For many traditional investors, the risks associated with getting involved in the digital currency space outweigh the potential benefits. While it's true that digital currencies have been growing at an astonishing pace over the past several years, many of them have yet to break into the world of traditional investing. For some investors, the cryptocurrency space is associated with rampant speculation; for others, the complications associated with registering on a cryptocurrency exchange, buying and maintaining a digital asset wallet, and being vigilant with regard to potential hacks, fraud, and theft are simply too much to bear. If you'd rather not get involved in the digital currency world through direct investments in cryptocurrencies, there may still be ways to make money thanks to others' interest.
Cryptocurrencies have fueled a host of secondary businesses and industries. Many of these have been tied to ICOs, but others are of a more traditional character. A recent report by Bloomberg profiles an accountant named Jake Benson who focused his business on digital currency companies. Benson has utilized software specifically modeled for the intense mathematics required of cryptocurrency operations. He explains that the "number of decimal places in a crypto asset ... actually breaks a lot of accounting systems." By catering his business to digital currencies, Benson has been able to foster rapid growth in his traditional business.
One benefit to operating a secondary business like Benson's is that the fortunes of these companies are not dependent upon whether or not digital currencies are increasing in value. The extreme volatility of the space has been a deterrent for many potential investors.
Opportunity for Workflow
Caspian is a Hong Kong-based provider of digital currency trading systems and similar technologies. The company's COO, David Wills, suggests that "once a trading system is built into your operational workflow, it's hard to remove it." A number of opportunities exist in the cryptocurrency space, Wills suggests, because "there are many different levels of workflow that [still] need to be in place." For Caspian, this has meant launching a utility token to help investors pay trading fees, among other projects. The token will be useful as long as investors are trading in digital currencies, the thinking goes, and will not be subject to the fickleness of investors looking for the latest hot new trend.
From custodial banks to reinsurance to services directed at cryptocurrency developers and investors, there are a host of potential opportunities to capitalize on the cryptocurrency craze without actually putting your own money at risk through a direct investment. One of the most exciting things about the digital currency realm is that these opportunities are always changing and growing.