Investing in Bitcoin - TOP 7 ways. Risks and returns

Cryptocurrency has long moved from the category of an incomprehensible tool for enthusiasts to the category of an investment object. There have already been several waves in history, during which the value of Bitcoin and other coins grew significantly, this forces investors to invest money in crypto. It also has an effect that investing in Bitcoin
has become significantly easier compared to 2011-2012. Anyone can buy BTC tokens in just a couple of mouse clicks, while the entry threshold is minimal; literally anyone can become a crypto investor.

Below you will find an overview of all available methods of investing in Bitcoin. Losses on commissions can be significant, so when investing it is important to choose the most economical method.

From this article you will learn:

1. Crypto exchanges
2. Buying Bitcoin through online exchangers
3. Buying cryptocurrency directly through EPS wallets
4. Mining
5. Purchasing military vehicle directly from the seller
6. Purchasing BTC on the over-the-counter market
7. Investing through ETFs
8. Potential Risks and Benefits of Investing in Bitcoin
9. Is it worth investing right now?
10. Conclusion

Buying Bitcoin through online exchangers

This option is suitable if you plan to invest money in Bitcoin without active trading. Through the exchanger, you can quickly exchange fiat currency for BTC tokens and store them on the main wallet or transfer them to a hardware crypto wallet for maximum reliability.

The crypto purchase scheme in this case looks like this:

• The most advantageous offer is selected through the aggregator ; the rate should be close to the market one. Such aggregators include the popular Bestchange.
• The money is sent to the details of the exchanger . This could be a transfer of fiat currency from a bank card or an electronic payment system wallet.
• After receiving the money, the exchanger sends the cryptocurrency to the specified address . After the transaction is confirmed by the network, BTC tokens are sent to your crypto wallet. This is not an instant procedure; it can take up to 15-20 minutes to process the transaction if there is no abnormal network load.

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The key disadvantage of this method of investing in Bitcoin is the high losses on commissions compared to buying crypto on the exchange. You will have to pay a commission to the bank or EPS when transferring fiat to the details of the exchanger, there is the exchanger’s own commission, and besides, the BTC exchange rate differs from the market one not in your favor.

Losses on commissions depend on the chosen direction. For example, there are very few offers in the PayPal USD – BTC direction, so the rate is unfavorable. For 1 Bitcoin you will have to pay $60,642.81 at the market rate of BTCUSD – 54,029.60. Only on the difference in rates the loss will be 12.23%, this is clearly an unprofitable offer. There are also more unprofitable offers, for example, at the same time in the WMZ - Bitcoin direction, when purchasing 1 BTC, its cost exceeded $80,000.

If you choose a more convenient option, for example, Payeer USD - Bitcoin, then there are many times more offers, so the rate is close to the exchange rate. Exchangers compete with each other and lower the Bitcoin rate to attract customers. Losses due to exchange rate differences will be 2.51%, almost 5 times less compared to the PayPal USD – Bitcoin direction.

When working with exchangers, it is important to evaluate exchange rate differences and monitor commissions. There may be so-called hidden fees that appear immediately before making a payment.

If the exchange rate differs from the exchange rate by more than 2-2.5%, then it is better to look in another direction. Competition in this area is high, there is no point in losing money out of the blue.

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Conditions

Fixed interest accounts are offered by cryptocurrency exchanges such as the Japanese exchange Coincheck. Bitcoin owners can take advantage of several different programs to choose from, the profit in which depends on the interest rate, the term of the deposit, the frequency of payment of income and other nuances.

You can place deposits in electronic currency for a variety of terms; for example, Coincheck offers the following programs depending on the term and rate:

• When placing funds for 14 days, the rate of 1% per year is offered;
• for a period of 1 month you can deposit Bitcoin at 3% annual profit;
• a deposit for 12 months will allow you to earn 5% per annum.

When placing funds in VTS

on one of the HYIPs, the minimum deposit amount is usually from 0.001 bitcoin.
The return on such investments can be completely different - from 3 to 15%, depending on the method of calculating interest - every hour, once a day. When calculated hourly, interest can range from 0.30-0.40%. Funds in the account can be reinvested. Various cryptocurrencies are accepted as investments, not just Bitcoin. Payments are made through BTC
,
Ethereum
,
Payeer
, etc.

Bitcoin withdrawal

possible either ahead of schedule with a deduction of 5-15%, or at the end of the deposit period. The minimum amount that can be withdrawn is from 0.0005 BTC.

HYIPs usually promise instant withdrawal of funds, but payments are often delayed, and many resources do not pay at all or are closed.

Buying cryptocurrency directly through EPS wallets

A number of EPS allow clients to invest in Bitcoin directly through their wallets. There is no need to bother with registering on the stock exchange or online exchangers; the purchase of cryptocurrencies is carried out through the personal account of the corresponding EPS.

