Cryptocurrencies have today become a pretty emerging asset class. With bitcoin being highly adopted as a payment form, you need to have it in your portfolio mix. However, this took almost one decade for the crypto exchanges as well as investment applications to become mainstream. Till then, cryptocurrency investment was a tough activity for ordinary people.
However, now, you can do it on your phone. So, before you begin the crypto investment journey, it is essential to consider the crypto investment landscape and volatility. However, by choosing the best cryptocurrency investment strategies and following them rigorously at https://bitcoin-era.pl/, nothing will ever stop you.
The value of a single bitcoin has fluctuated wildly with time, but it has been rising in recent years—at $1,200 per coin in 2017 before it fell again. Though this volatility makes Bitcoin investment risky (especially if you are starting), some strategies will help to mitigate the risks by providing you with an understanding of how it works:
Buy and Hold
Buy and hold is the most conservative way to invest in Bitcoin. The strategy mainly involves buying Bitcoin and holding this for a more extended period which will help you to make passive income.
However, this strategy may not be suitable if you’re looking for quick returns or want to participate in the market while it’s still volatile.
Invest in Bitcoin Mining
When you invest in Bitcoin mining, you’re using your computer to solve math problems. Solving the problems is termed “mining” and mainly involves using electricity. Mining isn’t necessarily the most profitable way to invest in Bitcoin–and it’s only for some.
However, it can be fun if you’re into playing around with computers or want extra money on top of what you earn from day-to-day jobs like working at a company or managing an investment portfolio online through a broker service like Fidelity Investments (FII).
Buy Exchange-traded Fund
This kind of fund tracks down the cost of the underlying asset, like bitcoin. ETFs can also be bought or sold on the stock markets, very much like stocks, with a few differences. Unlike stocks, there are no restrictions on how much money you can invest in an ETF–you can purchase as little or as much as you want at any given time.
ETFs have become increasingly popular because of their accessibility, transparency and low costs. In addition, you don’t need to buy each share directly from your broker; instead, your broker will buy them for you from another firm known as a market maker, which has agreed to buy back shares from investors when demand becomes too high (called “marking”).
This means that if demand suddenly increases for Bitcoin-based ETFs because someone finds out about them (like this happened when it was announced that CBOE Holdings Inc., which owns CME Group Inc., would start offering Bitcoin futures starting September 2017), then those same companies will do everything possible within their power – which includes buying back shares – so they don’t end up oversupplied!
Your next strategy in crypto investment is growth investing. This is investing in cryptocurrencies, which are in the early stages and will grow with time. However, this can be a risky task for you to do. Hence research is fundamental.
There are many different cryptocurrencies affected by various growth levers driving the price. Suppose you’re looking at a long-term investment for huge returns; it is the best thing.
Don’t Invest in Bitcoin Directly
Instead, buy into companies that use it as their primary sale currency. It is a conservative way of bitcoin investment, but it still means you have some exposure to the volatile cryptocurrency market.
You should only invest money that you can afford to lose if prices go down dramatically or if there are any major technical problems with the technology underlying Bitcoin and other cryptocurrencies.
While investing in Bitcoin is still perilous, there are ways to mitigate that risk. Investing in cryptocurrency is not for the faint of heart, but if you know what you’re doing and have researched, it can be a great way to get rich.