Despite the high volatility of cryptocurrencies, 83% of investors make money from their operations.
According to information from the derivatives trading platform CloseCross, four out of five ‘traders’ in cryptocurrencies – who invest on a monthly basis and on a large scale – they are making money from their operations.
After interviews with 100 investors of digital assets trading at least $ 5,000 a month in the UK, US, Canada, France, Germany and India, it was shown that 83% make a profit.
The study included those who dedicate themselves full time to the activity. Average earnings were found to be over $ 25,000, but el 13% claim to have earned more than $ 50,000 trading crypto assets.
On average, the cryptocurrency traders surveyed they invest $ 7,570 per month in the markets and estimate that they traded cryptocurrencies worth around $ 69,650 in the last year.
That means, For every $ 1 invested, you can generate profits of up to $ 5.
However, not everyone is making money. About 17% claims to have breakeven in its cryptocurrency trading or having lost money, While 3% admit to having suffered losses between $ 5,000 and $ 50,000.
On Ecuador, punctually, there are no exact and reliable data on the market for this type of operation. Nevertheless, It is estimated that less than 3% of the population, that is, around 400,000 people are cryptocurrency holders and investors.
The 5 best cryptocurrencies
It all depends on the ups and downs of the market, because digital money is especially volatile. But, another important factor is the community and the technology on which the cryptocurrency platforms are based.
Thus, although the questions cannot be answered categorically: What cryptocurrencies to invest in? or which are the most profitable?; Yes, there are certain characteristics that must be taken into account when determining which ones are worthwhile or not, such as those presented below:
- Technology and innovation or improvements over other cryptocurrencies.
- Capitalization in the markets and current volume of transactions.
- Community size and engagement.
- Support from large companies or governments, as well as acceptance in ‘exchanges’ and businesses.
Between the most outstanding, on the other hand, they are:
1.- Bitcoin.- Although there are currently other cryptocurrencies with more advanced and improved technology, Bitcoin continues to lead the way in the digital currency market.
It is not only the currency that capitalizes the most, but also the one with the highest volume of transactions. To date, more than 17 million Bitcoins have been mined.
2.- Ethereum.- Almost as acclaimed as Bitcoin, Ethereum has managed to remain the second most valued and popular cryptocurrency.
Its success is largely due to the application of a totally revolutionary ‘blockchain’ technology. Ethereum was the first system to develop decentralized applications and smart contracts.
3.- Ripple.- This cryptocurrency and platform have given much to talk about, as some experts do not consider that it has an intrinsic value in itself. In fact, Ripple does not operate on a ‘blockchain’ nor does it generate new currencies, therefore, it cannot be mined either.
The Ripple Labs company maintains all control over the released coins. However, its success is due to its acceptance by prestigious financial institutions and possible future alliances with titans of the sector, such as Amex.
4.- Polkadot.- This cryptocurrency is considered by several experts as the network called to replace Ethereum in the future. This is because it has better security, scalability, and interconnectivity features; in addition to a voting governance system.
5.- Litecoin.- It was born in 2011 with the aim of becoming an alternative for Bitcoin. From the beginning, its developers made an effort to solve various technical and security problems originated in the old ‘blockchain’.
Litecoin can produce four times more units than Bitcoin and with greater security guarantees.
How to get cryptocurrencies?
For acquire any cryptocurrency there are three basic options:
1. Buy them directly, either on the token’s own website (digital currency) or through an ‘exchange’.
2. Trade them with eToro: You can invest in cryptocurrencies in the Forex market as if it were any other currency. Of course, you need a ‘broker’.
3. Mine them: Remember that through the mining processes you can get free tokens or digital coins. Of course, it takes time, patience and a more or less powerful computer according to the mining requirements of the ‘blockchain’.
Note that not all cryptocurrencies accept mining; in several cases the total amount has already been released; Or, instead of mining, there are other processes to get coins, such as with online games, inviting friends, etc.
