Cryptocurrencies, like fiat currencies, can be used in many ways to invest with them, the simplest being simple accumulation or holding companywhich in the case of fiat currencies will have to fight against inflation, against which savers will always lose (for example, in the US year-on-year inflation in April of this year was 8.5 percent, which means that whoever had $10,000 saved since April 2021 has seen their effective purchasing power reduced by $850), and in the case of cryptocurrencies, they are highly exposed to the fluctuations of their price, much more exaggerated than in the case of other assets.
That is why if you want to invest in cryptocurrencies, you should explore the other options offered by the market, far beyond simply accumulating and accumulating.
Staking and cryptocurrency trading
If an investor falls short of the holding companyyou can use online broker platforms or exchanges to try to profit from cryptocurrencies in different ways, the most common of which would be the staking and trading or commerce.
The staking It can be used when you already have a minimum amount of cryptocurrencies, and through an exchange you can immobilize them to receive a certain amount of the same cryptocurrency as a recurring reward, since that amount of immobilized cryptocurrencies is used to validate the operations that are carried out in the corresponding blockchain through the Proof of Participation or PoS.
This amount of cryptocurrencies is received because the investor is not only losing potential sales opportunities by having their funds immobilized, but is also fulfilling a fundamental function for the blockchain and therefore is rewarded with that commission that is paid when it is carried out. a cryptocurrency transaction.
The trade or trading For its part, it can be done by buying on an exchange like Binance at a low price to sell it later at a higher price or through contracts for difference with a broker like easyMarkets, which in this case allows you to trade whatever the market trend.
Finally, if you have access to cheap energy and you can get the necessary computer components that are so scarce these days, you can try the cryptominingwhich is the way in which new units of bitcoin and other cryptocurrencies are released on the market, providing liquidity to the lucky miner who has managed to mine the block, something increasingly difficult given that large companies that can make large outlays in material and energy have already jumped right into cryptomining, making it difficult but not impossible (recently individual miners successfully solving bitcoin blocks have made headlines) for smaller cryptominers.
This activity has been migrating from China, a country that last year definitively banned practically all activity related to cryptocurrencies, to countries like the US, Kazakhstan or Iceland; The latter obtains its energy from the geothermal activity inside its volcanic island at a very good price.
NFTs, invest in digital art hosted on the blockchain
If none of the previous ways of investing is convincing enough but you are still determined to operate with digital assets based on a blockchain, you can always explore NFTs or Non-Fungible Token, which contrary to what happens with cryptocurrencies, of which there are millions of copies of each one -in the case of bitcoin exactly 21 million- are unique and unrepeatable, characteristics supported by the blockchain in which they are housed together with the property rights; which makes them an investment as protected as cryptocurrencies, but subject to the same vices, such as extremely high volatility.
NFTs can be developed more or less easily by any user with some technical knowledge, and some have been sold for large sums of money in their respective auctions, although as with its physical counterpart, most of this new digital art it will not reach much less such high prices in the market.
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