Stacking Money With Blockchain
The Blockchain is a wonderful world! Not only because it opens up a huge amount of possibilities in terms of technology. But also because there is a lot of money to be made here. Today we are going to discuss several ways of how you can profit with blockchain and crypto.
All business processes that are related to transferring money, copyrights, rights on tangible assets, intellectual property will be eventually transferred onto blockchain. Governments, banks, multinational corporations are paying close attention to blockchain technology. The number of blockchains is growing, therefore, increasing the demand for its support, in other words, in mining. Pretty much all computing power of miners is aimed to support transactions on a network.
Governments and big corporations have big demands for crypto networks in terms of their transaction size. If they all come on board at the same time, network overload will be inevitable. Mining data-centers are necessary infrastructure to ensure payments and smart contracts are executed. In return for the service provided miners receive rewards in a form of cryptocurrency, which makes mining one of the most profitable and secured investments.
If comparing mining with a very similar data-center business, the following aspects make mining stand out:
Full occupation of hardware assets, which are constantly generating profit
Timely payment is guaranteed by blockchain algorithms
Comparing to more traditional businesses, previously mentioned benefits of mining sound as following:
No need for generating sales
Global market with exponential growth of market cap
No unpaid debt from your customers. The payment is received automatically as the tasks are accomplished
Your entrepreneurial instinct is probably telling you right now “there has to be a trick somewhere, it can’t be that easy”. Just like in any other business, mining has risks associated with it. These risks are quite specific to the industry and are closely connected to the crypto market. The risks themselves are not a critical factor when determining the profitability of the business. However, the ability of how one manages these risks is. Considering the following can help to alleviate some of the risks and increase mining profitability: 24/7 supervision of a mining data-center, hardware compatibility and optimization, monitoring and forecasting of the crypto prices, etc.
- Selling products/services required for blockchain infrastructure
When everybody is trying to get their hands on cryptocurrencies, you can sell equipment or services necessary for the infrastructure to function. Just like during the Gold Rush, people need shovels to dig out gold. Let’s not get carried away with the past though. A shovel in our digital age is mining hardware equipment, for example, graphics cards. The most important thing here is identifying what market demands the most and what is there a shortage of.
You can also make your own contribution to the development of technology by providing all possible services related to blockchain. Currently, most demanded services are blockchain development and marketing.
- Crypto trading
The growth of crypto can be compared to a space rocket. According to Coinmarketcap, daily trading volume on the exchanges exceeds $100 million. More financial instruments are being introduced every single day to trade crypto. More exchanges open up, some of them enable their users to short their positions and use marginal trading. Big name brokerage firms launch derivatives on the most popular cryptocurrencies.
We love to trade and can talk about trading all day. Let’s cut to the chase, here is an overview of the most distinguished types of trading, we will talk more in depth about each one of them in the future:
Day trading. Buying and selling crypto throughout the day. Profit depends on the market volatility.
Short term investment. A few trades are made every month.
Portfolio investment. Forming a portfolio of several cryptocurrencies. This type of investment is typically last at least half a year.
Algo-trading. Bots that are based on certain algorithms manage your trades.
- Arbitrage trading
A certain type of trading, which we decided to list separately. With arbitrage trading, crypto is bought on one exchange and sold on the other. The difference in price can be as big as $1000 for Bitcoin. It works especially well with medium to large accounts.
- HYIP (High Yield Investment Program)
HYIP is a type of investment, where one gives his capital to a trader or a group of traders that manage his capital in exchange for a commission. Such type of investment involves high risk, but with good risk management can yield high returns.
One should carefully pick his investments in HYIP projects, especially the ones that guarantee absurdly high returns or instant capital growth. Choose only reputable companies with a proven track record.
- ICO (Initial Coin Offering)
It is a new way of crowdinvesting. Companies run ICO campaigns to raise funds. ICOs can be done with no product at all (just an idea), prototype or already built product with market traction. The idea of investing in an ICO is simple, you invest in a project, in exchange you get tokens. Hoping that the value of tokens will increase in the future, so you can sell them and make a profit on your initial investment. Some companies pay out dividends equal to the number of tokens held.
- Creating a blockchain project and issuing cryptocurrency
Creating your own project and launching an ICO campaign is a common practice these days when building a company. Obviously, this option requires a lot of resources, but the result can be very well worth it. Finding a good dev team, looking for initial investment, mapping out tasks, organizing and structuring your workflow is just a few hurdles to name. But all the work will pay off big time.