The technological and economic development of the last decade has brought us a huge amount of new opportunities. These opportunities are of all kinds, bringing us closer together through better and faster communication methods, opening new art streams through which people can express themselves and offering us new ways to invest and handle our financial situations.
While the world is facing new challenges every day, some of which are of greater complexity than we have ever seen before, it is clear that new technologies and innovative solutions must be found to contribute to tackling these challenges. One of the new innovations that have certainly already begun to shape our times and will most probably continue to have a large impact on our everyday life, are the cryptocurrencies.
A cryptocurrency is a type of digital money that operates as a means of exchange through a computer network and is not supported or maintained by any single central authority, such as a bank or government. Being based on a decentralized method of confirming that the parties to a transaction actually have the capital they claim to have, deleting the necessity for conventional middlemen like banks when money is being moved between two businesses.
The incredibly strong encryption of the so-called blockchain safeguards transaction records, regulates the production of new coins, and confirms the transfer of currency ownership and is probably the reason why so many people are into these new digital coins nowadays. Whether in crypto casinos or purchasing Tesla cars, crypto is everywhere. But how to actually use these coins to make a profit in the long and short term?
Crypto in gambling
One industry that has adapted the new digital coins extremely fast is the gambling and gaming industry. This industry is known to be quick when it comes to new technological ideas on the market. The new and very popular NFT crypto games are now paving the way into the future of gaming. Since the cryptocurrencies came out, so-called crypto casinos have been popping up everywhere on the market. These are just more or less ordinary online casinos with the difference that you can pay and get paid out in cryptocurrencies. The advantages of the crypto coins in the casino industry are great.
On the one hand they are much faster than usual transaction methods. While with bank transfers, credit or debit cards or any other of the common payment options the transaction often can take more than a day to be received, the cryptos travel within seconds.
Furthermore, cryptocurrencies offer much greater security. Being based on the blockchain concept, they are impossible to be hacked or stolen which is obviously especially in the world of online gambling a great advantage to other transaction methods which have been frequently subject to fraud in the past.
Finding the best coins
Of course the most common cryptocurrency on the market is Bitcoin. But since the coin came on the market lots of other firms launched similar digital coins based on different types of the blockchain. These “alternative” coins are simply called altcoins. Not all of the coins were successful. While some seem to be a total disaster, others plunged up quickly making investors rich overnight.
If you are investing your money into cryptocurrencies it is important to be informed about all the different coins on the market and find the best ones, which you can do at the according events. Altcoins like Ethereum, Binance Coin, XRP, Cardano, Solana or Dogecoin are very popular among investors.
Low prices and volatility
Whether it is in the stock market, real estate or cryptocurrencies, many think that a low price is a good sign to invest. This might be true for some or at some times but it is not always. In the past the cryptocurrencies have been seen to be extremely volatile and unpredictable. Some of the investors have seen low prices as a way to invest large amounts of money just to see the charts fall down even further a week later.
That does not have to be a bad thing though. Be aware that even if the prices are not that low at the moment, it can be the right time to invest as well. The strong volatility of the new digital coins should not scare you off. On a daily basis the strong movements of a chart can be your helper as well. By trading on a daily basis and investing on extremely short terms, the movements can certainly be used to make profit as well, as long as you stay updated.
The difference between holding and trading
Depending on what kind of investor you are you can generally go by two different strategies: buy & hold or trading. Trading basically means that you stay updated and deal with the market everyday. That is more time intensive, but you can learn a lot about the world of investment and definitely can be very successful if you do it right. You need to follow the media, checking for news about the companies or cryptos you have invested that may affect the chart. Furthermore you should analyze the charts and try to foresee what will happen in the future.
If you are not into checking the market everyday and playing around with the different cryptos and stocks, but rather want to put your money at a safe spot and let it grow by itself, you are the right person for the strategy of buy and hold. As the crypto currencies are different from the stock market or other currencies, they are much more volatile and therefore it can be dangerous to just buy one currency and forget about it.
If you do not want to care about the whole thing everyday, the key is diversification. That means that you buy a certain amount of a wide range of different coins. That makes it much more safe for you, because if all your money was on only one coin and this coin breaks down, all of it is gone. Diversification of your money on the market can help to make the whole thing safer and gives you more space for not caring too much about the market.