Which is better to trade the crypt or invest in it
Which is better to trade the crypt or invest in it?
What will bring more profit today: working with bitcoin or investing in cryptovolta and related technologies? Let's talk about the options for trading in cryptov currencies, and find the best one.
Wishing to learn more about the world of cryptovolta, we inevitably have to make a choice: what would be better to trade with bitcoin or invest in it? In order to be sure, we need to study every option of earning money with cryptov currencies.
Exchange trading in cryptov currencies
Working on a crypt currency exchange, perhaps, like on all other exchanges, is like gambling. When in the casino you bet on the fall of a certain number, the exchange you bet on the growth or fall of a financial asset. In our example, these are cryptov currencies.
Despite the above-described similarity, there are serious differences between trading and casinos. At roulette you can't predict the fall of a certain color or number, you rely only on chance. It's ridiculous to rely on chance alone in crypt currency trading. Here the analysis methods known to Forex traders, specifically fundamental and technical analysis, work perfectly. Forecasts made as a result of detailed analysis of a particular crypt currency are considered to be the basis for betting on its future growth or decline. At the same time, it should be taken into account that no one even the most successful Expert Advisor will make a 100% accurate forecast.
Due to the high volatility of the cryptovoltaic currency, it is possible to make a significant profit in a rather short period of time. If earlier it was said about Forex that it is a highly profitable market, now such a characteristic is no less suitable for the market of crypt coins.
But the high profitability of the market hides in itself the increased risks. Splashes of volatility of certain coins can be so strong that in a few seconds they can both make a trader rich and leave him with nothing.
Whatever the case, never invest in exchange trading crypt currencies more than you are ready to let down.
Investing in cryptov currencies
There are several options for investing in cryptographic currency.
Purchase and hold.
The first method is somewhat similar to a bank deposit. Let's say you can buy bitcoin, air or other crypt for rubles and expect its rate to rise. Since cryptov currencies have a huge potential for growth, such an investment, if chosen correctly, will bring significant returns after some time.
The disadvantage of this method is that no one has removed the negative scenario for the cryptovoltaic currency, and its price can collapse sharply, up to full depreciation. In addition, it is important to choose the necessary period for investment. Definitely, there is a large number of investors at the peak of popularity who have bought bitcoins for 20 thousand dollars, and now waiting for its growth. Perhaps, this method of investment assumes a contribution not even for months, but a couple of years or more.
Another method is a type of trust management. In other words, you invest in a trader who performs operations on the cryptovrency exchange and takes his part of his income. In an ideal scenario, you do not need to monitor the market peripetias at all, but just get your own interest from time to time.
The minuses. In practice, no trader is insured from losses, and, as far as we know, the trader's former efficiency cannot guarantee such success in the future. In other words, instead of receiving income, there is a possibility of losing the invested money.
To invest in the company
The third option is to invest in a cryptographic company. The best option for this is considered ICO. Depending on the type of purchased tokens, you can become a "shareholder" of the company or receive a number of other privileges. When this method of investment is taken wisely, the resulting profit can be hundreds, if not thousands of percent.
The disadvantage of this method of investment, again, is the choice of a suitable company. In the history of the cryptovoltaic world, there are plenty of examples when, as a result of ICO, the owners of the company are simply lost with the funds received.