However, the approach to buying crypto may differ:

• EPS can introduce an internal token with a fixed link between its rate and Bitcoin.
• The wallet can directly store BTC tokens.

An example of the first approach is WMX tokens from WebMoney, the accepted rate is 1 WMX = 0.001 BTC. You can buy crypto directly from your wallet by exchanging for WMX, for example, WMZ or WME tokens.

True, with such an exchange the rate is quite unfavorable. At the time of preparation of the material, the rate 1 WMX = 62.46 WMZ was offered in the WebMoney personal account, which means that 1 BTC, according to the EPS version, costs $62,460. At the same time, the market rate of military-technical cooperation at the same moment is $57,374. The difference is 8.86%, which is quite a lot; in standard exchangers in a number of areas the difference compared to the exchange rate does not exceed 2-3%.

Another drawback is the relatively small reserve of the exchange machine. It is inconvenient and unprofitable to collect a large volume.

The second approach is well implemented in Payeer. There are no separate internal tokens with a rigid fixed rate to Bitcoin; instead, you can trade crypto directly through EPS. The rate is almost the same as on the exchanges.

Below I will list some payment systems through which you can invest in Bitcoin with the function of storing coins:

• Payeer
• Capitalist
• Webmoney

.

More information about deposits in BTC

You can make money on bitcoins, just like on the usual bank deposits: the investor makes a deposit, while a certain storage period for cryptocurrency funds is observed, or the opportunity to place bitcoins indefinitely is provided. In this case, a certain percentage of the amount that was invested is charged.

There are a huge number of exchanges operating on the electronic currency market, some of them have begun to offer investments in bitcoins

to make a profit.

A peculiarity of working with any cryptocurrency is the lack of regulation of processes with the circulation of these electronic funds at the state level, so it is almost impossible to protect the investor from fraudsters.

Many sites involved in investing in electronic currencies do not pay their investors; often such projects are closed before they even begin to operate. Finding the culprit in order to file a claim and get your money back is unrealistic. You need to be careful when choosing a resource for investing bitcoins, otherwise you can become a victim of scammers and lose all your cryptocurrency funds: trust only trusted resources that have been working in this area of ​​activity for a long time, with a reputation for companies that pay profits and return deposits on demand.

Mining

Mining BTC tokens can be considered as an indirect investment in Bitcoin . The investor does not buy the tokens themselves, but the equipment for their extraction, but the ultimate goal is to earn money by increasing the value of Bitcoin coins.

In the case of BTC, the entry threshold for mining is extremely high. This is the oldest coin; the days when BTC tokens could be mined on CPU and GPU are long gone. For more or less tangible results, you will have to buy an ASIC, and these devices cost a lot.

For example, the Bitmain Antminer S19 PRO model has a power of 110-115 Th/s. This means that with the cost of electricity being about 5 rubles. for kWh per month he can earn about $1395. With the device costing $17,830, this makes a quick payback in 2-3 months impossible. For businesses, this is an average figure, but it is calculated taking into account the fact that the crypt will remain at current levels. When the exchange rate declines, profitability will also drop, and the payback period will increase sharply.

Bitcoin mining is problematic for the average user . Problems are related to:

• High cost of equipment . Not everyone can spend 1.3-1.5 million to purchase even one ASIC, not to mention farms of dozens of such devices.
• High risks . Crypto growth is not guaranteed; payback may increase from the current 6-12 months to several years.
• Low liquidity of equipment . ASICs are more difficult to resell than, for example, video cards. ASIC is too “narrow” a device, suitable only for mining.
• The need to equip a separate room for “digging” the crypt . ASIC puts a high load on the power grid; it is better not to install a farm in an apartment.

In theory, it is possible to enter into Bitcoin mining, but the risks are too high; it is better to invest through the purchase of tokens on exchanges or exchangers.

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Cloud mining

The principle is the same as that of conventional mining - coins are mined using ASIC. The difference from the standard approach is that the investor does not need to spend money on purchasing equipment. Mining is called cloud mining because you pay to rent part of the computing power from the lessor. As a result, the income is somewhat less than with conventional military-technical production due to additional rental costs.

But, given the cost of equipment, cloud mining is the only option to try “digging” without investing a couple of million rubles. However, there are no guarantees that this approach will be more profitable than investing in Bitcoin through crypto exchanges.

Prices are provided on the relevant sites; they are comparable to the cost of an ASIC, but provide temporary access to the device. The cost is selected so that during the period while the ASIC is rented, the user has time to compensate for rental costs and gain profit. True, all this is relevant only if the value of military-technical cooperation remains at the current level.

