Beyond Bitcoin: Increasing versatility and managing risk
At the beginning of 2018, the crypto-market capital was estimated at close to $650 billion. This is the highest it has been in the history of cryptocurrency and represents an extraordinary level of growth. The flagship cryptocurrency the media seizes on in describing this trajectory is, of course, Bitcoin.
But Bitcoin isn’t the whole picture. In fact, 65% of this burgeoning market is NOT Bitcoin and is attributable instead to other cryptocurrencies (collectively referred to as altcoins). That’s over $400 billion, and a clear majority of the growth being seen, coming from other cryptocurrencies.
Clearly, to understand the new face of investment it’s important to see past what is trending in mainstream media channels and to be familiar with developments across a broad array of cryptocurrencies. But how much mental bandwidth can your average investor spread across this smorgasbord of possibility? This is where new investment platforms fit in.
Walking the tightrope between risk and unnecessary expense
While the advantages of diversifying investment into a multiplicity of cryptocurrencies are obvious from a hedging perspective, it’s indisputable that emergent cryptocurrencies have the potential to be incredibly volatile. One need only visit the cemetery of cryptocurrency, deadcoin to see just how many cryptocurrencies have crashed, burned, imploded or generally disappeared without trace.
The result of this volatility, among new investors particularly, is a fear of backing the wrong horse. But with this climate of caution comes a significant opportunity cost. Future1coin, a company working to build better platforms for crypto investment, sums it up well: “As a result, many investors lose money speculating on falling coins or they stick to expensive alternatives.”
Versatility and agility are the difference between success and failure for cryptocurrency investors. While Bitcoin transactions become slower and more expensive, the lure of altcoins is that they may be able to offer investors something different and entirely unique. Some are faster, some of them afford the investor a higher level of anonymity. Others are actually sought after precisely because they are volatile and therefore offer greater opportunities for realizing faster profits.
The magic trick is how to gain the benefits of versatility while weathering an acceptable level of risk. This is a question that innovative companies are turning to right now. New platforms are being developed to help investors traverse this line between unnecessary expense and unnecessary risk.
Take the Future1Coin platform as a prime example. Part of the vision for this platform is that it will curate a list of quality, reliable cryptocurrencies, all of which have the potential to enrich investment strategies with minimal risk. The end result, essentially, is a multifaceted crypto investment platform, with real-time data interpreted by in-house experts. In providing this, the goal is to achieve that elusive balance which allows robust yet flexible strategies for realizing profit.
Thinking beyond crypto
Returning to the issue of hedging, the inescapable fact is that while cryptocurrency is a rapidly evolving means of realizing huge potential gains, it is also deeply volatile. A truly robust investment strategy is one which doesn’t place all one’s eggs into the cryptocurrency basket. As Frisco d’Anconia at Coin Telegraph put it, “precious metals, stocks, and other traditional investment vehicles may be a great addition to your portfolio and will allow you to reduce the risk you would take by investing in cryptocurrencies only.”
Future1Coin is leading the charge in developing tools which seamlessly integrate cryptocurrency investment with other instruments, ranging from forex, commodities, indices and equities. In the near future, investors will have access to innovative platforms which open up a capacity to analyze and make investment decisions across a multiplicity of options.
Cryptocurrencies are receiving unprecedented levels of attention from new investors. Future1Coin looks set to offer new investors a platform providing a wealth of tools across multiple instruments and allowing them to lay their money down safely and effectively.