Can you really make money with cryptocurrencies?
Cryptocurrencies, those carefully thought of as digital certificates, have become very popular in recent times and some organizations have become rather successful. But that doesn’t mean everything is all right.
On the contrary, there is a number of reasons you won’t make money from cryptocurrencies. It also gets difficult to predict in the long term.
1. A flexible nature
With cryptocurrency, you’re dealing with people, who have their own characters, principles, opinions, and approach. This has led to some issues. At the same time, you might find other problems.
Cryptocurrency is not just used for exchange. You can also use it in business, e-commerce, retail, partnerships, sports, and transportation.
Some people can turn a good profit, but many a time there are challenges and many errors.
Very often, your reputation can leave its mark on the reputation of your company. In business, reputation is everything and if you have a bad reputation, it could take years to clear up and win back the trust of your customers.
You need to be vigilant and make sure that you are reputable before entering into any kind of contract. And this will change your reputation permanently. It doesn’t matter how big your company is. Just put your price below the price of the other and the chances of others not trusting you will increase.
3. Digital certificate
Cryptocurrency is a digital asset that is used for transactions. There is no place where companies would want their money to get lost. There are so many systems, which confirm if money has been transferred or not. This makes it much much harder to withdraw your capital. This is very complicated since the transaction needs to be approved by third-party parties.
It becomes complicated and in many situations, it’s not possible to do deals as such. So instead of dealing with people, they have to deal with many different parties and governments. Your company has to give a certificate or say that it has been certified by a bank or government. But the chances of a bank let go of your funds in the form of a devaluation is very low.
It can become very tricky. You need to be careful when you enter into any deal involving exchange, transaction, or payment for services. It might be a bad deal and you won’t get any profit. If your company doesn’t value it or has no impact on your bottom line, you will find no problem. But if you do something you will have to accept risk.
4. The highest demand
For a long time, cryptocurrency has become the most chosen currency as far as many people are concerned. In the year 2016, the volume of transactions was more than Bitcoin. In the year 2017, it reached about 500 billion.
In terms of growth, Bitcoin has been growing since 2008, 2010, and 2013. In the same year, 2014, the value of Bitcoin increased to $183 billion. In 2019, it reached $23,000 per bitcoin. That’s a vast amount of money on each BTC. That’s how impressive the cryptocurrency market is. So any speculation can turn into the most profitable deal.
Other cryptocurrencies, such as Litecoin, Ethereum, Ripple, St.rem, Ethereum, Bitcoin Cash, and Litecoin, among others are not too profitable. Even though they are easy to earn a profit, a company needs a unique character, stable reputation, and reputation. All three factors will put you in a tough spot.
The chances of profit are very difficult to predict. Knowing too much about the market about the price of the value of cryptocurrency is a smart move while learning less and then seeing how this investment will move.
5. Usage as an investment
Usually, the most complicated part is: investing. The point of investing in cryptocurrency is sometimes not simple at all. In many markets, there are many companies, which are competing with each other for profit. No wonder you get confused. It’s also difficult to predict the price of the cryptocurrency you’re about to invest in.
If you’re investing in cryptocurrency with your personal savings or money saved by a few intermediaries who sell them, it becomes more difficult. On the one hand, you need to be very careful and strict in the process. But this doesn’t mean you have the chance to profit from any transaction. If you have a lot of transactions happening in one market and don’t consider these factors, the chances are very high. Then you might find yourself lost in the world of the cryptocurrency market.
This is also another reason why cryptocurrencies are not trusted in many places. Big brands are the ones that do deals and reach worldwide customers with cryptocurrencies.
But there are exceptions. Much of the work done by huge cryptocurrency companies is in the field of running and maintaining cryptocurrency trades. Some also offer advice to the traders in exchange for cooperation.