Benefits and prospects of investments in cryptocurrency
The idea of earning in electronic currency has permeated the minds of investors and exchange players, having won a significant market share. Mastodons of the economic scene are vying to argue about the prospects of a rapidly growing “crypt”, warning the townsfolk about the imminent collapse of Bitcoin, but they themselves are successfully investing in the asset, taking advantage of the stable growth of its capitalization. Do these investments have prospects?
Earnings on bitcoins, as a relatively new economic instrument, have their own nuances. The variety of cryptocurrencies, as of early December, has exceeded 1300 types, and each of them has growth or bankruptcy prospects. This state of affairs raises the question with an edge: which cryptocurrencies can be investment-profitable, and which not?
It is not difficult to start making money on cryptocurrency, and in general, the process is identical to regular trading on the market. In this matter, the choice of a brokerage company that is time-tested, but gives access to the young cryptocurrency market, is important. For example, the regulated broker AMarkets has been known on the market for 10 years, and has 15 cryptocurrency pairs in its arsenal. In addition, the company is among the top five brokers with the highest percentage of successful clients.
Bitcoin VS Altcoin
Today, a variety of online money has split into two camps: Bitcoins (BTC) and Altcoins. The latter is a collective term by which all cryptocurrencies are called except Bitcoin.
Bitcoin is the standard of crypto money. This is the first cryptocurrency that appeared 10 years ago, and remained in the shadow until humanity was swept by a “bitcoin fever”.
In 2017, the exchange rate of this coin against the dollar surpassed all optimistic forecasts of experts with a grin (at the beginning of 2017, authoritative economists spoke about the prospects of $ 10,000) and continues to laugh heartily at around $ 18,900 (at the time of writing).
We tried to figure out what prospects the investment in this cryptocurrency can bring in the foreseeable future with the help of one of the leading analysts at AMarkets, Artem Deev, known for his speeches and publications in leading media. The specialist noted a number of points indicating the growth opportunities of Bitcoin next year.
The highest growth rates of capitalization, which reached $ 300 billion by the end of 2017.
This makes Bitcoin more attractive in the eyes of investors, due to the halo of stability; On the other hand, many economists continue to say that BTC (Bitcoin Stock Exchange Index) is a vivid representative of the “economic bubble”. The faster it grows, the sooner it will disappear.
Opening of trading in bitcoin futures by the largest exchanges in the USA and Canada.
In December, two exchanges are opened in the States – OWN and CME. Following them was the opening of the Bitcoin ETF in Canada by Evolve Funds. These events give way to large investment forces, which will inevitably entail a new, even greater increase in capitalization.
An injection of investments from the derivatives market, with a capitalization of more than $ 600 trillion.
This has not happened yet, but the probability is high. Even insignificant financial flows on their part will push the course up with a new force.
Everything indicates that the future of Bitcoin will maintain an uptrend, and any investment in it is highly likely to bring profit.
Altcoins are cryptocurrencies that appeared after bitcoin. They are less popular, their capitalization is significantly inferior to the older brother, but their practical value and moderate growth rates make them more attractive investment.
The most popular altcoins with relatively high capitalization are Ethereum (Ethereum, Ethereum), Litecoin (Litecoin), Ripple (Ripple), Monero (Monero), Zcach and Dash. All of these coins are available as investment instruments of AMarkets.
All cryptocurrencies are united by high volatility, and a stable upward growth trend. Litecoin surprised the traders in mid-December, coming up from $ 90 to $ 250 in less than a week. Analysts have high hopes for Ethereum, which, in addition to the status of electronic money, has a valuable practical advantage – its system is used to ensure transactions by banks and large companies. The latter, in turn, invest in the project, increasing its capitalization, which is now second only to Bitcoin.
Thus, the popular altcoins also have significant growth potential, at a relatively low cost. This provides more opportunities for market entry for those who want to start trading on this asset.
The investment ability of cryptocurrencies may now be more profitable than other market instruments. In mid-December, the volatility of the simple currency market was at zero, which caused outrage among those who are looking for entry points. The crypto market remains volatile for a long time, constantly offering potential investors favorable start conditions.
In this regard, AMarkets analyst Vadim Kravchuk gives practical advice in one of the daily briefings:
“If the market volatility does not suit you, and you do not see entry points, then you should temporarily switch to the cryptocurrency market and try to trade in this area. But don’t forget about the risks. ”
Of course, in conditions of strong unrest quotes, risk is inevitable. However, there is a sure way to avoid serious losses and increase profits – creating an investment portfolio. This method is used by experienced investors and is a proven tool in the financial world, allowing you to maximize income and diversify risks.
An investment portfolio (in our case, a crypto portfolio) is the distribution of capital to several instruments at the same time. For example, AMarkets cryptographic portfolio combines the three most capitalized electronic coins – Bitcoin, Litecoin and Ethereum, to increase revenue and minimize risks.
Before you begin active investment and trading in the cryptocurrency market, carefully study it. Explore information from open sources, participate in webinars and conferences, and you can avoid financial losses. AMarkets organizes free training programs for its customers, increasing the chances of success.