Traditional investment methods no longer attract crowds.
Bitcoin and the 2.0 economy allow new generations to diversify their income with tools that are still little known to the general public.
Although the boom of the blockchain is, as we hear regularly, over. The general press has also stopped reporting the incredible gains made with Bitcoin since the beginning of the year.
There are now more ways to strategically invest your money by buying Bitcoin than there have ever been in the history cryptomoney. Investors have more choice and freedom in the way they invest, but also in the way they can move.
To make this investment, people have the opportunity to use Bitvavo, an extremely easy-to-use trading platform to buy Bitcoins and then keep them for several years.
The different investment opportunities
As the cryptomatics industry continues to expand, the investment options are becoming many and varied, especially as interest in this sector continues to grow.
Whether through spot markets or derivatives, there are many ways for investors to speculate on the future price of Bitcoin. Although the following list is not exhaustive, it will allow you to make an opinion:
Bitcoin lending is similar to that found in conventional markets, except that it is not credit-based. Loans are secured by assets, represented by fiat money or other cryptomoney. The Bitcoin loan offers an outstanding investment opportunity for many HODLers, who can ensure the preservation of their assets, while continuing to generate earnings through cash flows and market interest rates.
What makes this market so attractive to borrowers is not only the comfortably low interest rates, but also the ease with which contracts can be entered into. There is no need for lengthy credit capacity checks, as borrowers‘ assets can be used as collateral. HODLers can use their cryptomoney as collateral and maintain decent exposure, while using the loans to meet short-term needs.
Option is a common trading method in traditional markets. Options give investors the opportunity to buy or sell Bitcoins at a specific price. This means that you can buy or sell at a given, pre-determined price: the „strike price“.
This trading format does not obligate you to buy or sell any cryptomony. Options allow traders to speculate on the rise or fall in the price of Bitcoin, but do not oblige them to buy the crypto. To buy an option, investors pay a „premium“, which is usually much cheaper than buying Bitcoin itself.
If the price rises as the investor has hoped, the price per option will remain unchanged and the buyer (call options) can then buy at reduced prices. If the market falls as hoped (put options), the seller will be able to sell his options at a slightly inflated price.
Crypt funds or investment funds – regularly using Bitcoins – refer to the holders of a very varied investment portfolio, generally managed by a person or group of persons, other than the investor himself. Several investors may buy shares in its „funds“ and share in the profits.
The majority of the investment funds that exist in the cryptosphere are venture capital funds, while the others are generally regarded as protection funds. Venture capital funds are investment funds that are funded by multiple investors pooling liquidity to invest in small businesses or development projects, mainly in the field of decentralized finance and blockchain technology. Protection funds, on the other hand, manage portfolios that provide protection in the event of excessive market fluctuations.
The famous HODL remains the favorite strategy of cryptos lovers. The term comes from a user of a forum probably in an advanced state of drunkenness, having committed a typing error that is now cult.