Rules for choosing exchanges and investment projects

When choosing exchanges and investment projects for Bitcoin, you should be extremely careful not to lose your funds. You can trust “hype monitors”, which list sites that pay, or you can choose a large exchange with a reputation.

Among the main points that you should definitely pay attention to when choosing an exchange or project for investing bitcoins are the following:

• Country of location. For example, some companies from Japan or South Korea do not allow foreign investors. And the location of the project’s central office in Latin American countries may indicate its unreliability due to the lack of regulators.
• Availability of tools for technical analysis. If Bitcoin is invested at interest, then such tools will not be needed, but with active trading you cannot do without them.
• The ability to trade with leverage, as well as the opportunity to receive passive income from providing funds for other traders on the exchange.
• Minimum deposits. Almost all major exchanges do not have minimum cryptocurrency deposit requirements, with the exception of Bitfinex (the minimum investment amount cannot be less than $10,000).
• Payment options. Not all projects and exchanges accept credit cards or bank transfers.

Purchasing military vehicle directly from the seller

This Bitcoin investment option is convenient because you negotiate the deal directly with the seller. You can discuss the rate, transaction volume, payment option and procedure. The method is suitable for small and medium investment amounts.

There are 2 ways to organize this type of transaction:

• Search for a person involved in the sale of cryptocurrencies, for example, on specialized forums . The administration can act as a guarantor, but the deal can be concluded without this. Options include a meeting with the seller.
• Buying BTC through Local Bitcoins . This is a non-standard crypto exchange, which does not have the usual trading terminal, and the emphasis is on p2p trading. The buyer selects a region, currency, convenient payment options and simply selects from a list of sellers that match the specified filters. Local Bitcoins acts as a guarantor that both parties will fulfill their obligations.

The LocalBitcoins option is safer. If for some reason the scenarios of buying crypto through an exchanger or on a crypto exchange are not suitable, then LocalBitcoins is the ideal solution to the problem.

Summary

With growth of more than 1000%, it is not surprising that there are more and more people willing to invest in Bitcoin.
However, you should be careful and invest little by little as cryptocurrencies are very volatile, i.e. their course changes very quickly. Strategies such as diversification and cost averaging will help reduce risks. Finally, in order to invest in Bitcoin, you need the right broker.

We recommend Quantum AI, where you can invest in Bitcoin commission-free and get recommendations for other investment opportunities. Quantum AI partners are accredited brokers, and this is a guarantee of security, unlike dubious cryptocurrency exchanges.

Purchasing BTC on the over-the-counter market

This option for investing in bitcoin is similar to buying through LocalBitcoins, but the difference lies in the minimum volumes and the purchase mechanism. Typically, the OTC market is chosen by large investors, their goal is to purchase BTC at a fixed price.

If an investor buys BTC, for example, for $100 million through the exchange, then it is unknown what the average execution price of the position will be. Liquidity will be absorbed at different levels and, as a result, the transaction may be concluded at a price unfavorable for the investor. In the OTC market, the price is usually slightly higher than the exchange price, but the buyer collects the entire volume at a fixed rate. The benefit of this is felt only with significant volumes; investments of a couple of thousand dollars are best made in the standard way.

Examples of such platforms are Genesis Trading, Circle Trade. Exchanges also organize similar services; Binance and Coinbase have an OTC market for whales. But it makes sense to enter OTC only when investing significant capital, when a direct purchase on the exchange will lead to a strong increase in the rate.

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Advantages and disadvantages of investing in Bitcoin

The Bitcoin cryptocurrency is anonymous, so you do not need to enter your data when investing. When studying transactions, you can only see the wallet address, and it is impossible to find out the owner’s personal data.

This cryptocurrency is limited in quantity. Theoretically, after all the coins are released, their value will not fall, but will only increase. Experts from the Exmo and Bitfinex exchanges note that now it makes sense to invest in cryptocurrency, since it is still at the initial stage of development.

Among the main advantages of Bitcoin are the following:

• Opportunity for rapid growth. There have been cases when investors earned 2-3 thousand dollars a day on one unit.
• The level of user trust and the largest capitalization.
• Liquidity. Not only online stores have already begun to accept Bitcoin as payment, but also some countries (Germany, Japan) have recognized cryptocurrency as a payment asset.
• Complete anonymity and lack of regulation by any state.

Experts from the above exchanges also give arguments in favor of why you should not invest in this cryptocurrency:

• Problems with network scaling, which causes transactions to take too long. Initially, the essence of the appearance of such a currency was to carry out transactions anonymously and as quickly as possible. Now, most services require six confirmations, which slows down the transfer.
• There is growing interest from many national regulators. Some countries have already banned the use of cryptocurrency at the national level, while others are trying to control transfers and the origin of coins.
• The sharp rise in the rate raises fears that the fall will be immediate and Bitcoin will collapse.

