Bitcoin starts 2021 on a high, most recently hitting more than $ 55,000 - an increase of about 150% since early 2020. The entire crypto market is doing great. In the past year, cryptocurrencies gained more legitimacy and mainstream acceptance. However, the crypto markets are primarily known for their volatility. This means that despite the strong growth in cryptocurrencies, there is a not inconsiderable risk associated with investing.
There are many ways of investing money in the crypto market. However, in order to find the right investment model, individual preferences must be clarified:
- Long-term and stable investment plan
- Short investment period with a higher risk-return ratio
- Investment that requires a lot of financial knowledge and time investment (active investment, e.g. day trading)
- System that requires little prior knowledge and little time investment (passive system models, e.g. HODLing)
Which model and which platform you choose depends heavily on your individual investment preferences.
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Reduce risk and effort
Investors with less prior knowledge, who cannot spend the time actively trading and who want to avoid high risks, are well suited for automated investment platforms. As soon as you have registered on the platform and paid your investment amount, the platform takes over and acts on the crypto markets on behalf of the investor.
A cryptocurrency can be temporarily available at different prices at the same time. The market will eventually adjust and make up for the inefficiency. The platform buys a cryptocurrency on the exchange with the lowest price and sells the position on the exchange with the highest price before resolving the price discrepancy.
How can I ensure that my returns are paid out?
Because cryptocurrency is not tied to market volatility, returns are more reliable. It pays a 10.8% to 45% return per year, depending on the amount of money invested . You can quickly calculate the amount of the monthly or annual return, depending on the investment amount. You can also calculate how much you would have to invest in order to achieve a specific monthly or annual return target.
Compound interest is earned on the investment. In addition, the investor benefits from the growing value of the platform. This happens in the form of a participation in the form of a token, similar to a share and its return.
Minimize the threat of criminal activity
The minimization of the expenditure of time and the maximization of the returns are the main goal of every investment. The realization of profits and access to the investment should be guaranteed at all times. The world of cryptocurrencies has often been discredited by fraudsters and cyber crime.
Every investor should be well informed and check the credibility of a financial service provider. The reliability and credibility of a financial service provider can be checked through their regulatory status. In addition, every investor should find out about other feedback and experience reports on the Internet that could indicate fraud.
A platform must have license and meet the regulatory requirements of the country they represent. Fraud prevention is ensured by adhering to regulated data security protocols.
