Crypto Currencies Pt. V
- Litecoin is less of an alternative to bitcoin despite its market cap
- Potential ways of earning money include ICOs & “buy-and-hold”-strategies
No real alternative is Litecoin, which is one of the five largest cryptocoins in terms of market capitalization. It has many parallels to Bitcoin, but shares its weaknesses. One currency that clearly stands out from Bitcoin is Dash. Payments with Dash are as fast as credit card payments, and privacy is better protected. The team behind Dash wants to use it to outpace Bitcoin — whether it succeeds is an open question. Other cryptocoins that enable international payments include Monero and NEM.
Investing in the right cryptocoin can be compared to investing in the stock of a company that creates a new market or radically changes an existing one.
In addition, there are locally usable digital currencies that are deliberately designed for a specific market. Examples are Icelandic Auroracoins or the Tel Aviv Shekel. However, most of them have already failed. There are also cryptocoins that are not general means of payment, but are required to use certain software. They are also called appcoins. The most famous example is Ethereum. Safecoin, Golem and Steem also belong to the appcoins.
Earning money with Cryptocoins If you want to earn money with Cryptocoins, you have different options. The classic is the “buy-and-hold” strategy, i.e. buying and holding. It has worked out for many cryptocurrencies in the recent past. Furthermore, venture capital can be provided for start-ups via ICOs. However, the risks are high: experienced venture capitalists know that seven out of ten investments are losing deals, two more or less run and only one becomes a big success. Moreover, as in other areas of the capital market, cryptocurrencies can be bet on price differences between different platforms. In this arbitrage trading, the risk is more manageable, but the profit margins are small.
Despite all the euphoria, we are still dealing with a very young phenomenon. Trading volume is still very low, and larger sales can lead to spectacular price drops.
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M.Sc. Ehsan Allahyar Parsa is head of marketing at the Blockchain Founders Group — a venture capitalist & company builder backing Basenode.io. In 2020, he was ranked as one of the “Top 100 Shapers” in the DACH region. Further, he speaks 10 languages and has traveled to 30+ countries, of which he has already worked in 9 spread over 3 continents. He has already been honored by the Chancellor for his social & political commitment at the tender age of 23. As a sought-after international speaker, the serial entrepreneur is renowned for his speeches on numerous stages like the German Shark Tank Primetime TV Show (DHDL) and the United Nations General Assembly in New York. Feel free to contact him via Mail , Instagram or LinkedIn