Knowing when to buy cryptos, and Bitcoin in particular, to optimize their returns has always been the investor’s equivalent of the Holy Grail.
We’ll explore the different strategies Coinhouse offers for investing in crypto below, and answer some of the most frequently asked questions from investors.
What’s the best strategy for investing in Bitcoin and crypto currencies?
Logically, many investors are looking for ways to make the best decisions in a crypto-asset market that has always had the distinction of being highly volatile.
Bear in mind that, even if it remains the leading asset in terms of valuation, Bitcoin can post falls in its valuation of over 10% in a single day.
As for the other assets in the crypto ecosystem, they frequently post even greater rises or falls.
Making money in the cryptoasset market is very simple: just buy at the lowest price and sell at the highest.
But that’s easier said than done.
We can distinguish three types of strategy for taking positions on the market, which we detail below.
Trading
Trading involves analyzing short-term market developments and buying and selling crypto-assets based on various factors, in particular technical price analysis.
This is the riskiest investment strategy, as the only way to make money this way is to be right against the majority of the market.
In fact, only a minority of investors manage to make money through trading, despite the many videos on the Internet promoting foolproof methods for doing so.
Trading requires the ability to keep a constant eye on market developments and react quickly to their ups and downs.
It’s also a method that can put nerves to the test, and requires strong self-discipline to avoid succumbing to emotion-based decisions.
To overcome these limitations, one solution is to be able to delegate trading to experts in the field who constantly monitor market developments to ensure the best possible performance.
Coinhouse offers a "Gestion Pilotée" service that allows you to define the level of exposure best suited to your profile, and let our teams dynamically manage your savings.
Our experts make weekly arbitrages based on market trends.
More information on this product.
Conservation
Holding is the simplest investment method: it simply involves making a purchase in crypto-assets and holding them for a long period, regardless of price trends.
This method is known in the ecosystem by the distorted term "HODL", a reference to "hold" for conservation.
However, like many other assets, Bitcoin goes through a series of bear and bull market cycles.
Over its first ten years of existence, at least six such cycles have been observed, which are by their very nature unpredictable in both amplitude and duration.
In the long term, simply holding bitcoin can be a winning strategy, but it also presents some dangers, particularly for investors who enter the market at the peak, and are therefore forced to wait for a long time before the market turns around.
Coinhouse is a digital asset service provider, AMF-registered for digital asset custody services, and easy to use to implement a custody strategy.
Constant-cost investment (CCI)
Constant cost investing, or dollar cost average (DCA), involves smoothing out your investment over time, whatever the asset’s valuation.
In practical terms, this means that the investor regularly buys crypto-assets for the same amount, say €100 every week or month, regardless of the token’s price.
The frequency of purchases (weekly, monthly, quarterly, half-yearly, etc.) must be determined in advance, and adhered to until the assets are sold.
With this investment method, you don’t have to worry about whether it’s the right time to buy, and you build up your capital over time.
In the event of a market downturn, investors will be able to accumulate more assets for the same amount invested, smoothing out the average purchase cost and reducing the impact of volatility on their portfolio.
In the event of a rise, the capital already invested gradually increases in value, even if the amounts invested decrease.
This is clearly a medium- to long-term investment method.
It is considered by many to be the safest strategy, and is in fact the one recommended by banks to their customers as part of the investment products they offer.
The final advantage of this strategy is that it doesn’t require a large initial capital outlay, since the amounts are invested as you go along.
Coinhouse, through its DCA serviceoffers personalized support in which the constant-cost investment strategy can be applied according to the needs and profiles of our customers.
How can I buy Bitcoin on Coinhouse?
Buying bitcoin on Coinhouse takes just a few simple, secure steps.
First, create an account on Coinhouse.com by providing the required information and going through a verification process, necessary to guarantee the security of your transactions.
Once your account has been validated, you can add funds via bank transfer or credit card.
You can also buy bitcoin with USDC or USDT.
Coinhouse offers an intuitive interface where you then select"Bitcoin" from the various cryptocurrencies available, and indicate the amount you wish to purchase.
Before finalizing the purchase, you’ll have a clear overview of the total cost of the transaction, including Coinhouse fees.
By confirming the purchase, the Bitcoin purchased will be added to your Coinhouse wallet, from where you can manage, hold or transfer them according to your investment needs.
