Although blockchain and cryptocurrency are two terms that are becoming more common in mainstream parlance, for most people they are still confusing.
Yet with the various companies that are working in the field, there is an increasing interest from the investment community after seeing the dramatic returns for people who had invested in Bitcoin a few years back.
There are several different options if you are looking at investing in a cryptocurrency, and this in itself has created its own problem, because trying to exchange one type of cryptocurrency for another was a painful process, when it was actually possible.
As with any investment, if you come in on the ground floor you can invest as an excellent price. You, of course, are getting that bargain rate because you are betting that the company or item you are investing in will increase in price and give you a healthy return on investment in the future.
Cosmos is a relativity new player on the cryptocurrency market that is able to be purchased or exchanged by investors.
The primary point of difference of Cosmos seems to be that rather than solely being focused on one type of cryptocurrency, such as Bitcoin or Ethereum, Cosmos for interaction between currencies in a real-time format. You can learn more here.
Because it is quite a new company, not far out of the “startup” phase, there is still a certain, expected, level of nervousness from investors. This means that trading in Cosmos is a little slower than you will see with companies like Bitcoin. This type of investment is best held for a long-term rather than for short term gains.
Holding will also allow for a greater return on investment if you are able to weather any short-term falls. Because you are able to invest at a relatively low value the possibilities for long term wealth are high, but obviously any investment comes with a degree of risk, and you should be sure to evaluate Cosmos, or any investment opportunity, well in order to assess if it is an appropriate investment for your individual financial situation.
If you prefer to let someone else do the leg work, make sure that you are talking to a financial advisor who is actually familiar with cryptocurrency and blockchain technology. Many investment specialists are quite knowledgeable in mainstream investments or even world currency exchanges, however, being able to read a balance sheet and understand investment trends don’t always translate to the quite unique world of cryptocurrency and all that is involved.
Of course, you can choose to do the research into which cryptocurrency and technology companies to invest in yourself. Begin by looking at the trading history and learn about the actual company, and what exactly it is that they do.
Is Trading in Cryptocurrency Illegal?
In short, not at all. Like trading in any form of currency, there are strict regulations in place around the way in which cryptocurrency can be bought and sold in order to avoid illegal money laundering.
However, some of the exchanges that deal with cryptocurrencies do tend to prefer to be based in non-western countries where regulations are easier to meet.
Despite this, the majority of exchanges that work within this market do have bank accounts set up in countries around the world in order to facilitate exchanges from your currency into the cryptocurrency of your choice, and back again.
Although the increase in different technologies and currencies has been rapid (with over 2,000 variations) those in power have been quick to see the areas for concern and do their best to ensure that this format is not used for nefarious intent.
This regulation helps to provide a little more security for investors and has allowed for the continued growth of the entire industry as more money has been able to go into research and development.
However, you will still find many of the developer working on cryptocurrency’s and the technology around them have been abandoned, either through lack of investment or quite simply because it didn’t work the way they hoped or anticipated.
If you are looking for an investment with a financial return a safer bet is not getting in right at the beginning, but waiting until there is a proof of work available – of course, if everyone did this there would be no startups.