Crypto is never dead but its dramatic price swings make the crypto market highly risky and volatile. Crypto has been a hot topic now and then. Governments worldwide are making rules and regulations to accept crypto as a currency.
In some countries, crypto is banned whereas in some countries it’s legal. Many billionaires like Elon Musk, Armstrong, and Michae Saylor have invested in crypto. Although there are uncertainties and challenges in the crypto market there is a bright future for crypto
Future of Crypto
Blockchain technology has a great impact on the future of cryptocurrencies. The government is making laws to address the concern of crypto fraud and money laundering for various illegal purposes.
Here’s an overview of what the future may hold for cryptocurrencies:
- Smart contract and DApp: Smart contracts and DApp are transformative elements within the crypto space and disrupt various sectors like finance, Gaming, and supply chain.
- Decentralized Finance: Decentralized finance plays a pivotal role in the future of cryptocurrency. DeFi is expanding in financial services like lending, borrowing, and trading by providing more transparency to it.
- Central Bank Digital Currencies: Many central banks are launching their digital currencies. India has also launched its digital Rupee or ‘e₹’. It indicates the awareness of crypto among people and a developing nation like India has its cryptocurrency which means there is a future for crypto.
- NFTs and Digital ownership: Recently NFTs have gained significant attention in crypto. It is likely to include other assets like real estate and the gaming industry.
Methods to earn from Crypto
- Trading: Trading in simple words means buying crypto at a low price and selling it at a higher price with a reasonable profit margin.
There are Three types of Trader
- Intraday traders: they do buy and sell in a single day. After the price goes down they buy the crypto and within some time when the price goes high they sell it.
- Swing Trader: Swing traders buy crypto and do the market analysis if the price goes up within a week or a month they sell it out.
- Long-term trader: Long-term traders are not traders technically. They are more of an investor. They buy crypto when the price goes down or the market crashes and wait for a long time for a once-in-a-lifetime opportunity to sell it.
2. Earning with NFTs: NFTs (Non-Fungible Tokens) are getting significant attention in the cryptosphere. Trading NFTs in the secondary market can also be profitable. Platforms like OpenSea, Rarible, or Mintable provide features to musicians, artists, and celebrities to invest and sell NFTs.
3. Affiliate Programs and Referrals: Many crypto exchanges like Binance, Kucoin, WazirX, etc provide affiliate programs where people can earn by referring to their friends and family. It can be a passive source of income as well.
4. Crypto Mining: Crypto mining is complex it requires the initial cost of hardware and electricity. It is not a profitable business but if you can solve complex mathematical problems and secure the network then you can earn new coins.
5. Yield farming and liquidity mining: Yield farming can offer high returns but it includes handling loss and understanding DeFi protocols.
Booms and crashes in crypto
We have seen several booms and crashes of crypto market. Here is an detailed overview of booms and crashes of cryptocurrency.
Bitcoin’s Creation and Early Growth (2009-2010)
Bitcoin was first created by pseudonymous Satoshi Nakamoto 2009. Initially there was not much monetary value of bitcoin. Few people who were aware of it traded and some people bought it at cheap price and later became Millionaire.
Initially the price was $0.32 and in 2011 there was sudden hike of $32 which apparently came into media attention and people all over the world became aware of the term ‘Bitcoin’. But, suddenly the price fallen to $2 because of some hacking incident.
The 2013 Boom and Crash
In 2013 Bitcoin price hiked to $266 and now more people started buying it and again it became a media attention but due to some halt in trading in the Mt. Gox exchange again the price went down to $50.
The 2017 Boom and Subsequent Crash
2017 was the year when the price hiked beyond anyone’s imagination by breaking all myths and doubts. It reached to $20000 which gained popularity among investors. Other cryptocurrencies like Etherium , Litecoin and Ripple also gained massive popularity and hike in price.
The 2020-2021 Boom and Crash
Due to Global Pandemic the price of Bitcoin dropped to $4000. But soon after many Billion dollar companies like Tesla and MicroStrategy started to invest the price started to increase.
In 2021, Bitcoin and other cryptocurrencies were banned in China which also impacted the global crypto market and resulted to crash the price again.
The 2023 Recovery and 2024 Outlook
In 2023, Bitcoin and the broader cryptocurrency market experienced a recovery, with Bitcoin prices stabilizing and reaching back above $30,000 by mid-year, driven by renewed interest and improved regulatory clarity in some regions.
