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In times of low interest rates, many investors are looking for an alternative to traditional forms of investment. Cryptocurrencies have also gained a certain attraction for private investors due to their immense increases in value. Cryptocurrencies are less of a long-term investment, but those who jump on the crypto-pull or have a smart investment strategy in time can increase their fortunes with the digital currencies. What kinds of investiture in digital currencies to find out in our yellow pages crypto provider.
Invest indirectly in cryptocurrencies
An investment in cryptocurrencies can roughly be divided into two types. Either you invest directly in a currency of your choice, or you participate in the development of digital money. Direct investment in the digital currencies can take place on relevant marketplaces or on one of the numerous crypto exchanges. Indirect investment is possible through certificates or CFDs (option trading).
This means that if you want to acquire bitcoins, you only have to define the time, the number of fungible token and the value at which you want to buy a bitcoin or another digital currency.
At the crypto exchange
Like fiat currencies, digital currencies can be traded on the stock exchange. On many crypto exchanges, the different tokens, such as Bitcoin, Ripple, Ethereum And Co. are acquired. The prices at the respective crypto exchanges differ however partly immense. Known crypto exchanges are among others Bitfinex, Bitstamp, and Paymium. After the opening of an account at the respective crypto exchange US dollar or euro can be exchanged against the Bitcoins.
The trades are executed manually on the crypto exchange. This means that if you want to acquire bitcoins, you only have to define the time, the number of tokens and the value at which you want to buy a bitcoin or another digital currency. The trade will then be executed for you at the appropriate time. Likewise, you can also define points of sale in advance, limiting your potential loss before that. The fees for a deposit opening and the transactions may vary per provider.
At the crypto market place
While the trades on the crypto exchange are automated, investors in the crypto marketplaces, such as Bitcoin.de, must manually execute the trades. This means that if you’re investing in a crypto marketplace, you’ll have to worry about buying and selling your tokens, and you’ll have to find the right offer. Through indirect crypto-commerce between users, supply and demand on the crypto marketplaces determine the price of the respective token. The sellers of the tokens put their bitcoins up for sale and these can be bought directly afterward by others. If an offer is accepted, the transaction is made directly. The tokens are transferred to the wallet. The fees for the respective transactions depend on the platform.
Participate in the price development of digital tokens
If you do not want to purchase a digital token directly, but still want to participate in the performance of the respective digital currencies, you can do so through certificates or CFDs.
Crypto CFDs
CFDs (Contracts for Difference) are highly speculative derivatives that are associated with increased opportunities but also increased risks. This form of investment is particularly suitable for experienced investors. The price of the CFDs is derived from the respective underlying, in the case of the cryptocurrencies the cost of the tokens. Through the CFDs, you can participate in both rising and falling prices of the cryptocurrency and leverage more leverage with relatively little capital.
In order to participate in the development of the crypto courses via CFD, you must open an account with a CFD broker of your choice. An advantage of trading in contracts for difference is the possibility of a fast payout. For here, there are often upper limits for a daily payout on crypto exchanges and marketplaces.
Crypto certificates
In addition to the CFDs, it is also possible to participate in the development of cryptocurrencies through a certificate. Here only a securities deposit is needed. The securities number can be used to find specific certificates. Patizip certificates allow a 1: 1 participation in the price gains and losses. To acquire a Bitcoin, Ripple or Ethereum certificate, they only need a securities account.
Block Chain ETFs
If you do not want to invest in a digital currency directly or via funds, but consider the technology behind it as an interesting investment, you can also participate in the blockchain through an ETF. With Blockchain funds, you can invest in companies that use or research the blockchain technology.
Why indirectly investment on crypto?
A limited number of coins.
A limited number of coins are available for Bitcoin and other digital coins. For example, there will be a maximum of 21 million Bitcoins. Compare this with traditional money. Euros and Dollars are constantly being added so that over time you buy less and less for the same money. A Euro now buys less than 10 years ago. Bitcoin’s scarcity is one of the reasons why it is thought that the value will rise.
The technology of the future.
The technology behind cryptocurrency is called blockchain. The internet brought about an information revolution and many expect the blockchain to have a similar impact on our lives. The blockchain can sometimes become of value to the internet and become part of the Web 3.0. An important aspect of Web 3.0 is decentralization; a step away from centralized services such as Facebook and Google that know everything about you and have control over your information.
Evolution of money.
Money is a means to exchange goods. Through the ages, there have been many forms of money. From shells, beads, and stones to gold, silver, cash and today cash. Cryptocurrencies have the potential to be used as money. The extent to which that happens naturally depends on various factors.
Acceptance as a payment method.
We already pay digitally online and that is now possible without the intervention of third parties with cryptocurrencies. Acceptance of cryptocurrencies is increasing; you can even order a pizza through thuisbezorgd.nl and pay with Bitcoin.
For who is an indirect investment
Indirect investment is for anyone who sees investing in cryptocurrency as an interesting investment opportunity but does not know where to start. Indirect investment is also intended for people who want to invest in crypto but do not want to run a high risk by depositing a large amount in one go, do not understand what the crypto market entails and want to delve into it slowly.