How to Legitimize the Cryptocurrency Industry
Many compare the current boom of cryptocurrency to that of the internet boom during the late 1990s. With the possibility of the industry growing to trillions of dollars in a short period of time, there are a few things to know before getting involved.
Given that there are over 2,000 coins on the market, referred to as altcoins or alternative coins, the difficulty comes in finding some sense of transparency. Often, investors see different coins as sketchy due to the fact that it can be difficult to ascertain information on a certain coin.
The prices of the two largest coins, Bitcoin and Ethereum, have exploded during the past year. This has helped to bring attention to the market of cryptocurrency, and turn it into an extremely large business opportunity and possibly a new type of world economy. Bitcoin and Ethereum have seen profits this year reach 588% and 2,500% respectively. These gains are unheard of in any other market which is why so many are trying to get involved.
Billionaire investor Michael Novogratz reportedly has 10% of his current net worth invested across cryptocurrencies. With big names involved, the question becomes, where do you start? One of the main challenges for anyone looking to invest in the market is knowing what you are getting into. Most who are investing, don’t truly understand how cryptocurrency works or what they are doing for the most part. This can often lead to losses as they don’t know when to buy or sell, and often their knowledge comes from the stock market which is increasingly different from the market of cryptocurrency.
As the market blows up and forms a new way to spend and earn money across the world, many are looking to see how they can involved in this new, budding industry.