Of all the cryptocurrencies that exist today, the one that continues to have the greatest importance for society is undoubtedly Bitcoin. Every day there are many interested in getting fully into this volatile market.
Getting good results is possible, as long as the right strategies are carried out. Below we will detail how they are the most implemented in full 2021.
DCA
Previously it was a method that was put into practice with the stock markets, but with the passage of time, the DCA strategy to invest in Bitcoin has proven to be effective even in the realm of cryptocurrencies.
Basically it is about regularly contributing an amount. Both the periodicity and the amount invested depend on various aspects such as the economic capacity of the aforementioned, although they are generally operations that take place on a monthly basis.
A crucial aspect of the DCA strategy relates to market fluctuations. In a sector like Bitcoin, the ups and downs are constant, which can lead an investor to decide not to get into. However, those who choose this method do not take such changes into account.
Whatever the state of the cryptocurrency at that precise moment, the contribution is carried out with the previously established periodicity. The objective is that the years go by having accumulated a significant investment without entailing the great risk that would mean suddenly allocating the same amount to the market in question.
It is worth noting the fact that the DCA strategy works very well with Bitcoin because it is a bullish sector in general. So it’s no wonder the method is present in every beginner’s guide to investing in cryptocurrencies, with a few exceptions.
There are certain cryptocurrencies that experience very sharp peaks and then go down and ‘stagnate’ for months and even years. If you are unlucky enough that the periodicity falls into one of those steep rises, the losses could be considerable. A clear example resides in Ethereum, specifically in the peaks of January 2018 and May 2021.
Hold
The hold strategy, also known as hodl after an Internet meme, is another one that experts often recommend to beginners who want to get started in the exciting world of investing in Bitcoin. Although it is not a suitable method for everyone.
Only those who have great confidence in said cryptocurrency can opt for it, believing squarely that in the future it will end up being a much more important currency if possible than it already is now.
Of course, you also have to be able to not sell in case Bitcoin experiences a rise. They have been quite common in recent years, so this temptation can be a difficult thing to overcome.
Despite this, the truth is that we are facing a very simple strategy to apply. In addition, it is recommended to beginners due to the peace of mind that the fact of not consulting the current value of the cryptocurrency every two minutes.
Trading
Returning to fluctuations, which are quite frequent within the scope of Bitcoin, there is the possibility of taking advantage of them in order to obtain economic benefits. The idea is simple: buy at a low price to sell when it goes up. Sounds simple, doesn’t it?
The truth is that it requires knowledge and experience, so it is not recommended for beginners. Even so, those who start from scratch can choose to ‘copy’ the movements of experienced investors, an option that certain online brokers enable and that is being put into practice by more and more users.
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