It’s become popular for individuals and businesses to use Bitcoin to hedge against inflation. But, dabbling into this world without the right approach can be a great error; this is why having a clear strategy before investing is the best way to maximise returns.
This article discusses how you can do this and even the best way to convert Bitcoin to Naira, which is the most seamless way to enjoy the returns on your investment.
Factors to Consider When Investing in Bitcoin
Imagine going into the darkness without a source of light and still not considering that you could kick a stone or even fall into a ditch — that’s not very smart, is it? The same is comparable if you decide to invest in Bitcoin without considering the factors that could affect your investment. Therefore, be on the lookout for these factors before making your investment decision:
Market Analysis and Trends: The cryptocurrency market is notorious for its unpredictability, so monitoring market trends and analysis can help you make informed decisions about when to buy or sell Bitcoin.
Regulatory Environment: Although Bitcoin is a borderless, decentralised digital currency, different countries find ways to regulate its use within their borders. The regulatory situation in your country of residence should be considered so that you know the legality and acceptance.
Security and Storage Considerations: Bitcoin requires secure storage to prevent theft or loss as a digital asset. There are two types of wallets for Bitcoin storage: Hot and Cold wallets. Cold wallets are considered safer as they’re offline and away from the prying eyes of thieves. They’re also excellent at storing coins you’re locking away for the long term. On the other hand, hot wallets are online and can be found in most centralised exchanges. If you choose to use one as a form of storage, ensure you’ve done background checks and that they’ve not experienced security breaches in the past.
Bitcoin Investment Strategies
1. Buy and Hold Strategy
As the name suggests, this strategy involves buying and holding Bitcoin for an extended period. It is for the long term, so you can’t afford to be swayed by short-term price movements and fluctuations.
This strategy is simple, requiring minimal effort, and can be considered a passive income. You simply buy Bitcoin, leave your capital to increase, and cash in your profits at a set time.
Tips: Invest only what you can afford to lose, diversify your investment portfolio, and consider the long-term potential of Bitcoin.
2. Trading Strategy
Trading is the complete opposite of buying and holding. With this strategy, you take advantage of short-term price movements and profit from the fluctuations. So, you buy at a lower price and sell at a higher price.
This is not as simple as this, though. There are lots of techniques and knowledge you must have to be successful in this venture.
Tips: Use technical analysis tools such as charts and indicators to identify trends, set clear entry and exit points, and manage risk using stop-loss orders.
3. Mining Strategy
Bitcoin mining is the process of validating transactions and adding them to the blockchain to earn rewards in Bitcoin. Unlike others on this list, mining requires specialised hardware devices and is electricity-intensive. If you venture into this path, note that you will spend some money before earning the rewards.
So, it’s best to calculate your profitability versus the cost of buying the mining hardware and running costs upfront.
Converting Bitcoin to Naira With The Breet App
The Breet app is the most seamless platform for converting Bitcoin to Naira. Why? It is an over-the-counter trading solution that effectively, profitably, and speedily exchanges your Bitcoin for Naira.
Its processes are almost automatic, as the Breet app is user-friendly and does most of the heavy lifting for you.
Here’s how you can use the Breet app to convert Bitcoin to Naira:
Download the Breet app from the App Store or Google Play Store. If you prefer to use a web app, you can also create an account by entering your data.
Submit the necessary government-issued documents for KYC verification.
Copy your BTC wallet address or scan the QR code to extract it and deposit your Bitcoin into your Breet wallet by transferring it from your existing wallet or exchange.
Breet will identify the incoming BTC and convert it to Naira. You’ll be given a transaction completion time estimate — so just relax and wait for the transaction to be confirmed on the blockchain.
Once complete, you can withdraw your cash into your bank account.
Conclusion
If you’re willing to do the required work, Bitcoin is an exciting investment opportunity. Whether you’re buying and holding, trading, or mining, a clear strategy, an investment goal, and risk tolerance are the deciding factors for your success.
When you’re ready to reap the rewards, the Breet app is the best place to get the value for your BTC as it simplifies the conversion process, making it faster and more secure with juicy rates.
Was this article helpful?YesNo
