It is a fact that the primary methods by which an individual can earn in the world of crypto are by either bitcoin investing or bitcoin surfing. In as much as this is the case, many individuals use these terms interchangeably; in order words, they think that bitcoin investing and bitcoin surfing mean the same thing. However, this doesn't seem right as they both are different things.
This article will cover a lot of topics like:
What is bitcoin investing?
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In simple terms, it is defined as the purchase of BTC to retain it for a long period of time and sell in the future with the hopes of gaining much more than was put in buying the currency. These people do not worry about price fluctuations as they believe the prices will eventually rise to an ok amount. By this definition of bitcoin investing, we can tell that it is all about long term storage of the coin. A name is ascribed to this, and it is called HODL.
Features of bitcoin investing
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Several factors allow the recognition of an investment, and they include; long term plans, creation of wealth in the long term, risk, fundamental approach to investing.
Made for a long term purpose (2-5 year plan): before one would be categorized as taking part in bitcoin investing, he/she must have planned on leaving it for a long period of time. Intermittent fluctuations in the price of the currency don't influence the period at which these individuals HODL.\
Allows for the creation of wealth over time: when purchasing bitcoin based on investing, the profit earned increases due to the increase in the value of the cryptocurrency, and the longer this is kept, the more the wealth.\
Less risky: this poses a lesser risk as price fluctuations do not always affect the eventual outcome. Let's take an example; Mr. A buys 13BTC $100 for 1BTC and plans to invest for a long time (5year), before the 5-year mark (year 2), the price of 1BTC decreases to $20, but Mr. A doesn't panic, and at the 5-year mark, the value of 1BTC becomes $300 (mainly due to technological advancements, etc.). A trading person would have lost most of his money during BTC's declining value in the 2nd year.\
It uses a fundamental approach when talking about strategy. By fundamental approach, we mean that such people look at the potentials of bitcoin investing. This is done by taking note of technological advancements, regulations, and things that could affect general prices.
Now that we understand the features of bitcoin investing let's talk about how to invest in bitcoin.
How to Invest in Bitcoin
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Before anyone goes into bitcoin investing, one must have adequate materials. In this section, we would be telling you; when to buy, where to buy and how to choose the right wallet, how much do you wish to invest.
Things to consider before investing in Bitcoin
Where to buy bitcoin
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Choosing where to buy bitcoin is very important, and it can also prove difficult though not due to the lack of exchanges. You have to find an exchange which you can afford to use despite their fees, how safe it is, how much control you will have over your assets, the countries in which it is available, what the buying limits are, the reputation of the exchange, the payment gateways or method they use, etc. all these are important when choosing an exchange. A lot of reputable exchanges ( for example, Remitano) are available. Irrespective of whatever exchange you choose, you must be comfortable with the services rendered.
How to choose the right wallet
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There are many types of wallets to consider when going into bitcoin investing; you have to choose the right wallet to hold the amount you want to invest. Many factors come into play to choose a cryptocurrency wallet; do you plan on using your coins, the number of bitcoins you plan on owing, safety, and how user-friendly it is, etc.
How much do you plan on investing?
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After finding the wallet you deem suitable, you have to know how much you are willing to invest in bitcoin investing. Are you buying a large amount of bitcoin or buying a small amount (you can purchase below one bitcoin)? Each of these has a favorable way of procurement. As it is not advisable to buy a large amount or store a large amount of bitcoin on an exchange, this is because as long as the coins are on the exchange, there is a risk of being hacked or the exchange being hacked. Some exchanges such as remitano provide wallets that you can make use of.
As soon as you get all these sorted out, you are prepared to go into the world of bitcoin investing.
When is the best time to buy bitcoin?
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There is no exact or perfect time to purchase bitcoin as no one can be 100% accurate about predictions.
The period to purchase depends largely on the reason for which you want to acquire Bitcoin. You want to go into Bitcoin investing (long term), you can purchase at any point in time; all you're concerned about is the price going up in the long run. However, if you want to go into bitcoin surfing/ trading, you would have to learn about the trends and various Bitcoin surfing/ trading techniques to determine the best when to buy.
When you want to go into bitcoin investing, there are 2 strategies you can work by two strategies: averaging the dollar cost and buying irrespective of the price.
