Playing bitcoin explosion in this cryptocurrency era give you an opportunity as an individual who long to own crypto assets just like the experienced of the gold rush. The people who made the money during that time weren’t the ones panning for gold. they were the ones who built businesses that sold the equipment that the gold-rushers needed. And in the case of cryptocurrency you can dish out your products in exchange with bitcoin or ethereum as the most populous crypto. But absence of this knowledge People often ask…
What is the lowest risk way to capitalize on cryptocurrency? Of course, what they’re looking for is the next tip for the hottest sure-thing cryptocurrency that will double, triple, or even quadruple their investment overnight.
But this sort of opportunity actually carries big risk. The possibility that your money could disappear while you’re sleeping is quite high. Remember, cryptocurrency trades 24/7.
Besides risk, others might feel that they can’t participate because they don’t have any money saved. If you’re one of those people, you might be tempted to buy cryptocurrencies on your credit card. (we’ll have to cover this in next article.) Regardless of whether you can’t stomach the risk or simply don’t have the resources, don’t worries! There is a solution for you.
In this article, we’ll cover 10 ways to make money from cryptocurrencies without putting a dollar into actual cryptocurrency!(we will start with the first 5 in this article then give the second 5 in our next article) we’ve broken the list into two main categories…
Passive investment opportunities: These are industries that benefit from the growth of blockchain and cryptocurrencies. These serve as “backdoor” blockchain investments. Income producing opportunities: These are ways to make revenue by capitalizing on the new opportunities the blockchain revolution has triggered.
Let’s get started…
5 Backdoor blockchain opportunities
Bitcoin’s explosive growth has captivated audiences who are eager to find ways to profit from the new technology. It will be years before digital currencies truly reach their full potential. However, for many people the idea of investing over a long timeframe does not align with their financial goals.
Other people think the volatility of cryptocurrency markets is too extreme.
So we’ve put together a list of five industries you can invest in that will benefit from the cryptocurrency trend.. But consider this a more comprehensive overview of the various industries which will benefit most from blockchain.
Backdoor Opportunity #1: Banking
Many people predict that cryptocurrencies will be the end of banks. They couldn’t be more wrong. Consider the fact that banks boast a major safety net thanks to their strong ties to the government. Indeed, banks and governments have been in cahoots forever. Their interests are aligned and, at the most senior levels, bankers and government agencies share a revolving door of executives.
For instance, at least two of Trump’s senior officials are former Goldman Sachs partners. In other words, banks aren’t going anywhere.
They’ll do what they have always done — survive by any means necessary. They’ll figure out ways to protect their interests, and probably find new ways to monetize blockchain and cryptocurrencies. Although it’s still early days, over the long term, watch the financial services sector.
Backdoor Opportunity #2: Cryptocurrency Mining
Many people don’t know that there are companies directly tied to cryptocurrency mining. But this industry, more than any other on this list, is probably the riskiest indirect way to invest in cryptocurrency.
While some of these companies are publicly traded, they’re quite small at this point. This means trading volumes can be low and trades can take a while to execute Not to mention that companies in this industry are directly impacted by fluctuations in the price of cryptocurrencies. So it’s not uncommon for the price to change by double-digit percentages in a single day. For the more do-it-yourself investor, you can try mining on your own.
If you live in an area with cool temperatures and abundant cheap energy, you’re in luck. You may want to consider setting up your own mining rig and helping validate transactions on the blockchain.
Like we mentioned earlier, cryptocurrency mining is probably the riskiest opportunity. These risks include:
Energy prices could rise, your equipment could become obsolete quicker than you expect, the price of the cryptocurrency you’re mining could go down, etc.
However, the benefit here is that your money makes money for you while you sleep.
Mining is one of the few legit businesses where you can make an investment in dollars and get an ongoing income stream in digital currencies. There’s more to it, of course. So if it interests you, be sure to do your homework first.
Backdoor Opportunity #3: Semiconductors
Semiconductors are a critical component of cryptocurrency mining. In the past year, the semiconductor industry experienced explosive returns as demand for mining equipment helped fuel growth. As a quick recap: Semiconductors are used by miners to maintain the blockchain.
