In less than a decade, Cryptocurrency has grown from a simple digital currency to a still-growing lucrative industry.
Early adopters, folks who took the risk, who foresaw profit and invested in digital coins are now experiencing financial buoyancy.
It all started in November of 2008 (well, maybe before) with the digital currency master called Bitcoin. Little was known about it as the coins were almost meaningless. With a few cents, buyers could just walk away with hundreds of coins.
No one seemed to see the million dollar value embedded in the simple computer database units. In 2010, the most expensive Pizza was sold for 5000 Bitcoins. See story here as this is worth $20,960,000 ($20bn) today. This is the killer Pizza sale 😉
Kristoffer Koch at 29, threw away $22 in the Bitcoin market, forgot it there and only came back to uncover a whopping $850,000 four years later, BBC tells us here.
Stories of Bitcoin millionaires fill the media today. Fortunately, though we missed the Bitcoin’s golden beginning, the industry has grown today giving the opportunity to everyone online to become a cryptocurrency millionaire.
How to make money in Cryptocurrency
Cryptocurrency investment is in different phases but I want to look at buying coins when they are almost valued at nothing or cents. It could be more expensive to invest in buy mining machines (computers that generate digital coins) or creating your own coins. But everyone with $5+ can own coins by buying them from someone with the hope to resell on online exchanges and make a profit.
Buy coins when they are cheap
Digital currencies often start with a very low value. With time, the value grows as a result of demand and supply forces at work. Unlike fiat currency, the value of the digital coin is not decided by governments or any central body. The bigger the coins community (number of people buying and selling with the coins), the higher the value grows.
The more the demand for the coins, the higher the value. As people stop buying and transacting with the coins, the value will drop correspondingly.
NB: The Billion Coins (TBC) functions differently. See this post by William Otoole
Ok let’s look at Bitcoin growth:
A Bitcoin (according to coinmarketcap) on the 28th of April, 2013 was $135.58. If you invested $1000 in buying the coins, you were to get 7.38 coins right?
What’s the value today?
Today, your investment was going to be worth something around $30,634 and that’s 4 years after. No Bank is ever going to pay that kind of interest.
But here is the point…
Buying Bitcoins now with the hope to resell for profit is not wise at all. The value has overgrown that limit except you are expecting it to grow to $1 million per coin as predicted by Wences Casares of Paypal
In 2009 when Kristoffer took his first step in Cryptocurrency, a single Bitcoin (BTC) was valued at $0.0044. That’s how he got up to 5000 coins for just $22. That was a golden period to invest.
Find coins that are low in value
What I recommend now is to buy coins that are low in value. When the value grows, you are sure to make profit.
But it’s not an easy task. There are hundreds of coin projects today, including scam or fake opportunities. That makes it not easy to find a legitimate new cryptocurrency opportunity.
Where do you find these coins?
The cryptocurrency marketplace is constantly growing with coin owners devising different methods to get the word out.
Some popular cryptocurrencies like Swisscoin, FirstCoin, etc have embraced the network marketing strategy. You will need a sponsor to join their ecosystems.
Today, TBC (The Billion Coin) has also voted in favor of MLM through its Kringle.cash platform.
Others are going with Initial Coin Offerings (ICO). This approach has given birth to the ICO markets where investors can easily find profitable blockchain startups to invest.
In ICOs, blockchain startups sell some of their currency units (generally called tokens) to investors at a ridiculously low price. This is done in other to raise funds to sponsor their projects.
Investors who buy tokens hope for the growth in the value of those tokens, with an option to trade them on cryptocurrency exchanges and make huge profit.
ICOs are a gold mine
Investors are making a lot of money in the ICO industry. While this is proven to be a huge money making business, it can also be a big pain with lots of scam coins popping up here and there.
In my ICO Money report, I discussed ICOs to a greater extent, pointing out some gray areas to pay attention to.
You may want to grab a copy of my report here for free. This also shows you some details on where to find profitable ICOs and how not to be scammed.
Let me know what you think making money in cryptocurrency in the comment box. If you like the post, share on social media and link to it from your blog.