Before we can understand how investing in cryptocurrency might benefit you, it is first necessary to understand what crypto and blockchain is. Simply put, crypto investing is an activity in which an investor mixes with others who are interested in the same trend of investing in currencies. Crypto then pool their collective money to purchase certain currencies in bulk, usually at a discounted price, and resell them for profit when the time comes. It is similar to being a buyer and seller in the stock market, only instead of physical shares, one pools their money into the buying power of a currency.
Cryptocurrencies use two types of methods to make profits: one is known as a market maker, and the other is known as a trader. A market maker is someone who places his money into a pool, then once an opportunity arises to make money off of that pool, he gets out with that money. This person is not taking a direct risk on his money, but instead, he is betting on whether or not the price of a currency will rise or fall. The trader is the one who places his money into the pool of crypto and decides when it is time to sell.
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