Bitcoin: buy VS trade

Bitcoin: buy VS trade

Judy Rubio

Cryptocurrencies offer great opportunities for earnings. Everybody finds his own way to benefit from them. Some prefer medium or long term investments in crypto; others prefer quick ways of getting profits and take advantage from trading on the stock exchange.

Investing in cryptocurrency

Many financial advisors agree that cryptocurrency is the future. The early bird catches the worm, right? Long-term investing in cryptocurrency can help you weather the storms that inevitably happen to any young and promising asset. Let non-believers jump the ship. However, it is hard to underestimate the importance of a well-thought-out strategy. It is important to diversify investment portfolio, but do not forget the main coin, Bitcoin. 

Advantages of investing in bitcoin:

  • Protection against inflation. Many coins have a set issuing limit in their algorithm. For example, bitcoin issuance will stop at 21 million coins. This is not a dollar that the Federal Reserve System can print as much as it sees fit. And if we consider that some lose access to wallets, we can conclude that the number of available coins will be even less.
  • Increased confidence and convenience. Areas of use of cryptocurrencies are constantly expanding, the number of services where you can pay with bitcoins increases. As a result, more and more people are interested in buying digital assets.
  • The development of cryptocurrencies. Developers successfully solve the problems of network scaling, transaction processing speed, and commission reduction. This makes the coins even more attractive assets.
  • Alternative to fiat money. In countries with political and economic instability, the growing numbers of people turn to bitcoin for their savings. This spurs demand and therefore pushes the price of digital assets up.

Bitcoin trading

Bitcoin trading lets you position yourself in such a way that you will be making money no matter how well a cryptocurrency is doing. Bulls or bears? It does not matter as long as you are making money. Another advantage of trading cryptocurrencies is being able to leverage them to make a lot more money than on the usual stock market. In the stock market, daily fluctuations rarely exceed 1%. On crypto-exchanges, the values are much larger; the volatility can exceed 10%.

Other advantages of bitcoin trading include:

  1. Different trading strategies. You can use fundamental or technical analysis to make the best out of any situation on the market.
  2. Trade with leverage. Maximize your earnings by using borrowed funds of the platform.
  3. Buy/sell automation. The user can create pending trades at a set price. Once the course reaches the desired level, the system will automatically make such trades. The trader does not need to constantly sit at the screen and observe the situation on the market.

Both investing and trading cryptocurrencies can help to make more money. In each case, you should carefully consider instrument, because this market is young and almost unregulated. It has a lot of manipulators that artificially "move" the price. Before making a decision, we advise you to read the checklist of a competent investor and act wisely. We wish you successful and profitable trades!