Investment methods

Before you start investing, you should choose the best earning option for yourself.

Investing in Matbi

This is a variation of the Buy and Hold option described below. The only difference is that you don’t have to create a wallet separately if you have already registered on the Matbi exchange wallet. Registration is possible by email or phone number, after which wallets are automatically created for many types of cryptocurrencies, including Bitcoin.

The reason why we are considering “Matbi” as a separate item is that here you can quickly buy cryptocurrency, sell, exchange and immediately store it under the reliable protection of three-factor authentication: by PIN code, code from SMS and email.

Among the main advantages of Matbi are the following:

• Favorable course.
• Low commissions (no fees for replenishing your account).
• Simple, clear, Russian-language interface.
• Reliability (the service has been operating since 2014).
• Automatic transactions 24/7.

The main benefits are truly unique. An excellent exchanger for those who have decided to start their activities in the cryptocurrency field.

The recently released Matbi mobile application includes all the functionality that was previously provided only on the service’s website.

If the user has any questions, the Matbi team has prepared detailed video instructions.

Other options

The following methods are also popular:

• Trading – you can treat this cryptocurrency like any other exchange asset.
• Buy and store, counting on the fact that the rate will rise over time, which will certainly happen if the trend of recent years continues. To do this you will have to create a Bitcoin wallet. This can be done using online portals (Blockchain.info), downloading the wallet directly to your PC (Bither) or getting a wallet on a cryptocurrency exchange.
• Mining. By investing in equipment, you can mine Bitcoin using complex mathematical calculations that will be performed by a computer.

Investing through ETFs

ETF funds have become a classic investment tool. In the case of stocks, they facilitate the construction of a portfolio since the basket of an exchange-traded fund copies the composition of the corresponding index. As for Bitcoin, it was only on February 18, 2022 that the world’s first ETF, the Purpose Bitcoin ETF ; it attracted $624 million in the first week.

The main advantage of ETFs is capital protection and maximum investment safety. When directly purchasing crypto, the investor himself is responsible for the tokens. He may lose access to them, tokens may be stolen by attackers - these are real scenarios.

In the case of an ETF, its shares are held in a depository, meaning the investor cannot physically lose access to his investments. The same applies to scenarios with token theft. All operations directly with cryptocurrency are performed by the structure that manages the ETF.

For now, the option of buying ETFs is exotic. But with the growing popularity of Bitcoin, the number of exchange-traded funds on BTC will also grow.

Studying the issue

Choosing a broker to invest in Bitcoin is just one of the tasks. It is also extremely important to study the question of how to invest in Bitcoin, taking into account all possible risks - and the risks are high, because, like all other cryptocurrencies, Bitcoin is very volatile, i.e. its course is constantly changing to a very significant extent.

Thus, to invest in Bitcoin correctly, be sure to read the information we provide below.

Bitcoin: what is it?

Almost everyone is aware of the huge increase in the value of Bitcoin, but few know what it actually is. Let's start with the fact that Bitcoin is a digital currency, i.e. it does not have a physical form, it is stored in the so-called. "blockchain" - a public registry located in the online space.

• Thanks to the blockchain, Bitcoin cannot be controlled or entirely owned by an individual.
• This technology is in no way connected with any state or central bank; complete decentralization is ensured (the absence of a single regulatory authority).
• Bitcoin was created as a technology to replace the current monetary system (regular currencies like the dollar, euro and ruble).
• Bitcoin can be sent and received to electronic wallets without intermediaries. Wallets can be websites, mobile and computer applications and programs, as well as individual devices (hardware wallets).

Bitcoin transactions are always anonymous and are completed in just 10 minutes, and regardless of the transaction amount, the commission is usually no more than a dollar. Finally, the Bitcoin network is extremely secure, which also adds “popularity points” to it.

Andreas Antonopoulos explains the essence of Bitcoin very well in his book Mastering Bitcoin: Unlocking Digital Cryptocurrencies. Unfortunately, the book is not currently translated into Russian.

Ways to invest in Bitcoin

So, the question remains the same: how to invest in Bitcoin? Let's talk about the most famous and popular methods.

Regular Bitcoin purchase

The easiest and safest way to invest in Bitcoin is to buy it from a reliable broker, such as Quantum AI, where you can purchase Bitcoin using a bank card or bank transfer. This operation is carried out instantly, and Quantum AI does not charge any commissions.

Among other things, some brokers allow you to make investments starting from $25, i.e. very little, without risking large capital.

The ability to make small investments also fits very well with the cost-averaging strategy we'll talk about below.

Investing in a cryptocurrency portfolio

Another way to invest in Bitcoin is the so-called. "cryptocurrency portfolios".

