Five Bitcoin Investing Strategies You Can Use Now

Today, over 100 cryptocurrencies are available in the market and there is indeed a huge selection of those in which you can invest your money. After that, it is necessary to monitor the rise or fall of the value of the currency you have chosen on the stock market. However, there is one currency in this crypto-bunch that we all believe you have heard of. It is Bitcoin that has managed to reach incredible values ​​in the last 11 years of existence. For example, last year, the highest amount of money you could get for 1 BTC was about $14000, while this year it is about $11000.

This is enough to say how much the value of a Bitcoin has increased compared to, for example, 3 or 4 years ago. Today it has become very profitable to invest in this cryptocurrency, as buying it at a currently low price can bring you a fortune in the coming months. However, as with all stock market deals, you need to have the right investment strategy. To discover the top 5 bitcoin investing strategies, continue reading.

Try to avoid lending this cryptocurrency

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Bitcoin lending is similar to the process of lending money from a bank. So, assuming you have number of bitcoins, you probably want to use them and maybe earn extra. However, if you choose this type of investment, it is advised that you have a good insight at the market in which the business to which you are lending is operating as it may eventually result in losses. In any case, careful strategy in lending can result in high interest and income for you.

Investing in “high beta” altcoins

Of all the strategies we will mention, investing in high beta altcoins is definitely the riskiest. However, as with all other strategies, it is wise to consider the market situation and monitor the beta of the market and cryptocurrencies as well. For example, the beta for the entire market is currently 1, and the beta of any currency greater than 1 is considered a risky investment. Current value for BTC is 0.96.

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Use bitcoin for collateral

One good method is to keep bitcoins with the so-called custodian in the form of collateral. Thanks to that collateral, you can borrow real money that you can use later to buy extra bitcoins. This strategy is one of the most reliable ways.

Invest in crypto hedge funds

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Before using this strategy, there are some factors that you need to consider. Specifically, performance and partners affiliated with a particular hedge fund can be a good indicator of whether or not it is wise to invest.

Using bitcoin’s cycles

This implies long-term monitoring of the rise and fall of bitcoin. At some points, the value was incredibly high but also can decline almost three times in the coming months. Therefore, data that is not available to others in the market can help you a lot.

If you want to manage your bitcoins in the smartest way, you can also use specialized sites for these things and one of them is