As stated in the previous chapter E-Currency Exchange provides the platform to exchange different e-currencies. This exchange can be between two differing e-currencies or a conversion of an e-currency into hard cash.

As with practically everything in this world (of value), there is supply and demand pressure for these e-currencies. If you own shares in a particular e-currency and the demand increases, so will the value of your e-currency. From what I have seen, very few e-currencies go down, and the ones that do have always come back.

The key is to diversify your portfolio and reinvest your gains in more shares. The demand for e-currency will continue to rise. The best part is yet to come.For the Trader in some of us. You can also profit from the fluctuation in the underlying currency.

Without going into a long-detailed explanation, I will also share with you the concept of leverage related to E-Currency. Once you set up an account and buy e-currency shares, you can then borrow against the value of those shares to buy more e-currency, withdraw funds, or whatever. This is not like a credit card. You do not pay it back. This alone will cause your Portfolio to grow by 25%, 40%, 50%, or more per month. Traders will think of this as Buying on Margin. That is reasonable to an extent.

Combine that with the average return on the e-currency value by itself of .2% to .5% per day, and I think you see the opportunity. It's HUGE!! Compounding, Compounding, Compounding need I say more? Ideally, you will purchase e-currency every day!

How Much Money does it take to Invest in E-Currency Trading?

This is the part that blows me away. You can get started with $25. That's all it takes to start buying e-currency. Keep in mind that most of the e-currencies are bought for less than 20 cents per share. I recommend starting with at least $200 dollars, but that is up to you. I have heard people hitting it hard with $50,000, but I'm not one of them!

And I would still follow the old but true statement Only Trade with what you can afford to Risk.

Sidebar before we move on

I mentioned in the Introduction that E-Currency has its own lingo, like the world of Computers and Forex and many other areas. In this Chapter, I have taken literary liberty and simplified the description of purchasing e-currency as shares. The true jargon for my use of shares is Digits—pronounced Dig-its. If you continue to pursue this as a viable investment, you must understand the term digit. You would be purchasing Digits, ok. It is derived from the combining of digit and ingot. That is all I know or care to know.

End of Sidebar

I think it is important to mention the other side of E-Currency Trading: being a Merchant. This is the act of providing liquidity to e-currency traders when a transaction is requested. For example, let's say a party wants to exchange an e-currency for another e-currency. This transaction requires float to make it happen. The Merchant who receives a fee for providing liquidity provides this float.

The profit potential is staggering because there are thousands of these transactions performed every day. However, be aware that several prerequisites must be met to become a Merchant, one of which is you have to be in the program for a minimum of 90 days.

And finally, this all comes at a price. Yes, there are fees involved that you must understand and. (You wouldn't open a stock or futures account without knowing the fees, would you?) The same is valid here. I will not go into the fee structure as it is beyond the scope of this report, but I will tell you there are monthly fees and transaction fees. No big deal if you are an informed investor.