General Information about Tokens Cryptocurrency continues to develop. Every Day There are new projects that promise their investors to replace Bitcoin, enter the market and earn billions. But not all of them bring real benefits to their clients. Tokens are alternative cryptocurrency that provide added value. That is, they are ...
General Information about Tokens
Cryptocurrency continues to develop. Every Day There are new projects that promise their investors to replace Bitcoin, enter the market and earn billions. But not all of them bring real benefits to their clients.
Tokens are alternative cryptocurrency that provide added value. That is, they are used not only for payments.
Tokens are almost all the coins made on their engines, and about half of those made on the Bitcoin engine. To become a token in the full sense of the term, you need to offer users something new that can improve business, reduce costs, etc.
Earning on ICO
In fact, this is a great opportunity to profit for those who are able to analyze the market and know about cryptocurrency a lot. But in the long run it will lead to a crisis in the niche.
ICO is the primary placement of tokens.
To Earn on ICO ordinary person can only one way-speculation. The Scheme of work is similar to the following:
1. Go to the site Cryptomarket.
2. Choose prospective altcoin.
3. At the stage PreICO buy coins with a discount of 10-50% (try to do it as early as possible).
4. Wait until exit on Exchange.
5. Wait until the course rises to a certain value (usually it is the amount of discount).
So It is possible to repeat indefinitely: to choose a new cryptocoin, to go on a stage preICO, to buy with discount and to sell. The Usual speculation, there is nothing new in it. Of Course, at one point it turns out that a lot of such speculators just overheated the market, and it will burst, as it was earlier with the market of mortgage bonds.
Pros and cons of earning on tokens
Advantages of earning on tokens:
• High liquidity of assets.
• Big profit.
• Constant price change.
• A Huge number of promising projects.
All the pluses are reduced to the fact that the market is actively developing. There are many ambitious projects that in the future can bring a large amount of money. And each user has access to the exchange, where you can buy an interesting token.
• High risks.
• Inability to predict earnings.
• Lack of regulators in the market.
• Unstable situation in the legislation.
This is a market with crazy risks and lack of regulation, which means that any person who has huge capital, can in one move to collapse or Jack the course, as he pleases.
It is Enough to see examples of foreign cryptomillionaires. They once invested in a project that seemed nothing more than fun. And people invested small sums, which on growth in more than 10 000 times for the last 9 years gave huge profit. Many Cryptomillionaires simply do not know what to do with the received sums. Such examples in the foreign segment of the Internet are full.
Tokens are a promising, fast-growing market where you can easily and quickly (within 2-3 years) earn up to 1000% of net profit. But at the same time it is extremely risky.
Which tokens are promising
In order to understand which tokens may be promising, let's look at 5 examples of the most popular cryptocurrency and try to understand what they are interested in users.
Bitcoin is the first world cryptocurrency. Allowed people to conduct transactions anonymously, excluding from the User-Money-User scheme intermediaries in the form of banks and world payment systems. Radically New approach to payments.
Etherium has improved some bitcoin moments. Removed limit of 21 million by the number of issued currency, reduced the interval between the creation of blocks and made a more reliable system to confirm the transaction. But This is not the most important thing. The Popularity of this cryptocurrency brought a system of clever contracts, completely excluding the human factor from the chain "Conclusion of the contract-Mediator-Check conditions-contract Execution".
Now the role of "intermediary" is performed by Automated system – direct profit for real business.
Ripple was created entirely in its code. Allows you to exclude almost all links from the transaction chain. Initially, the system was conceived as saving money for bank transfers. Reduces costs by 70%.
The Lightcoin is an alternative to bitcoin created on its code. Like many others, uses the source code, trying to "upgrade" the current version of the system bitcoin. The most important plus is that the number of blocks is created every 2.5 minutes versus 10 in bitcoin. Allows transactions to be performed faster. The resources of the computer's RAM are used to extract cryptocurrency.
Direct benefit for miners. Other resources are Used to extract cryptocurrency.
Dash is also written in the bitcoin source code with only one difference – cryptocurrency is completely anonymous. In Bitcoin, you can find the wallet owner and track all of his transactions. If you know all the target recipients, you can see the whole picture of the operations. There is no such thing In the cryptocurrency system: transactions are not published publicly. Even knowing the owner of the purse, you can never know who and what he forwarded.
Direct benefit for anonymous payers. There is no information about transactions.
As we can see, the popularity of tokens has its reasons. Each of these cryptocurrency has improved life for one of the fundamental categories. Bitcoin for all people, Etherium for businessmen, Ripple for banks, Lightcoin for miners and Dash for people who need anonymity.
Opinions on earning on tokens
Earning on tokens reminds earnings on Forex. They have The same traits:
• High volatility.
• Dependence on world events.
• Independence from each individual player.
But unlike the real currency, the course of which restrain Central banks of different countries, tokens have no limiters. The Only tool that affects their current course is demand: the more people are interested in coins, the higher they will cost. One conclusion can be drawn From this:
Earning on tokens is the most risky investment.
There May soon be tools that will regulate the cryptocurrency market, preventing fraudulent and non-prospective projects at the ICO stage. But Today there are quite a lot of "dummy", scam and few really standing projects.
Cryptocurrency is an ideal tool for speculating. The Courses on most top coins change every minute. And for a day it is possible to observe as + 3-5% to a course, and-3-5,%.
Earning on investing in ICO is very risky.
You have to focus not on market indicators, not on graphics, because they will change as soon as you refresh the page, and the intuition. It is necessary to understand clearly, whether the coin will be in demand, where it can be used, why it is necessary, whether there are alternatives.
Tokens remain a promising way to earn money for those who are able to work with currency. Investments, forecast, analysis-all this is required in order to earn really large sums. Without knowledge and skills, you will not be able to earn anything in this market.