The increase in the price of cryptocurrencies and the development of the cryptocurrency market is a situation that has opened up a range of opportunities in the electronic market to reduce transaction fees. In addition, the cryptocurrency market has led to an institutional change in the way payments are given and received and replacing the control exercised by government entities. In this context, a new trust model for e-commerce was created. The disruptive innovation of cryptocurrencies has driven the decentralization of trust.
By purchasing cryptocurrencies, users worldwide can find a refuge from the continuous loss of value of traditional currencies. Cryptocurrencies are the best ally when you want to increase the purchasing power of your savings.
Recently, the entry of investors such as Elon Musk with 1.5 billion dollars, or investment banks such as JP Morgan, Morgan Stanley, or BNY Mellon, as well as the announcement by PayPal and Mastercard that it will be possible to start using bitcoins as a means of payment, have contributed to revaluing the cryptocurrency and making it more popular among retailers, who have believed they have found in it a new gold standard since cryptocurrencies have helped them to overcome the injections of liquidity by central banks.
This situation has brought the cryptocurrency market to all-time highs, which represents an advantage for investors and all those who want to escape from the inflation suffered by fiat currencies.
Today, you can take advantage of the growth in the value of cryptocurrencies in several ways. Here we explain several of them:
One of the most basic strategies and one of the most profitable if you want to make long-term investments is called “Buy and hold”.
This practice could be summarized in buying a cryptocurrency and holding without selling all the fluctuation that the market has during all its phases and only selling when your investment has grown a lot, or what is the same, buy and hold all the downturns without concern, that is, whatever happens, you keep your position without even considering selling at any time.
Hodl means holding one or more cryptocurrencies for an extended period without selling them. Hodl is the most popular strategy used in this virtual market. Most users do not have the necessary knowledge and desire to trade cryptocurrencies, for example, buy and sell cryptocurrencies waiting for the price to go up or down. The good thing about this practice is that you don’t have to be a great connoisseur of cryptocurrencies to practice it, in contrast to trading, which does require knowing more aspects of virtual currencies.
Day trading is a suitable trading method in crypto commerce that capitalizes on the rapid, short-term price increase to generate new profit opportunities. While this strategy originated in the traditional market, it has gained popularity in the cryptocurrency space because of its great benefits.
While day trading in the stock or FOREX market cannot provide much profit without using leverage, in the crypto market, it is easier. Cryptocurrencies are volatile, and assets price movements could be dramatic on any given day. Therefore, there are opportunities to make more money through cryptocurrency trading.
A successful day trading can help you to generate profits from short-term movements in a cryptocurrency consistently. As a result, most cryptocurrency traders use various tools and apply leveraged trading to maximize their profits as much as possible.
Currently, the cryptocurrency market can give us many joys and many scares because the prices depend on almost any factor. From one moment to the next, and without warning, the price of a cryptocurrency can plummet. Cryptocurrency prices are susceptible, and sometimes price changes can be pretty abrupt and unexpected.
Likewise, it is possible to detect some changes in trends with close monitoring. However, sometimes this can be a very stressful task.
On the other hand, those who do not have enough knowledge or experience in this field may have a problem, so a bitcoin trading bot can be very helpful. For example, one of the best references in the automated trading sector is Bitsgap, an innovative system of bots that allows you to trade without your emotions, making you lose money.
However, although it is pretty helpful, a cryptocurrency bot is not only a tool for beginners. Even advanced traders use them, especially if they don’t want to miss out on the best investment opportunities.
One of the advantages of a bot is that it can execute trades much faster than any investor, detecting the best investments in time. It is also quite helpful when we want to disconnect from the markets for a moment, while keeping invested money generating profits from trading.
If you want, you can trade 24 hours a day thanks to a bot since it never rests. On the other hand, you can rest assured that it will never get carried away by any emotion or FUD. A bot will always act in a disciplined way and execute orders that correspond to each moment.