We’ve come a long way in the world of the best Bitcoin wallet investments. In the early days of Bitcoin, the prices for a single BTC would be $0.01. Today, the price is $700. What a difference. The best bitcoin wallet investment strategy landscape has changed in the past five years. With the introduction of Ethereum, Dogecoin, Litecoin, and other competing digital currencies: Bitcoin has gained some competition in addition to market cap.
Big Money, Big Responsibilities
Bitcoin has 80% market dominance in cryptocurrency. The best bitcoin wallet strategy here is to place your faith into Bitcoin. Because with such a large market cap, it is too big to fail in the digital currency market. Bitcoin has such a huge head-start over its competitors, and is the original digital currency. All of the coins in competing blockchains have features which are easy to implement into Bitcoin.
Speaking of feature implementation, Bitcoin has had many block size debates in the past. One group of people want to increase block size. The other group wants to keep the block size the same, citing Satoshi Nakamoto’s original intentions. It’s obvious that Bitcoin needs to improve to maintain its lead over the competing cryptocurrencies like Ethereum. Bitcoin needs a technological advantage to achieve long-term sustainability in growth. Right now, merchants just aren’t interested in accepting such a slow digital currency.
Buy Low, Sell High
Crowdsales are happening every month. They let you buy into new releases quickly at a low price. But choose wisely, because not all coins are created equal. Ethereum’s inital crowd offering was an incredible deal because Vitalik Buterin was the one behind it all. When you have a person working on nothing but Ethereum, it is bound to be a successful project.
Since then, Ethereum has climbed in value to $20, then back down to $10. Which is why selling high is important. Where there’s massive hype, the price is bound to eventually drop. Sell when you think the interest has peaked. This is when the price is starting to move down and less buyers are entering the market. On the other hand, just holding the btc in the best bitcoin wallet would have been sufficed to net a 3 times return this year. For large scale market cap companies and coins, just holding for the long term is a better strategy for investors. For example, Google and Berkshire Hathaway are large companies that have been on the rise for ages. That’s why it’s so important to hold certain companies for a long period of time before dropping them.
Be on the lookout for new digital currencies
Ethereum is one cryptocurrency that has hit the legendary $1B market capitalization. It’s a milestone that only truly valuable digital currencies can reach. One billion dollars is a huge amount of value for a project. Most projects only receive a few million dollars in funding, while Ethereum has completely overtaken all of its competition.
The primary reason Ethereum is crushing its competition is because of its smart contract functionality. Vitalik Buterin mentioned that Ethereum will be like a smartphone, but for digital currency. The current coins all have different features, but aren’t combined into one. Bitcoin wallets cannot create other digital currency tokens. With Ether, it’s possible for multiple token types to be created.
And this is not once in a lifetime opportunity. In the world of cryptocurrency, it is normal to see prices move from pennies to dimes, to dollars. The price of Ethereum has increased by fifty times since the initial crowd sale.
Keep your Bitcoin Conveniently Accessible in Online Wallets
It’s vital to keep your trading funds easy to access for when you need them. On the other hand, an investor never keeps his funds all in online exchanges. After all, Bitfinex was recently hacked for $100M and users lost 30% of their holdings. Such an event is common in this industry. The compromise here is to place your Bitcoin in a secure online bitcoin wallet like this one with bonus security and investment features. When big opportunities come, you can swoop in with the BTC deposit into an exchange to maximize the return. If you keep all the Bitcoin in cold storage, it could cost you a massive trade opportunity and cut into your profits.