1. The medium and long term which is called in the jargon Hold, which means "Hold / Hold" in English. As the name suggests, its strategy is based on buying one or more crypto currencies and keeping them for several months or even years.
2. The short-term strategy was to buy and sell over a few days, to make small capital gains on the rise in prices. This is a risky strategy, but it can pay off if you have time to monitor the different price variations. For a beginner it is advisable to invest small amounts in order to learn from mistakes.
3. As in classic stock market speculation, the technique of Day trading: consists in carrying out operations on a time scale of 24 hours maximum. This is an even more aggressive strategy than the short-term strategy, although in the case of cryptocurrencies the time taken between the placing of an order and its execution can be surprising. Logically, this strategy is strongly discouraged for beginners. Strategy and advice for investing in Bitcoin With the value of Bitcoin constantly growing, it becomes interesting to know what trading strategies to put in place to benefit from the insolent rise of the most famous of crypto currencies.
With spectacular growth, Bitcoin is breaking all growth records. There are different philosophies and trading strategies for taking advantage of the Bitcoin craze. Here is an overview of the means and strategies for investing in Bitcoin depending on the investor's profile and his means.
The different methods to invest in Bitcoin There are different methods to invest in Bitcoin, including mining, the acquisition of tokens during an ICO "Initial Coin Offering" (an ICO is the fastest way to get rich with Bitcoin, provided you are an insider), buying Bitcoin and trading Bitcoin derivative products such as CFDs (contracts for difference). The focus here is on buying Bitcoin on a trading platform, as well as techniques and strategies for trading Bitcoin with CFDs. The Buy and Hold trading strategy applies to Bitcoin As one of the most gifted investors of his generation, Warren Buffet repeats to anyone who wants to hear it, Warren Buffet announces: "Gains are not made by selling but by buying." All investors know that the past performance of a financial market cannot predict the future. It is therefore impossible to predict whether Bitcoin will continue its bullish rally. It is quite possible that it is in a bubble. However, historical data demonstrates the tremendous resilience of the cryptocurrency, as its price was already halved before rebounding dramatically. Many platforms now offer Bitcoin trading. Today, many of them play the role of market places. They are literally small, autonomous exchanges, where supply and demand meet to determine the price of Bitcoin. Although most of them use official quotes. The most popular exchanges are CoinHouse, Coinbase, BitIT, or ZeBitcoin. Unlike traditional trading strategies, with crypto currencies the value is more difficult to estimate. This is the reason why Bitcoin traders use the news trading strategy. Just like with precious metals, making money with Bitcoin involves betting on a long-term trading strategy. Therefore, the investor will have to take advantage of declines in the price of Bitcoin to position themselves before the rebound. Bitcoin trading strategy with derivatives Online trading platforms were among the first to offer speculation on Bitcoin thanks to CFDs (Contract For Difference), which are derivative products indexed to the price of the crypto currency. Brokers such as IG, Etoro, all offer CFDs to make money with Bitcoin. Once registered on their platform and after having opened and funded a trading account, you can speculate on Bitcoin 7 days a week, directly on the price of the crypto currency, or on a currency cross using Bitcoin.