Many people think of cryptocurrency and Bitcoin as being synonymous.
That is because Bitcoin gets most of the attention when it comes to press and hype. It is indeed the most popular and most lucrative of the cryptocurrency coins, but it is only one of them. And the cryptocurrency ecosystem now goes beyond the coins themselves to also constitute businesses and companies that are built around the coins.
These business opportunities didn’t exist before cryptocurrency, but suddenly there is an entire cottage industry which has sprung up around crypto. And many of these companies represent excellent areas for private equity to get involved. They are biting off the beaten path and don’t get the same kind of exposure as the coins themselves, but the profit potential is often as strong as, if not greater than, investing in the actual cryptocurrencies.
A savvy private equity firm investor should start to be on the lookout for such crypto-adjacent businesses, as they allow room for both long-term success and rapid growth, the latter occurring if cryptocurrency can overcome some of the regulatory hurdles facing it. When individual investors get involved in cryptocurrency, they often do so by buying into the coins. Many even use efficient, effective trading robots like Bitcoin Trader for their crypto choices which are made by artificial intelligence. For a private equity firm, there are possibilities besides the coins where profit can be had. Here are three of them.
1. Coin Exchanges
One of the booming areas of crypto are the places where people go to buy and sell their coins. Even better still are the exchanges that have some sort of custodial aspect to them, meaning that people can store their cryptocurrency assets without the fear of them being hacked. Some of these exchanges do also offer coins of their own, but the essence of them is to facilitate coin trading, which is rising to higher levels practically every day.
2. Coin ATMs
It is possible that many don’t even realize that this technology exists. But there are machines that allow people on the go to trade in their cryptocurrency assets for fiat money. This is an important thing because, now, many businesses don’t accept crypto for their products and services. A crypto ATM not only comes in handy, but it also helps the coins circulate, which keeps people from hoarding all that they have amassed.
3. Cryptocurrency Media
People are beginning to become more and more interested in cryptocurrency: what they are, how they work, which are the best, and so on. Some organization that can cut through all of the clatters and delivers pertinent, factual information on the latest cryptocurrency news can be extremely influential. As a result, private equity investors should try to spot one that might have the kind of leadership to help them achieve this goal.
Don’t be fooled into thinking that cryptocurrency is a narrow sector. There is practically no end to the kinds of businesses trying to make money off it, many of which might be great investment vehicles.