Cryptocurrencies: Let’s evaluate the main strategies for investing in Bitcoin today

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Bitcoin is the world’s most popular digital currency, the first created and the first to be a huge hit, seeing its value increase exponentially. To invest in Bitcoin, it is necessary to have Know the main strategies to follow; Moreover, investing is inseparable from minimal knowledge about digital currency and the markets in which it can be purchased.

What is bitcoin and where to buy it

Bitcoin is a cryptocurrency, and therefore a digital currency, that is not issued by a central bank, but is traded on some block chains, ensuring its anonymity and security.

It can be purchased in one of Many online broker Online: It is therefore important to choose an online trading platform that is safe, reliable and offers many services to the user. To find the one that best suits your needs, we recommend that you rely on it specialized portals Like, for example, cuocobitcoin.net, where you can find insights and content related to the world’s most popular cryptocurrency.

Before starting to carry out trades in Bitcoin, it is important to check that online trading platforms offer the possibility of buying Bitcoin, and to inquire about fixed costs, when they exist, and the applicable spreads.

Bitcoin Investment Strategies: Direct Buying or Buying CFDs

Buying Bitcoin can be done directly, by buying ownership of all or part of Bitcoin, or by buying and selling CFD contracts, the basis of which is Bitcoin. Therefore, the first basic strategy to implement is to determine how to deal with Bitcoin.

In case When you buy CFDs on Bitcoin, you are buying a Derivatives Contract, which has a cryptocurrency as its basis, at a certain price, and resells it at a different price; in case instead ofDirect purchase of Bitcoin In fact you buy property of the samewhich must be deposited in the wallet, which is a wallet created specifically for cryptocurrencies.

Choosing one strategy instead of the other should depend on the choice of online platform to invest through, as not all brokers offer the purchase of CFDs as not all brokers allow direct purchase of cryptocurrencies.

Short/short or medium term strategy

Another strategy you can apply when you want to invest in Bitcoin is Determine investment timesThen select the type of investment according to its time.

If you want to trade by focusing on the price changes that Bitcoin can bring about in a very short period of time, this means that you buy the cryptocurrency and then sell it back during the day. However, in the short term, it was decided to keep the digital currency in the wallet for days or months, waiting to be resold in the best conditions.

On the other hand, if you want to execute a file medium term strategy This means that investing in Bitcoin is made with a view to holding it for more than a year; In this case, the type of investment is not aimed at fluctuations, but at real, but always possible, growth in the value of the Bitcoin price.

Bitcoin Investment Strategies: Leverage

It is possible to approach buying Bitcoins, as with most financial instruments, by making the decision to buy or sell using leverage. Leverage is a tool that allows you to do that Increase your exposure On a specific financial instrument, by multiplying the invested amount by the specified leverage number (x 5, x 10, x 20).

Deciding to use this strategy to buy Bitcoin means targeting a potentially larger profit margin, but also the possibility of losing your invested capital more quickly.

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