make sure that the providers are reputable. The 1xbet casino was chosen as one of the most popular in the industry. Here you can use the whole range of casino games without fear of fraud.

No risk no fun. But no matter in which area, investors should always check the presented chances for their investment with a healthy portion of skepticism. Bringing worthless papers to the man from the outset and even advertising them via call centers was recently an unfortunately very successful scam of internationally operating fraudsters.

Choose cryptocurrency

Choose cryptocurrencyWhich currencies are among the favorites is information that you have to deal with thoroughly. With the now already not small, further growing number, one can quickly lose the overview as a beginner.

There is no guarantee even if all signs point to success and so you have to decide for yourself whether an investment makes sense.

Even if you are sure that you want to try it with a cryptocurrency, it is advisable to think carefully about the percentage of the investment volume that you make available for it. Also, the choice of investment strategy is of great importance. Besides buying currency, there are other crypto alternatives that may be of interest. Just like on the coin, you should focus on the type of investment and include several options in your considerations.

5 popular cryptocurrencies are:

Bitcoin

The world’s first incomparably successful cryptocurrency is already almost something like digital gold. The number of all Bitcoins ever available is clearly limited to 21 million and already more than 85 percent of them have been created. As a consequence, the price is rising, because with an ever-increasing demand, the supply can still only grow slowly.

  • The currency is decentralized and secure, and Bitcoin halving is coming in May 2020.
  • The inventor of Bitcoin, Satoshi Nakamoto, has stipulated that the number of Bitcoins distributed halves every four years.
  • Thus, from the current 12.5 new Bitcoins every ten minutes, only 6.25 will be distributed from May 2020.
  • In the course of the previous halvings, the price climbed enormously.

Ethereum

No other currency can compare to Bitcoin, but Ethereum also has strong merits especially as a platform. Blockchain contracts [2], known as smart contracts (programmed contracts), are at the forefront of Ethereum.

These internet-based contracts, whose contractual terms are defined using a programming language, are fast and cost-efficient and offer significant added value in terms of legal certainty. Overall, Vitalik Buterin’s cryptocurrency offers many possibilities for use, although that as a means of payment is more in the background.

Ripple

Ripple is also getting a lot of attention from investors, and rightly so. Brad Garlinghouse’s company aims to make the global payment system faster and cheaper with Ripple’s XRP tokens.

Transfer costs should be much cheaper with the tokens and possible within seconds. One disadvantage of Ripple is that it is a company (FinTech) and therefore not decentralized. There is also some concern that the value will drop should more tokens come onto the market. In fact, this is why there has already been a petition demanding that Garlinghouse destroy the remaining Ripple that the company still has.

There’s nothing exotic about investing in cryptocurrencies for a long time now. The current trend is pulling in everyone from traditional asset managers to risk-averse investors.”

Binance Coin

Binance’s coin comes with the advantage of traders buying the so-called BNB Coin because it gives them discounts when trading. Furthermore, Binance wants to buy back more and more Coins itself in the long run, so it can be expected to increase in value.

  • This currency also belongs to a certain company.
  • It is considered relatively stable, as it has proven itself even in fluctuating market situations.
  • Third parties can also bring their projects to the market through Binance.
  • This was the case with Bittorrent, for example: if you wanted to invest in Bittorrent, you needed Binance Coins first.

Chainlink

Chainlink [3] aims to connect smart contracts on the blockchain with the real world. Blockchains cannot access off-chain data, which is why they have to provide so-called oracles with data as external feeds. However, previous oracles are centralized services in the process, which is why blockchains are error-prone again.

  • The Chainlink Blockchain aims to solve this problem as a decentralized network [4] of Oracles.
  • An incentive mechanism ensures that smart contracts are provided with the data and appropriate oracles are connected: A promising model for the future.

Good forecasts

Digital coins are worth a lot. There has been nothing exotic about investing in cryptocurrencies for a long time. The current trend is drawing in everyone from traditional asset managers and other conservative investors to risk-taking investors. The growing range of investment opportunities is trying to meet the ever-increasing demand.

[1] http://www.bestbitcoinsportsbook.net/
[2] https://e-gear.at
[3] https://chain.link/
[4] https://recheck.io/