How To Invest In Cryptocurrency
How Easy Is It To Make Money in CryptoCurrency?
A guide to the Cryptocurrency market and strategies to make money from it
By James Spurway
What’s all the fuss about? Everyone has heard of Bitcoin – right?
Times have changed. Once there was Bitcoin. Now Bitcoin has 1,600 little brothers and sisters, the market capitalization of the Cryptocurrency market globally is estimated to be $147 Billion, and it has a daily traded volume of a bit over $2 Billion.
Just like fashion that’s seen on Main Street, the financial markets, typified by Wall Street have seen fads and trends come and go.
But then there are iconic moments when you witness a revolutionary trend. The emergence of a wide and deep Cryptocurrency market is a revolution, not a trend.
Like with any new financial asset, for example, foreign currency 20 years ago, there has already been and will continue to be winners and losers.
Get in early and the chances are greatest to make a lot of money, r lose a lot of money. Just ask anyone who has invested in Bitcoin over the years.
Its share price has fluctuated up and down in price movements that were calculated in the tens of thousands of percent.
What’s in it for me – can I make money investing in or trading cryptocurrencies?
Yes. But it’s not for the faint-hearted. That means you should approach an investment in a cryptocurrency asset as 100% at risk, i.e. totally speculative in nature.
For now, your decision is on the one hand complex, and on the other simple. For the time being there are no regulated and properly functioning crypto exchanges that are like the New York Stock Exchange (NYSE) or London Stock Exchange (LSE) or Frankfurt Stock Exchange (DAX) are for stocks.
They will come in time. Once there are exchanges, and these exchanges quote the value of a series of the strongest crypto units, somewhat akin to the Dow Jones Industrial Index, investors will be able to buy and sell individual crypto units or buy and sell the index, as well as trade in and out of crypto units by purchasing for example currency or currencies, and eventually hopefully stocks and bonds.
There is no trading activity in the traditional sense. What there is for the investors in Bitcoin and some of the other coins is an activity called “mining”.
Time is more valuable than money. You can get more money, but you cannot get more time.
Do I have to open a traditional brokerage account to trade Cryptocurrency?
The Answer is No. Investment into this asset class is achieved via the establishment and funding of a payment wallet. This is attached to a coin wallet or wallet in the case of Bitcoin, who has set the standard that many other cryptocurrency companies are following.
Can I use them to pay for stuff?
Bitcoin has managed to make some in the Government and some in the Private Sector take a stand on whether cryptocurrency in general and Bitcoin, in particular, can be considered “money”.
There is a lot at stake. If Governments around the world legitimize its existence, by allowing goods and services to be invoiced in and paid with Bitcoin.
We will have arrived as a whole new point in our financial market evolution, where the potential exists for all economic activity no longer needs to be measured against the benchmark unit of one country, i.e. the US Dollar, but instead, a totally non-political, independent monetary unit.
At the moment for example, there is reportedly over 100,000 merchants around the world who accept payment by Bitcoin, as well as some well-known global brands, such as PayPal, Microsoft, Dell and Newegg.
There is absolutely no doubt that we will see either a unified Cryptocurrency Unit, call it a Coin for want of a better word, or a series of Bluechip Cryptocurrency Units evolving over the next 5-10 years.
What is missing at this stage is widespread Government acceptance, and hence classification/recognition and appropriate regulations that govern its use and its pricing mechanism for example.
There is also no doubt that from where we are today, there is going to be more potential for profit to be made.
An investor is advised however to choose their target company carefully, paying particular note of how they say new coins are issued, how many are in circulation at any given time, and what information is circulated that would give participants a full and fair chance to make an educated buying or selling decision.
Want to learn how to invest in Crypto Currency
Caution, only invest the money you can afford to lose. Do not borrow money.
What are your thoughts on why so many people are investing in Bitcoin and other Altcoins (Cryptocurrencies)? I’d love to hear from you …
Please Comment below
Yours truly. Jim
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