1. Analyze the factors affecting Bitcoin’s Price
The important factor is to gauge the factors that have an impact on Bitcoin, which may include:
a) Supply- Bitcoin BTC supply is capped at 21 million. Speculating its demand since its launch in 2009, it’s expected to get exhausted within a few years. If the supply of Bitcoin becomes limited, then the price of Bitcoin BTC could increase in the future.
b) Integration– The demand for Bitcoins BTC may increase if Bitcoin’s public profile is integrated with robust banking frameworks and the latest payment systems.
c) Other events- In the case of security, government interventions, regulatory changes, and macroeconomic bitcoin NEWS announcements may affect the prices immensely, either positively or negatively.
d) External Market Factors- It may include any news related to Bitcoin’s security that may have a positive or negative impact on its overall market price.
2. Choose a way you want to get exposure
It is imperative to know what way will help you get the maximum exposure to Bitcoin BTC. Listed below are those 3 ways:
a) Buying Bitcoins through a Crypto exchange: This method is pre-dominantly opted by individuals using the HODL strategy. These people take direct ownership of BTC and sell them when the price rises in the future.
However, there are some important factors to keep in mind while buying BTC through an exchange, including:
Bitcoin BTC exchanges impose a fee and apply certain restrictions on funding and withdrawing the amount.
It often fails to provide good customer support.
Lack of proper regulation.
The servers and matching engines on BTC are not fully reliable. This can often lead to suspension of markets or reduced execution accuracy.
b) Trading Bitcoin Derivatives: You can trade bitcoin BTC derivatives by speculating on their price with CFDs. It is a financial contract in which you pay the difference in the settlement contract price between the open and close trades without owning any bitcoins. Major benefits involved in trading bitcoin BTC derivatives include:
Hedging- Hedge your bitcoin BTC derivatives to lower the risk against Crypto market declines.
Deep Liquidity- Due to the massive client base, the market of Bitcoin BTC is vast and is very liquid, signifying you can sell orders at the desired prices.
Leverage and Margin- You only need to put a small deposit known as margin and play big with leverage.
Note: It is considered one of the riskiest BTC trading methods as it is highly unpredictable and involves huge profits or heavy losses.
c) Crypto 10 Index: BTC Trading through the Crypto 10 index will provide you with tremendous exposure to 10 powerful cryptocurrencies, including BTC, in one single trade. This index tracks or mirrors the underlying crypto market price of these cryptocurrencies.
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