Investing in bitcoin

The creation of Bitcoin is an incredibly interesting development in the monetary system. You're in charge of your own money, transactions are extremely fast (even outside of ‘business hours’), and you can send bitcoin to anyone in the world (without any difference in transaction costs).

But you can also invest in the cryptocurrency. That's what a lot of people do at the moment. The value of bitcoin has grown tremendously over the last ten years. If you get it right, you can get a huge return with trading in bitcoin.

Just started out with bitcoin? Then BLOX is the way to go! BLOX is an all-in-one cryptocurrency app. Without any technical foreknowledge you can trade in bitcoin and other cryptocurrencies. Buy or sell your coins in just a few clicks. You can start for as little as 1 euro, so anyone can join!

A lot of love went into creating the BLOX app, and it shows. The app is so easy to use, we bet that even your grandma can use it! The app is completely free to download on Android and iOS.

But we're drifting off. You want to know how to invest in bitcoin. You can simply make a purchase, but you can also create a strategy. What do we recommend?

The term is ‘dollar cost averaging’, but of course you can also do this with euros ;) Dollar cost averaging (DCA) means that you buy a fixed amount of bitcoin at a fixed time. The big advantage of DCA is that you can largely ignore the daily price movements.

Since you’re spreading your chances, you are less dependent on the price. This way of investing is rather relaxed! If you are just starting out in the world of bitcoin and cryptocurrency, DCA is an excellent strategy for you.

An example: suppose you buy 10 euros worth of bitcoin on every last day of the month, for eight months. You start in March 2019 and end in October 2019. This is how an overview of your purchases would look like:

You’ve spent 80 euros in total, in exchange for 0,01234909933 bitcoin. Since you’re spreading your investment, you’re more in line with the general trend of the price instead of its extreme highs and/or lows. At the moment of writing, your 80 euros are worth more than 90 euros, so by sticking to a strategy you’ve already made a profit!

With the BLOX app, you can deposit an amount in euros to top up your credit. Then, you’re all set to invest 10 euros each month. Or maybe a different amount? It’s all up to you!

If you’re more experienced in the crypto market and you have all the time in the world, then daytrading may be more your thing. As a daytrader you don't let the price out of your sight. Does bitcoin reach a bottom? Then it's time to buy. When the bitcoin price reaches a top, you quickly have to sell. You’re continuously buying and selling bitcoin at different times of the day (or week).

That may sound simple, but timing the perfect trade is difficult. The bitcoin market is volatile and hard to predict. In a matter of seconds the price can change. Movements of ten percent in an hour are normal for bitcoin, so you want to keep an eye out. With the BLOX crypto app this is a piece of cake.

Want to give it a try? Download BLOX and follow the bitcoin price in real-time. Change your euros into bitcoin in no time, or the other way around.

With BLOX you can trade in other popular crypto coins as well. Notice a drop in bitcoin, but a rise in stellar? Then sell your bitcoin and use your credit to buy stellar. This only takes a second, and you don't need any technical knowledge.

It’s easy to let your emotions take over when you see the bitcoin price going up and down like a rollercoaster. So always make a plan for yourself.

The information in this article is not intended as investment advice. Cryptocurrency is an interesting investment, but the price is very volatile. Never invest more than you are willing to lose, and keep a cool head.