Cryptocurrencies have become a trend in the present times, although you have to be particularly careful with them. While before anyone could earn by investing in them, now we are facing a different reality. It is not just luck or chance, but an investment strategy. What should you know about cryptocurrency profitability? we’ll tell you now.

Everything you should know about cryptocurrency profitability

Investing in cryptocurrencies or not?

In 2009 talking about cryptocurrencies was something about tech geeks, passionate programmers, idle people. However, digital currencies have now become a trend. The conception of physical money has changed, presenting an evolution for many. According to statistics, about 43 million people currently use Bitcoin.

However, as popular knowledge points out, ” because something is popular does not mean it is good.” Are cryptocurrencies really a reliable source of investment? Let’s see the cold facts:

• Cryptocurrencies offer the advantage of being decentralized, which means that there are no governments or corporate entities that can control them. However, in recent months some countries have made efforts to start controlling the mining of certain cryptocurrencies, as well as the use of others for one or several reasons.
• Cryptocurrencies offer faster transactions, as well as minimal or no commission payments. Likewise, there is no need to pay taxes, regardless of the amount of cryptocurrencies you have. However, in some blockchains the so-called “gas” is being paid, which would be a kind of commission to be able to move the assets or tokens.
• More and more businesses are adding cryptocurrencies as part of payment. Now you can pay for pairs of shoes and even plane tickets with cryptoassets, mainly Bitcoin.
• Cryptocurrency mining is harming the environment. As a result, many projects are changing the way they do it. Instead of working with the PoW (proof of work) protocol, they do so with the PoS (proof of stake). In this way, fewer energy resources and fewer people are used.
• There are more than 15 thousand existing cryptocurrency projects on the market. But some experts point out that many of these cryptocurrencies will disappear with the passage of time, only the pioneering projects that have real value proposals remain.
• One of the current trends is NFTs. These consist of Non-Expendable Tokens, which cannot be exchanged because they represent an original value, as if it were a collector’s item. Because of this, video game companies are rethinking titles, since it is possible to make money as a user while playing and as a developer as well.
• To use cryptocurrencies you must have a digital, paper or hardware wallet where you keep them safely. In the same way, you must have a reliable exchange where you can see graphs and information about the currencies, as well as make the changes in the most expeditious way possible.

What you should know about cryptocurrency profitability

The blockchain network is high-tech and consists of a network of independent computers that keeps track of all transactions made. Investing in cryptocurrencies might seem haphazard, but it is necessary to have basic knowledge of technology and finance to make greater use of resources. It is an investment opportunity that should not be taken lightly and it is not convenient to place money that you are not willing to lose. Volatility is one of the main characteristics of cryptoassets.

Among other advantages of cryptocurrencies is that you have total control of your money, without taxes or daily controls. You will simply need a mobile device or computer to make your transactions at great speed and without the inconveniences related to traditional banking. Instead of waiting days for a transaction to become effective, you’ll wait a few minutes.

One of the points that makes cryptocurrencies so valuable is that their offer is limited. Each project has its maximum supply which makes users provide greater value to the currency. No more Bitcoins can be created than already exist, which makes it an increasingly valuable asset.