If one were to make a list of the greatest inventions of the last decade, cryptocurrency and blockchain technology, first demonstrated in the development of Bitcoin, would rank among the best.
The above statement is reinforced by the fact that Bitcoin was named the best investment of the last decade. At the same time, some of the world’s largest corporations include IBM, Microsoft, JP Morgan, and more recently, Facebook is exploring potential applications of blockchain technology.
However, moving our focus slightly to the returns generated on crypto investment shows why the fast emerging market is on the lip of many investors (both retail and institutional) and could continue on that path into the foreseeable future.
But, you may wonder how you could potentially earn significant returns from the crypto revolution. In this article, we’ll discuss some of the most efficient ways to do so, including trading crypto-based CFDs.
- Holding Cryptocurrency
Holding cryptocurrency (a.k.a HODLing) is often called the lazy man’s way of profiting from crypto, and the reason is not far-fetched.
When it comes to holding cryptocurrency, the only thing an investor needs to do is to pick the cryptocurrency, Bitcoin for instance, and then buy it either for fiat using an exchange, or someone they trust (the latter is a more reliable option).
After purchasing Bitcoin, you can store it in a hardware or mobile wallet after backing up your passphrase and putting it away in a safe location. The objective then is to wait until the price rises significantly before you transfer them back to the fiat-crypto exchange to sell for cash or any other cryptocurrency.
Many Bitcoin holders believe that the crypto-asset would be worth so much in the future and hold it with the hope of earning huge if prices go to the moon. Reports even indicate that more than 60% of Bitcoin hasn’t moved in a year despite improved rates after a 2018 bear market hit investors.
Therefore, if you’re willing to play the patient game by waiting until prices go up, then you can try holding cryptocurrency.
- Trading Cryptocurrency and Derivatives
Holding Bitcoin is understandably a game for long-term investors, meaning there has to be another for those looking to profit from short-term price action by some of the leading cryptocurrencies.
Well, trading cryptocurrencies presents just that opportunity, as you can do this via a normal crypto exchange or using a broker like STS Royal. The advantage of using a broker is that you can trade cryptocurrencies as well as a contract for differences (CFDs) based on cryptocurrencies.
CFD trading gives investors a chance to speculate on the rising or falling prices of fast-moving global financial markets (or instruments) such as shares, indices, commodities, currencies, and treasuries. The age-long derivatives service is now available for cryptocurrencies and can be accessed via STS Royal.
Note, though, that alongside the promise of earning potentially high returns over short periods, cryptos and CFDs based on these assets are highly risky investments. Even though you use reliable brokers like STS Royal, It would still require a wealth of experience and information to navigate the market in search of sizeable returns.
But the fact that the Bitcoin market alone boasts over $1 billion daily trading volume across the most popular spot and futures exchanges shows that an excellent opportunity exists for those who master the game.
- Building or Investing a Crypto Startup
If you have the skillset and experience, then you may want to consider your chances of building a crypto or blockchain-related startup. The most successful ones have surpassed the $1 billion valuations, perhaps showing that a significant profit opportunity, especially as the industry is still poised for mass adoption.
Conversely, if you prefer the idea of sending your money to work for you, then you can purchase equity in early-stage crypto startups or a few of them who have the potential to go public within the next five years.
The benefit of using this approach is that your holdings, in this case, would represent shares in the company and not just a cryptocurrency.
A perfect example could be seen in the fact that some investors hold the XRP coin, which was released by San Francisco-based fintech startup Ripple. While the token’s price has declined massively, the company is making plans to go public, a move that could result in a further plunge in the cryptocurrency’s price.
Therefore, it appears that buying real shares in a crypto startup is a better bet than simply holding their tokens. Companies are also exploring the possibilities of issuing stocks and other securities on the blockchain.
Although that approach is yet to take off, it could also present a universal way to invest in blockchain and crypto-related companies with less friction.
- Working Within the Crypto Industry
If you’re seeking a new career opportunity in one of the fast-evolving industry, then you may want to consider working for a blockchain or crypto-related company. Linkedin recently listed blockchain as one of the hottest skills for 2020.
Thus, we can conclude that a lack of talent is one of the challenges facing the space as it journeys towards mass adoption. Most crypto job opportunities are roles that never existed, and also feature less competition even for remote positions
In simpler terms, locking down a job in the crypto space could be considered relatively more accessible when compared to other established industries. However, one can expect that to change in the nearest future.
Meanwhile, a perfect recommendation would be to start with newer startups and then working your way to the top of the pile.
So far, we’ve discussed some of the best ways to profit from the crypto revolution. These include holding for the long-term, trading cryptos or CFDs with brokers like STS Royal, investing in crypto startups or working within the industry.
Whatever method that you choose, remember to exercise patience as the industry is still in its infancy, with the best days ahead.0
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