Ever since Bitcoin was launched in 2009, there have been many more cryptocurrencies that have launched to take advantage of the growing popularity of digital currency. To give you a rough idea, there are almost 2000 cryptocurrencies present in the market today. Some of them have given great returns to their investors while others have faded into oblivion. Nevertheless, the cryptocurrency market is booming, with newer miners and investors searching new ways to invest in new virtual currencies which has the potential to one day eclipse fiat currencies in the way we see world commerce. There are four distinct ways in which you can gain success on the cryptocurrency bandwagon.
Dip investment follows the arbitrage principle- buy low and sell high. You can buy cryptocurrencies whenever they are at their lowest prices and sell them when you feel they have reached their peak. Using this process, you calculate the average price of a particular cryptocurrency and then purchase that currency when the price drops below the average you calculated. When it recovers and there is an alpha, you can then proceed to sell your coins on the Online Cryptocurrency Exchange. You can do this in two ways-conservatively or aggressively. There are many risks associated with this, but the rewards you can earn are amazing, if you are willing to take the risks.
Investing in cryptocurrencies is like investing in a share of a business- either you can get amazing returns or you are left with nothing. But here is where the difference lies, when you purchase a cryptocurrency, you are investing into the belief that your investment will eventually become like a fiat currency- you could trade it for anything in the near future.
Till date, cryptocurrencies like Bitcoin have given a lot of returns for their investments, a $100 invested in Bitcoin in 2011 is now worth more than $6000. There is a lot of risk associated with investing in cryptocurrencies, but the returns are just as good. In fact,with the gradual fall in value of many cryptocurrencies, the time is ripe to make your investment here.
Trading in cryptos across multiple cryptocurrency exchanges
There are many cryptocurrency exchanges where you can buy and sell crypto coins. However, there are always variations in the prices for selling and buying of these cryptos on these exchanges. You can take advantages of these slight cost variations and earn a good profit while trading in cryptocurrencies on a daily basis. In fact, you can do such transactions in a matter of minutes. Many companies are into this, they use complex algorithms and specialised software to complete the transactions.
Working for the crypto industry
This is one of the best ways to be intimately involved in the crypto industry. There are many investment companies and start ups who need specialised skills for filling various vacancies in their organisations and you have an opportunity to work for them. The roles in demand are Blockchain engineer, Business developer, content marketers and others. You can find many cryptocurrency jobs available online on various sites like Indeed and Glassdoor, this is your time to make your career in this niche market.
The cryptocurrency market has been growing gradually due to a variety of reasons,primarily that of the various complexities and regulations of the current fiat currency model that we follow. There is going to be a time when cryptocurrencies would dominate global trade, let us hope that day comes soon.