When Bitcoin, the pioneer cryptocurrency, was introduced into the financial marketplace, many people were afraid to seize the opportunities that came with it. It wasn’t until the year 2017 when a significant percentage of the world’s population started considering virtual currencies as a store of value as well as investment.
2017 was a boom for cryptocurrencies in general. The virtual currencies consistently hit the headlines for both the good and bad reasons. Hundreds of early investors turned into millionaires. At the same time, multiple entities encountered massive losses in scams that presented themselves as promising ICOs (Initial Coins Offerings).
As a Bitcoin enthusiast and potential investor, there still lies lots of unearthed opportunities in the futuristic cryptocurrencies market. A few pointers to leveraging the existing chances as the future of this new lucrative venture unfolds include:
1) Participate in prediction markets and exchanges
Prediction markets and exchanges present the most straightforward way of taking part in the transformative cryptocurrency market. The former entails events we frequently take part in such as sports and elections. As a cryptocurrency user, all that is required of you is placing a stake on the most possible outcomes of such events.
If the event in occurrence matches your forecast, you earn a given ratio of what you had staked. If the outcome, unfortunately, mismatches your projections, you will give away what you had staked. Any prediction market is easy to navigate especially for those with an in-depth knowledge of the activity they are forecasting.
Exchanges operate on the same principles as the prediction markets. As an investor, you project possibilities either in rise or decline in the value of a given coin within a given period.
2) Invest in reputable ICOs
Initial Coin Offerings (ICOs) operate in the same manner as Initial Public Offerings. The only difference between the two is that the former entails financing a given project to be engineered by a specific cryptocurrency ecosystem. Additionally, unlike IPOs, ICOs are highly unregulated, hence the need for an investor to take precautions to avoid getting scammed.
An example of an ICO that was successful and is promising a brighter future for investors is the IOTA Initial Coin Offering. The project was initiated to fuel the internet of things ecosystem by providing a decentralized means of transaction within the IoT environment.
3) Drill crypto
Crypto drilling entails authenticating cryptocurrency transactions within a given blockchain. It involves solving complex mathematical puzzles, which are carried out by hardware, commonly referred to as miners. C
urrently, mining most coins are only profitable for investors implementing powerful mining rigs such as ASIC miners. Before venturing into any drilling activities, it is crucial that you consider the period within which you will break even on your investment and start enjoying profits.
4) Buy and sell in cryptocurrencies
Finally, if you cannot bear the risks associated with the volatile cryptocurrency market, then the best way to experience the virtual currencies is by buying and selling different goods and services with them.
Currently, various outlets support the use of cryptocurrency as a medium of exchange. On the other hand, you could also start your venture where your customers can purchase goods and services using crypto.