Improve Your Cryptocurrency Investment Strategy

Bitcoin, and cryptocurrencies in general, are known throughout the world as alternative ways to pay or transfer funds. This is was their primary purpose when they were first invented, but just like traditional currencies, they quickly became speculative assets, traded on online markets. As a result, millions of people today buy/sell Bitcoin options and other instruments with the sole intention of making a profit from their investment.

Understand the Basics of Investing

The very basic definition of investing is committing funds with the purpose of generating a profit in the short or long term. In essence, you invest money to make money.

Very often, the term investing is used for trades that are opened and closed over an extended period of time. Shorter transactions are commonly referred to as trades. Whether you are looking to invest in cryptocurrency or trade it, you will need to understand several criteria, including:

  • Availability

    In order to ensure successful trades, you need to monitor your investment very often. This might not always be possible, making options such as day trading unfeasible. However, some of the best cryptocurrency exchanges, such as eToro, have come up with innovative solutions to have your short-term investments handled by successful traders.

  • Available capital

    If you only have a small investment capital at your disposal, long term investments might not make sense since it will take longer for you to generate any reasonable return.

  • Risk appetite

    All forms of investment carry some risk, investing in such instruments as Bitcoin CFDs or options are significantly riskier. Higher risk normally comes with a higher potential for returns, but nothing is guaranteed.

Understand the Technology Behind Cryptocurrencies

Whilst central banks and financial authorities manage and regulate traditional currencies, Blockchain technology controls most cryptocurrencies. This relatively new technology relies on a decentralised network of computers in order to manage and validate cryptocurrency transfers.

Understanding Blockchain technology requires much more than a short guide, however, Bitcoin investors don’t really need to delve deep into its mechanics. Suffice to say that Blockchain is often hailed as a new kind of Internet, designed to be much safer and incorruptible.

Although it was originally designed to handle financial transaction records, Blockchain is today used and being developed for a whole source of purposes. One of the most well-known is the Smart Contract.

Since cryptocurrencies are not controlled by any central authority, not even the creators of the currency, security is based upon private keys. These keys ensure that only the rightful owner of particular coins can utilise them. The decentralised network in which these keys exists prevents any successful attempt to replicate or circumvent them.

Find the Right Exchange with the Best Fees

The Internet is home to thousands of different cryptocurrency exchanges and trading platforms. Based on their convenient features, competitive fees, and cryptocurrency support, the following rank as the very best cryptocurrency exchanges for trading Bitcoin.


eToro is one of the world’s largest online trading platforms, giving traders the opportunity to invest in cryptocurrencies, commodities, forex, and more. Utilising one interface, you are given access to extensive trading options and tools, including charting and analysis data combined with educational resources.

One of eToro’s best-known services is CopyTrader, a trading solution that lets you automatically copy trades of successful traders. Free to use, this tool is especially ideal for novice traders looking to learn from experienced peers.

eToro is honest and upfront with its fees and does not charge any commission on trades. It supports a variety of coins and provides leverage if you intend to invest in Bitcoin CFDs.


Considered to be one of the largest and best-known cryptocurrency exchanges in the world, Binance is a favourite amongst those looking to invest in multiple cryptocurrencies. 

The platform offers over 500 different coins and tokens, whilst offering competitive pricing. You can even get a discount on fees if you use the exchange’s native coin, Binance Coin (BNB). is a beloved exchange by both novice and experienced traders. Based in the UK, the regulated platform offers a variety of coins whilst also supporting margin trading. 

Trading on is fast and simple, and the platform is compatible across digital devices, making trading on the go a real possibility. In addition, supports both cryptocurrency and fiat currency payments.

The dangers of Overtrading

Investor overtrading is a dangerous practice that can quickly get out of control. Whether you are making a Bitcoin investment or are trading any other asset, overtrading normally occurs after you have suffered a significant or several smaller losses. In order to try and make up for such losses, you forgo all logic and strategy and begin investing on emotion.

As a result of overtrading, many traders have lost significant capital. Very often, they take bigger risks, making larger and more frequent trades than they are used to.

So as to avoid the risk of overtrading, you should ensure that you learn how to invest in Bitcoin before you begin trading. Carry out research about the top five or 10 coins, so as to find the two or three which you will invest in. It is always a good idea to diversify your investment rather than bet it all on Bitcoin.

Develop your investment strategy by copying successful traders, or use eToro to get this done for you. Once you have a strategy in place stick to it, refining it as you go along.

Make use of demo accounts provided by the best cryptocurrency exchanges to test your strategies and take bigger risks. However, once you start trading with real money, ensure that you base decisions on logical strategies and keep your emotions out of your Bitcoin investment.

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