How to Invest In Cryptocurrencies for the Long Haul

Given the interest from governments and big money, it’s safe to say that cryptocurrencies have a place in our future. This strengthens the case for investing in cryptocurrencies and tokens over the long haul. But choosing which tokens or cryptocurrencies to invest in is a tough job at present, given that new blockchain projects that introduce their own tokens/cryptocurrencies spring up on a daily basis.

There are yet to be advanced systems and models developed, such as those used in the stock market, to determine which ICO projects are worth betting on. But one effective way to easily enter the cryptocurrency market for the long haul is to invest in the aspects of the market that are fundamental to the existence of cryptocurrencies.

Here, we’re focusing on cryptocurrency mining — the transaction verification process that generates new coins and tokens. Many of the major cryptocurrencies including bitcoin, ethereum and litecoin depend on the mining process to exist. The logic is that if cryptocurrencies have a place in the digital world, then mining will always be around.

What miners do and why they’re important

Mining cryptocurrencies simply deal with the process of verifying cryptocurrency transactions and adding them to the public ledger. Recall that crypto transactions are peer-to-peer, which means there are no intermediaries. In order to maintain the integrity of the system and avoid double spending, which had been one of the things that the traditional banks do, miners serve as witnesses to transactions. To verify transactions, miners use a computer or a group of computers to solve a mathematical puzzle, called a cryptographic function, and they are rewarded with freshly generated cryptocurrency – the reward is what leads to the name mining. Miners can either sell the cryptocurrency rewards for fiat on exchanges or keep them as an investment to bet on an increase in the value of the cryptocurrency.

How to Invest In Cryptocurrency Mining

There are two primary ways to invest in the cryptocurrency mining business. You can either set up your own mining operation or investing in a mining business. If you have the technical expertise and time to start your own mining rig, as it’s commonly called, it could be profitable. However, for most people, the best option would be to invest in a mining business and one of the easiest ways to do this is to buy tokens during the ICO of a cryptocurrency mining company.

MoonLite is one such company. The MoonLite project is an industrial scale cryptocurrency mining operation focusing (initially, at least) on the mining of bitcoin, litecoin, and dash.

MoonLite is building its first data center (mining operation) in Iceland, which is the unofficial capital of world datacenters due to its inherent need for the heat energy that data centers could offer. The Moonlite datacenter will be running at roughly 14.6MW with 100 percent of the power coming from green sources. The mining company has been able to lock down a multi-year contract with a fixed energy cost with the Icelandic Power Producer at a huge discount to the local energy cost. It’s worth noting that Iceland already has one of the cheapest energy tariffs in the world.

In addition, MoonLite is taking ICO investing to another level with a profit-sharing scheme through a token buyback program. The project is designed to buy back tokens from holders who would like to cash in at the market price of the token at the time, along with the tokens’ share of the corporate profits, funded by 35 percent of the company’s profit on a prorated basis. This will not only be positive for token holders who cash in, the buyback scheme will also inherently increase the value of MoonLite tokens. That is because the company plans to “burn” every token it buys back.

Burning tokens simply mean that the company will take the tokens it buys completely out of circulation. This means (duplicate) that the value of the MoonLite project will be spread over a lesser number of tokens with each passing year. Most ICO investors have had to rely solely on the demand and supply spectrum of the tokens they buy to dictate the return they receive. Through its token buyback program, MoonLite adds an extra layer of comfort that is very attractive.

MoonLite plans to start its ICO on February 28 although it’s currently offering a presale, which will end before the start of the main ICO. Another unique thing about the MoonLite ICO is that, unlike many ICOs, MoonLite’s tokens confer voting rights on all of the company’s financial, HR and branding affairs through Secure.Vote.

That offers an extra layer of security and transparency that’s often missing in the ICO market.

To bring it all together, in a world that’s filled with over a thousand cryptocurrencies from which one is to decide which ones are worth an investment, it pays to look in the direction of companies like MoonLite who help bring cryptocurrencies to the market. Not only do MoonLite tokens offer the level of security that we’ve come to love about traditional stocks, the MoonLite Project operates in a space that is almost guaranteed to continue to grow, especially if cryptocurrencies are truly the future of money.



Presale and ICO:

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.

Image courtesy of Marco Verch via Flickr

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