Looking at the past year of 2017, it is clear that BTC currency is not about to fade out from the screen. Nevertheless, some investors still remain on the fence regarding the positive outcome of long term investments in this market of cryptocurrency.
Maybe it`s due to high price climbs that cross price limits that are considered as millstone limits. Maybe it`s due to skeptical prediction – many analysts think it`s only a matter of time till the bubble bursts. This or that, it is clear why some investors prefer the short term strategies, as here are presented the most effective ones.
Futures Market Strategy
This strategy relies on buying and selling cryptocurrencies, such as bitcoin, based on future contracts. When an investor purchases his asset in frame of future contract, the prior notion that guides him is that the currency will have a higher price rate. The contract allows the investor to agree on a certain set price, which is of course believed to climb higher than his purchase rate. If an investor sells his cryptocurrency within future contracts, he does this within a bearish predictive mindset, as he believes coin`s price will decline.
Margin Trading Strategy
This strategy enables an investor to easily short term cryptocurrencies, on top of a margin trading platform. The platform is basically an exchange which allows the trader to borrow the initial investment money from a broker in the exchange. This kind of trading is done with the assumption of a certain leverage factor that influences the increase of one`s profit, or the downfall of one`s loss.
Prediction Markets Strategy
This strategy presents the option to wage the outcome price of a certain event, which would impact the cryptocurrency price, and predict what kind of decline the coin would endure. The main parameters of such predictive strategy lay on the percentage or the margin the decline will take place. That way, if other investors agree to the wager one had set, he who had created the bet can benefit of the eventual profit, if implemented as predicted.
Short Selling Strategy
This is a very common cryptocurrency buying/selling option. Many investors choose to purchase bitcoin, or any other token, at a price that appeals to them, sell it off the moment that is right by them, while waiting for additional tokens to drop prices and buy them at this exact time frame.
There are many options to establish your own investment portfolio, as the possibilities and methods are diverse. It`s important to choose the right kind of trading path that compliments your personal financial parameters, such as market comprehension, risk based approach and naturally – the amount of funds you are willing to trade with. Start increasing your market understanding and skills by making yourself proficient through knowledge. You are welcome to find news and current events at our sections Crypto News & Investment Ideas.