Few guidelines to be part of the Ethereum & BTC Trading World

in #ethereum7 years ago

 

Here's my opinion. But don't just trust me, do your own research and reasoning.  


1) Don't invest in mining rigs as someone suggested, that's only 100% profitable business for those who sell the hardware. For miners it usually returns too little if you factor in all the costs, and the hardware becomes obsolete fast. If you put the same amount of money into purchase you will have much greater gains.  

2) Invest only in stuff that is NEEDED for something. Don't invest in hype. Especially in the ETH network there are various kinds of tokens that can be purchased but almost none have a real value.  Some examples:  

- Be sure to buy some bitcoin (has best PR, is de facto standard for non-bank payments and still grows. I have yet to see an ETH ATM or a ransomware that asks for ether, but I see BTC related stuff daily - in real life, outside dedicated facebook groups),  

- buy lots of ETH (ethereum network will surpass bitcoin one day because is superior, and ETH tokens are the money which you pay for using the network and running smart contracts, called "gas").  

- maybe invest in GNT (another token on eth network) because it's a project creating blockchain based computing cloud (like amazon without amazon) and people will pay with GNT for runtime. The cloud computing is on rise generally and cutting the middleman makes sense. It also seems to me this particular project will succeed, otherwise it's pointless 

- nobody would go purchase GNT in the future and no profit for me.  

- but DON'T invest in token ICOs if the tokens have no value by themselves. ICO is not IPO, by owning a token you don't have a stake in the company, you are not entitled for a share of its profits, it just doesn't have any real value at all. If you want to support some company or team then do it (it's equivalent of giving them money on kickstarter, often for nothing in return) but doesn't make sense for investment purposes or buying from anybody else. Don't be fooled that many tokens are going up these days 

- it's probably caused by fresh newcomers who see the charts and want to "invest". Once the influx stops, useless coins will sink.  

3) Don't stay just on BTC or just on ETH. Any of them can go down any time. BTC has an important fork coming soon - it may end up well, or it may not, and you want to keep some ETH just in case. I would think the price goes down just before the fork and spikes afterwards if successful. ETH will switch to proof of stake some time later. The same story. 



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very nice topic hope i see more like it, what about LTC ?? what's your expectations ?

The litecoin price rose more than 60% this week in anticipation of and following its June 19 listing on BitStamp. Litecoin now has EUR, USD, and BTC trading pairs on the platform.
Credit to #cryptocoinsnews

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