Investing in Bitcoins is an excellent opportunity for those who believe in this cryptocurrency and want to make money with its price increases. But thanks to trading in CFDs, it is also possible to profit from a bear market.
Investing in Bitcoins is one of the best alternative ways to earn money today, and will also be so in 2020. As one of the most famous cryptocurrencies in the world, Bitcoins are gaining increasing importance and investors’ interest is rising.
According to experts, the value of this cryptocurrency is likely to increase in the future, and this is already a good enough reason to invest in Bitcoins in itself.
Add the fact that it is possible to earn money even if the price goes down, and you have the full picture.
If you opt to trade Bitcoin through a CFD trading provider such as eToro (official website), it is possible to carry out “short” transactions, that is earning on sales when the price of the virtual currency falls. Obviously, you can also perform “long” operations, i.e. on a bull market where you earn on Bitcoins’ price increases.
These are investments in CFDs or Contracts for Difference. In essence, “physical” cryptocurrency is not acquired, but rather a representative contract, whose value is calculated on the real-time price of the cryptocurrency itself.
The advantage of CFDs is that profits are made even if the price of a virtual currency is falling, so for many, it is an excellent and profitable choice.
CFDs are also convenient for those who do not know how to store Bitcoins or other cryptocurrencies and therefore choose to invest without buying.
Is investing in Bitcoins worthwhile?
The convenience of investing in Bitcoins is conditioned by the fact that it is not the only form of investment made.
By this, we mean that Bitcoins should be a part of a broader investment strategy, which also includes currencies (the so-called Forex Trading), stocks and commodities (i.e. raw materials such as gold, silver, oil, etc.). Within the broader strategy, we can also include the various guaranteed investment possibilities from Bitcoin shares, which will be dealt with specifically.
Trading with Bitcoins
One opportunity for investing in Bitcoins today is by trading.
This means opening an account with an authorised broker who operates in Italy, such as Plus500, eToro (for those who want to copy experts’ operations) or XTB.com. Make your first minimum payment of $ 100 (to activate your account) and start buying and selling Bitcoins or other cryptocurrencies.
Trading in Bitcoins is a unique opportunity to invest whether the price of the currency rises or falls.All brokers buy CFDs (contracts for difference), which allow investors to buy Bitcoins or sell short (in technical jargon we call this long and short selling).If you opt to buy or sell (trading) Bitcoins through a broker such as eToro (click for official website), it is possible to carry out “short” sales. That means earning on sales when the value of the virtual currency falls. Obviously, you can always perform “long” operations, i.e. on a bull market.
These are investments in CFDs or Contracts for Difference. In essence, “physical” cryptocurrency is not acquired, but rather a representative contract, whose value is calculated on the real-time price of the cryptocurrency.
The advantage of CFDs is that trading can be made even if the price of a virtual currency is falling, so for many, it is an excellent and profitable choice.
CFDs are also convenient to those who do not know how to store Bitcoins or other cryptocurrencies and therefore choose to invest without buying.
How to buy Bitcoins?
There are several websites where you can buy Bitcoins, one of the best known and safe is Coinbase – that also offers a $10 free bonus in Bitcoins for purchases of at least $100 – but there are countless other choices.
Read all the details on our dedicated pages on the best investment sites 2020 and buying Bitcoins and the best exchanges of 2020.
Once you have them, you can keep Bitcoins for investment, or you can decide to spend them, both on the internet and in the increasing number of physical stores that accept cryptocurrency as a means of payment for goods and services.
How to store purchased Bitcoins, Wallets
To keep Bitcoins once you’ve bought them, you need a portfolio (or wallet). There are 5 types of portfolios: online (or in the cloud), hardware (USB sticks), software (to be installed on the computer), smartphone or paper apps.
This is a list of the best Bitcoin wallets: CoinBase (online) and the Ledger Nano(hardware, it’s a USB flash drive) are both safe and reliable, and it’s a good diversification strategy to split your virtual currencies between them.
Tips for investing in Bitcoins
- the best way to invest in 2020 is to buy long-term;
- if you want to make short-term investments, your best bet is trading with CFDs;
- it is mandatory to diversify investments, among various cryptocurrencies, and between these and other financial instruments (currencies, commodities, etc.);
- bitcoins are not a safe investment because you effectively risk losing your money;
- it is critical choose a safe broker to invest in CFDs;
- buy Bitcoins from reliable exchanges such as Coinbase.
Are Bitcoins safe?
Bitcoin is, to date, the most known of all virtual coins, also known as cryptocurrencies. One of the most important aspects of this currency concerns its security, and from this point of view, we can say that Bitcoins are safe. We’ll take this matter further in our article on Bitcoin security.