Bitcoin Investment Strategy: Guide for 2021

A BTC investment is a great way to plan for your future, but you need to have the right Bitcoin investment strategy. Bitcoin is incredibly volatile, so you need to overcome that volatility if you want to succeed. Learning how to harness Bitcoin investment opportunities via the right strategies can be as simple or complicated as you make it.

Basics of Bitcoin Investment Strategies

Before you can create a Bitcoin investment strategy, you need to understand a few basics.

You should be able to read candlestick charts and understand price movements. You should also understand the various factors that affect the Bitcoin price and have a reliable news source to see changes to those factors.

The following are some of the beginner-friendly Bitcoin investment strategies you may want to consider if you aren’t sure where to start.

Dollar-cost Averaging

With this strategy, you take the total amount you plan on investing and divide it into pieces. You then invest one of those pieces on the same day of the week at the same time every week. So, instead of investing $1,000 all at once, you could invest $100 a week every Monday at noon for 10 weeks.

The idea is that by dividing your initial investment across time, you will minimize the impact of the market volatility. You can even take it a step further and only invest if the prices are red.

Golden Cross or Death Cross

To use this Bitcoin investment strategy, you need to use moving average indicators, specifically the 50 MA and 200 MA, which are averages over the past 50 and 200 days, respectively. You look at longer time frames and look for where the two indicators cross over each other. Convergences or golden crosses (the 50 MA crossing above) are a signal to buy. Divergences or death crosses (the 200 MA crossing above) are a signal to sell.

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RSI Divergence

Once you gain more technical skills, you can also opt for the Bitcoin investment strategy of RSI divergence. This strategy helps you spot trend reversals, so you can take advantage of them. The RSI or Relative Strength Index is an indicator measuring momentum. It lets you know if an instrument is oversold or overbought, which is when it gets below 30 or above 70 (out of 0-100), respectively. These indicate that the price is likely to rise and drop, respectively.

How to Invest in Bitcoin

There are several ways that you can invest in Bitcoin. You can go with the method most people think of when discussing how to invest in Bitcoin. This would mean buying Bitcoin, watching its price, and buying more or selling some or all of it at various intervals. You can do this as frequently as you want. Day trading refers to buying and selling Bitcoin and other cryptocurrencies multiple times a day.

Swing trading is similar. However, instead of making quick trades that just last a few hours or maybe a day, you make trades that will last several days or even weeks.

Another option is to “HODL.” This refers to the long-term strategy of just holding on to your Bitcoin. It is incredibly simple as you just buy Bitcoin and then hold on to it for the long-term. This is a good choice if you are confident in the future of Bitcoin. It prevents you from giving in to emotions when trading.

What to Know About Bitcoin Before Making an Investment

One of the most important things to know about how to invest in Bitcoin is to be aware of its volatility. Cryptocurrencies are volatile, so you should expect the price of your investment to go up and down over time even if the amount of BTC you hold stays the same or increases. Ideally, the price will go up in the long term, and you are likely in search of a Bitcoin investment strategy because you think the future of Bitcoin is strong.

How to Make a Profit With Bitcoin Investment

Unfortunately, there is no sure-fire way to make a profit with Bitcoin investment. If you want to do the trading yourself, you will need to take the time to learn about various Bitcoin investment strategies and spend several hours every day paying attention to news related to Bitcoin as well as its price movements.

To make this easier and reduce the time commitment, you can find a company you trust to invest your Bitcoin for you. Pay attention to their reputation and experience to increase your chances of success. The best will even share past performance numbers.

Investment Types

As mentioned, you have several types of investments you can choose for Bitcoin. You can day trade, buy and HODL, or swing trade.

What are Other Opportunities Besides Day Trading?

You can also have professionals handle your cryptocurrency for you. There are also a growing number of Bitcoin-related investment instruments from major companies, such as the Grayscale Bitcoin Investment Trust, the BLOK ETF, and the Bitwise 10 Private Index Fund.

You can also choose a company that offers managed Bitcoin investments, of which there are several available.

Risks

Trading Bitcoin always comes with a set of risks. Bitcoin is incredibly volatile, which can cause extreme drops in addition to extreme gains. You can typically overcome the downward volatility by holding on to your Bitcoin.

There is also the risk that regulation will change its future as well as an element of competitive risk if other cryptocurrencies become more popular.

Most crypto enthusiasts agree that as long as you have a good Bitcoin investment strategy, the potential rewards are worth the risks.

Why Haru Invest Is the Best Option

The best way to minimize the risks, as well as the time needed to find and harness Bitcoin investment opportunities, is with Haru Invest. This is a BTC investment account that uses the most profitable strategy of the global top trading firm. It relies on an algorithm designed by experts to find opportunities.

To give an idea of past performance, Haru publishes the product’s biweekly returns. For April 1-15, 2021, the biweekly return was 0.8025%, which translates to 19.53% annualized. While past returns are no guarantee of future performance, they are a strong indicator of likely performance.

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