The main cryptocurrency that the media leverage to describe this path is of course Bitcoin. Obviously, to understand the new face of investing, it is important to look beyond trends in media channels and learn about developments especially when one is opting to earn bitcoin. But how much mental bandwidth can your average investor spread across a whole host of possibilities? This is the place to be for new investment platforms.
Walking on the tightrope between risks and wastage
While the advantages of diversifying investing in several cryptocurrencies are clear from a hedge perspective, it is undeniable that emerging cryptocurrencies have the potential to be incredibly volatile. It is only necessary to visit the cryptocurrency cemetery, dead coin (link) to see how many cryptocurrencies have crashed, burned, exploded or disappeared in general without a trace.
The result of this volatility, especially among new investors, is a fear of betting on the wrong horse. But with this climate of caution comes a huge opportunity cost. Future1coin, a company that is building better platforms for investing in cryptocurrencies, sums it up well: “As a result, many investors lose their money speculating in bearish currencies or sticking to expensive alternatives.”
Greater versatility
Versatility and agility are the difference between success and failure for cryptocurrency investors. While the transactions that occur when trying to earn bitcoin are getting slower and more expensive, the appeal of altcoins is that they can offer investors something completely different and unique. Some are faster, and others give the investor a higher level of anonymity. In fact, others are sought after precisely because they are volatile and thus provide greater opportunities for quicker profits.
The magic trick is how to reap the benefits of diversity while taking an acceptable level of risk. This is a problem that innovative companies are currently addressing. New platforms are being developed to help investors bridge this line between unnecessary spending and unnecessary risks.
Take Future1Coin as an excellent example. Part of the vision of this platform is that it will create a list of high quality and reliable cryptocurrencies, all of which have the potential to enrich investment strategies with minimal risk. Essentially, the end result is a multi-faceted cryptocurrency investment platform, with real-time data interpreted by in-house experts. By providing that, the goal is to achieve this elusive balance that allows for robust and flexible profit-making strategies.
Think beyond cryptocurrencies
Returning to the topic of hedging, the inevitable fact is that while cryptocurrency is a rapidly developing medium for huge potential gains, it is also very volatile. A really sound investment strategy is one that doesn’t put all of your eggs in the cryptocurrency basket. As Frisco d’Anconia of Coin Telegraph said, “Precious metals, stocks and other traditional investment tools can be a great addition to your portfolio and will allow you to reduce your risk by investing in cryptocurrencies alone.”