Riding the Cryptocurrency Wave

Cryptocurrency awareness is rising in the public sphere, thanks in part to its (currently) tumultuous presence in the stock market.

Led by Bitcoin, thanks to its meteoric rise in 2017 (1000% appreciation in value), cryptocurrency is now a real player and both the big financial players and amateur investors are exploring how to best access its value.

Its rollercoaster ride in market value, however, makes it an asset that needs serious analysis (and a strong constitution from its investors). Anyone choosing to work in (or with) the technology or invest in its elements should make sure they know and remember certain things.

The first thing to watch for is oversaturation. Although there are only a handful of cryptocurrencies that are high profile enough to have recognizable names (Bitcoin, Ethereum, Ripple, etc.), there are over 1384 cryptocurrencies fighting to gain a foothold in a $700 billion (and rising) market.

What does this mean? It’s easy to get lost in the crowd and anyone choosing to enter the field has to have a strong enough idea and business sense to conquer the competition and stand out.

Many startups aim to conquer this problem by specializing (like Donationcoin, “The cryptocurrency of charity,” or Equality Keys, a cryptocurrency aiming to change society).

Another winning move? Partner with retailers so your cryptocurrency is accepted as a form of payment. After all, an unusable currency will never take off. (Bitcoin would not have the presence it has were it not for its integration into the retail payment realm.)

Distinguishing yourself from the pack is one of the vital step on the route to success, so make sure you have a plan before you release your cryptocoin.

Another potential danger to watch for is the cryptocurrency bubble. As they say, “What comes up must come down” and those paying close attention to the market are watching for a possible breakdown in the value.

(And no, recent market losses were not the bubble bursting.)

However, if this happens, it is not the destroyer it appears to be, as there is potential that will follow the bursting of the cryptocurrency bubble.

If there is a bubble burst, it will eliminate the cryptocurrencies that don’t have strong enough utility to survive in the market and will bring in an environment that is more open to innovation and will lead to a more solid valuation.

Tomorrow’s cryptocurrency market could bring forth amazing new uses for technology and even greater returns on investment. Of course, this leads to the question of whether you should enter the market now or wait for the upheaval. This is a decision you will have to make.

Cybercrime is another major issue and naturally security is one of the major elements any cryptocurrency startup needs to explore. An unsecure wallet is easy prey for hackers and thieves and you don’t want your clients losing all their currency.

The good news is that the digital financial sphere is working on perfecting a decentralized solution using blockchain technology, making cryptocurrency a truly secure option.

Startups like Edge, for example, have developed platforms that provide the needed security and privacy for a safe digital wallet. With both security and convenience in hand, your clients will be happy and your cryptocurrency will be secure.

Cryptocurrency has a lot of potential in it as a concept and interest in the field is high and increasing and technology is making innovations possible.

This does not mean the market is conflict and problem free. Anyone choosing to explore cryptocurrency as an entrepreneur, an investor or even a user should be aware of the dangers that can arise. Cryptocurrencies face heavy competition, the risk of the bubble and security threats.

Knowing about these issues can help entrepreneurs safeguard themselves, and I do believe that as cryptocurrency grows it will mature and stabilize, becoming the safest option for our finances.