A cryptocurrency portfolio is a collection of cryptocurrencies managed by professional investors. By having multiple assets in a portfolio, you can spread out the risk (we will also talk about risk sharing or diversification below).

Bitcoin ATMs

According to CoinATMRadar statistics, the number of Bitcoin ATMs is constantly growing.

• We are talking about special ATMs that “give out” bitcoins in exchange for cash.
• The process goes like this: the user deposits a certain amount - say, 5,000 rubles. After this, a QR code appears on the screen.
• The code must be read using the wallet application on your mobile device, after which the corresponding amount in bitcoins will be sent to it.

There are both advantages and disadvantages to investing in Bitcoin this way. The undoubted advantage is that you do not need to open a brokerage account; you just need to go to an ATM.

On the other hand, it is worth understanding that on average the commission for such operations is 10%, i.e. from the same 5,000 rubles that you pay at an ATM, only 4,500 will be used to buy bitcoins, the rest will be “eaten up” by fees.

In addition, to carry out such an operation you need a Bitcoin wallet, and if you do not understand the topic, it will be difficult for you.

Bitcoin stocks

There are no securities for Bitcoin as such, because it is a currency, albeit a digital one. However, there are companies that are closely related to Bitcoin, and they just have shares.

• For example, there is a company called Square, which allows US residents to buy and sell bitcoins using a mobile application.
• In 2022, this company's stock growth rate reached triple digits.
• It is logical that the more people seek to invest in Bitcoin, the better this affects the shares of the company that provides such services.

Square, of course, is not the only representative of this segment; among the most famous are also Riot Blockchain and MicroStrategy. Of course, there is no guarantee that the value of Bitcoin and shares of such companies will necessarily increase proportionally; there are many other factors, but it is still worth taking a closer look at such an idea.

How much can or should you invest in Bitcoin?

At the time of writing this material, the price of Bitcoin was well above $50,000, which raises a logical question: how much does it cost to invest in Bitcoin and who can even afford it?

Let’s say right away that it is not necessary to buy a whole Bitcoin; Bitcoins, like regular currencies, are divided into smaller components. For Bitcoin, this is satoshi (satoshi), which is equal to 0.00000001 (one hundred millionth) of a bitcoin.

On some brokerage platforms you can invest very small amounts in Bitcoin, starting from $25, so you don’t need a huge capital. Of course, no one will forbid you to invest tens of thousands of dollars, but you need to do this wisely and being aware of all the possible risks.

Is Bitcoin a good investment?

It's time to talk about whether it makes sense to invest in Bitcoin.

Fastest growing asset over the last ten years

There has never been an asset on the market (even among the most volatile) that has grown so quickly. However, initially, when Bitcoin first appeared (in 2009), it had virtually no value.

• Even several years after its inception, Bitcoin was barely worth even one cent! And yet, in February 2021, he reached an incredible figure: $57,000.
• In general, if 10 years ago you had bought at least a few dozen bitcoins, you would now be a millionaire.
• On the other hand, it’s easy to talk about this when everything has already happened, but then few people even knew about Bitcoin.
• However, just recently, in March 2022, Bitcoin could still be bought relatively cheaply (relative to the current value, of course): for $5,000.

Thus, it turns out that if we take the value of $57,000, current as of February 2022, then the flagship cryptocurrency has grown by more than 1000% in just a year (in fact, even less than a year has passed).

Where is the limit?

It is generally impossible to imagine what figure Bitcoin may reach in the future, but some analysts still try to do this by comparing the cryptocurrency with gold.

Indeed, Bitcoin and gold have many similarities: both assets are a store of value, they are exhaustible, divisible, etc. On this basis, it is concluded that the value of Bitcoin should reach the point where its capitalization exceeds the capitalization of gold.

At the time of writing this article, i.e. for February 2022:

• Bitcoin market capitalization is $937 million;
• gold capitalization is estimated at 9-10 trillion dollars.

Thus, if this hypothesis is correct, then the value of Bitcoin should increase another 10 times.

However, there are those who are ready to go even further in their thinking, saying that Bitcoin will replace the dollar as the world's reserve currency. And if suddenly this turns out to be true, then there will simply be no upper limit to the value of cryptocurrency.

The largest companies and organizations supporting Bitcoin

Perhaps one of the main signs that Bitcoin is serious and here to stay is its support from the world's leading companies.

• First of all, of course, we are talking about Tesla, a car manufacturer valued at more than $680 billion. Elon Musk's company recently said it had invested $1.5 billion of its foreign exchange reserves in Bitcoin.
• Then there is PayPal, an electronic payment provider that recently began working with cryptocurrency.
• There is also the broker Coinbase, which plans to go public this year and could reach a valuation of $100 billion.

