Cryptocurrency Wave [Infographic]
The obvious way to stake a claim in the digital currency marketplace is to buy cryptocurrency from an online exchange. Although it’s not guaranteed, digital investors could potentially realize astronomical profits. For example, the value of bitcoin rose 869-percent, Ethereum rose 5,083-percent and Litecoin rose 2,068-percent during 2017.
The original cryptocurrency is the well-known bitcoin. Along with a host of other digital currencies, Litecoin later entered the market to rival it.
Another alternative digital coin among the wealth of current choices is Ethereum, which many startup ventures have offered to speculators through initial coin (ICOs) to raise funds for developing proprietary blockchain algorithms.
Yet another way that’s popular for entering the cryptocurrency market are initial coin offerings – a relatively new, but mega-hot, speculation trend. As of late, ICOs are wildly popular as a resource for raising digital venture capital.
The investment opportunity is similar to initial public offerings (IPOs) that corporations offer on the stock market. During ICO offerings, however, firms presell digital coins to support their future blockchain initiatives.
In 2017, startups around the world that issued ICOs raked in $800 million in the second quarter of the year, eclipsing the sum of all traditional global venture capital rounds by $565 million. However, investors are betting on a product or service that its creators have yet to produce, increasing the risk of investing in the instrument substantially. In addition, ICOs are currently unregulated, making the market ripe for picking by cybercriminals and scammers. Ergo, buyer beware.
Coin mining is another way to acquire potentially profitable cybercurrencies. Although it’s an expensive way to enter the market – for now – it’s a relatively safe pursuit.
To earn coins, some miners use special computers called mining rigs that are made just for processing the complex algorithms required to earn digital currency. In theory, the device will pay for itself, but it might take quite a while. Still, miners can accelerate their digital cash flow by strategically trading up for other coins.
Created by the New Jersey Institute of Technology’s Online Master of Business Administration degree Program.
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