Currently semiconductors are the backbone of most blockchain. However, there is a proposal by one major cryptocurrency, ethereum, to gradually reduce reliance on semiconductors and transition to a new system called proof of stake. If ethereum succeeds, other cryptocurrencies could follow suit.
However, the technical complexity of this transition means that it will take at least another year or two before there is a substantial impact on semiconductors. Currently, semiconductors used for mining represent a small portion of sales for most major manufacturers.
This means that these companies are protected if cryptocurrency markets tank. On the other hand, as the industry grows, strong demand from cryptocurrency miners could drive substantial sales growth. As an added bonus, semiconductors are a vital component for other growing industries such as autonomous vehicles and artificial intelligence.
Because of the diverse range of opportunities and the upside opportunity from cryptocurrency, we believe semiconductors represent a strong risk/return profile for investors who want exposure to cryptocurrency with less volatility.
Backdoor Opportunity #4: Cybersecurity
A reporter once asked notorious bank robber, Willie Sutton, why he robbed banks. “Because that’s where the money is,” he replied. The same principle applies with cryptocurrency. The trend toward digital money is too powerful for hackers to ignore.
During the past nine years alone, hacks of digital currency have amounted to more than $1 billion. I expect this number to grow substantially in the next nine years. In some ways, digital currencies enable hackers.
For instance, in May 2017, a virus known as WannaCry infected over 230,000 computers in over 150 countries. The virus worked by locking a computer and showing a ransom note demanding payment in order to unlock it. If the requested payment was not made, the computer’s data were wiped clean. Because cryptocurrencies are untraceable and cannot be confiscated, they are the ideal currency for anyone engaging in criminal activity (such as hackers).
However, cybersecurity firms are paid to stay one step ahead of the hackers. In some cases they actually employ hackers so they can find vulnerabilities before the bad guys. In other cases, they help clean up the mess or track down the responsible parties.
What’s great about this sector is that it’s not just tied to the success of cryptos. Even if digital currencies tank, cybersecurity firms can do well. The trend of connecting things to the web is a major megatrend that opens a world of possibilities for hackers. The internet has become the new battlefront in geopolitics, meaning this is an industry likely to get heavy investment from defense departments around the world.
Look for cybersecurity firms to explode in value in the years to come.
Backdoor Opportunity #5: Logistics
The current global logistics infrastructure is a nightmare. Many companies and shipping firms still rely heavily on Excel documents to track shipments around the globe.
Hand-offs from one shipper to another are common. Human error is abundant. Perhaps more than any other industry, logistics will be completely transformed by blockchain. And the potential here is enormous. You see, part of the problem with the existing system is that there is no single source of data.
Things like purchase orders, receipts, and confirmations are associated with every item and require hand-offs from one party to the next. Multiplied by millions of items, millions of times per day, the numbers get large fast.
What’s worse, missing paperwork can often delay shipments and impose enormous costs. According to one source, the paperwork overhead can sometimes represent half the cost of shipping a container around the world.
Blockchain helps to resolve this problem by keeping everything organized in a single source.
Another way blockchain can help is traceability of products. This is especially important in the case of food safety, where the source of ingredients can determine whether a product is impacted by a recall.
Like other shipments, food products change hands multiple times before reaching their destination. Unlike some other shipments, they might also be processed or combined with other ingredients along the way
Because data are stored individually by each member of the supply chain, identifying the impact of a recall requires coordination across the supply chain as members try to piece together the story.
Even within companies, data can be distributed across various branches and functions. Blockchain may offer a solution, because of the open nature of blockchain, organizations can collaboratively add information as products move through supply chains, creating better transparency from end-to-end.
This is just the tip of the iceberg. As with cryptocurrencies, we’re still in the early stages of this massive transformation, however, the stakes are enormous. Just like with the internet, whichever standard wins will likely win big as it becomes the global standard for trade. Get the remaining five backdoor opportunity, we bet you can profit big in this lucrative secret of the cryptocurrency.