Types of investments into cryptocurrencies
Buy and Hodl
The first type is somehow similar to a bank deposit. For example, you can buy Bitcoin, Ether, or any other cryptocurrency for dollars or rubles, and wait until it grows. Since cryptocurrencies hold great potential for growth, the investment can bring you a high profit after a while, if the choice is right.
The shortcoming of the method lies in the fact that the opposite is quite possible too. The price of a coin can dip sharply right up to the bottom.
The second type is a variation of fiduciary management. That’s to say, you invest in a trader making deals at a crypto exchange, and receive a share of his income. Ideally, you don’t have to know anything about the market to get your share now and then.
Unfortunately, no trader is free from losses. As you know, and, as the experts from the Fortrader magazine remind us, the past success of a trader is not a guarantee of his future success.
Investments into a company
The third type is to invest in a crypto company. The best way is an ICO.
Depending on the type of tokens, you can become a shareholder or receive some other privileges. If you choose wisely, the investment can bring you hundreds and thousands per cents of return.
The shortcoming of the type is a choice of a company, as well.
The best option is not to put all eggs in one basket: spend some money on a cryptocurrency to hold, some on buying tokens during an ICO, and some on trading.