Investing In Cryptocurrencies For Bright Future ( Mumbai, India)
Regular Shares Vs Altcoin Investment
Globally, an investment in altcoin is the topic of debate and it finds that space because it is different from traditional investment done in the company. Investing in regular stocks is actually buying small units of the company you are investing in. You buy shares of that company and depending on its performance you gain or lose. With Cryptocurrency investments, you actually receive digital tokens, and power to run decentralized apps and smart contracts. Trading of cryptocurrencies occurs, in exclusive Cryptocurrency Exchanges only, like- GDAX, Kraken and much more.
The following are few points which can be compared between the two to understand the difference in a better way.
A. Return Perspective: For traditional venture capital the horizon is seven to ten years, whereas for Cryptocurrency token powered investing has a shorter horizon of one to five years only.
B. Model: The ownership is in the form of preferred shares in traditional investing. In case of Cryptocurrency, it is shares, tokens, or Cryptocurrency.
C. Entry Phases: While you can purchase them from the company in case of Cryptocurrency, in case of traditional investing it is usually Angel, Seed, or an early to late stage entry.
D. Exit Method: It is normally acquisition and IPO with traditional investing and acquisition, ICOs or via Cryptocurrency Exchange listings.
E. Business Model: In traditional case, the companies sell product or services. In case of Cryptocurrencies, a circular economy is created with its own token.
F. Legality: Usually n traditional venture capital the businesses are “Limited Liability Companies” (LLCs) or are governed by corporate laws. But in Cryptocurrency investing the LLCs create technology and runs the separate business. It may also operate as non-registered DAO or Decentralized Autonomous Organizations.
G. Fund Currency: It is fiat currency for traditional investment and in case of Cryptocurrency it is either altcoin or fiat currency.
H. Approach: a Market approach for traditional investment is creating new models or support the current one. It is always creating a new business model for Crypto investments.
Why explore Cryptocurrency Investment?
On the first instance, you may ask the reason for Cryptocurrency investments. In that case, you must study the following trends and facts.
1. Cryptocurrency Jobs: Though unbelievable, it’s a fact that nearly 2000 jobs exist in the Cryptocurrency industry across the globe. The astounding figures for Asia-Pacific are 720 jobs, and for Latin America, it is 105 jobs. This is a clear indication that this industry has already started flourishing, at a stage where global unemployment is aggravating day by day.
2. High density of employees at Exchanges: The need for technically sound manpower, who can work on the blockchain technologies are in high demand at the Cryptocurrency Exchanges. At an average around 13% of the employed people constantly are handling the cybersecurity task.
3. Number of Cryptocurrency Exchanges: There are around 120 Cryptocurrency Exchanges across the globe with a maximum in European region- approximately 37%.
4. Active Cryptocurrency Wallets: There are around 11.5million active Cryptocurrency Wallets which are storing altcoins. Of these around 20% wallets can be linked to credit card services, clearly showing that they are used for personal purposes. It is also believed that 52% of the wallet service providers offer integrated currency exchange facilities to their users. This shows that the wallets are just not held for storing Cryptocurrencies.
5. New Entrants: Lot of new entrants is venturing into the industry and the best part is they are being accepted with open arms. The same can be claimed by the exponential growths they have shown in recent past for example- Dash and Monero.
The point to be noted is if you do not invest in Cryptocurrency, you might stay behind and repent later when the ball rolls faster and gains momentum.
The following are the top blockchain stocks and companies you might think of investing in if you are already into the ecosystem.
b. Global Arena Holding
d. BTL Group
e. Coinsilium Group
f. First Bitcoin Capital
Once you have decided to invest in Cryptocurrencies you just a few more things to keep in mind and they are-
• Be aware that prices swing and are very common,
• Invest safely and securely,
• Fluctuations are perception based, therefore you must be extra cautious while investing,
• Keep learning new trading techniques to grasp the trading psychology and language of the market.