This is only a negligible part of the examples where the largest companies are one way or another ready to work with Bitcoin. Everything looks like investing in this cryptocurrency brings exceptional success.

Risks associated with investing in Bitcoin

While there is no point in denying that Bitcoin has brought huge potential profits in recent years, it is always worth remembering that investing in this digital currency also involves huge risks.

Volatility

Bitcoin's huge rise could be followed by an equally strong fall at any moment, so there is no guarantee that after an impressive rise from the $5,000 low, it will not collapse again.

Here it is enough to remember 2022.

• At the beginning of the year, Bitcoin was worth about $1,000.
• By the end of 2022, it had already reached a maximum of 20,000, i.e. grew by 1900%.
• However, then a bad streak began, and a year later the price of Bitcoin fell to $3,000.
• Thus, those who bought Bitcoin at its peak in 2022 lost 85%!

In order to reach the already established maximum, the cryptocurrency took another couple of years: in 2022 it again began to cost $20,000. In general, the essence is perhaps clear: Bitcoin “throws” up and down, so, of course, there is no guarantee of profit.

Hacker attacks and fraud

Fraud and hacking pose additional risks for those looking to invest in Bitcoin. Hackers have already targeted Bitcoin exchanges more than once or twice, resulting in the loss of client money.

• The amounts of lost funds sometimes amounted to tens of millions of dollars, and there was no way to get them back, because we are talking about virtual currency.
• But that's not all: due to the anonymity of the blockchain, Bitcoin has also become a favorite weapon of scammers.
• Here we can mention fraudulent attacks on operating systems, SIM card substitutions and “good old” financial pyramids.

The question arises: is it even safe to invest in Bitcoin? Yes, you can, for example, through the broker Quantum AI, whose partners provide all the necessary protection measures when purchasing and storing cryptocurrency.

Bitcoin Investment Strategies

Let's now talk about how to invest in Bitcoin using the most profitable strategies. In any case, regardless of the asset, you always need to understand when to enter into a trade and when to close it in order to get maximum profit.

Cost Averaging

This strategy is used in all financial markets. Its essence is to invest in an asset little by little, but constantly, in the end without overpaying for it.

Let's say you can invest $20 a week in the near future; By doing this, you level out volatility, since the purchase price of the asset will be higher and lower, and you will eventually reach the average value.

Example:

• first week: deposit $100 when the cost of Bitcoin is 50,000;
• second week: deposit $100 when the cost of Bitcoin is 35,000;
• third week: deposit $100 when the cost of Bitcoin is 40,000;
• fourth week: deposit $100 when the cost of Bitcoin is 55,000.

The result is that the average value you achieved over the month (4 weeks) is $45,000.

Diversification

Diversification refers to the distribution of risks across different assets or markets.

In the case of Bitcoin, this also means investing in other cryptocurrencies.

• In theory, this strategy should reduce risk, since it is lower when trading multiple assets than when you invest everything in just one.
• However, the problem is that all available cryptocurrencies must be stored in a wallet, and this can be very confusing, since some wallets only support certain currencies, and therefore you will have to open several at once.
• An alternative could be a cryptocurrency portfolio on Capital.com, which we already talked a little about above.

A simple solution to this problem is to consider Quantum AI, which gives you recommendations for buying different cryptocurrencies.

Buy at lows

Just a day before this article was written, the price of Bitcoin fell by 10%. Whether this is a short-term decline or the beginning of a long-term trend remains to be seen.

However, those who are confident in the long-term prospects of Bitcoin may well use a buying strategy at local or large-scale lows. This strategy works not only for Bitcoin, but for any asset.

• The method of applying this strategy depends on the goals and style of the investor himself.
• Some even buy Bitcoin almost every day, as soon as its value drops by 5%, i.e. as if at a discount.
• In essence, this is the same average cost strategy (if the investment amount is always the same).

Potential Risks and Benefits of Cryptocurrency Investing

Let's start with the risks:

• The investor’s standard risk is that the asset may not grow, but fall in price or trade in a horizontal corridor. For cryptocurrencies, this issue is especially acute; after the last bullish wave, BTC has become cheaper by several times, a collapse can happen at any moment.
• Imperfection of the legislative framework . This issue is being resolved, but rather slowly; laws are still being worked out; it is unknown how the cryptosphere will be regulated in the future. The issue of taxation is particularly relevant.
• Bitcoin may be displaced from its position as the leading cryptocurrency . This will inevitably lead to a decrease in its value.
• There is no regulator, property in the form of BTC tokens is actually not protected . If coins are stolen, the transaction cannot be reversed; there is no central office that can compensate for losses.
• Inattentive investors may simply lose access to their wallet . Statistics show that investors around the world have lost access to Bitcoin, the total value of which exceeds $150 billion.
• An attack on Bitcoin itself . This scenario sounds fantastic, but in theory a 51% attack is possible. This is guaranteed to undermine confidence in cryptocurrency in general and Bitcoin in particular.

