Investing in Bitcoin – Strategy and benefits

in #bitcoin7 years ago

Hello!

Right now, while I’ am writing this article, BTC grows at the speed of light, a moment ago it has been $ 802 for 1 Bitcoin, and now it is already $ 820.
That is why I decided that it is a good time to come back again to the topic of Bitcoin and its use in projects in order to make profit.
A lot in the investment strategy depends on you, namely, what is your attitude to Bitcoin – whether you consider it as a payment processor or as a separate currency for a part of your funds. Personally, I’m in the latter category, we can even say that my attitude to it as to an asset and approximately one third of my money is invested in Bitcoin and I am trying to increase this part of my capital.+

There are two types of investment projects accepting bitcoins:

  1. Projects that convert Bitcoins into dollars.

So, if you make a deposit in Bitcoins, the project converts them into dollars at the current exchange rate.
Then you get your % in dollars converted in Bitcoins at the exchange rate at that moment.
Using Bitcoins in such a way may be a good option for you if:
– You consider Bitcoin as a payment system.
– You are a cautious conservative investor
– You do not monitor the exchange rate of Bitcoins.
– There is a drop in exchange rates for Bitcoins

  1. Projects that accept Bitcoins without conversion

You invest Bitcoin as a currency, interest is accrued in Bitcoins and all the withdrawals are made in Bitcoins as well.
Using Bitcoins in such a way may be a good option for you if:
– You consider Bitcoin as a currency or asset.
– You do not monitor the exchange rate of Bitcoin cryptocurrency
– You intend to multiply your bitcoins
– There is a steady growth of Bitcoin at the moment
– You are a risky investor ?
And there is an advantage in the stable exchange rate of bitcoin, especially when it is growing, you will get much more profit than expected from this or that hyip program. There is the other side of the coin – if bitcoin exchange rate falls, you will get less than expected in dollars, but I personally believe that bitcoin will grow in long term perspective.

  1. Projects that uses internal fixed exchange rate of Bitcoins.

As you can see, there are projects that accept BTC with a “fixed rate” with no conversion.
Many people don’t manage to understand the way it works, but there is no difference with the projects that use BTC without conversion, the advantages are the same as in the example above.
Let’s study some investments’ examples, for convenience of calculations lets imagine that there is a project with + 50% marketing.

  1. Investing in the project that convert Bitcoins into dollars.
    We are investing 1 BTC at a plan + 50%
    Let’s consider that today 1 Bitcoin cost $ 800 – in fact, we are investing $800
    When our deposit is completed, we get $ 800 + 50% = $ 1200
    But as we invest in Bitcoins, so the profit should be also in BTC.
    Therefore, the total sum in Bitcoins is converted in dollars, but at the actual rate.
    – If Bitcoin still cost $ 800, we will get – 1.50 BTC or $ 1200
    – If Bitcoin exchange rate has risen, let’s imagine it cost $1000, so we withdraw 1.2 BTC equal to $ 1200 at the rate of today, but as you can see we withdraw less in Bitcoin.
    – If Bitcoin exchange rate has fallen, let’s imagine it cost $ 500, then we withdraw 2.4 Bitcoins or $ 1,200.
  2. Now, let’s study the same numbers but in projects that accept Bitcoins without conversion.
    I invest 1 BTC at a plan 50% when BTC is equal to $ 800
    Our deposit is not converted; interest is calculated in BTC.
    When our deposit is completed, we get 1 BTC + 50% = 1.5 BTC
    If Bitcoin costs $ 800 – we get 1.50 BTC or $ 1200
    If Bitcoin costs $ 1,000 Bitcoin – we get 1.5 BTC or $ 1,500
    If Bitcoin costs $ 500 – we get 1.5 BTC, or $ 750.
    As you can see from the examples, it follows that:
    It is profitable to invest BTC in projects with conversion if Bitcoin exchange rate is decreasing after the deposit (or standing still) as a matter of fact, such investments are protected against exchange rate falls.
    It is profitable to invest BTC in projects without conversion if Bitcoin exchange rate is increasing. The deposit sum grows due to accruals and Bitcoin exchange rate increase.
    And the third example, for those who cannot understand the hyips programs with Bitcoins fixed exchange rate.
    You can see from the calculation that this method has no differences as of the method where bitcoins are accepted without conversion.
    In the project with a fixed exchange rate BTC can cost any amount.
    Don’t worry even if the rate is equal to $ 600, despite the fact that today it is 800 on the market. The most important is that that both deposit and withdrawal amount is based on the same exchange rate, even if the internal exchange rate is equal to $ 300, it has no importance.
    Here is an example with the same amounts as above.
    I invest 1 BTC at a plan 50% when BTC is equal to $ 800, and the project’s exchange rate is fixed to $ 500
    Our deposits are converted into dollars at the exchange rate, as if we have invested $ 500
    When our deposit is completed, we 500 + 50% = $ 750
    We withdraw at fixed rate and have the following amounts:
    If Bitcoin costs $ 800:
    We withdraw $ 750 at the exchange rate 1 BTC = $ 500 and get 1.50 BTC or $ 1200
    If Bitcoin costs $ 1,000:
    We withdraw $ 750 at the exchange rate of BTC 1 = $ 500, and get or 1.50 BTC = $ 1500
    If Bitcoin costs $ 500:
    We withdraw $ 750 at the exchange rate 1 BTC = $ 500 get 1.5 BTC or $ 750.
    As you can see, we have the same mounts as in projects that accept BTC without conversion, the amounts remain the same.
    So next time, before shouting: “It is not true! 1 BTC costs $ 1000 and only $ 400 in the project, they are cheating! “, Think about this article ?+

I t is all for today, when I start to write this article 1 BTC cost $ 800 and now it costs already $ 840 per 1 BTC.
Be wise and make successful crypto investment!

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