How to invest smartly in the cryptocurrency market
By: Ana Podrimaj
Tags: Mining, ICO, Cryptocurrency, AI, Bitcoin

Investing in cryptocurrency these days it’s not a new thing. A lot of people invest in different currencies for different reasons. Cryptocurrencies are based on blockchain, a decentralized distributed public technology. If blockchain proves to be efficient scalable and secure, it could seriously disrupt the legacy payment systems operated by banks.

The very idea of blockchain is to reduce the role of intermediaries in transactions and deals, this way making it easier for both individuals and companies to trade without the need of third parties. Everyone can use some help when it comes to investing, especially in the cryptocurrencies that are growing more and more each and every day.

There are four essential ways that everyone should know when investing in cryptocurrencies, and we are going to have a look at each option:

1. Mining

Cryptocurrencies need miners that can verify their cryptocurrencies transactions. To start mining you need to have hardware with high-performance processors in order to make the necessary calculations, that’s why you need to pay attention to performance, electricity consumption and price of hardware. Obviously it is not easy to start mining especially if you are a beginner, but experience and knowledge can lead you on earning a regular income in different cryptocurrencies.

2. Initial Coin Offerings

Initial Coin Offerings or (ICO) is an unregulated and controversial means of crowdfunding via use of cryptocurrency, which can be a source of capital for startup companies. Different from an IPO, an ICO offers no legal rights or claims to underlying assets. According to coinschedule.com ICOs have attracted over $3bn through 234 issues in 2017 to date. It is important to know about an ICO before you decide to invest, it is essential to believe that their project will be successful therefore you invest your time and money on them.

3. Trading on cryptocurrency markets

The first step to start trading is choosing a crypto market. By having a crypto wallet, participants are available to buy and sell cryptocurrencies. Trading also involves risks, as many crypto markets are located in risky jurisdictions, with no regulator to control them and guarantee trader rights, so making it just as possible to lose many trading, as to make profit. There is doubt cryptocurrencies are unusually risky compared to traditional asset classes. Hacking is one thing people are always susceptible especially after now nonexistent Mt Gox exchange was hacked in 2015 and around 850.000 bitcoins went missing.

4. Trading cryptocurrencies using AI

Trading these days can get quite overwhelming, technical analysis, multiple exchanges, different types of stocks or currencies, different sources of news, and you literally find yourself paralyzed not knowing which financial asset to trade or hold for the long term. This is exactly what AI can help us with. Being able to handle most of these tasks better than a human is capable of, AI has the capability to learn from your trading patterns/habits and ease the process of trading every day. For example, the AI Chatbot developed by AiX, incorporates all of these features and many more. Powered by cognitive reasoning technology, AiX’s chatbot executes trading calls/bids and provides historical analysis of trading through the evidence tree. It can incorporate many exchanges in one interface as per your preference, provides news and recommendation for which financial asset you should trade and which you should avoid, this way making your trading easier cheaper and more efficient