All of the listed disadvantages are more than offset by just one advantage - the opportunity to legally earn hundreds of percent in less than a year. For example, in 2022 alone, Bitcoin rose in price by 314%, and if we take the period from the beginning of 2022 to the end of April 2022, the increase was already 818%.

The advantages of investing in military-technical cooperation also include:

• Simplicity . You don’t need to open a brokerage account, just register on a crypto exchange and buy BTC or simply exchange fiat for BTC through an online exchanger.
• The ability to protect your investment by purchasing a hardware wallet . With this approach, the risk of military vehicle theft is zero.
• Minimum entry threshold.

Investors are ready to take on any risks due to the growth potential of BTC. Neither the stock market nor bonds can match what investing in Bitcoin can provide.

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Where can I open a Bitcoin deposit?

This is a trending service. More and more fintech companies are striving to provide this. And now they are fighting for customers, offering better conditions than their competitors. Here's who is among them.

• Cryptocurrency exchanges.
• Trading platforms.
• Automated trading services.
• Services for buying and selling cryptocurrency.
• Wallets.
• Creditors.

We warn you that many companies are scammers. They pretend to be wallets, brokers or whatever. But they can be distinguished by ultra-high percentages, a generous affiliate system, and similar reviews on forums. There are also things you should be wary of when talking to support. Taxes, commissions, compensation to the bank - all this indicates that there are attackers in the game. A sign for sure is persuasion to increase the deposit. Most likely, this is no longer your deposit, but an offshore account where crypto investors’ money flows. They cannot be returned from there.

Is it worth investing right now?

Investing in Bitcoin in Russia

is a good investment option, but only on condition that the investor understands all the risks associated with crypto. The Russian Federation is preferable from the point of view of investments in military-technical cooperation for several reasons:

• There are regions with extremely cheap electricity.
• Adequate legislation. The times when you could avoid paying taxes on crypto are a thing of the past, but no one is going to ban Bitcoin and altcoins.
• Possibility to rent premises for a farm at an affordable price.
• Exchanges do not impose restrictions on accepting clients from the Russian Federation and other CIS countries.

As for choosing the moment to buy Bitcoin, it is impossible to give specific recommendations. In general, technical analysis works on BTCUSD; you can wait for periods of correction and buy after a rollback. Institutional investors have entered Bitcoin en masse, so BTCUSD may well reach $100,000 before the end of the year.

Features of deposits in bitcoins

Proposals for investing bitcoins come from HYIPs - highly profitable investment projects that allow you to make profits in a relatively short time. Bitcoin interest rates can be calculated almost hourly. These resources offer deposits for short-term periods - from several days to 1 year.

There is also the possibility of earning money through the referral system - attracting partners on the recommendation, for whom a percentage of the amount of their deposits is charged.

Rooms with available deposits in cryptocurrency as of February 26, 2022

The main types of cryptocurrencies used by poker rooms at the time of publication of the article are:

• Bitcoin - BTC
• Tether to USDT
• Ethereum - ETH
• Litecoin - LTC
• Bitcoin Cash - BCH
• Ripple - XRP
• Stellar - XLM
• USD Coin - USDC
• Dogecoin - DOGE

*For now, crypto is only accepted for accounts in hryvnia.

What is Bitcoin and Blockchain

The blockchain technology on which the cryptosystem operates records the complete history of wallets and transactions between them. Information is stored in special blocks, which cannot be changed. Professionals call blockchain a “digital ledger.” In essence, the technology is similar to a torrent. Information is stored on the computers of millions of users, which means it is almost impossible to close or destroy the data at once, by a willful decision - to do this, you need to simultaneously hack the entire chain on all computers, starting from the very first block.

“Digital gold” is beyond politics and borders. Transactions between users take place without the participation of intermediaries, which also stimulates demand.

Independence from banks, governments, and most controllers is the main thing that makes cryptocurrencies popular. Bitcoin is issued exclusively on the Internet. The process involves millions of computers “mining” it based on a mathematical algorithm. The value of cryptocurrencies is measured by the cost of time, resources, effort invested in mining, and most importantly, by the demand for them.

Locked Savings

Funds are placed for a fixed period from 7 to 90 days. The interest in this case is higher than in the option with a floating return. In addition, the rate is fixed, so you know how much you will earn in the chosen cryptocurrency: the final dollar amount will, of course, depend on the fluctuations in the price of the asset.

