Cryptocurrencies and the blockchain: possibilities for everyone
Cryptocurrencies have shown a tremendous advance in a very short period of time. Regardless of whether you think that this will take over the banking system or that it will be an expansion of it, there are several possibilities that are increasingly becoming more popular. Payments, payment methods, but also complete blockchain applications that make the Internet of Things possible. Blockchain and cryptocurrencies are literally everywhere. But investing easily, that’s a completely different story, unfortunately.
The possibilities that cryptocurrencies offer
The blockchain is increasingly used for a wide range of projects. These include sharing data, securing networks, but also making payments internationally possible with much lower costs and faster processing times. Whether you will soon be able to pay for your groceries using cryptocurrencies, that’s just a question, because we’re not that far yet.
On an international level, however, we are seeing an increasing number of collaborations. Not only do developers use the blockchain more often to set up and test new applications, the cryptocurrencies are also used more and more often. As a token within a platform itself, as a means of exchange and as a payment unit.
And that makes cryptocurrencies an interesting option when you want to invest your savings.
Investing savings into cryptocurrency?
Savings don’t yield a lot of interest nowadays. The low interest rate on savings will not recover in the coming years. This means that your money is fixed, while inflation cuts off part of it every month. Although you think you are saving, you are actually losing part of your capital every day.
Investing in cryptocurrencies is a lot more interesting. Many coins have a limited supply. However, demand continues to rise, with which the value of the coins also could increase. You have undoubtedly read about the Bitcoin millionaires and other people who have become rich from their investments.
Can I still get rich?
The golden age seems to be over. The biggest profits were made at the time when most cryptocurrencies were launched and people doubted the usefulness. Had you invested € 1000 at that time, there would have been a good chance that you would have been rich by now.
That doesn’t mean that you can’t invest to make money now. On the contrary. There are different ways to do this.
Strategy 1: Improve, research and develop strategy
The first way to get started with cryptographic currency is by doing thorough research. A number of factors are of great importance to recognize a successful cryptocurrency:
- How big is the community behind it?
- Does this solve a problem for which there is no other solution?
- Is there a limited supply or can more coins be issued?
- How big is the market capitalisation at the moment?
- Is there a demand for the blockchain behind the cryptocurrency?
- Does the team behind the coin have the people and the resources?
If all the above points can be ticked off, there is a good chance that this is could be a successful coin that can increase in value.
Before you invest money, you should of course first take a look at the technical analysis. Where exactly is the price, what is the state of the support and the resistance and is this the right moment to buy?
Sounds complicated, but it’s getting even more difficult. If you want to invest well on the cryptocurrency market, you’ll have to adopt a strategy that experienced traders also use: you’ll have to apply risk management.
In concrete terms this means that you’ll never use your full capital on one cryptocurrency. Ideally you divide an investment of € 1000 over at least 10 different cryptocurrencies, in a matter related to the risk and benefit you expect for each coin. That is what we call your risk management.
Strategy 2: the easy way to trade cryptocurrency
You want to be able to trade safely in cryptocurrencies, but you don’t have the technical knowledge to do this yourself? At the same time you don’t feel like working with different wallets, because you already know that you’re going to lose the private key at some point in time?
Then you belong to the largest group of people who would like to invest in cryptocurrencies, but still haven’t done so because the threshold is too high. And we understand that like no other. That’s why we have created Bundles and made it very easy to trade in cryptocurrencies.
How important will cryptocurrencies be in the future?
At the beginning of the era of digital money, supporters and opponents regularly got into each other’s hair. Supporters predicted a world in which cryptocurrencies would squeeze the fiat money out of the market. Opponents predicted mafia practices with complete anarchy and everyone would lose their money.
We now know that neither of these scenarios will be the case. What we also know is that cryptocurrencies and blockchain make many things possible that were excluded in the past. Like contributing to the UN’s sustainable development objectives(SDG), the reorganization of renewable energy, but also the sharing of big data or cross-border payments without huge costs. And we are still at the dawn of it, because the first real world applications are only now really being set up.
Cryptocurrencies are here to stay. That is why Asian countries have started to regulate and accept blockchain applications and that is why banks all over the world have started to work together with providers such as Ripple (XRP) and IBM/Stellar(XLM).
What cryptocurrency do I really need to keep an eye on?
The big three are often the center of attention. These are the three cryptocurrencies that have the highest market capitalisation and are therefore the most valuable. These are, in order of size:
- Bitcoin (BTC)
- Ethereum (ETH)
- Ripple (XRP)
We advise you to take a look at the cryptocurrencies that you have a connection with yourself. If you work in the financial sector, you will probably have more feelings towards Ripple, and supporters of the Internet of Things will just follow IOTA and gamers will probably find Enjin (ENJ) or Tron (TRX) more interesting. Interested in Artificial Intelligence, look at Fetch.AI (FET).
Why do we recommend this? Because besides spreading the risks, interest in the market and general developments is also important, and this is often forgotten. This is made easier by keeping an eye on the coins that really caught your interests.