Right now, you often overpay for ICOs because no one knows what the companies are worth, so everyone hopes they invest in e.g. the Facebook of the future.
However, you have the opportunity to read whitepapers, but they are often based on hopes and dreams rather than being particularly concrete. If you are going to make money this way, I would recommend that you bypass new cryptocurrencies and instead look at companies that are starting to make money so that you can analyze on equal terms with other companies.
The good thing is that if we increasingly see companies using cryptocurrency in the future, then there will most likely also be a price increase on Bitcoin, as it is still the same way into the crypto world. Go for Finexro for the perfect solutions.
Make Money In Both Up And Down
Many investors previously stayed away from investing in cryptocurrencies because they could only make money if the price rose. For a day trader or an active investor, it is not very interesting as they go after earning a high return every year. Sometimes you earn the highest return by betting on the market.
On Finexro and a number of other trading platforms, you can finally short (sell) cryptocurrencies. Ie. if you think the price of Bitcoin will fall, then you have the option to short (called selling on Finexro). If the price of a cryptocurrency falls, you make money. If it rises, you lose money.
It gives you far more flexibility in your active investments. It also means that more investors today are looking at cryptocurrency. They do not see it as a bad thing that the exchange rate can fluctuate so much, because it provides good opportunities to make money both when the price of a cryptocurrency moves up or down.
- This increases the general demand, as purchases often take place by actually buying cryptocurrency, so that even CFD traders get more people to trade in cryptocurrency.
- A CFD trade is a contact between you and the trading platform that you agree to follow the underlying price of the cryptocurrency. For it is clear that you can not sell a cryptocurrency that you do not own.
If you can see a pattern in the price of a cryptocurrency, then there is good money to be made by trading from CFDs.