Successful investment or simple desire to recover your bet: there always comes a time when the question arises of how to use its cryptocurrencies, that is to say to use their value to acquire goods, traditional currencies or services. Here are the different solutions available to the investor to spend his cryptocurrency.
First track, always with investment logic: you can exchange your cryptocurrency for another dematerialized currency. Transactions take place on specialized marketplaces, a kind of mini stock exchange dedicated to Bitcoin, Litecoin and other Ether currencies. The approach is speculative: we seek to anticipate the fall in the starting currency by exchanging it for another currency which presents upward prospects. Another possibility is to sell your capital for euros or dollars: by recovering fiat currencies, you leave the cryptocurrency circuit.
Buying Bitcoin Goods
Why return to the traditional world when it is possible to buy goods or services directly using your currencies? Many merchant sites now offer the possibility of paying for purchases using a virtual currency. In this model, we proceed exactly as with an online purchase, but the payment is made through a transfer of cryptocurrency, generally Bitcoin.
Another possibility is to spend your cryptocurrency according to its own characteristics: some are indeed backed by specific uses and are exchanged for virtual goods or services. In other words, holding these cryptocurrencies allows you to participate in a specific economic system: transfers between individuals, exchange of services, donations, online voting, etc
How to Trade Cryptocurrencies?
What is cryptocurrency trading and how does this technique make money? To understand how trading works, you have to consider your virtual currency exactly as a stock market value, the price of which fluctuates every minute according to supply and demand. If a lot of amateurs buy Bitcoin, its value will increase. Conversely, when everyone sells, the price tends to fall.
To trade Bitcoin, Ether, Zcash or Litecoin, we will therefore start by buying cryptocurrency on a specialized site. Then, just turn to specialized marketplaces and watch prices while waiting for the right time to place a buy or sell order.
Before any operation, it is better to take the time to analyze the evolution of the cryptocurrency concerned over the last months and check that no external factor is likely to hinder its development.
How to securely store a cryptocurrency? The question is crucial for any Bitcoin buyer: by definition, virtual currency is dematerialized, which means that its value is associated with a simple series of numbers and letters stored on a decentralized IT infrastructure. In this context, how do you keep your currencies warm? Several means of storage are available to the investor.
When you order Bitcoin or Ether on a site, you can choose not to repatriate the funds thus acquired on a third-party tool: they therefore remain stored directly on the purchase site invest in cfds
Cryptocurrency trading is then based on a fairly simple principle: we try to buy the currency when its price is at its lowest, and we keep it until it has risen enough to register a gain. The whole difficulty is of course to anticipate market movements: often, it happens that the value collapses or flies away precisely when the trader has just placed an order betting on the reverse trend.
Some traders work for the long term: for example they buy a currency shortly after its ICO (Initial Coin Offering) and keep it for several months or several years. Others work at the scale of a few weeks, basing their strategy on temporary market disruptions: this is short-term trading.
Finally, some investors carry out almost permanent trading, playing on the micro-fluctuations of the market. They manage to buy and sell several times a day, sometimes on the same cryptocurrency. This technique, supported by dedicated IT tools, is called day-trading, but beware: the risk level is particularly high.
There are two main ways to make the actual purchase. In some cities, there are ATMs that accept cash, debit and credit cards. Transactions are charged up to 18% commission. To purchase, you must have a portfolio set up. Or you can use an online cryptocurrency market that can also offer wallets and vaults. These markets also charge fees.