Averaging the dollar cost
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This means you purchase the same amount of bitcoin at a date and make the same purchase later but the same amount of bitcoin. For example, buying $100 worth of bitcoin once every month for a year, instead of spending $1200 one time. This helps reduce or even out price fluctuations and reduces risk. It is easy to adopt, especially for beginners.
Buying irrespective of the price\
Using this approach means you purchase at once, irrespective of BTC's current price. The logic behind this is that the prices will still go higher in the long run.
What is Bitcoin Surfing?
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Unlike Bitcoin investing, Bitcoin Surfing is trading, which is defined simply as BTC's short-term buying at a low price and selling of BTC by predicting possible price movements by analyzing price charts graphs and the industry in general.
Remember, Bitcoin investing involves holding for a very long time; Bitcoin Surfing is carried out over a short time (minutes, hours, few weeks). This earning method allows for a faster means of making a profit when composted to Bitcoin investing though the risk is higher.
Features of Bitcoin Surfing
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Some features of Bitcoin Surfing are among the main reasons most bitcoin surfers take part. Though not all features of this form is necessarily an advantage. They include;
Bitcoin surfing makes use of price chart analysis, which helps you note trends. Being up to date with news and happenings in the BTC world also plays a major role, this calls for good strategies and planning.\
Used for short term purposes and allows flexibility: trades are carried out in a short time frame. Also, BTC Surfing is very suitable, most especially for beginners, and this is due to bitcoin surfing being time flexible ( people basically surf whenever they want to).\
Uses a technical approach that involves predicting price movements using previous market data such as past prices and volumes.\
The presence of automatic Bitcoin surfing tools helps make Bitcoin Surfing for beginners and also experts easy. These tools teach and also execute trades for the user. An example of such a tool is trading bots.\
Bitcoin surfers benefit from the lack of limits to the number of transactions they open. This is to the speed at which transactions are completed in Bitcoin Surfing, unlike the traditional stock trading, which takes days to complete before you'd be able to open a new position.\
The high volatility of bitcoin prices gives room for Bitcoin surfers to make profitable Bitcoin surfing payouts by buying low, and when the prices go high, they sell. Bitcoin prices can go from $10 to $100 in just a day and back up during the night. This change can be used to create profit.\
Time consumption: it takes a lot of time to track and analyze charts and news concerning price changes to take immediate action when you deem fit. Making use of automatic Bitcoin surfing could be beneficial in this aspect.
To begin bitcoin surfing
Join a Bitcoin surfing site or exchange. There are many these around, but we recommend Remitano, which is reliable, secure, and easy to use and only charges transaction fees when a trade is profitable.\
Deposit in your account\
Monitor trends and statistics as we explained above, open a trade by buying (especially when low), and sell high.\
Read this post on how to trade using remitano.
When is the best time to surf Bitcoin?
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There is no direct answer to this question, as no one can be 100% sure. It is easy to say "buy low and sell high," but it takes a lot of analysis to determine if the prices are still going to rise or fall before taking action. This means technical analysis is the closest bet to predicting price action (though not always the case).
10 differences between Bitcoin investing and Bitcoin Surfing
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We've explained at length what Bitcoin investing, and bitcoin surfing is. Some differences can be seen between the two, but we would give our 10 main differences.
Bitcoin Investing
Bitcoin Surfing
Period of investment
Long term
Short term
Risk
Low
High
Trade frequency
Rarely
Frequent
Method of analysis
Fundamental
Technical
Amount used
Suitable for a huge amount of Bitcoins
Not suitable as fees from frequent trading would be high.
Can earn profits through dividends ( or coin burn)
Do not earn profits through dividends.
Time management
Consumes less time
Very time consuming
Difficulty
Easy to carry out
Much more difficult to carry out compared to investing
Influence by price fluctuations
Minimally influenced
Highly influenced
Buy and own bitcoin
Speculation on Bitcoin price movement without having to take ownership
Price appreciation: selling when prices are high.\
Airdrops: when projects distribute free Bitcoins in order to aid their publicity.\
Hard forks: when a coin splits, owners of the original coin are entitled to free coins created from the split.
Choosing what aspect (Bitcoin investing or Bitcoin surfing) to go into depends mainly on what your plans are, if you want to wait for a long period of time to make accumulated profits while coming across fewer risks (for which Bitcoin investing should be the choice) or make quick short term profits (for which Bitcoin surfing should be the choice.
Irrespective of your choice, there are always risks, and make sure to put in what you can afford to lose.
