Bitcoin (BTC) Reserve Investment: What Is It? Explain The Merits And Important Points

By Gretchen Clarke- Nov 16, 2022 115

"What is Bitcoin (BTC) reserve investment?" 

"What are the benefits of a funded investment? What kind of person is suitable?" 

For those who are skeptical, this article will present the advantages and disadvantages of Bitcoin (BTC) reserve investment, profit points, and domestic exchange providing reserve services. 

Reserve investment is an investment method used in various markets such as stocks and gold. 

It does not require any special studies or skills, and it is easy for anyone to get started, a method that offers the possibility of delivering higher returns than short-term investors. 

For those who are not confident that they can benefit from aggressive trading by analyzing the chart screen, or for those who want to build long-term wealth, a funded investment is the best way. 

If you use the exchanges introduced in this article, you can automatically set up an investment every month, so please try this as a reference.


What is Bitcoin (BTC) reserve investment?


Bitcoin (BTC) reserve investment is a method of investing regularly for a certain period of time, such as monthly or weekly.


By diversifying your shopping time, you can start small and reduce investment risk as well as asset loss. There is a method of investing funds alone, which is called financial investment as a meaningful investment and goal method. If the market grows in the long run, a single investment has a higher return on investment than a funded investment.


However, risk also increases, so if you are new to investing or want to reduce risk, we recommend a well-funded investment.


Benefits of investing in Bitcoin (BTC)


The benefits of investing in Bitcoin (BTC) are as follows.


      You can start with a small amount of investment

Even if you do not have large sums of money, it is possible to start with a small investment.


Depending on the large exchange, you can start investing in a financing unit from 1 to unlimited. So it is ideal for those who want to start small.


You may be feeling, "Isn't this a small profit?", But that's not the point at all.


If we invest 100 dollars every month from April 2020 to April 2021, we can raise an annual return of 324%, which is more than 50000 dollars in one year.


The average return on the US stock market is said to be 6-7% per year, so you can see how terrible the returns are.


      No time or effort to invest


There are also benefits to saving time and labor.


Major domestic exchanges have an automated investment service, which allows you to invest a certain amount of time and amount automatically without the hassle of manually purchasing each month.


Once set up, you have to give it up altogether, so this is an investment method that even busy people can do.


      Diversified investment can reduce risk


Since a funded investment is a method of buying at a fixed price per month, you will inevitably invest in Bitcoin (BTC) at a different price per month.


This is called diversified investment.


By making a diversified investment with a certain amount each month, you will buy more Bitcoin (BTC) in case of a crash and a smaller amount in case of growth.


Thus, the average purchase price is kept low, and there is an advantage that is easy to gain in a market that has grown in the long run.


Diversified investment is very important for a handful of investments. Because there is a high risk of sinking immediately after the investment.


Disadvantages of investing in Bitcoin (BTC)


The disadvantages of investing in Bitcoin (BTC) are as follows.


      May increase losses


Funded investments have the advantage of reducing risk and making a profit, but only if the market grows steadily in the long run.


If it does not recover after the crash, even if you can buy Bitcoin (BTC) at a lower price, it will only increase the damage.


Thus, when investing in financing, it is important to choose a market with long-term growth potential.


      We can't make money in the short term


Unlike a handful of investments, a funded investment is a small investment to bring to the market, so you can't make much money in the short term.


The return on investment is determined by the size of the original.


However, in the long run, the amount of money invested can be saved and a big return can be achieved.


That Bitcoin (BTC) reserve is suitable for investment


The following persons are eligible to invest in Bitcoin (BTC) reserves


      Investment beginner


Reserve investment can be bought automatically by setting it once. So it is ideal for investment novices who cannot read market prices and charts.


Those who can read the chart can trade and earn in short-term trends.


However, it is difficult for newcomers to make easy profits with Bitcoin, which is volatile.


If you can expect Bitcoin (BTC) to grow higher in 5 or 10 years, then choose a funded investment that you can buy without worrying about daily price fluctuations.


      Those who want to trade from a small amount


If you do not have an investment policy and you want to start trading in small amounts, then a funded investment is appropriate.


If it is an internal exchange, it is possible to set a reserve from a small amount like 1 to 50 dollars.


You can start with an amount that you can invest without worrying and then increase the amount you have saved as you get used to it.


      Those who want long-term asset formation


We recommend a well-funded investment for those who want to make money in the long run, not those who want to make money in the short term.


As we have explained, it is difficult to make a small profit by investing a small amount every month, so it is important to continue investing in the long run.


Bitcoin (BTC) is called digital gold. It is becoming an investment target for institutional investors and prominent investors as an inflation hedge, so let's sit back and invest in long-term reserves.


      People who don't want to be overwhelmed by price fluctuations


Reserve investment is suitable for those who are not worried about price fluctuations.


Short-term investments require frequent chart checking, which can be very stressful in volatile Bitcoin (BTC) markets. If you make a mistake when buying or selling, your profit will be significantly reduced, so you need to pay attention.


How many people can have time to calm down and look at charts while working or doing homework?


If you want to invest in short-term price movements without getting bored, invest in a reserve.


Points for investing in Bitcoin (BTC)

The points when investing in Bitcoin (BTC) are as follows.


      Operate with surplus funds


Make sure to invest in a reserve with surplus funds.


Surplus funds are money that you don't lose but don't disrupt your life. Don’t save your living cash because you want to make a quick profit.


The most important thing about a well-funded investment is to keep the funds running.


Instead of investing in living funds and being unable to continue, go for as long as you can afford it with surplus funds.


      Continue to invest even in a plunging market


Although we know it is essential to continue, many people leave their reserves in recession.


When you invest a reserve in a submerged market, the risk increases, so you worry, "Isn't that so risky?"


You might think, "If you give up your investment now, it won't hurt you!" But if you start with long-term growth expectations, you should never give up your investment. You might think of this as an opportunity to buy cheap Bitcoin (BTC) in the crash market. Indeed, with funded investments, returns will be higher during the post-crash period.


You may be worried if you encounter a crash for the first time, but be sure to continue.


Bitcoin (BTC) Reserve Investment Conclusion

During this time, we have launched domestic exchanges that offer deposit services for those who want to invest in reserves, with advantages and disadvantages, points of profit, and reserves.


With a well-funded investment, you don't have to worry about daily price fluctuations and you can make a small amount of money in the long run.