10 years have passed From the date of Bitcoin platform’s startup. All these years, the minds of enthusiasts have been concerned with success stories and failures, opportunities and the future of cryptoeconomics.
Today there are some hundreds cryptocurrencies have their own characteristics. 20 of them are most popular for investment and trading. Do cryptocurrencies have a future and is it worth investing in them, let us look into the article.
Any investor, above all, feels about profit. There are various investment opportunities on the market.
Stocks, like securities, have been known since the 17th century. These financial instruments are available on the national stock exchange for purchases and sales. The largest stock exchanges are located in London, New York, Hong Kong, Tokyo, Shanghai and Frankfurt.
The trader becomes the owner of the company’s share of the par value of the security, acquiring a share. If the stock price rises, that is, there are many traders on the exchange who want to buy it and complete the transaction, then the stock price is also growing – its owner makes a profit. Every six months or a year, major companies set dividends to shares. Usually such a process occurs when the financial activity of a company is successful. Thus, the stock can bring double profit to its owner.
A cryptocurrency holder does not receive dividends, but often a cryptocurrency is created for a specific start-up and can be invested in this project. Today, cryptocurrency trading takes place on over-the-counter platforms. The main difference between cryptocurrency and shares is super-profit. Let’s look at the diagram of the major company placed on the stock exchange – it is Facebook. From 2016 to 2017, its shares climbed 65%, it is cause for celebration. Perhaps this is one of the leaders in stable growth on world markets.
As a comparison, we look at the chart pair XRP / USD. Ripple cryptocurrency is one of the top currencies with significant market capitalization. The chart shows for a period of almost a few months, the currency demonstrated an increase of more than 1000%!
After quick growth, there was a steep fall, which also could be earned by the sale. The advantage of these financial instruments is cryptocurrency. Correctly chosen cryptocurrency for several months or a year can make a profit comparable to the profit from shares for ten years. It needs to be noted that shares climbed is not always stable and can change from year to year for any company.
The investor is obliged to assess their risks, spotting the possible profit. Let’s imagine you bought shares of a fast-growing company for $50. The company turned bankrupt. Your losses reached $50. In particular cases, losses are compensated by insurance. Significant investor have a chance to reach the IPO, that is, the possibility of acquiring shares at a starting price. In the case of buying Facebook company’s shares, your risks may amount to $ 165 (February 12, 19). Moreover, on the stock exchange there is an opportunity to sell shares at any time and fix smaller losses. Cryptocurrencies are traded according to the same principle.
Cryptocurrencies have a wide range. It is possible to buy an asset at the lowest price. Ripple reached the level of $ 3.5, and today it is priced at $ 0.3. Thus, if you buy today, your risks will be as low as $ 0.3. In this case, theoretically, we can expect the return of the currency to its previous maximum levels and extraordinary profit.
Cryptocurrencies, as a means of investment, are a more risky tool. However, the potential profit of hundreds percent makes them very attractive for increase in capitalization.
Stability and future
Undoubtedly, stocks are more stable in terms of profits; national financial institutions regulate their turnover. On the other hand, the risks of losses when fall in exchange are quite high, and the initial investment to obtain tangible profits must be substantial.
Today it is customary to sink cryptoeconomics and crypto trading. In their assessments, some experts are guided by the fall in the rate of Bitcoin and the fall in the other top cryptocurrencies. At the same time, forgetting that crises happen all the time on the stock exchanges: the great depression of 1929, the “dot-com bubble” in 2000.
It should be borne in mind that the blockchain is not only hundreds of cryptocurrencies traded. The cryptotrading market has not yet been formed; hype plays a major role on it. Blockchain is primarily a technology is being implemented today in various areas of the economy. As far as such solutions are sought by society, the rate of individual cryptocurrencies can grow quite quickly. For example, Ripple first of all is a platform for payment systems, focused on operations with currency without chargebacks.
Choose sophisticated cryptocurrency for your investment, evaluate its potential and buy as cheap as possible.
Editor of IMD News