It is also worth noting that fixed deposits are available for only 10 cryptocurrencies: BTC, BUSD, USDC, USDT, AXS, CAKE, DOCK, MDX, FUN and LINK. Profitability at the beginning of September 2022 ranged from 4.2% for stablecoins and 7% for Bitcoin to 45% for FUN. This difference is understandable: small-cap cryptocurrencies like FUN and MDX are subject to greater price fluctuations, primarily due to modest trading volume.

If necessary, funds from the fixed savings account can be transferred to the Flexible Savings account - for example, if they are suddenly needed for trading.

What are the benefits of Bitcoin investments?

Let's take a closer look at the benefits of investing in Bitcoin.

In fact, there are more advantages; only the main ones are presented here.

1) Complete anonymity

All that can be found out about a transaction when it is carried out is the wallet number. Moreover, all transactions are open for viewing on the blockchain. How much money was spent and when - this information is publicly available. But from whom and to whom, only two participants in the procedure know.

I note that this plus is relative. On the one hand, anonymity is great: no one pokes their nose into your financial affairs. On the other hand, this is the reason for increased attention to cryptocurrency transactions from the state.

If one day governments decide that digital currency undermines state security (for example, it stimulates the trade in weapons and illegal substances), anonymity will become a powerful argument against bitcoins.

2) No connection to a specific bank

Bitcoins are not controlled by any financial institution. Banks have nothing to do with this currency at all. And therefore, there is no need for intermediaries when carrying out operations, and there is no one to pay the commission.

No one will be able to limit the transfer amount or freeze your account. The only danger is losing the key to your Bitcoin wallet. This is a really serious risk, since it is impossible to restore access to the wallet. Lost keys are lost forever.

3) The number of bitcoins is limited

The maximum number of Bitcoins that will ever be mined is known: 21 million . This number is predetermined at the program code level and cannot be increased.

At the same time, the process of cryptographic calculations of each new block is constantly becoming more complicated, and the reward for it is falling. This inevitably increases the value of new BTC, although objectively the difficulty of production only concerns miners.

What risks might you face?

First of all, you must learn to distinguish between the concepts of “deposit” and “savings account”. In the first case, you provide organizations with cryptocurrency, which they then use at their own discretion, and for this you will receive a reward (most often, cryptocoins will be used for CFDs, which you can read about in this article).

Savings accounts are the transfer of fiat money into digital coins and their subsequent provision for the use of organizations. In this case, you will also receive a reward in the form of cryptocurrency.

And here investors may immediately face a number of risks, which we will discuss later.

Exchange rate risk

The value of the cryptocurrency will decrease relative to your base currency (RUB, USD, GBP, etc.). This is true for savings accounts.

Digital coin prices are dynamic and if they fall, not only will your principal lose value, but the interest you earn will also lose value.

Risk of blocking

Some cryptocurrency savings accounts and deposits are very flexible and you can withdraw them at any time, but others have lockout periods or additional fees for excessive withdrawal activity.

More "strict" accounts will offer a high interest rate, while "flexible" accounts tend to offer low interest rates. Accordingly, be sure to inquire about the lock-in period, withdrawal limits, and any additional fees before investing cryptocurrencies for interest.

Risk of non-refund

It's very simple here: if the organization you are working with goes bankrupt due to mismanagement of its business or an adverse market event, then you will not be able to get your crypto assets back. This is due to the fact that when you deposit cryptocurrency into third-party accounts, you no longer own it.

Earning Bitcoin on cloud mining

The essence of the process is identical to classical mining - bitcoins are mined through the work of powerful equipment. But you don’t need to worry about the cost of electricity, ideal Internet and the computer itself, which will work for wear and tear. There is a proposal to “buy” part of the power of one of the mining farms and make a profit from it.

All instructions for working with cloud mining consist of simple registration and payment for hashes. The catch here is different - you need to find a proven cloud site that will not take your deposit and not disappear with it in a couple of weeks. We recommend paying attention to IQ Mining, Hashflare, Genesis Mining, which have been on the market for more than two years, are very stable and have a lot of positive comments.

1. Complete the registration form on the website. Fill out all the fields provided, provide your email, and confirm your account.
2. Enter your Bitcoin wallet number.
3. Select the currency that will be mined - in our case it is BTC.
4. Buy hashes. You can spend either 1 dollar on this event (it is in this currency that payments are most often made on servers), or several hundred or thousand. Pay by credit card or any online payment system.
5. After these manipulations, a contract will be concluded for a certain time. During this period of time, you will be charged from 150 to 300% per annum (depending on the resource), plus you need to bet on the exchange rate. If it grows, income will increase proportionately with it. If the value of Bitcoin falls, profits will decrease.

IQ-mining company conditions:

All that remains is to monitor the receipt of money into your account and the Bitcoin exchange rate. The computer, which is located far away, will do the rest.