The Different Crypto Investments You Want To Know
Cryptocurrency is one of the most exciting markets for investors right now, if not the single most exciting investments around. There are people who have made their fortunes off of putting their money in the right crypto project, but there are plenty of others still who have lost plenty by holding onto the wrong bag for a little too long. If you’re looking at the prospect of investing in crypto, then it’s a good idea to learn about the different options that you have.
Bitcoin
The classic option, by all accounts, Bitcoin was the first cryptocurrency to make it really big, and there are people who became millionaires from buying into this coin before its popularity and worth exploded. However, since then, Bitcoin has seen plenty of major dips, with crashes over the last few years particularly consistent. There is still a way to make money from the big coins even if they might not see the kind of value heights that they have in past: by buying after the dip and selling before the next one. However, care has to be taken to gauge when that next dip might be around the corner. Hold onto it too long and you could end up losing money.
Other cryptocurrencies
Bitcoin is far from the only cryptocurrency that you can invest in. There are other long-standing and relatively reliable coins such as Ethereum and USD Coin, both of which has their own dips and rises to think about. However, much of the excitement in the crypto investment world comes from the arrival of new coins onto the market. Being able to catch onto the next big exciting project and to get your money in them before they rocket in popularity is the dream investment. However, rarely does this happen. Pay attention to the best potential coins on the market, but follow the news carefully to see which of them are getting the hype they need to grow in worth, and which aren’t getting the attention and thus are a lot more likely to stagnate and fall.
NFTs
Decrypting crypto and its many related terms and concepts can be a little tough for a newcomer. For instance, many don’t understand the difference between cryptocurrencies and NFTs. Effectively, NFTs work on the same principle as crypto, using the blockchain to create digital assets that are verifiably linked to one owner at any given time. However, while crypto is designed to be used as a currency, NFTs are more treated as collectable pieces of art. The NFT bubble has somewhat burst as of late, despite an overwhelming campaign of raising publicity by celebrities and influencers. Since they’re not working as a piece of fashion or pop culture artifact, others are looking into the space to see if there’s a problem that NFT serves as the solution to. For example, some brands are turning to NFTs as a custom NFT loyalty solution. This rewards customer loyalty with NFTs for their activity, giving them an NFT for each purchase they make (like collecting stamps for your next free coffee at your local cafe).
Fan Tokens
Not quite NFTs, not quite cryptocurrencies, there is another kind of asset that is becoming more popular as an investment as of late. Crypto fan tokens are crypto assets that are connected to specific organizations such as sports teams, e-sports teams, music clubs, and more. They are effectively a kind of sponsored digital merch that can be bought, sold, and traded like cryptocurrencies but are not tied in value to any particular coin (such as Bitcoin or Ethereum). Aside from being another way that fans of sports clubs and the like can show their support to their chosen team or group, fan tokens are also being used in some instances as a kind of membership badge, sometimes allowing special privileges to fan token holders.
Crypto services
You don’t necessarily have to invest in crypto assets to invest in the crypto market. Aside from assets like coins, NFTs, and fan tokens, there are also the services, companies, and software that make up the cryptocurrency industry that you could look into. For instance, regardless of the value of the coins themselves, it’s easy to see how the value of some of the markets that allow trading has grown exponentially in value due to the increasingly large interest in crypto. By investing in the businesses that sustain the crypto market and support the people looking to get into the market, you can make a profit this way, too. Of course, with any kind of stock investment, you have to pay close attention to the industry to make the best of your investments.
There are, of course, even more, crypto investment opportunities and options than just those mentioned above. Do your own research to see which of them has the potential to be your next money maker.
